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Enhancing Resilience in Pastoralist Areas: Market Expansion Strategies

Learn how the PRIME Project empowered pastoralists with access to finance and improved livestock markets through strategic partnerships and innovative financial instruments. Discover valuable lessons and challenges faced during its implementation.

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Enhancing Resilience in Pastoralist Areas: Market Expansion Strategies

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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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