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Michael Jacobs June 15, 2016

Michael Jacobs June 15, 2016. Pastoralist areas Resilience Improvement through Market Expansion. Implementing Partners. PRIME Project. Experiences. Regular Activities Facilitate micro-finance Institutions Facilitate mobile money transfer Improve access to finance for livestock traders

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Michael Jacobs June 15, 2016

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  1. Michael Jacobs June 15, 2016 Pastoralist areas Resilience Improvement through Market Expansion

  2. Implementing Partners

  3. PRIME Project

  4. Experiences Regular Activities Facilitate micro-finance Institutions Facilitate mobile money transfer Improve access to finance for livestock traders Drought Response Activities Cash transfer through micro-finance institutions Destocking through subsidy to livestock traders

  5. Micro-Finance Institutions Limited or no access to finance / rural areas Facilitate MFI’s to set-up Expand branches and agents in rural areas Develop appropriate finance instruments (Shiria compliant) Access to finance / Money transfer Savings culture improved (future investment or challenges) Loans for home improvement, businesses Improved livestock markets for pastoralists

  6. SMFI and Hellocash • Limited rural access to finance • License from the national bank • Hardware / System • Money transfer / Savings • Air time / access to market information • 85,000 users, 5 times the number of customers they had 2 years ago

  7. Livestock Producers and Traders • Access to regular and reliable markets • Access to finance • Develop partnership between traders and MFI’s • training on Islamic Finance, product development, and exposure visits • appropriate financial products for livestock traders available

  8. Livestock Producers and Traders • volume of animals sold to local and international markets increased • Stimulated markets created opportunities for local collectors • Better quality and price for animals at markets • Observations indicate that producers did not have to travel as far and are paid sooner • Livestock traders continue to access loans from MFIs

  9. Cash transfer • Severe drought created a cash problem • Cash transfers through MFI bank and mobile accounts • Required a National ID card • Trainings to encouragesavings, money management, and nutrition • Afar – left some money in account • Even if 15% retain accounts, something to build on

  10. Intensified Livestock offtake • Drought affected livestock not attractive for traders • Subsidy set considering feed cost, transport, water, veterinary needs • traders had to purchase from specific markets • Animals were marked at the point of sale • Animals had to be sold outside of drought affected area • Relationship built between actors • Producers received a better price

  11. Lessons / Challenges • Encouraged more licensed traders • Introduced verification / ID techniques • Conditioning before sale • Minimum number shoats to claim subsidy • Excitement not frustration • MFI Agents need to have cash on hand

  12. Lessons / Challenges • National ID cards for accounts • Mobile set up and connection • Market / trader/ abattoir relationships • Feed suppliers too few • Shortage of working capital

  13. Questions?

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