Ethiopia Local Economic Development (LED) Pilot Report A Transformational Approach in Kebri Beyah Woreda We acknowledge funding provided by the Multi Donor Trust Fund for Forced Displacement as part of the Prospects Program, which made this report possible. © December 2024 | International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved. Rights and Permissions The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes if full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: +1-202-522-2625; e-mail: pubrights@worldbank.org. Photo credits: DMI. Ethiopia Local Economic Development (LED) Pilot Report A Transformational Approach in Kebri Beyah Woreda i Contents Abbreviations and Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 The Transformational LED Approach in Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 What is an LED Approach? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Why Is a Transformational LED Approach Needed in Ethiopia? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 LED Landscape in Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3 Operationalizing the Transformational LED Approach in Kebri Beyah . . . . . . . . . . . . . . . . . . . . . 8 Overview of the Pilot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Woreda-Level Operationalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LED Stakeholder Mapping and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LED Platform Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Development of the Kebri Beyah LED Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 4 Pathways to Replicability, Deepening Impact, and Expanding Reach . . . . . . . . . . . . . . . . . . . . . . 38 Replicability and Scalability Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Cost Considerations and Implementation Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Dissemination Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 5 Results Achieved and Lessons Learned from the Kebri Beyah LED Pilot . . . . . . . . . . . . . . . . . . . 43 OUTPUT 1. Note on Stakeholder Mapping and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 OUTPUT 2. Organization of LED Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 OUTPUT 3. Preparation of LED Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 OUTPUT 4. Implement LED Strategy and Enhance Local Government Capacity . . . . . . . . . . . . . . 46 OUTPUT 5. Results Documentation and Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 OUTPUT 6. Knowledge Management and Toolkit Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Innovative Features of the Pilot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 6 Lessons and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Appendixes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix A. Stakeholder Interests and Influence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Appendix B. Sample Memorandum of Understanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Appendix C. Results-Based Monitoring System for LED Strategy Implementation . . . . . . . . . . . . 73 Appendix D. Value Chain Selection Based on Stakeholder Ranking . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Appendix E. LED Pilot Results Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 ii Boxes 1.1 Selection of Kebri Beyah Woreda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3.1 Transforming the Poultry Value Chain in Kebri Beyah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.2 The Vital Role of Camels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.4 Stakeholder Feedback: Community Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3.3 Stakeholder Feedback: Local Government Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3.5 Stakeholder Feedback: Nongovernmental Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3.6 Stakeholder Feedback: Private Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3.7 Stakeholder Feedback: International Development Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 3.8 Stakeholder Feedback: Women and Marginalized Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 3.9 Inkomoka in Kebri Beyah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Figures 2.1 Moving from a Traditional to a Transformational LED Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 Local Economic Development Stakeholders in Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.1 LED Pilot Focus Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.2 Key Pilot Implementation Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.3 Kebele Coverage of Main Public-Private Partners Identified for Participation in LED Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.4 LED Governance Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3.5 One-Year Gantt Chart for the LED Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 6.1 Digital Map of Identified Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 A.1 Classification of Stakeholders by Level of Interest and Power to Influence . . . . . . . . . . . . . . . . . . . 62 A.2 Classification of Stakeholders by their Relevance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Map 3.1 Kebeles in the Kebri Beyah Woreda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tables 2.1 Traditional Versus Transformational Approaches to Local Economic Development . . . . . . . . . . . 5 3.1 Roles and Responsibilities of Key Implementation Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.2 Composition of the LED Coordination Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.3 Results of SWOT Analysis of LED in Kebri Beyah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.4 LED Strategy Goal, Objectives, and Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.5 Monitoring, Evaluation, and Learning Framework for Woreda LED Strategy in Kebri Beyah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 A.1 Stakeholder Interests and Power to Influence Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 iii Abbreviations and Acronyms C4D Communication for Development MoU memorandum of understanding CSO civil society organization NGO nongovernmental organization DMI Development Management PPP public-private partnership International RRS Refugees and Returnees Services DRDIP Development Response to SWOT strengths, weaknesses, opportuni- Displacement Impacts Project ties, and threats GIZ Deutsche Gesellschaft für UNDP United Nations Development Internationale Zusammenarbeit Programme LCC LED Coordination Committee UNHCR United Nations High Commissioner LED local economic development for Refugees M&E monitoring and evaluation Kebri Beyah LED Office—One-on-one consultation iv First consultation workshop, May 2024, Jijiga Executive Summary Ethiopia has made huge strides in slashing pov- hosting woredas in Ethiopia to link members of erty. Between 1995 and 2023, it more than halved poor communities, including women and youth the number of people living below the interna- entrepreneurs, to economic opportunities. How- tional poverty rate, from 69 to 27 percent of the ever, these efforts have not yet made an impact population.1 This drastic drop is hailed as one of at scale. Sustainable local economic devel- the great development success stories of the opment necessitates a more integrated and 21st century. It was driven by breakneck rates coordinated approach beyond project-based of economic growth, averaging 9.5 percent per interventions. The World Bank’s transformative year for almost a decade, until 2019, according to local economic development (LED) framework the International Monetary Fund. prioritizes creating enabling environments that foster economic growth through strategic inter- Despite such progress, Ethiopia continues to be ventions in the local business landscape, skills home to a large population of very poor and vul- development, and territorial clustering. nerable people who have not benefited equally from growth. Ethiopia is currently hosting over The Ethiopia LED Pilot in Kebri Beyah Woreda, 1,000,000 refugees, 350,000 of whom are in implemented from February 2023 to Decem- Somali region. The refugee presence can place a ber 2024, aimed to move beyond traditional strain on public services and the environment, but fragmented economic development to fos- research shows that it can also generate signifi- ter a collaborative and integrated ecosys- cant opportunities for livelihood and economic tem for economic growth at the woreda level development. Multiple ad hoc programs and in Ethiopia. The pilot was conceptualized initiatives have been conducted in refugee- as part of a broader effort to operationalize recommendations from a 2023 World Bank 1 UNDP Multidimensional Poverty Index: https://hdr.undp.org/con- paper on LED in Ethiopia aimed at acceler- tent/2024-global-multidimensional-poverty-index-mpi#/indicies/ MPI. ating local economic growth and inclusive v post-COVID-19 recovery, particularly in refugee- details proven approaches for improving coor- hosting areas. dination among LED partners, establishing effective public-private partnerships, enhancing The pilot, a collaboration between the World last-mile service delivery, and increasing access Bank, the Ministry of Agriculture’s Development to finance for local Ethiopian communities. Response to Displacement Impacts Project Moving forward, this pilot report can be used (DRDIP), and the Kebri Beyah woreda govern- as a reference document to guide subsequent ment, sought to improve coordination among replication and scale-up of the transformative various LED actors by establishing a multis- LED approach, which has the potential to signifi- takeholder institutional platform for continued cantly enhance sustainable and inclusive eco- coordination on woreda-level LED and by fos- nomic growth in Ethiopia. tering sustainable livelihood activities for com- munities and refugees living in Kebri Beyah. Overall, the pilot has significantly enhanced the Key activities under the pilot included conduct- local government’s capacity to implement a ing an LED stakeholder mapping, establishing LED approach, fostering improved coordination a woreda-level LED platform, developing and among LED actors and enabling more compre- operationalizing the Kebri Beyah woreda LED hensive livelihood support for communities in strategy, and preparing an operational toolkit Kebri Beyah woreda. to guide replication of similar LED activities in other woredas. The anticipated impacts include Key achievements of the pilot include: increased job creation, enhanced enterprise participation by women and youth, improved \ Strengthened coordination. The pilot fostered access to finance, and a strengthened LED eco- stronger collaboration among LED partners system at the local level. and initiatives, leading to increased public- private partnerships. The LED pilot provided the opportunity to test and refine the transformative LED approach in \ Developed LED strategy. A joint public-private LED Ethiopia for the first time. This report captures strategy was developed and formally adopted and shares the methodologies—including the by the woreda government. operational toolkit, best practices, and lessons learned from the pilot project, and additionally \ Established public-private platform. The establish- ment of a public-private LED platform inte- grated with the woreda government ensures the sustainability of LED efforts. vi 1 Kebribeyah, LED strategy development, June 2024 Introduction The local economic development (LED) pilot presented in the 2023 World Bank paper titled project in Kebri Beyah aimed to build the capac- Facilitating an Inclusive and Long-Term COVID- ity of local government institutions to imple- 19 Recovery in Ethiopia with a Local Economic ment and sustain a coordinated LED approach Development Approach), which was informed in the refugee-hosting woreda. The pilot moved by consultations with various organizations and beyond the traditional, fragmented develop- experts involved in the LED agenda in Ethiopia, ment interventions to create an integrated as well as consultations with key stakeholders in ecosystem where various stakeholders—includ- Afar, Benishangul-Gumuz, Gambella, and Somali ing government bodies, private sector entities, regions, which host most of the refugees in Ethi- social enterprises, and development partners— opia. Based on additional consultations held in work in concert toward shared economic goals. October 2022 with the Ministry of Agriculture Recognizing that isolated interventions have (MoA) project coordination unit of the Develop- historically fallen short of achieving transfor- ment Response to Displacement Impacts Proj- mational economic impact in Ethiopia, the ect (DRDIP) Phase II (P178047), it was agreed that pilot, which was implemented from November the government team would, in consultation 2023 to December 2024, specifically sought to with the regional and woreda (district) govern- improve coordination among LED actors, allow- ments, identify a woreda where the transforma- ing them to provide more comprehensive liveli- tional LED approach would be piloted (box  1.1). hood support. The pilot documented its operational learning and processes to inform the preparation of an The pilot aimed to accelerate long-term local LED operational toolkit that can be used to repli- economic growth and inclusive recovery as part cate and scale up the approach in other refugee- of the operationalization of recommendations hosting woredas across the country. 1 ducting an LED stakeholder mapping and anal- Box 1.1. Selection of Kebri Beyah Woreda ysis; (2) setting up a woreda-level LED platform; Kebri Beyah is home to the oldest remaining (3) developing and operationalizing the woreda refugee settlement in the Somali Region. It offers LED strategy; and (4) preparing a LED toolkit unique LED opportunities due to its infrastructure based on operational learning to help replicate and proximity to the region’s dynamic capital—it is and scale-up the approach in other woredas. The located 50 kilometers southeast of Jijiga. anticipated impacts of all pilot activities include the following, with some effects expected to be realized beyond the pilot period: The Kebri Beyah pilot pursued four intercon- nected objectives: (1) improve coordination \ An increase in jobs among various LED actors, including govern- \ An increase/improvement in the density of ment agencies, private sector entities, develop- nano- or micro-enterprises ment partners, and community organizations; \ Increased participation of women and youth (2) develop comprehensive livelihood support in economic activities systems that can effectively serve both refugee \ An increase in access to finance in target and host communities; (3) transform traditional communities. subsistence-based approaches into sustainable \ Improvements in the LED ecosystem at the economic development frameworks that can woreda level. drive long-term growth; and (4) create lasting institutional platforms that can continue to facil- The objective of this report is to summarize itate economic development beyond the pilot the progress made and lessons learned under period. the LED pilot in Kebri Beyah woreda, which was implemented by the Ministry of Finance and Eco- The pilot was executed by the World Bank in nomic Development (MOFED) from November close collaboration with the DRDIP coordination 2023 to December 2024. Throughout the pilot, unit at the federal and regional levels. Funding the groundwork for the design was finalized, for the pilot was provided by the Prospects Trust stakeholder mapping conducted, relevant actors Fund.1 The Kebri Beyah woreda government led identified, the LED platform established, and the implementation and was supported by the pri- LED strategy completed for operationalization. mary implementation partner Development Management International (DMI), which was The Kebri Beyah pilot serves as a strong founda- contracted by the World Bank following a com- tion for establishing a proof of concept on effec- petitive tendering process. Additional develop- tively implementing LED in other regions within ment and humanitarian partners, including the Ethiopia and beyond. It lays the groundwork for United Nations High Commissioner for Ref- the continuation of LED activities within Kebri ugees (UNHCR), also contributed during the Beyah in line with the LED strategy beyond the design stage to provide input that informed the pilot period. pilot approach. Key activities included: (1)  con- 1. Partnership for improving prospects for forcibly displaced per- sons and host communities (PROSPECTS) is a global partnership that aims to improve the access of host communities and forcibly displaced people to education, social protection, and decent work. 2 2 LED team visits Horn Afrique Poultry Farm, Jijiga The Transformational LED Approach in Ethiopia What is an LED Approach? International development agencies and west- ern scholars distinguish between traditional and Local economic development (LED) is a territo- current LED approaches. Traditional approaches, rial approach to development planning. It refers which are still employed by many local govern- to the “process by which public, business and ment authorities in developing countries, consist nongovernment sector partners work collec- of efforts by local authorities or municipalities to tively to create better conditions for economic attract firms to a specific locality through subsi- growth and employment generation” (World dies, infrastructure, and tax breaks, as well as by Bank 2006: 1). It focuses on maximizing the supporting existing enterprises. In comparison, comparative advantages of localities, includ- LED is increasingly seen as a process by which ing improving the local business environment; multiple actors work together (i.e., a multistake- building local skills; promoting cluster develop- holder approach) to devise and implement ini- ment, which often involves micro-, small, and tiatives to stimulate or revamp local economies medium-sized enterprises; and encouraging and create local prosperity. The success of LED trust and partnerships between the private sec- is therefore not measured solely in terms of tor, public institutions, and civil society (Rucker enhanced economic activities and job creation and Trah 2007). in a given area, but also based on the generation of a strong stakeholder partnership arrange- LED measures encompass more than support ment that allows government agencies, local from local government authorities for agricul- businesses, and civil society actors to negotiate ture and micro- and small-scale enterprises. the best ways to promote LED. 3 Why Is a Transformational LED heavy investment in livelihood and employment Approach Needed in Ethiopia? generation programs from a range of actors, results have not been achieved at the neces- Ethiopia has made huge strides in slashing pov- sary scale or impact to move Ethiopian house- erty. Between November 28 and December 11, holds and refugees beyond subsistence levels. 2024, it more than halved the number of people Further, information is limited regarding the living below the international poverty rate, from activities of relevant actors, what can be learned 69 to 27 percent of the population. 2 This drastic from other projects and experiences, and how drop is hailed as one of the great development their strengths and weaknesses could be lever- success stories of the 21st century. It was driven aged to amplify their impact and scale. In sum, by breakneck rates of economic growth, aver- the potential to achieve transformational LED in aging 9.5 percent per year for almost a decade, Ethiopia is limited by several critical challenges: until 2019, according to the International Mon- etary Fund. The improved human develop- \ Fragmented development efforts. Despite various ment outcomes in terms of education, health, stakeholders working in LED, efforts remain and other measures are largely attributable mostly uncoordinated, leading to duplication to growth in the agricultural sector and public and inefficient resource utilization. investment-led growth in urban areas (Ronnas \ Last-mile service delivery gaps. There is a nota- and Sarkar 2019). Poverty reduction has been ble disconnect in delivering economic sup- particularly pronounced in urban areas but has port services to communities, particularly in occurred across the country (World Bank 2020). refugee-hosting areas, where comprehensive livelihood support is crucial. Despite such progress, Ethiopia continues to be \ Limited-scale and impact. Current project-based home to an extremely large population of very interventions rarely achieve results beyond poor and vulnerable people. With an estimated subsistence levels, highlighting the need for per capita annual income of US$1,130 in 2023, 3 more transformational approaches. Ethiopia remains one of the poorest countries in \ Coordination and capacity challenges. Local govern- the world and, more crucially, despite decreas- ments, while positioned at the forefront of ing levels of overall poverty, the poorest have economic recovery efforts, face substantial not benefited equally from growth—consump- challenges to establishing effective partner- tion levels among the poorest rural groups have ships with communities and private sector remained nearly unchanged, and shock-induced entities, and would benefit from applied train- vulnerability is high. ing on strategic planning, resource mobiliza- tion, and monitoring. Multiple ad hoc programs and initiatives to sup- port income-generation and livelihood have A new way of working was identified to scale been conducted all across Ethiopia, but particu- up the impact of LED interventions in Ethiopia. larly in refugee-hosting woredas where multiple Instead of working largely through project-based NGOs, humanitarian partners, and develop- approaches, this new transformational platform- ment agencies tend to operate. Most of these based approach creates synergies and leverages projects operate in isolation. And despite the the potential of a variety of actors to coordinate activities and support LED at the woreda level 2. UNDP Multidimensional Poverty Index: https://hdr.undp.org/ (figure 2.1). content/2024-global-multidimensional-poverty-index-mpi#/ indicies/MPI. 3. World Development Indicators: https://databank.worldbank.org/ source/world-development-indicators. 4 Figure 2.1. Moving from a Traditional to a Transformational LED Approach Local government Local government Community Training support institutions organizations Communities, Communities, women and youth women and youth Financial Social entrepreneurs, and entrepreneurs, institutions enterprises collectives (building and collectives on existing CDD to scale) Banks Foundation Digital NGOs and impact enterprises investors Private sector Traditional LED Inclusive and Transformational LED Increasing the intensity and density of support for faster and longer-term local economic recovery The Ethiopia transformational LED pilot origi- This evolution underscores the understanding nated in recognition of the need for better inte- that sustainable LED demands a more inte- gration of and coordination among stakeholder grated and coordinated approach. The trans- efforts as well as the development of more formational LED framework prioritizes the comprehensive platforms for economic devel- creation of enabling environments that foster opment at the woreda level. A dedicated LED economic growth through strategic interven- platform helps aid the transition from traditional tions in the local business landscape, skills devel- community-based subsistence models to trans- opment, and territorial clustering. The transition formational development strategies (table 2.1). to a transformational LED approach is a crucial Table 2.1. Traditional Versus Transformational Approaches to Local Economic Development Aspect Traditional Approach Transformational Approach Stakeholder engagement Limited Broader stakeholder participation Project structure Isolated, project-based Platform-based solutions interventions Outcome focus Immediate, short-term Sustainable, long-term outcomes Digital solutions Minimal integration Integration of digital enterprises Private sector involvement Limited Enhanced public-private partnerships Social and financial engagement Minimal engagement of social Active engagement of social enterprises enterprises and financial institutions 5 advancement in tackling Ethiopia’s develop- While they are all working to promote local eco- ment challenges and in fostering sustainable nomic development, they often do so in isola- economic opportunities at the local level. This tion or without coordinating among themselves. is particularly relevant to refugee-hosting areas, Key institutional stakeholders in Ethiopia’s eco- where fragmentation of efforts to support LED nomic landscape can be categorized into five is acute. main groups: LED Landscape in Ethiopia 1. Private sector and nontraditional actors. This diverse group includes a range of actors that are One benefit of an LED approach is that it marks particularly important in promoting innova- a shift from nationally or internationally owned tion and creating market-based solutions for top-down development programs to participa- development challenges, including: tory bottom-up development processes that are locally owned and involve a range of stakehold- \ Social enterprises focused on supporting ers. Ethiopia’s LED landscape is characterized by marginalized populations a complex network of stakeholders operating \ Digital financial enterprises providing across multiple sectors and levels (figure 2.2). modern financial services Figure 2.2. Local Economic Development Stakeholders in Ethiopia Government stakeholders Financial institutions Banks Digital nancial enterprises Development actors Donors and development agencies Communities, Foundations youth and women Multilateral organizations entrepreneurs and collectives Private sector and nontraditional actors Community support Social enterprises organizations and NGOs Incubators and accelerators Digital enterprises Business development services 6 Ato Negatu’s opening speech at the LED strategy launch in Jijiga, November 26, 2024 \ Digital enterprises offering business devel- 4. Development actors. This category includes foun- opment support dations, international NGOs, multilateral \ Startup incubators and accelerators. organizations, and development agencies from donor countries, which provide both 2. Government stakeholders. Various government funding and operational support for eco- bodies play crucial roles in economic devel- nomic development initiatives. They include: opment, with particularly important roles held by: \ United Nations \ International Finance Corporation \ The Ministry of Labour and Skills (formerly \ World Bank Jobs Creation Commission) \ United States Agency for International \ The Ministry of Agriculture Development \ The Ministry of Women and Social Affairs \ Deutsche Gesellschaft für Internationale \ The Federal Technical and Vocational Edu- Zusammenarbeit (GIZ). cation and Training Institute \ The Refugees and Returnees Services 5. Financial institutions. These institutions include (RRS). formal institutions, such as banks, as well as digital enterprises. 3. Community support organizations and nongovernmen- tal organizations (NGOs). These organizations The pilot’s LED platform aims to work in coor- focus on the economic and social empower- dination with all actors and was established to ment of vulnerable groups, particularly youth, enable a more systematic operationalization women, and refugee communities. They of LED principles to spur inclusive LED in Kebri work to expand access to finance, support the Beyah woreda. creation of self-help groups, and develop cooperatives at the local level. 7 3 LED strategy launch, November 26, 2024 Operationalizing the Transformational LED Approach in Kebri Beyah Overview of the Pilot \ Active economic base. A vibrant business and cooperative sector serve as a foundation for Rationale economic initiatives. \ Digital readiness. The presence of digital ser- The selection of Kebri Beyah for this pioneering vice providers enables modern economic LED initiative was strategic and deliberate, based solutions. on several compelling factors: \ Social cohesion. Strong existing social bonds between refugee and host communities facil- \ Strategic location. Situated 50 kilometers south- itate inclusive development. east of Jijiga, the regional capital of Somali \ DRDIP integration. The area’s inclusion in DRDIP Region, Kebri Beyah benefits from its proxim- Phase II provides institutional support. ity to a major economic hub. \ Historical significance. As home to Ethiopia’s old- Geographic and Demographic Context est operating refugee settlement, Kebri Beyah Kebri Beyah’s administrative structure com- offers unique insights into refugee-host com- prises Kebri Beyah woreda and Kebri Beyah City. munity dynamics. The presence of refugees Kebri Beyah woreda has 26 rural kebeles (vil- creates opportunities but also tends to lead lages) and 2  urban kebeles (Harta Shek 01 and to fragmentation of development initiatives, Harta Shek 02). Kebri Beyah City has nine urban making Kebri Beyah an appropriate location kebeles. With a total of 37 kebeles (26 rural and to test the LED approach. 11 urban), Kebri Beyah’s diverse mix of settings \ Existing infrastructure. The presence of estab- provides an ideal testing ground for transfor- lished physical and institutional infrastructure mational, ecosystem-based LED approaches supports pilot implementation. (map 3.1). 8 Map 3.1. Kebeles in the Kebri Beyah Woreda Key Objectives \ Developing comprehensive livelihood sup- port systems that can effectively serve both The primary objective of the LED pilot was to refugee and host communities. build the capacity of local government institu- \ Transforming traditional subsistence-based tions to implement and sustain a coordinated approaches into sustainable economic devel- LED approach. The pilot’s interconnected objec- opment frameworks that can drive long-term tives included: growth. \ Creating lasting institutional platforms that \ Improving coordination among various LED can continue to facilitate economic develop- actors, including government agencies, pri- ment beyond the pilot period. vate sector entities, development partners, and community organizations. 9 LED Pilot Focus Areas Timeline and Scope The pilot is aimed at addressing identified chal- The pilot began implementation in November lenges in a structured approach focused on 2023, when DMI was contracted as facilitating three main areas (figure 3.1): partner. The grant was approved in March 2023, but the procurement of facilitating partner took 1. Create an enabling environment for coor- eight months. dinating an inclusive LED ecosystem at the woreda level by conducting a stakeholder The LED pilot implementation has been follow- mapping, building public-private partnership ing a carefully structured five-phase approach platforms, and strengthening local govern- designed to ensure systematic progress and sus- ment capacity. tainable outcomes. 2. Strengthen the implementation architecture 1. Preparatory Phase and last-mile service delivery through part- The initial phase focused on establishing the nerships, emphasizing the aggregation of foundational elements necessary for successful existing cooperatives and community groups, implementation, including stakeholder identifi- enhancing financial empowerment, and fos- cation, initial consultations, and the setting up tering market linkages. of basic coordination mechanisms. During this phase, the pilot team secured buy-in from key 3. Incorporate robust monitoring and knowl- stakeholders and established clear communica- edge management components into doc- tion channels. ument learning, and develop operational toolkits for future scaling. Figure 3.1. LED Pilot Focus Areas 10 Figure 3.2. Key Pilot Implementation Steps 2. Woreda LED Diagnostic Phase 5. Learning and Dissemination Phase The diagnostic phase involved a comprehensive The final phase was to capture lessons learned, assessment of Kebri Beyah’s economic land- document best practices, and prepare materi- scape, including analyzing existing economic als for potential replication in other contexts, activities, identifying potential growth sectors, including operational toolkits, case studies, and mapping available resources, and understanding sharing experiences with other woredas and local market dynamics. The diagnostic work pro- regions. vided crucial baseline information that informed the subsequent strategy development. Expected Outcomes The anticipated impacts of this pilot are signif- 3. Woreda LED Platform and Strategy icant and multifaceted. The anticipated results Development Phase after the grant period include: This phase established the institutional frame- work for coordinated economic development, \ Improved coordination among LED partners including the creation of a formal LED plat- and initiatives. form to bring together key stakeholders and the \ Increase in the number of public-private development of a comprehensive strategy that partnerships. reflects local priorities and opportunities. The \ Improvements in last-mile LED service deliv- strategy development process was participatory, ery in target areas. ensuring ownership by local stakeholders. \ Increase in access to finance in target communities. 4. Implementation and Coordination Phase \ Increase in the density of nano- or micro- enterprises in target areas. During this phase, the focus shifts to operation- \ Increase in job opportunities in target areas. alizing the LED strategy through coordinated \ Increase in participation of women in eco- actions among various stakeholders, including nomic activities in target areas. implementing specific initiatives, facilitating partnerships, and ensuring effective coordina- The pilot has developed a monitoring and eval- tion among different actors working in the eco- uation framework for the woreda to measure nomic development space. 11 this in the future. Baseline data collection has Implementation Architecture begun but has faced challenges, such as a lack The implementation architecture of the pilot of data for Kebri Beyah—the woreda does not details the operational framework and institu- disclose data, and much data are available only tional arrangements. Before hiring the facilitating at the regional level if at all. Monitoring and eval- partner, a core team was established, comprising uation activities included workshop evaluations representatives from the World Bank LED pilot and one-on-one meetings to gather feedback in team, DRDIP federal and regional project coor- selected areas. dination units, and the woreda project coordi- nation unit. This core team was instrumental to The pilot built on existing institutional frame- the smooth operation of pilot preparation activ- works while introducing innovative elements to ities, including orientation sessions for relevant address current gaps in LED implementation. By government officials at the woreda and regional focusing on Kebri Beyah as a pilot woreda, the level. Table 3.1 outlines the roles of stakeholders. program aims to generate proof of concept and create a replicable model that can be scaled to other regions, potentially transforming how local economic development is approached across Ethiopia. Table 3.1. Roles and Responsibilities of Key Implementation Stakeholders Stakeholder Role World Bank • Provide strategic guidance, oversight, and direction for pilot planning and implementation. • Manage trust fund, approvals, and facilitating partner payments. • Review progress and outputs, and facilitate knowledge sharing. DRDIP II Federal Project • Assign federal and regional focal persons to coordinate the LED pilot. Coordination Unit • Integrate the LED pilot into the nontraditional livelihoods component of DRDIP II, and prepare a work plan and budget for logistical and operational support. • Participate in the LED pilot core team meeting and in monthly meetings with facilitating partners. Somali Region DRDIP II Project • Integrate the LED pilot into woreda DRDIP plans. Coordination Unit • Coordinate the implementation of the pilot with the woreda project coordination unit and the woreda government. • Attend LED core team and monthly facilitating partner meetings. Kebri Beyah Woreda DRDIP II • Integrate the LED pilot into woreda DRDIP plans. Project Coordination Unit • Coordinate LED activities at the woreda level. • Monitor pilot progress and report issues and bottlenecks. Kebri Beyah Woreda Government • Designate a focal person for the LED pilot. • Collaborate with the DRDIP and the facilitating partner to implement the LED pilot activities. DRDIP = Development Response to Displacement Impacts Project; LED = local economic development. 12 Woreda-Level Operationalization for understanding local dynamics and potential partnerships. The woreda-level implementation of the LED pilot in Kebri Beyah began with the signing of the The mapping process was designed to answer contract in November 2023. The World Bank and fundamental questions about stakeholder iden- the DMI team established the project’s founda- tity, activities, operational areas, and potential tion with kick-off meetings on November 29 and contributions to local economic development. December 6, 2023, where they agreed on project objectives and introduced key team members. The methodology employed a systematic The team then mobilized local experts in Jijiga approach, beginning with the development of and developed an initial set of assessment tools. a detailed questionnaire, which was digitized using Kobo Toolbox for efficient data collec- Preliminary work included setting up digital data tion and analysis. This tool underwent initial collection systems, preparing stakeholder map- testing with selected nongovernmental orga- ping templates, and identifying an initial list of nizations (NGOs) and a financial institution, key stakeholders across government, develop- leading to refinements that allowed for more ment partners, financial institutions, and com- flexible response options, particularly regard- munity organizations. The DMI team developed ing operational sectors and provided services. a structured approach for stakeholder engage- The questionnaire served as a framework for ment, including an online questionnaire and semi-structured interviews, allowing stakehold- interview guidelines for comprehensive stake- ers to express their views freely while a consis- holder analysis. tent data collection format was maintained. With this groundwork in place, in early 2024, the Field data collection was executed through a project moved into active field operations, with coordinated effort between January and Feb- local experts beginning stakeholder consulta- ruary 2024, encompassing both Jijiga and Kebri tions in Jijiga before expanding to Kebri Beyah. Beyah locations. The process involved extensive This systematic approach ensured a solid foun- engagement with diverse stakeholder groups, dation for the subsequent detailed processes of including woreda government officials, finan- platform establishment, strategy development, cial institutions, private sector representatives, and implementation that would unfold over the development partners, and various commu- project’s 15-month duration. nity support organizations. This comprehensive approach ensured representation from all sec- LED Stakeholder Mapping and tors relevant to local economic development. Analysis The analysis phase incorporated multiple dimen- The DMI team conducted a comprehensive sions of stakeholder assessment, including eval- stakeholder identification and mapping in Kebri uating each organization’s interests and power Beyah. Led by local experts based in Jijiga, the to influence local economic development, ana- DMI team conducted structured interviews and lyzing their operational capabilities, and under- assessments with various stakeholders, includ- standing existing cooperation patterns within ing government offices, development partners, the woreda ecosystem (see appendix A). The financial institutions, and community organi- team also examined budget allocations and zations. This effort established the foundation funding sources to assess resource availability and sustainability. 13 In addition, geographic coverage and ser- Stakeholder engagement strategies were care- vice delivery patterns were mapped to identify fully crafted to ensure effective participation potential gaps and opportunities for collabora- and communication throughout the process. tion (see figure 3.3). The team established formal communication channels through official introductory letters Figure 3.3. Kebele Coverage of Main Public-Private Partners Identified for Participation in LED Platform 14 and regular meetings with government officials. This comprehensive mapping and analysis effort A digital platform was proposed to facilitate established a strong foundation for the LED knowledge sharing and ongoing collaboration platform’s development. The detailed under- among stakeholders. The consultation mecha- standing of stakeholder capabilities, interests, nism remained flexible, allowing for the incor- and potential contributions enable more effec- poration of emerging topics and concerns while tive coordination of economic development maintaining structured data collection. initiatives in Kebri Beyah woreda. The findings guided the formation of partnerships and col- Implementation faced several operational chal- laborative programs that leverage the strengths lenges that required adaptive management, of various stakeholders while addressing local including delays in obtaining official authoriza- development challenges in a coordinated and tion letters, limited internet connectivity in the sustainable manner. woreda’s rural areas, and difficulties accessing formal economic data due to the predominantly The stakeholder mapping and analysis process informal nature of the local economy. However, positioned the LED pilot project to move for- these challenges were addressed through close ward with a clear understanding of the local eco- coordination with regional authorities and flexi- nomic development ecosystem and the roles ble data-collection approaches. various actors can play to promote sustainable economic growth in Kebri Beyah woreda. This Secondary data collection formed a crucial foundation was essential to developing targeted component of the analysis, including extensive interventions and fostering meaningful collabo- engagement with the Somali Region Bureau ration among stakeholders in the implementa- of Planning and Economic Development. This tion phase. collaboration provided valuable context about regional economic conditions, demographics, LED Platform Development and development indicators that informed the stakeholder analysis. The data encompassed Creating an LED platform is the cornerstone of various sectors, including crops, agriculture, the pilot’s strategy. The development process livestock, industry, and services, providing a began with a stakeholder mapping, which cat- comprehensive understanding of the economic egorized various stakeholders based on their landscape. roles, contributions, interest in participating in the platform, and level of influence (formal and The integration of stakeholder input into informal). This mapping highlighted their inter- the decision-making process was prioritized actions within the governance structure, ensur- throughout the mapping exercise, including ing effective coordination and management of early engagement with local authorities to the platform’s activities. Accordingly, the pilot secure administrative support, collaboration established a robust governance structure for with regional offices for data access, and reg- the LED platform, including forming a govern- ular consultation with stakeholders to validate ing body, defining roles and responsibilities, and findings and adjust approaches as needed. The establishing clear decision-making processes process emphasized the importance of building (figure 3.4). sustainable relationships that would support the long-term success of the LED platform. 15 Figure 3.4. LED Governance Structure LED Core Team overseeing LED activities. Its diverse composi- tion of stakeholders ensure its holistic approach A core team was identified through stakeholder (see table 3.2). The main responsibilities of the consultations. The Kebri Beyah woreda admin- LCC are to: istrator agreed to coordinate the LED platform, leveraging stakeholder expertise in specific LED \ Provide overall coordination and strategic competencies. This team includes local govern- oversight of LED initiatives ment representatives, community leaders, and \ Ensure alignment with regional and national other key players driving the LED initiatives. development strategies \ Mobilize resources and build partnerships LED Coordination Committee \ Monitor and evaluate LED activities The LED core team forms the LED Coordination \ Establish specialized LED working groups. Committee (LCC), which is led by the woreda administration. The LCC is the central body 16 Vertical coordination is a vital aspect of the LED process. By doing so, the platform can ensure Platform, connecting the district, regional, and integration into Ethiopia’s overarching develop- national levels to ensure alignment with Ethio- ment strategies, such as the Ten-Year Perspec- pia’s national development priorities and pro- tive Plan and sectoral priorities. cesses. Effective vertical coordination provides access to resources, technical expertise, and Key strategies for enhancing vertical coordina- policy support, while embedding LED activities tion include: into broader government frameworks. Although the Kebri Beyah LED platform has successfully \ Utilizing existing platforms. Engage through inter- engaged woreda and regional stakeholders by governmental coordination mechanisms setting up an inclusive governance structure, managed by the Ministry of Planning and opportunities remain to strengthen coordina- Development to ensure LED alignment with tion with national institutions, particularly the national policies and sectoral strategies. Ministry of Planning and Development and the \ Budgetary alignment. Work closely with the Min- Ministry of Finance. istry of Finance to integrate LED initiatives into the government’s planning and budget- To address these gaps, the LED platform aims ing process, enabling resource mobilization to leverage existing planning and coordination through national systems. mechanisms established by the Ministry of Plan- \ Building strategic partnerships. Partner with key ning and Development. These mechanisms, ministries to advocate for LED’s inclusion in already embedded in Ethiopia’s governance and broader economic and social development budgeting structures, provide a framework for plans. aligning LED activities with the national planning Table 3.2. Composition of the LED Coordination Committee Stakeholder Institution Role Contribution • Woreda Administration Chair • Lead institution • City Council Mayor’s Office Vice chair • Lead institution • Woreda Women and Children’s Affairs Office Member • Enhance women’s and children participation • Reinforce women’s capacity • Kebri Beyah City Women and Children’s Affairs Member • Enhance women’s and children participation Office • Reinforce women’s capacity • Kebri Beyah Woreda Pastoral Office Members • Technical support in their area of work or • City Council Job Creation Office mandate or expertise • Woreda Cooperative and Social Affairs Office • DRDIP II Woreda • DRDIP II City • Woreda Urban Productive Safety Net Project • Shabelle Bank • Sahal Micro Finance Institution Share Company • International Rescue Committee • Save the Environment Ethiopia • Chamber of Commerce • Inkomoko DRDIP = Development Response to Displacement Impacts Project. 17 \ Targeted advocacy. Develop data-driven advo- The remaining $138,500 must be raised to fully cacy efforts highlighting LED’s contributions achieve the objectives of the LED pilot in 2025. to national priorities, fostering stronger com- This additional funding will ensure the continu- mitment and support. ation and scaling of activities, including further \ Regular communication. Establish clear commu- value chain development, stakeholder capacity nication channels to provide updates and building, coordination, monitoring, evaluation, receive feedback from national agencies, and communication efforts essential for sus- ensuring ongoing alignment and support. taining progress. By embedding LED efforts into Ethiopia’s exist- Value Chains Strengthening and Linking ing planning and budgeting processes, the plat- Communities to Value Chains form enhances its sustainability and positions Objective. Strengthen market linkages for local itself as a key contributor to national develop- producers and businesses. ment goals. Activities. Conduct market assessments, facilitate Working Groups trade fairs, and develop partnerships with exter- The LCC is working to establish specialized nal markets. working groups to focus on key areas critical to the success of the LED strategy. Each group will Capacity Building in LED Implementation report to the LCC and collaborate on specific Objective. Enhance local capacities through tar- initiatives. geted training and skills development programs. Consultation, Communication, and Activities. Identify skill gaps, develop and imple- Coordination ment training programs, and collaborate with Objective. Enhance stakeholder engagement, educational institutions. improve communication channels, and ensure effective coordination. Support Institutions Support institutions play a vital role in providing Activities. Organize community forums, main- resources, expertise, and additional support for tain communication platforms (e.g., newslet- LED initiatives: ters, social media), and facilitate stakeholder meetings. \ Local government departments. Offer technical support and resources for implementing LED The estimated total cost for implementing activities. the first year of LED activities in Kebri Beyah is \ Regional development agencies. Assist with broader $228,000. Of this, $89,500 has already been allo- regional integration and resource mobiliza- cated and utilized to trigger the implementation tion. phase. These initial funds have been invested in \ International partners. Provide financial and tech- setting up the governance structure, training nical support, including introducing best stakeholders, and conducting preliminary work practices and innovations. on the poultry and camel value chains. These foundational activities have laid the groundwork for the broader implementation of the LED approach. 18 Box 3.1. Transforming the Poultry Value Chain in Kebri Beyah As part of its broader strategy to drive sustainable • Establishing partnerships with veterinary services economic growth and poverty reduction, Kebri to improve the health and productivity of poultry Beyah’s local economic development (LED) platform • Facilitating access to micro-financing tailored to is laying the groundwork to revolutionize the poultry poultry farmers to expand their operations. value chain. Recognized for its potential to create jobs, especially for women and youth, and improve • Linking cooperatives with reliable buyers and trad- household incomes, the poultry sector has been ers to ensure stable market access. prioritized for targeted interventions under the LED A cooperative leader participating in the LED work- framework. shops remarked, The process began with detailed stakeholder consul- “This initiative is giving us hope. For the first tations and value chain mapping, including identifying time, we are part of a plan that not only identi- key challenges such as limited veterinary services, in- fies our challenges but also commits to solving adequate feed supply, and poor market linkages. The them.” consultations highlighted opportunities for growth, such as the increasing demand for poultry products in The project’s is ultimately expected to benefit over local and regional markets. The LED platform is coor- 3,000 households directly involved in poultry produc- dinating with cooperatives, government agencies, and tion. By building stronger linkages across the value private sector actors to address these challenges. chain and addressing systemic bottlenecks, Kebri Beyah is poised to transform its poultry sector into Planned interventions include: a model for inclusive economic development. This • Training farmers on modern poultry farming tech- initiative is not just about increasing poultry produc- niques, such as disease management and efficient tion—it is about creating a sustainable and resilient feeding practices local economy. Memorandum of Understanding \ Monitoring and evaluation. Identifies mechanisms for monitoring and evaluating the progress A memorandum of understanding (MoU) was and impact of LED initiatives. signed by all participating partners outlining their roles, responsibilities, and commitments See appendix B for the complete MoU. regarding the implementation of the LED strat- egy. It covers the following key areas: Development of the Kebri Beyah LED Strategy \ Joint planning and decision making. Establishes mechanisms for collaborative planning and Based on stakeholder inputs and local economic decision making among partners analysis, the team facilitated the development of \ Resource mobilization. Outlines the responsi- the comprehensive Kebri Beyah Local Economic bilities of each partner in mobilizing finan- Development Strategy, including analyzing local cial, technical, and human resources for LED economic opportunities, challenges, and poten- activities tial growth sectors. The strategy incorporates \ Conflict resolution. Establishes procedures for specific actions, timelines, and responsibilities resolving disputes or disagreements that may for different stakeholders. arise among partners 19 The LED strategy represents a comprehensive for key priorities such as livestock develop- five-year framework developed in 2024 through ment, infrastructure improvement, and agri- extensive stakeholder engagement, including cultural advancement, while addressing critical multiple consultation workshops and a final vali- cross-cutting issues like gender equality and dation process. This strategic document emerged youth employment. The strategy articulates from the critical need to address economic an ambitious vision aimed at creating a self- challenges while capitalizing on the region’s sustaining local economy, targeting a 30 percent unique opportunities, particularly its strategic increase in household incomes within five years location near major urban centers and the Ber- through the empowerment of pastoral and bera port. The strategy’s development process agro-pastoral communities. involves careful consideration of local dynamics, including the presence of a long-standing refu- The strategy outlines a series of actions to be gee camp hosting 17,000 inhabitants, as well as implemented over a five-year period, focused the region’s predominantly pastoral and agro- on value chain development, capacity building, pastoral economic base. and implementation-support mechanisms. The implementation process is strategically phased, The strategy is grounded in a thorough situa- with specific actions planned for the short-term tional analysis that revealed Kebri Beyah’s dis- (1–2 years), medium-term (2–3 years), and long- tinctive characteristics, including its youthful term (3–5 years). This phased approach allows demographic profile, with 60 percent of the for systematic progress while maintaining flex- population under the age of 24. The economic ibility to adapt to changing circumstances. See landscape is dominated by livestock activities, the detailed schedule illustrated by a one-year which represent 75 percent of the gross domes- Gantt chart (figure 3.5). tic product, while crop production accounts for 15 percent of household income. A compre- Value Chain Development and Market hensive SWOT (strengths, weaknesses, oppor- Linkages tunities, and threats) assessment identified key The strategy prioritizes strengthening value advantages, such as stable peace and security, chains in livestock and agriculture, including active stakeholder participation, and strong gov- improving animal health, developing market ernment support (table 3.3). However, the region infrastructure, establishing quality control sys- faces significant challenges, including limited tems, creating trader networks, implementing financial resources, inadequate infrastructure, price information systems, and developing pro- and persistent skills gaps, particularly among cessing facilities (see appendix D). In agriculture, youth and women. Despite these challenges, the the focus is on introducing improved farm- analysis highlights substantial opportunities for ing techniques, developing irrigation systems, growth through agricultural and livestock pro- establishing storage facilities, forming coop- ductivity enhancement, infrastructure develop- eratives, implementing quality standards, and ment, tourism, and public-private partnerships. developing processing facilities. Market linkage initiatives include creating market information By aligning with broader development objec- platforms, developing digital marketing solu- tives, the LED strategy was carefully integrated tions, establishing business-to-business net- into regional and woreda development plans, works, implementing market access programs, including extending its timeline to 2030 to syn- developing transportation networks, and creat- chronize with the Somali Region’s development ing regional market linkages. plan. This alignment ensures coherent support 20 Table 3.3. Results of SWOT Analysis of LED in Kebri Beyah Strengths Weaknesses 1. Stability. Kebri Beyah woreda’s urban and rural villages” are 1. Limited financial resources and credit access. stable peaceful, secure, and safe. Financial barriers and limited access to credit hinder aspiring entrepreneurs and existing 2. Diverse participation and support. There is robust businesses from expanding. participation among a variety of stakeholders, including government entities, financial institutions willing to improve 2. Inadequate infrastructure. Poor infrastructure, access to finance, nongovernmental organizations, the private especially in rural areas, restricts economic sector, and community representatives, as well as the active opportunities and limits market access. involvement and support of international organizations. 3. Skill and knowledge gaps. The gaps in business 2. Identified growth sectors. Agriculture, infrastructure management skills and vocational training among development, industrialization, trade, and tourism are among the local population are significant. the key sectors identified as having high growth potential. 4. Coordination and communication challenges. 3. Ongoing government initiatives. Government-led initiatives Ineffective stakeholder coordination and are focused on agricultural development, infrastructure communication hampers collaborative efforts and improvement, and industrial growth, with a strong emphasis the formation of partnerships. on developing human capital and managing natural resources 5. Gender and youth issues. Limited access to efficiently. education and economic opportunities for women 4. Focus on job creation and poverty reduction. There are and youth persist along with cultural and gender- clear strategic objectives aimed at job creation to reduce based challenges. poverty, ignite new economic activities, and establish effective partnerships. Opportunities Threats 1. Agriculture and livestock development. There is the 1. Climate-related issues. The area is highly potential to improve agricultural technologies and inputs and vulnerable to drought due to its over-dependence to promote crop diversification and livestock productivity. on rain-fed agriculture and livestock production. Rain-fed agriculture in Kebri Beyah has failed to 2. Investments in infrastructure and industrialization. There produce enough food for its increasing population. are opportunities to attract investment for infrastructure development and industrial growth, thereby creating job 2. Youth unemployment. Persistently high youth opportunities and stimulating economic activities. Only unemployment rates pose social and economic 55 kilometers from Jijiga, the regional capital, Kebri Beyah City challenges, with the potential of leading to unrest has accessible asphalt roads and market linkages. It is also only and declining economic participation. 54 kilometers from the Somaliland border, offering cross- 3. Policy and regulatory barriers. Excessive border trading and market-linkage opportunities. regulations, lack of financial incentives, and 3. Tourism. Developing policies and infrastructure to attract bureaucratic hurdles can discourage investment tourists could open up new economic avenues and create jobs. and limit business growth. 4. Empowerment programs. Support programs could be 4. Technological barriers. Limited adoption of implemented to foster the empowerment of women and youth, modern technologies and innovations can restrict allowing them to harness their potential to drive economic productivity and competitiveness in various sectors. growth, and diaspora investment through remittances and 5. Lack of inter- and intra-clan collaboration and other channels could be mobilized. The presence of a refugee internal disputes. There is occasional competition population adds cultural diversity, knowledge exchange, and over scarce resources, such as pastureland and the potential for economic growth through entrepreneurship water. and the expansion of the labor force. 6. Refugee presence. The refugee population 5. Public-private partnerships. Strengthening linkages exerts additional pressure on infrastructure, public between public and private entities, along with the community, services, and resources, with the potential of can enhance resource mobilization and collaborative increasing unemployment rates. development efforts. 21 Figure 3.5. One-Year Gantt Chart for the LED Strategy Events Dates January 2024–December 2025 2024- 2025 Goal 1:To enhance 3C January LED Pilot and First year LED Strategy Implementation Goal 2: Value Chain February Poultry VC Mapping Upgrading Task #1 WG 1 on CCC April Task #1, LCC Working Group 1: 3 CCC Task #2: WG 2 on VC May Task #2, LCC Working Group 2: VC Upgrading Go al 3 : Cap ac ity Bu ild in g Jun Task #3,: MEL for LED A c c e s s to F i n a n c e July Output #1: Poultry VC Upgrading Poultry Value Chain August Task #4: Access To Finance Improved Upgraded MEL September MEL Meat Processing October Meat Value Chain Upgrading Dairy processing November Task 1: Meat Processing: WG 2 M e a t V C U p g ra d e d December Task 2: Diary Processing: WG 2 Action Plan Implemented January Output 2: Meat VC Upgraded by December 25 Capacity-Building Components Implementation Support Mechanisms Technical skills development. Training in agricultural Financial support. Access to credit facilities, best practices, livestock management, business grant programs, investment promotion initia- management, financial literacy, digital skills, tives, microfinance programs, savings groups, quality control, marketing, and sales techniques. insurance schemes, and financial technology solutions. Institutional capacity building. Training for govern- ment officials, cooperative management, proj- Technical support. Business development services, ect management, monitoring and evaluation, technology adoption support, quality assurance leadership development, governance, and stra- systems, product development assistance, mar- tegic planning. keting support services, environmental compli- ance support, and innovation support systems. Entrepreneurship development. Training in business planning, financial management, market analy- Infrastructure support. Market facility development, sis, risk management, innovation, customer ser- storage facility construction, transportation vice, and product development. network improvement, communication infra- structure, processing facility development, qual- Specialized training programs. Programs for youth ity control facilities, and digital infrastructure entrepreneurship, women’s economic empow- support. erment, technical vocational training, environ- mental sustainability, climate-smart agriculture, Implementation of the strategy is structured digital marketing, and value addition techniques. through a well-defined governance framework 22 Box 3.2. The Vital Role of Camels Jemal Ayderus from the Sahal Microfinance Institution highlighted the transformative role of camels in support- ing women and communities. Camels, cherished for their resilience, provide milk for local markets, meat for sustenance, and transportation across challenging terrains. These versatile animals are more than a livelihood source—they are a cornerstone of economic empower- ment. The organization currently works with 13 inves- tors but remains open to expanding and collaborating through public-private partnerships. Jemal noted that camel milk production is highly valued by local com- munities and quickly sells out, making it processing currently impossible. He further explained: “Within our communities, camels play a crucial role as a vital source of income and empowerment. The milk they produce sustains families and drives local Camel Farm financed by Sahal Microfinance markets, fostering opportunities that weave a stron- Institution, Jijiga ger fabric within our society.” that establishes the Local Coordination Com- Approach to Capacity Building mittee and clearly delineates stakeholder roles The capacity-building strategy of the LED pilot and responsibilities. in Ethiopia was designed to empower stake- holders and ground teams with a dual approach: The LED strategy places significant emphasis on participatory engagement and formal training. inclusive growth and sustainable development, It integrates interactive, consensus-driven tools ensuring that economic benefits are distributed with structured, hands-on learning experiences equitably across the community. It addresses to foster inclusive and sustainable development both immediate developmental needs and practices. This approach equips stakeholders long-term sustainability considerations through with the tools and skills needed for LED while also carefully planned interventions and stakeholder fostering a culture of collaboration and inno- engagement mechanisms. Regular review pro- vation. Integrating participatory methods with cesses are built into the strategy to allow for structured training ensures that LED initiatives adjustments based on implementation experi- are inclusive, practical, and sustainable, driving ences and changing circumstances, ensuring its impactful outcomes for local communities. continued relevance and effectiveness through- out the five-year period. This comprehensive Participatory engagement. This component empha- approach, combined with clear implementation sized collaboration among stakeholders, ensur- guidelines and monitoring mechanisms, posi- ing that all voices, especially those of marginalized tions the strategy as a crucial tool for driving sus- groups, were included. By employing tools such tainable economic development in Kebri Beyah. as stakeholder mapping and engagement work- shops, the approach enabled diverse participants to align their goals and strategies, fostering a shared vision for LED initiatives. 23 The following interactive sessions were held to identify roles, responsibilities, and opportunities Box 3.3. Stakeholder Feedback: for collaboration. Local Government Officials Abdisalan Ahmed Isse, Head of Kebri Beyah STAKEHOLDER CONSULTATION WORKSHOP, JIJIGA Woreda Pastoral Development Office, captured (MAY 14, 2024) the core challenge of the pilot: The first stakeholder workshop held in Jijiga “Coordination among stakeholders was focused on identifying critical challenges and one of our biggest hurdles. Many orga- opportunities within the LED framework. Par- nizations worked independently, with no ticipants included 24 representatives from gov- formal platform for collaboration. This lack ernment agencies, community organizations, of synchronization delayed plans, caused and private sector partners. The session empha- misalignments, and left ground teams sized the need for inclusive decision-making unsupported.” processes and fostering collaboration among stakeholders. A participatory approach was Local government officials were instrumental employed to ensure diverse perspectives were in providing administrative support, organizing incorporated into the LED strategy. Discussions coordination committees, and enabling access to highlighted the significance of strengthening local data. Despite challenges, their leadership in market linkages and enhancing capacity-build- hosting consultative workshops and driving policy ing initiatives to support sustainable local eco- alignment ensured the foundational support for nomic growth. the LED strategy STAKEHOLDER STRATEGY DEVELOPMENT WORKSHOP, KEBRI BEYAH (JUNE 22, 2024) in achieving economic inclusivity. Key takeaways The second stakeholder workshop in Kebri Beyah included the potential for leveraging existing centered on validating preliminary findings from cooperatives and informal networks to enhance the first session and incorporating local insights local economic resilience. for a LED platform and strategy development. Thirty-nine stakeholders, including women’s LED STRATEGY VALIDATION WORKSHOP, KEBRI BEYAH groups and youth representatives, actively (AUGUST 1, 2024) engaged in discussions about value chain pri- This workshop marked a significant milestone orities and resource allocation. The workshop in finalizing the LED strategy. Stakeholders underscored the importance of gender-sensi- reviewed the draft strategy document and pro- tive approaches and community participation vided critical feedback to refine its goals and Box 3.4. Stakeholder Feedback: Community Leaders Workshops and consultative meetings opened the door to active participation. Community leaders were pivotal in shaping the LED platform’s goals and mission. Ugbad Mohamud Deq from Inkomoko Jijiga shared: “Creating the vision and mission for the LED platform was a collaborative effort, where we debated, brain- stormed, and carefully aligned goals to Kebri Beyah’s unique economic needs.” Village elders provided historical and contextual insights, helping tailor interventions to local realities; and youth representatives, especially women, contributed innovative ideas, ensuring inclusivity in decision making. 24 Table 3.4. LED Strategy Goal, Objectives, and Outcomes Goal Objective Outcomes Goal 1. Enhance coordination, 1.1: Establish an LED platform and engage all key • Increased number consultation, and stakeholders in an articulated strategy by the end of of public-private communication among LED 2024, outlining each stakeholder’s clear goals, roles, partnerships linking platform actors in the woreda and responsibilities communities to the through regular stakeholder 1.2. Establish the LED Platform governance within the market, private sector, meetings, a robust first two months of the operationalization period (by financial institutions, and communication strategy, August 2024), including forming a governing body, digital services in target and inclusive consultation defining roles and responsibilities, and establishing areas. sessions, fostering improved decision-making processes. Refine the governance collaboration and information structure by the end of the pilot period (December sharing for effective local 2024) to ensure seamless transition into the post-pilot economic development. implementation phase. Goal 2. Strengthen value 2.1: Increase average income by 30 percent for at • Improved last-mile LED chains and link communities least 3,000 pastoral households (or approximately services delivery in target to them by engaging 15,000 individuals, assuming an average household size areas. farmers, cooperatives, and of five) by enhancing the value of livestock products by • Increased access to development partners. 40 percent for 3,000 pastoralists within the next five finance through financial years to improve market competitiveness. institutions in target communities. • Increased density 2.2: Enhance the quality and value of poultry products of nano- or for about 3,000 farmers by 40 percent within the next microenterprises in five years to improve market competitiveness. target areas. • Increased job 2.3. Enhance the quality and value of bee products by opportunities in target 50 percent for 1,500 beekeepers within the next five areas. years to improve market competitiveness. • Increased participation 2.4 Enhance sustainable land and water resource of women in economic management practices in pastoral areas by achieving activities in target areas. a 20 percent increase in adoption rates within the next five years, targeting 100,000 hectares and benefiting 50,000 pastoralists across 20 kebeles. Goal 3. Build LED 3.1: Enhance the woreda government’s capacity to • Increased LED implementation capacity. effectively implement LED strategies, and coordinate implementation capacity LED actors for improved livelihood support, 2024–30. in the woreda. 3.2: Offer coordination support for local capacity • Coordinated capacity building in line with LED objectives, 2024–30. building of all stakeholders in LED implementation. objectives. Facilitated sessions allowed partic- exercises were used to simulate challenges and ipants to align on action plans and prioritize co-create solutions. Feedback loops were estab- interventions for capacity building, infrastruc- lished through regular meetings and surveys ture development, and financial inclusion. The to adapt strategies based on stakeholder input. validation workshop emphasized fostering part- Outcomes included enhanced trust and cooper- nerships across sectors and ensuring robust ation among participants; greater inclusivity by monitoring and evaluation mechanisms to track ensuring the participation of women and mar- progress and impact. Interactive tools, group ginalized communities; and clear, consensus- discussions, and real-time decision-making based action plans tailored to local contexts. 25 ACTION PLAN TRAINING SESSION Box 3.5. Stakeholder Feedback: (NOVEMBER 26, 2024) Nongovernmental Organizations This interactive session focused on equipping Field officers from nongovernmental organiza- participants with practical tools for effective tions (NGOs) such as Inkomoko and Save the action planning. Participants, including local Children, as well as DRDIP II staff, connected the government representatives, private sector grassroots with strategic development goals. stakeholders, and community leaders, learned Fiorina Mugione, a LED strategy expert, remarked: to develop structured plans aimed at addressing local development challenges. The core mod- “I was amazed by the participants’ enthu- ules of the session included: siasm. Despite logistical hurdles, we grew from 24 attendees to nearly 40, reflecting \ SMART goal setting. Techniques for crafting the community’s commitment.” Specific, Measurable, Achievable, Relevant, NGOs facilitated value chain diagnostics, offered and Time-bound objectives tailored to local technical assistance in livestock and agriculture, priorities. and mobilized marginalized groups to participate \ Resource allocation. Strategies for efficiently in capacity-building programs. identifying, mobilizing, and deploying resources to maximize impact. \ Implementation timelines. Best practices for Formal Training. Formal training sessions leveraged developing realistic and actionable project interactive, scenario-based methodologies to schedules to ensure timely delivery. build practical competencies in strategic plan- ning, resource mobilization, and monitoring. By the end of the session, participants drafted These sessions were anchored in real-world comprehensive action plans designed to meet applications, providing participants with tools to local economic development goals, ensuring translate theoretical knowledge into actionable clear pathways for execution and monitoring. skills. Key activities included: \ Modular training programs. Courses structured Box 3.6. Stakeholder Feedback: around critical aspects of LED, such as action Private Sector plan development, value chain upgrading, Businesses, cooperatives, and financial institutions and monitoring systems, resource mobiliza- played vital roles in implementing market-driven tion and public-private partnerships. solutions. One regional advisory group member \ Practical exercises. Simulated exercises, such as noted: resource allocation and stakeholder coordi- nation, enabling participants to address spe- “The private sector’s engagement in poultry cific local challenges. farming and microfinance initiatives signifi- \ Capacity assessments. Pre- and post-training cantly boosted last-mile service delivery.” evaluations to measure skill acquisition and For example, Oromia Cooperative Bank examined identify areas for further improvement. the roadblocks to disbursing microloans and re- volving funds and agreed to collaborate in support Examples of formal training events include the of nano-enterprises. Livestock and honey-produc- following: ing cooperatives expressed a desire to strengthen value chains by ensuring market access and train- ing farmers. 26 VALUE CHAIN DEVELOPMENT WORKSHOP (DECEMBER 3, 2024) Box 3.7. Stakeholder Feedback: This workshop explored strategies to upgrade International Development Agencies key value chains, focusing on increasing produc- The World Bank and the United Nations Develop- tivity and sustainability. Participants, including ment Programme (UNDP), among other global entrepreneurs, community leaders, and local stakeholders, ensured that the initiative aligned policy makers, engaged in hands-on exercises with regional and national frameworks. A World and discussions to create inclusive and sustain- Bank advisor commenting on the review phase able value chains. The core modules of the work- noted: shop included: “Our strategic guidance laid the foundation for scalable and sustainable models.” \ Value chain upgrading. Identifying and addressing bottlenecks while leveraging opportunities Contributions from International development for enhanced competitiveness. agencies included providing financial support for \ Gender integration. Practical approaches to the pilot’s development, strategically aligning the ensure gender inclusivity across all stages of initiative with Ethiopia’s Ten-Year Development the value chain. Plan, and offering technical expertise to establish \ Environmental sustainability. Frameworks and digital tools such as the MIS platform to monitor- techniques to embed ecofriendly practices ing progress. into production and distribution systems. Participants developed tailored strategies for \ Negotiation techniques. Interactive exercises improving value chain efficiency while address- to enhance negotiation skills with diverse ing gender equity and environmental con- stakeholders. cerns, contributing to holistic local economic \ Interactive elements. Participants analyzed case development. studies of successful PPPs and resource mobi- lization efforts in similar contexts, identifying RESOURCE MOBILIZATION AND PUBLIC-PRIVATE actionable insights for their own projects. PARTNERSHIPS TRAINING (DECEMBER 12, 2024) This formal training session focused on equip- ping participants with actionable skills to mobi- Box 3.8. Stakeholder Feedback: lize resources and form impactful public-private Women and Marginalized Groups partnerships (PPPs). Key stakeholders, including Inclusive consultations ensured that women and local government officials, private sector repre- youth had a voice in the process. A young female sentatives, and community leaders, gained prac- farmer shared: tical insights into leveraging partnerships for sustainable development. The core modules of “For the first time, I felt heard. The training the session included: sessions and understanding how to access to microloans have transformed how I see \ Fundraising strategies. Techniques for securing my role in the community.” financial and non-financial resources to sup- Women’s groups provided input on gender-fo- port development initiatives. cused economic barriers; and youth participants \ PPP frameworks. Detailed guidance on struc- collaborated on innovative ideas such as poultry turing and managing effective partnerships farming with fast production. between public and private entities. 27 Participants drafted tailored action plans that relate to and creating valuable opportunities for leverage PPPs to address critical economic chal- further discussion and support. lenges, particularly in areas such as infrastruc- ture development and value chain upgrading, The positive feedback from stakeholders under- ensuring sustainable and inclusive growth. scores the effectiveness of the workshops in addressing their needs and enhancing their Local woreda officials benefited significantly learning experiences. The successful adjust- from their involvement in the capacity-build- ments in logistics, the enriched feedback ing initiatives under the LED framework. They mechanisms with trainers, and the integration gained access to advanced tools and method- of practical examples have collectively contrib- ologies through tailored training sessions, such uted to a more engaging and beneficial train- as stakeholder mapping matrices, action plan- ing environment. These elements have not only ning frameworks, and monitoring and evalu- improved the overall training effectiveness but ation dashboards. These resources enhanced have also paved the way for more meaningful their ability to identify key economic drivers and and interactive sessions, fostering a culture of streamline stakeholder coordination. Moreover, continuous learning and practical application the interactive workshops and training mod- among participants. ules fostered practical skills in strategic plan- ning, resource mobilization, and value chain Integration of Refugees into LED Initiatives analysis, enabling officials to make informed The LED platform in Kebri Beyah acknowledges decisions and implement inclusive develop- and has taken into consideration the signifi- ment strategies. Exposure to case studies and cant presence of refugees and their critical role best practices from similar contexts broadened in shaping the local economy. Many organiza- their perspectives, equipping them with innova- tions listed as stakeholders are actively engaged tive approaches to tackle local challenges. This in supporting refugee communities, notably empowerment has strengthened institutional including: capacity, enabling woreda officials to lead trans- formative initiatives effectively and sustainably. \ United Nations High Commissioner for Refugees (UNHCR). While primarily a support institution, Based on comprehensive feedback received UNHCR played a crucial role by providing from stakeholders at the LED Action Plan- essential services such as shelter, health care, ning Workshop and subsequent trainings on and livelihood programs for refugee popula- value chains and resource mobilization, several tions. Its involvement could be expanded to key points emerged. Participants consistently foster greater integration of refugees into praised the improvements made in logistics, local value chain activities by coordinating particularly highlighting the change in venue more closely with core members of the LED that fostered a more conducive environment for platform. collaborative exchanges. The enhanced inter- \ Refugees and Returnees Services (RRS). Listed as a actions with trainers were well received, allow- support institution, RRS facilitated welfare ing for more substantial feedback loops and a and reintegration initiatives for refugees, deeper engagement with the course material. helping to mobilize resources and create Furthermore, the inclusion of a real-world tes- enabling environments for refugee partici- timonial from a poultry farm owner during the pation in economic activities. It has played a recent sessions was highly appreciated, pro- useful but supportive role rather than being a viding participants with a practical example to core driver of the LED platform. 28 \ Inkomoko. As a core member of the LED plat- economic development that integrates refu- form and the Local Coordination Committee gees and strengthens host communities. (LCC), Inkomoko was pivotal in advancing the economic empowerment of refugee and To promote strategic partnerships for enhanced host communities. Its Jijiga field office played coordination, the following recommendations a key role in facilitating business training and are proposed: entrepreneurship programs directly aligned with the LED platform’s objectives, showcas- \ Higher-level formalization. (1) Establish a formal ing the potential of strong core partnerships. partnership framework between the LED platform and organizations such as UNHCR While the LED platform already includes and RRS aimed at aligning refugee-focused Inkomoko as a core member, stakeholder map- programs with the broader LED strategy. ping identified UNHCR and RRS as support (2)  advocate for a joint coordination mech- institutions. Rather than expanding core mem- anism to integrate refugee livelihoods into bership broadly, the focus could shift toward regional economic development plans. forming special alliances with these and other \ Collaboration. (1) Engage refugee populations support organizations. Such alliances would in key value chains, such as livestock, dairy, leverage their expertise and resources without and poultry, by offering targeted training and diluting the platform’s core focus, ensuring tar- market linkages. (2) Develop community-led geted and impactful collaborations. programs where refugees and host commu- nities collaborate on shared economic goals, By clearly defining roles and fostering strate- such as cooperative farming or shared service gic partnerships, the LED platform could max- businesses. imize its effectiveness in promoting inclusive Box 3.9. Inkomoko in Kebri Beyah The nongovernmental organization Inkomoko origi- In Kebri Beyah, Inkomoko focuses on empowering nated in Rwanda in 2012 and has expanded its opera- refugees by providing essential training, mentorship, tions to five African countries, with plans for further and support to help them start businesses and secure growth. The organization is committed to building the employment. This approach boosts the local economy capacity of refugee communities, and its centers pro- and enhances the resilience and self-sufficiency of the vide a dynamic environment for peer-to-peer learning refugee community. By collaborating with local part- and mentorship. Each center offers a diverse team ners and stakeholders, Inkomoko creates a platform of trainers, some with a business background and for economic integration and opportunity. others experienced social workers. Inkomoko thor- “I am enthusiastic about contributing to the oughly trains all staff so they can effectively address Local Economic Development platform here in the particular challenges of refugees and help them Kebri Beyah. It’s inspiring to see how, through integrate into economic activities, ultimately fostering our joint efforts, we are creating job opportu- entrepreneurship and employment. It also connects nities and fostering new enterprises within the isolated communities and displaced entrepreneurs refugee community. Together, we are making a to larger markets and supply chains by advocating meaningful impact, and I’m excited to be part for inclusion in policies and practices that can better of this transformative journey.” - Ugbad Moha- integrate entrepreneurs into the formal economy. mud Deq, Inkomoko Jijiga 29 \ Enhanced resource mobilization. (1) Leverage the needs, and skills of refugees are incorporated expertise and funding capabilities of orga- into local development strategies. nizations like UNHCR and RRS to secure resources for refugee inclusion in LED activ- 3. Access to livelihood opportunities. Refugees ben- ities. (2) Facilitate joint proposals to interna- efit from technical and vocational train- tional donors focused on economic resilience ing programs aimed at developing skills and inclusion. for employment in high-demand sectors, such as livestock production, value chain This strategic alignment will ensure that refugees development, and financial services. Initia- are not only beneficiaries but active contributors tives to improve access to finance such as to local economic development, fostering social microfinance and nano-enterprise loans are cohesion and mutual economic gains. extended to both refugees and host commu- nity members, promoting inclusivity. Refugee Inclusion Aspects in the Kebri Beyah LED Approach 4. Social cohesion and gender inclusion. Refugee women and youth have been identified as The LED Pilot in Kebri Beyah emphasizes ref- key participants in capacity-building and ugee inclusion as a core principle for fos- economic empowerment initiatives. This tering sustainable and inclusive economic approach addresses gender equity and pro- development. As one of Ethiopia’s oldest refu- motes the inclusion of marginalized groups gee settlements, Kebri Beyah presents a unique in the local economy. Targeted support is pro- opportunity to integrate refugee populations vided to refugee women to enhance their role into local economic development initiatives. in business development and entrepreneurial The inclusion of refugees in economic develop- activities. ment not only addresses their livelihood needs but also strengthens host community econo- 5. Cross-border trade and market linkages. Because mies by enhancing market linkages, increasing it is located near the Somaliland border, the local demand, and promoting social cohesion. pilot capitalizes on Kebri Beyah’s potential for The key elements of refugee inclusion are as cross-border trade. Refugees and host com- follows: munity members are supported in leveraging cross-border markets, which gives them new 1. Joint economic activities. Refugees and host com- opportunities to sell their products and ser- munities are jointly engaged in livelihood vices beyond local boundaries. support systems, promoting shared owner- ship of economic development initiatives. Linkages to the 2023 Global Refugee Forum The creation of cooperatives, especially in Pledges value chains like poultry, livestock, and agri- culture, fosters collaboration and generates The 2023 Global Refugee Forum emphasized shared economic benefits. the need for host governments and partners to enhance refugee inclusion in local and national 2. Participation in LED platforms. Refugee represen- development agendas. Ethiopia pledged to tatives are active participants in the Local strengthen self-reliance among refugees, Economic Development Platform estab- enhance their access to livelihoods, and improve lished in Kebri Beyah, which facilitates dia- social cohesion. The Kebri Beyah LED approach logue between refugee and host community is directly aligned with these commitments in stakeholders, ensuring that the perspectives, several ways, as described below. 30 PLEDGE 2: TRANSFORM SELECTED REFUGEE CAMPS private sector engagement and support the INTO SUSTAINABLE URBAN SETTLEMENTS socioeconomic development of refugee and \ Commitment. Enhance the quality and avail- host communities. ability of shelter, infrastructure, and pub- lic services, such as roads, electricity, water, PLEDGE 6: IMPROVE DIGITAL CONNECTIVITY AND sanitation, health, and education, by align- FINANCIAL INCLUSION ing them with the master plans of adjacent Commitment. Improve digital connectivity in ref- towns—to be achieved by 2027. ugee-hosting areas to promote financial inclu- sion, entrepreneurship, remote work, and digital \ Kebri Beyah implementation. The LED approach skills. The aim is to provide digital financial ser- actively promotes refugee self-reliance by vices that enable refugees and host communi- supporting refugee-owned businesses, facil- ties to securely save, borrow, insure, remit, and itating employment, and providing access transact money, thereby fostering economic to finance. This pilot initiative reduces empowerment and resilience. dependency on humanitarian assistance by establishing cooperatives and promoting Kebri Beyah implementation. The pilot supports income-generating activities. Refugees gain access to finance for refugees through partner- access to essential financial services, train- ships with financial institutions such as microfi- ing, and employment opportunities, thereby nance providers and community savings groups. enhancing their capacity for independent Refugees and host community members receive livelihoods. This approach aligns with Ethio- assistance with accessing microloans, grants, pia’s second pledge by fostering sustainable and other financial tools essential for starting urban development and integrating refugee or expanding a business. These initiatives con- camps with broader urban planning efforts. tribute to Ethiopia’s pledge to facilitate the economic empowerment of refugees through PLEDGE 4: IMPROVE THE ENABLING ENVIRONMENT access to finance. Moreover, by fostering finan- FOR PRIVATE SECTOR ENGAGEMENT AND cial inclusion and economic resilience, the ini- INVESTMENT tiative supports the pledge to enhance digital \ Commitment. Foster socioeconomic develop- connectivity and promote financial inclusion in ment and boost the productivity of refugee refugee-hosting areas. and hosting communities through enhanced private sector engagement and investment. Involvement of Humanitarian Partners The successful implementation of refugee \ Kebri Beyah implementation. Ethiopia’s pledge to inclusion initiatives under the LED pilot relies on expand refugee access to economic opportu- the active engagement of humanitarian part- nities is embodied in the LED pilot’s efforts to ners, such as the United Nations High Commis- integrate refugees into existing value chains, sioner for Refugees (UNHCR), the World Bank, such as poultry and livestock production. By and other development actors, that play a criti- enhancing refugees’ participation in key value cal role in the design, funding, and execution of chains, the pilot creates jobs, boosts refugee initiatives. The key contributions of the LED pilot incomes, and strengthens local economies. partners include: The inclusion of refugee businesses in for- mal value chains provides more stable mar- \ Technical assistance and policy alignment. UNHCR ket access and reduces barriers to entry. Such provided technical input during the design efforts represent tangible efforts to increase of the LED strategy, ensuring alignment with 31 international refugee protection standards. perspectives into decision-making processes, Humanitarian actors collaborated with the invite local UNHCR and RRS representatives World Bank and the Ethiopian government to to join one of the working groups of the Local integrate refugee perspectives into the devel- Coordinating Committee (LCC). opment agenda. \ National-level linkages. To better align local and \ Resource mobilization. The implementation national strategies, make sure that the LCC is of the LED pilot received funding from the represented at the national Livelihood Inclu- Multi-Donor Trust Fund for Forced Displace- sion Coordination meetings, which are held ment as part of the PROSPECTS Program. monthly under the leadership of UNHCR and Humanitarian partners played a crucial role co-chaired by RRS. in mobilizing financial resources for pilot activities, such as training programs, coop- \ Engage UNHCR leadership. Foster high-level con- erative development, and capacity-building nections with UNHCR through direct engage- initiatives. ment with the LED platform or support from DRDIP, ensuring that refugee inclusion priori- \ Capacity building and training. Humanitarian ties are effectively addressed and supported. partners, including NGOs such as the Inter- national Rescue Committee (IRC) and Save These measures will strengthen collaboration, the Children, support refugee inclusion by enhance refugee inclusion, and align local initia- providing technical training to refugees and tives with national and international frameworks. host communities. Training sessions focus on entrepreneurial skills, agricultural practices, In sum, by embedding refugee inclusion into and financial literacy. its core design and implementation, the Ethio- pia LED pilot in Kebri Beyah closely aligns with \ Support for digital platforms. Promoting digi- the pledges Ethiopia made at the 2023 Global tal solutions crucial to the LED approach, Refugee Forum. By prioritizing refugee engage- including introducing platforms for sharing ment in local economic development platforms, information and tracking stakeholder contri- supporting cross-border trade, and expanding butions. Humanitarian actors facilitated the access to livelihoods and finance, the LED pilot development and use of digital tools for ref- contributes to Ethiopia’s broader goal of fos- ugee mapping, beneficiary tracking, and mar- tering refugee self-reliance and local economic ket linkages. growth. The robust involvement of humanitar- ian partners keeps the pilot aligned with global Strategic approaches to enhancing collabora- development frameworks and Ethiopia’s refu- tion with UNHCR and the Refugee and Returnee gee response strategy. Services (RRS) might include the following: Monitoring and Evaluation of the LED Strategy \ Formalizing partnerships. Establish a structured The strategy incorporates a robust monitoring, partnership framework to define roles, evaluation, and learning framework to track responsibilities, and joint objectives, ensuring progress and assess impact, complemented by accountability and mutual commitment. comprehensive risk management protocols that include regular assessment and mitigation strat- \ Local representation. To strengthen coordi- egies. The framework encompasses the follow- nation and incorporate refugee-focused ing key components: 32 \ Clear goals and objectives. Aligns with the spe- navigated local governance complexities and cific goals and objectives of the LED strategy, built initial connections with key stakeholders, including goal 1 (enhanced coordination), enabling the project to achieve swift progress. goal 2 (value chain strengthening), and goal 3 If these relationships had not yet been estab- (capacity building). lished independently, the project would have \ Key performance indicators. Identifies measurable experienced significant delays. indicators to track progress toward achieving the strategy’s outcomes and outputs. To ensure the long-term sustainability of the \ Baseline data. Establishes baseline data to mea- platform, the following elements must be sure progress against the key performance prioritized: indicators. \ Target levels. Sets targets for each key perfor- \ Local ownership and commitment. The sustained mance indicator, representing the desired commitment of the woreda government is level of achievement by the end of the strat- vital. It must take ownership of the LED plat- egy implementation period. form’s operational management and ensure \ Timelines. Defines clear timelines for data col- community-inclusive decision making. Active lection, analysis, and reporting. local leadership will institutionalize LED pro- cesses and strengthen ownership at the com- To effectively monitor and evaluate the imple- munity level. mentation of the LED strategy, a combination \ Capacity building. Ongoing and needs-based of qualitative and quantitative data collection capacity-building initiatives are crucial, includ- methods were employed, including end-line sur- ing structured training programs for woreda veys to measure outcomes, document reviews to government officials and platform members assess progress, focus group discussions to eval- to institutionalize LED principles and ensure uate progress and triangulate results, key infor- effective implementation. This training must mant interviews to gather in-depth insights, and cover operational planning, resource mobili- observations to complement other data sources zation, and stakeholder management. (table 3.5). \ Budgetary commitment. The woreda government should allocate a portion of its development To facilitate data collection and analysis, a basic budget to sustain the platform, including digital management information system was funding regular stakeholder meetings; capac- developed using Kobo Toolbox. This system ity-building workshops; and monitoring, eval- incorporated monitoring-related questions to uation, and learning activities. systematically collect data and provide a cus- \ Effective transition from pilot to LCC implementation. tom dashboard for real-time monitoring and A critical aspect of sustainability is fostering improved insights. a smooth transition from the pilot phase to LCC implementation. Retaining the ground Sustainability team in Kebri Beyah and maintaining the office facilities as a hub for the platform’s The successful implementation of the Ethiopia ongoing activities will provide continuity and LED pilot is largely due to its strategic integration strengthen local ownership. The LCC can with the Development Response to Displace- then build on the momentum established ment Impacts Project (DRDIP) II. By leveraging during the pilot phase, reducing the risk of DRDIP’s organizational framework and estab- disruption and ensuring that activities con- lished relationships, the project effectively tinue smoothly. 33 \ Gender considerations and appointment of focal point. during the transition phase. Its continued Gender equity is crucial to the success and capacity-building support, facilitation of a sustainability of the LED platform. To ensure smooth handover, and assistance with align- the integration of women’s perspectives and ing project activities with regional and national needs into decision making and activities, development priorities are indispensable. a dedicated gender focal point should be \ Resource mobilization. DRDIP should take the appointed to oversee the implementation lead in securing resources to implement the of inclusive measures that promote wom- LED woreda strategy action plans. Its ability to en’s participation in all LED activities, making coordinate with regional and national stake- sure that gender-specific barriers are identi- holders will allow LED efforts to remain inte- fied and addressed. The gender focal point grated into broader development objectives. will work to create opportunities for women, encourage their involvement in leadership By combining local ownership, sustained capac- roles, and monitor the impact of LED initia- ity building, budgetary allocations, strategic tives on women’s livelihoods and economic support from DRDIP, and a focused approach to empowerment. gender inclusion, the LED platform can estab- \ Role of DRDIP. DRDIP remains a cornerstone of lish a sustainable framework that delivers lasting the LED platform’s sustainability, particularly impact and continued growth in the community. 34 Table 3.5. Monitoring, Evaluation, and Learning Framework for Woreda LED Strategy in Kebri Beyah Key Performance Goal Objective Outcome Indicators Baseline Target Level Date Goal 1. Enhance coordination, 1.1: Establish a LED platform and Increased number Number of 0 1 Dec. 24 consultation, and communication engage all key stakeholders in an of public-private functional among LED platform actors in the articulated strategy by the end of partnership public-private woreda through regular stakeholder 2024, outlining clear goals, roles, linking partnerships meetings, a robust communication and responsibilities for each communities to Number of types 0 At least one Dec. 24 strategy, and inclusive consultation stakeholder. market, private of stakeholders from each entity sessions, fostering improved sector, financial involved in LED (government collaboration and information institutions, and agency, private sharing for effective local economic digital services in sector entity, development. target areas civil society organization, and community representative) 1.2. Establish the LED Platform Existence of 0 1 Aug. 24 and 35 Governance within the first two strategic plan Dec. 24 months of the operationalization endorsed by Kebri period (by August 2024), Beyah woreda including forming a governing administration body, defining roles and responsibilities, and establishing decision-making processes. Refine the governance structure by the end of the pilot period (December 2024) to ensure seamless transition into the post- pilot implementation phase. (continued) Table 3.5. Continued Key Performance Goal Objective Outcome Indicators Baseline Target Level Date Goal 2. Strengthen value chain and 2.1: Increase average income Improvement Percentage BL BL*30% Dec. 30 link communities to the them by by 30 percent for at least of last mile LED increase in engaging farmers, cooperatives, and 3,000 pastoral households (or services delivery revenues from the development partners. approximately 15,000 individuals, in target areas; sale of livestock assuming an average household Increased access products size of 5) by enhancing the value to finance of livestock products by 40 through financial percent for 3,000 pastoralists institutions within the next five years to in target improve market competitiveness. communities 2.2: Enhance the quality and Increased job Percentage BL BL*40% Dec. 30 value of poultry products opportunities in increase in the for about 3,000 farmers by target areas value of poultry 40 percent within the next Increased products 36 five years to improve market participation competitiveness. of women in economic activities in target areas 2.3. Enhance the quality and Increased job BL BL*50% Dec. 30 value of bee products by 50 opportunities in percent for 1,500 beekeepers target areas within the next five years to Increased improve market competitiveness. participation of women in economic activities in target areas (continued) Table 3.5. Continued Key Performance Goal Objective Outcome Indicators Baseline Target Level Date 2.4 Enhance sustainable land and Increased number Existence of BL BL+20% Dec. 30 water resource management of public-private functional practices in pastoral areas by partnerships sustainable achieving a 20 percent increase linking grazing techniques in adoption rates within the next communities to five years, targeting 100,000 market, private hectares and benefiting 50,000 sector, financial pastoralists across 20 kebeles. institutions, and digital services in target areas Goal 3. Build LED implementation 3.1: Enhance the woreda Increased LED Number of 0 10,000 community Dec. 2024– capacity. government’s capacity to implementation community members Dec. 2029 effectively implement LED capacity in the members strategies, and coordinate LED woreda. who benefit 37 actors for improved livelihood from woreda support, 2024–30. government LED implementation 3.2: Offer coordination support Coordinated Number of 51 BL+20% Dec 2024– for local capacity building in line capacity building cooperatives Dec. 2029 with LED objectives, 2024–30. of all stakeholders who are actively in LED involved implementation. in the LED implementation 4 First consultation workshop, Jijiga, 14 May 2024 Pathways to Replicability, Deepening Impact, and Expanding Reach Prior to replication, it is imperative to deepen \ Inclusive reach. Extend efforts beyond the ref- impact and expand reach beyond the current ugee community to include internally dis- scope of the project, including extending efforts placed persons and marginalized groups for a to internally displaced communities beyond the more comprehensive impact. refugee population and enhancing the project’s impact by enabling work on value chains to max- \ Value chain integration. Enhance impact by inte- imize benefits and sustainability. grating work on value chains to unlock addi- tional economic opportunities and ensure The successful replication and scaling of the sustainability. local economic development (LED) initiative across the operational woredas of the Develop- \ Strong stakeholder engagement. Foster partner- ment Response to Displacement Impacts Proj- ships with a diverse range of stakeholders, ect (DRDIP)necessitates a strategic approach including local governments, businesses, that considers key factors and prerequisites. community organizations, and nongovern- While the LED pilot in Kebri Beyah offers valu- mental organizations (NGOs) to enrich the able insights, it is essential to acknowledge the initiative and bolster success. specific conditions in the area. \ Adaptability to local contexts. Tailor replication Key prerequisites for replicating, deepening the efforts to fit the specific conditions of each impact, and expanding the reach of the pilot locality, considering factors such as secu- include the following: rity, cultural nuances, and local dynamics for effective implementation. 38 \ Data-driven decision making. Access to reliable chains to maximize benefits and sustainability. data and information on local economies, Therefore, any replication efforts must con- demographics, and resources is crucial for sider these local-specific factors and adapt the informed decision making and planning. approach accordingly. \ Capacity building. Invest in building local capac- \ Robust ownership. Active leadership and com- ity on DRDIP teams to ensure consistent mitment from the Federal Project Implemen- implementation and technical support. tation Unit and regional and woreda project coordination units are essential to driving \ Sustainable infrastructure. Ensure the availability the replication process and achieving desired of robust infrastructure to support smooth outcomes. operations, including transportation, internet access, and basic utilities. \ Supportive local governance. Cooperative engage- ment from local governments is needed to Addressing these prerequisites and expanding secure approvals and promote active stake- the reach of the LED initiative can create a more holder participation. inclusive, impactful, and sustainable framework for replication and scalability. It is essential to \ Adequate DRDIP local personnel. Sufficient staffing adapt strategies to local contexts while maintain- on DRDIP’s local teams is necessary to pro- ing a focus on deepening impact and broaden- vide technical support and ensure consistent ing the initiative’s reach for long-term success. implementation. Replicability and Scalability \ Diverse stakeholder base. The presence of a varied Framework range of stakeholders, including businesses, community organizations, and livelihood- The successful replication and scaling of the focused NGOs—will enrich the initiative and LED initiative across DRDIP operational wore- contribute to its success. das will require strategic consideration of key factors and prerequisites. While Kebri Beyah’s \ Stable and secure environment. A secure envi- LED pilot provides valuable lessons, it is import- ronment is crucial for conducting fieldwork, ant to recognize that some of the conditions in engaging stakeholders, and implementing Kebri Beyah are unique. For example, the long- projects without disruptions. Conflict-prone standing refugee population, the shared cultural or unstable regions pose significant context, and the peaceful environment contrib- challenges. uted to the pilot’s success. These conditions may not be replicable in other parts of the country or \ Access to data and Information. Reliable and up-to- internationally, where the context, security, and date data on local economies, demograph- local dynamics may differ. ics, and resources are essential to informed decision making and planning. Prior to replication, it is also imperative to deepen impact and expand reach beyond the \ Robust infrastructure. Adequate infrastructure, current scope of the project, including extend- including transportation, internet access, and ing efforts to internally displaced communities basic utilities such as electricity and water, is beyond the refugee population and enhancing essential for smooth operations and efficient the project’s impact by enabling work on value implementation. 39 \ Inclusive reach. Extending efforts beyond the Dissemination Plan refugee community to include internally dis- placed persons and marginalized groups will The dissemination of the LED strategy and its ensure a more comprehensive impact. impact is essential to ensure that the successes, lessons learned, and best practices are shared By meeting these prerequisites, the LED ini- with various stakeholders locally, regionally, tiative will create an enabling environment for nationally, and internationally. This multi-tiered scaling its impact while ensuring operational approach will allow the strategy to gain visibility, success. foster wider collaboration, and encourage rep- lication in other regions and sectors. Below are Cost Considerations and the proposed dissemination strategies for each Implementation Strategy level: While the pilot phase involved significant costs Local Dissemination due to the facilitating partner, the replication phase aims to achieve similar outcomes at a Annual Stakeholder Recognition Event reduced cost. This shift will requires a clear Host an annual event to recognize the contribu- understanding of cost implications and optimi- tions of key stakeholders such as government zation strategies. officials, local businesses, NGOs, and commu- nity leaders. The event can be in the form of an \ Reduced facilitation costs. For replication, it is award ceremony similar to the one held during expected that a dedicated facilitating firm the LED strategy launch to create a sense of may not be available. Instead, reliance on ownership and commitment among local actors. existing DRDIP staff and local resources will reduce overhead. Farmers Day \ Cost optimization. Streamlining processes, uti- Incorporate a “Farmers Day” in the LED commu- lizing local expertise, and leveraging commu- nication strategy to celebrate local farmers’ suc- nity resources will help minimize expenses cesses, provide updates on LED activities, and while maintaining project quality. educate the community on the benefits of local economic development. \ Integration with planning mechanisms. Aligning LED initiatives with Ethiopia’s existing planning Social Media Campaigns and budgeting processes—particularly those Utilize social media platforms (e.g., Facebook, coordinated by the Ministry of Planning and Instagram, and X) to raise awareness and engage Development—will enhance resource effi- the local community. Share stories of successful ciency and integration into national priorities. initiatives, highlight local successes, and create interactive campaigns to encourage community By employing strategic cost management and participation. leveraging existing mechanisms, the replication phase can achieve scalability without compro- Community-Based Awareness Campaigns mising impact or quality. Conduct outreach through community meet- ings, workshops, or town halls where stakehold- ers can discuss ongoing LED initiatives, which 40 will reinforce the importance of the LED plat- Media and Press Engagement form in local economic development. Engage with national media outlets (radio, tele- vision, and newspapers) to highlight key suc- Regional Dissemination cesses, innovations, and challenges faced by the DRDIP Regional-Level Advisory Role LED platform; raise awareness; and advocate for policy changes. Leverage the effective advisory role of the regional advisory group led by DRDIP to support International Dissemination the Local Coordination Committee. Its contin- ued involvement in regional forums and initia- International Conferences tives will provide a platform for sharing insights, Present the Kebri Beyah LED pilot at key inter- challenges, and successes, influencing wider national forums such as the LDC Conference adoption in other regions. in Seville, Spain (scheduled for June 2025) to showcase the pilot’s successes and build inter- Regional Conferences and Forums national partnerships for replicability and as an Participate in regional development confer- instrument to facilitate development financing. ences and forums to present the progress made through the LED platform and share strategies Partnerships with United Nations Agencies with other woredas or regions facing similar Reach out to international organizations such as challenges. Such efforts will build regional coop- United Nations (UN) Habitat, UN Development eration and encourage the dissemination of les- Program, International Labour Organization, sons learned. and the Universal Intervention and Develop- ment Organization (UNIDO) to present the LED National Dissemination platform as a model for inclusive local develop- Alignment with National Planning ment. Engaging with these organizations can lead to funding opportunities, technical assis- Align the strategy with national development tance, and broader recognition. planning mechanisms, ensuring that the LED platform is integrated into the broader goals of Local Communities Prosperity Alliance the Ministry of Planning, Ministry of Finance, and other relevant government bodies. This Join the Local Communities Prosperity Alliance, alignment will facilitate national-level support an international initiative focused on enhancing and ensure the strategy’s sustainability under the livelihoods of local communities through national frameworks. collaborative strategies. Participation in the alli- ance will not only amplify the platform’s inter- Participation in National Events national presence but will also open doors for learning from other global initiatives. Actively participate in national events, work- shops, and development summits where the Global Knowledge Sharing Platforms LED strategy can be showcased. This visibility will help advocate for policy support and recog- Contribute to global knowledge-sharing plat- nition from key national actors. forms such as the Global Forum on Local Eco- nomic Development and other international gatherings by presenting the LED approach as a successful case study in integrating local 41 economic development with national and inter- institutions. The various channels of communi- national development agendas. cation ensure that the impact of the LED strat- egy is effectively shared, which will then lead to This structured approach allows for a compre- broader collaboration and support across differ- hensive plan to reach a wide range of stakehold- ent levels. ers, from local communities to international LED strategy development workshop, Kebri Beyah, June 14, 2024 42 5 Kebribeyah LED Strategy Validation Workshop, August 24 Results Achieved and Lessons Learned from the Kebri Beyah LED Pilot The local economic development (LED) pilot The implementation framework is focused on in Kebri Beyah is a strategic initiative aimed three key areas: at transforming local economic growth and inclusive recovery in refugee-hosting areas of 1. Creating an enabling environment for coor- Ethiopia. Launched in February 2023 with a com- dinated LED ecosystem at the woreda level pletion target date of December 2024, the pilot 2. Strengthening LED implementation archi- stems from the recommendations of a 2023 tecture and service delivery capacity through World Bank paper on LED in Ethiopia focused partnerships on facilitating inclusive and long-term COVID- 3. Supporting monitoring, knowledge manage- 19 recovery through a local economic develop- ment, and learning activities. ment approach (World Bank 2023). To achieve these objectives, the pilot established The pilot’s core objective is to enhance local a structured results framework with six major government capacity to implement an LED outputs, implemented throughout 2024. These approach that transforms traditional livelihood outputs range from initial stakeholder engage- programs into a comprehensive economic ment to final knowledge dissemination, with growth strategy. This transformation is achieved specific targets and achievements as detailed by uniting government entities, private sector below (see also appendix E). players, social and digital enterprises, and devel- opment partners around a shared vision for sus- tainable local economic development. 43 OUTPUT 1. OUTPUT 2. Note on Stakeholder Mapping Organization of LED Platform and Analysis The second output, targeted for completion by The first output includes a stakeholder anal- the end of March 2024, created the institutional ysis and validation, which was scheduled for framework necessary for subsequent activities. completion by mid-February 2024. The output It established the LED platform with key part- requirements include the production of one ners. This crucial foundation-laying phase was comprehensive stakeholder mapping and anal- formalized with the signing of memorandum of ysis report, followed by a validation workshop at understanding (MoU) by 14 stakeholders consti- the woreda level. tuting the Local Coordination Committee with success to be measured by the establishment of Achievements a functional LED platform. Mapping report. The stakeholder mapping and Achievements analysis was completed in March 2024, slightly later than the initial target of mid-February. The The establishment of the LED platform is a sig- comprehensive report successfully mapped nificant milestone in institutionalizing LED ini- key LED partners operating in the woreda and tiatives in Kebri Beyah. The process began with provided detailed analysis of their activities and a formal letter of intent outlining the platform’s potential contributions to the LED initiative. purpose and securing stakeholder commitment. The quality and depth of the analysis provided a The establishment process was strengthened strong foundation for subsequent activities. with a comprehensive MoU defining the gover- nance structure, roles, and responsibilities of all Consultation workshop on the formation of the LED plat- participating stakeholders see appendix B. form. The initial consultation workshop served as a crucial foundation for establishing the LED A key component to establishing the platform platform in Kebri Beyah. Through a well-struc- establishment was the implementation of a tured agenda, participants engaged in com- structured training methodology that enhanced prehensive roundtable discussions focused on the capacity of stakeholders to participate effec- critical areas of local economic development. tively in LED initiatives. The training process The workshop effectively facilitated dialogue on included a systematic application procedure job creation strategies for poverty reduction, the using standardized forms and clear evaluation identification of promising new economic activ- guidelines for the ground team. To ensure qual- ities, and the development of strategic partner- ity and relevance, the platform incorporated ships. Participants worked collaboratively using a robust evaluation system using LED Train- structured support tables to analyze economic ing Evaluation Surveys, fostering continuous opportunities, assess stakeholder engagement improvement of capacity-building efforts. potential, and build consensus on platform gov- ernance. The workshop successfully established The platform received further support through a preliminary framework for stakeholder collab- detailed planning tools that provided practical oration and created a shared understanding of implementation guidance, helping stakehold- the platform’s objectives. Through interactive ers visualize and execute their roles effectively sessions, participants identified key economic using the platform. The establishment process, sectors and potential interventions while map- which was undertaken in October 2024, success- ping out stakeholder roles and responsibilities fully created a formal structure for coordinat- for platform development. ing LED activities, facilitating partnerships, and 44 implementing strategic initiatives while ensur- A key achievement was the identification of ing sustainable local economic development in specific capacity-building needs and the map- Kebri Beyah. The platform serves as a perma- ping of required resources and partnerships. nent institutional framework for ongoing collab- The workshop successfully created a framework oration between public, private, and community for implementation by establishing clear prior- stakeholders pursuing local economic develop- ities, defining institutional arrangements, and ment objectives. developing action plans for various economic sectors. Participants worked together to identify OUTPUT 3. both immediate and long-term strategic inter- Preparation of LED Strategy ventions, ensuring a balanced approach to local economic development. The third output, also scheduled for completion by the end of March 2024, involved the prepara- Strategy validation workshop. The strategy validation tion and presentation of the LED strategy for the workshop was a critical milestone toward finaliz- woreda. This output has two main components: ing the LED strategy. Participants reviewed and (1) developing a comprehensive LED strategy validated the proposed strategic framework, with document; and (2) organizing two workshops to a particular focus on specific value chains, includ- present and validate the strategy. These activities ing meat processing, poultry production, and are designed to ensure both technical sound- bee production. The workshop utilized detailed ness and stakeholder buy-in for the proposed guiding questions for each value chain to ensure LED interventions. comprehensive coverage of all relevant aspects. Through collaborative discussions, stakehold- Achievements ers confirmed their support of the governance LED strategy development. The process of develop- structure and implementation mechanisms ing an LED strategy culminated in October 2024, while making final adjustments based on collec- significantly later than the planned March 2024 tive input. The workshop successfully secured timeline. However, the delivered report encom- stakeholder commitment to the strategy and passes both the platform establishment and established a clear path forward for implemen- strategy development components, providing a tation. This final session effectively bridged the comprehensive framework for implementation. planning and implementation phases, ensuring The report includes detailed implementation broad-based support and understanding of the and monitoring plans, demonstrating a thor- strategy among all key stakeholders. ough approach to promoting local economic development using the platform approach. LED strategy launch. The LED strategy launch event in Kebri Beyah was marked by strong stake- Strategy consultation workshop. The strategy develop- holder engagement and enthusiastic partici- ment workshop marked a significant advance- pation. Held on November 26, 2024, the event ment in the LED process, moving from attracted 45 attendees, including regional repre- conceptual discussions to concrete planning. sentatives, private sector actors, and key stake- Participants engaged in detailed scoring exer- holders. The speeches delivered during the cises to establish strategic priorities and devel- launch emphasized the transformative potential oped a comprehensive governance structure for of the LED framework, aligning it with Ethiopia’s the platform. The workshop facilitated in-depth Ten-Year Development Plan to promote inclu- discussions on value chain selection, with stake- sive growth, rehabilitate degraded land, and holders systematically evaluating various eco- enhance livelihoods for pastoralist households. nomic sectors for their development potential. Notable figures such as Alemayehu Girma from 45 the World Bank Group and DRDIP II Regional simultaneously building staff capacity through Manager Muhammed Abdulahi Fara stressed LED strategy orientations sessions. Regular the importance of collaborative efforts and part- monthly monitoring reports tracked progress on nerships to foster sustainable growth, while the both institutional support and capacity-building State Minister and the Ministry of Agriculture’s activities. DRDIP II Project Manager Ato Nigatu Bogale emphasized the LED strategy as a roadmap for Achievements enhancing productivity and promoting inclusive Implementation support has been ongoing, economic development. including the preparation of concept notes Another highlight of the LED strategy launch to train platform members on capacity-build- was an interactive session facilitated by Inter- ing activities. The implementation phase has national LED Strategy Expert Fiorina Mugione been actively incorporating lessons learned and and LED Pilot Coordinator Jemal Ali Yusuf. The adjusting approaches based on emerging needs. session provided a platform to showcase the achievements of the LED pilot phase, focusing OUTPUT 5. on successful coalition building and stakeholder Results Documentation and Learning engagement. Participants actively engaged in The fifth output is centered around an impact discussions regarding the sustainability options assessment, with a scheduled timeline of Octo- for the LED platform’s operation and the broader ber to December 2024. It involves conducting a implementation of the strategy. Constructive comprehensive survey to measure intermediary feedback was exchanged on resource alloca- LED outcomes and impact. tion, platform governance, and the need for clear operational guidelines, fostering a collab- orative atmosphere that encouraged stakehold- Achievements ers to contribute ideas to ensure the platform’s A note entitled Results Achieved and Lessons long-term success and alignment with regional Learned was submitted in October 2024, in development priorities. The event culminated in line with the planned timeline for the impact the presentation of certificates of recognition to assessment. This living document captures key key platform members, symbolizing the collec- achievements and insights, with a structure that tive effort and commitment toward advancing allows for continuous updates throughout the the LED initiative and motivating participants to remaining pilot phase. This approach ensures continue supporting the platform’s growth. comprehensive documentation of immediate results and emerging lessons. OUTPUT 4. Implement LED Strategy and Enhance OUTPUT 6. Local Government Capacity Knowledge Management and Toolkit Development The fourth output relates to the implementa- tion phase, with a timeframe spanning from The sixth output involves knowledge manage- early April to December 2024. This extended ment and dissemination, with activities span- output focuses on strategy implementation ning from September through December 2024, and capacity building, with monthly monitoring including toolkit development and knowledge- mechanisms in place. The implementation sup- sharing events. port targets multiple woreda institutions while 46 Achievements \ Data-driven decision making. The pilot utilized data analytics and visualization tools to track and The LED Operational Toolkit was completed analyze key performance indicators, allowing on schedule in October 2024. The deliverable for informed decision making and adaptive has exceeded expectations by providing not strategies based on trends and insights. only operational guidelines but also incorporat- ing practical tools for replication and scale-up \ Partnerships and collaboration. The pilot estab- in other woredas. This represents a significant lished strategic partnerships with local orga- achievement in terms of knowledge manage- nizations, government agencies, and other ment and sustainability. Moreover, further stakeholders to leverage resources, expertise, events, such as a brown bag lunch webinar, will and networks for a more holistic and impact- be held in December to share the Ethiopia LED ful approach. model with others and learn from other coun- tries that are implementing LED, such as Ghana, \ Capacity building and training programs. The pilot thereby fostering cross-learning and ensure that offered capacity-building initiatives and train- valuable insights are captured and disseminated ing programs to equip local stakeholders with while the pilot is still active. the necessary skills and knowledge to effec- tively utilize the platform and maximize its Innovative Features of the Pilot benefits. The following innovative strategies were \ Innovative financing models. LED is exploring employed for the LED pilot in Kebri Beyah: innovative financing models such as crowd- funding, impact investing, and public-private \ Community engagement and empowerment. The partnerships to foster sustainable funding for pilot implemented mechanisms to actively platform expansion. engage and empower local communities in decision-making processes, fostering a \ User-centric design. The pilot prioritized user sense of ownership and sustainability of the experience and feedback to continuously platform. improve the platform’s functionality and ensure that it meets the evolving needs and \ Mobile technology integration. The pilot leveraged preferences of its users. mobile technology to ensure accessibility and participation from a wider audience, espe- \ Scalability and replicability. The pilot considered cially in remote areas, enabling real-time data scalability and replicability in the design of collection and feedback mechanisms. the platform to facilitate its adaptation and deployment in other regions and communi- ties, maximizing its potential impact . 47 6 LED training on public-private partnerships, Jijiga, December 12, 2024 Lessons and Recommendations This section outlines key lessons learned during the representative from the city council mayor’s the implementation of the Kebri Beyah local office would serve as its vice-chair, and both the economic development (LED) pilot, related best Woreda Women and Children’s Affairs Office practices, and recommendations. and the Kebri Beyah City Women and Children’s Affairs Office would be regular members. Gov- Lessons Learned ernment leadership ensures sustainability. Institutional Framework Lesson. Establishing a dedicated LED structure or designating a clear focal point from the woreda Challenge. The absence of a dedicated LED unit office can streamline processes and ensure con- at the local government level hindered effi- sistent attention to LED initiatives. cient implementation during the initial stages. There was no woreda office at the Kebri Beyah Partner Selection level to coordinate LED efforts, making it nec- essary to form an institutional structure for the Challenge. The selection of the pilot facilitating pilot. Consequently, the firm facilitating the firm was delayed due to complex procurement pilot and the regional Development Response procedures at the World Bank and challenges to Displacement Impacts Project (DRDIP) II with the Bank’s transition to a new corporate team conducted orientation sessions for high- procurement system, significantly impacting the level woreda officials on the pilot’s objectives implementation timeline of the pilot. and its benefits for overall economic develop- ment and local communities. An agreement was Lesson. Streamlining procurement processes can reached with the administration that, once the expedite partner selection and improve project public-private partnership platform was estab- timelines; such factors should be considered lished, the woreda administration would chair it, during the pilot operation period. 48 Government Engagement progressed effectively. Establishing a core team comprising World Bank representatives over- Challenge. In areas where LED model implemen- seeing and technically supporting the pilot in tation is new and lacks an institutional structure addition to DRDIP II government teams at the (as in the pilot woreda), securing government federal, regional, and woreda levels, was crucial buy-in and support took time. The process to driving pilot activities until the facilitating firm required frequent dialogue with officials at all was hired and initial briefings of the pilot objec- levels, including relevant regional bureaus. tives and activities were delivered to the woreda administration. Lesson. Building strong relationships with gov- ernment officials through regular communica- Lesson. A strong, dedicated core team with clear tion, capacity building, and by demonstrating roles and responsibilities is essential to effective the benefits of LED can foster their support and project management and implementation of commitment. LED pilots. Understanding LED as a Process Linking with Existing Programs Challenge. There is a tendency among stakehold- Challenge. If the pilot had not been linked to the ers and local implementers to view LED as a one- existing DRDIP II project, implementing it as time initiative rather than an ongoing process. a standalone initiative would have been chal- lenging due to the lack of an institutional struc- Lesson. Recognizing LED as a long-term endeavor ture for LED facilitation at all levels. Leveraging that requires continuous learning, adaptation, DRDIP staff at federal, regional, and woreda lev- and evaluation is crucial for sustained impact els was a significant factor in the pilot’s success. and to avoid unrealistic expectations. Lesson. Identifying opportunities to collaborate Background Research with existing programs can maximize resources, Challenge. The LED study conducted in refugee- avoid duplication of efforts, and enhance an ini- hosting regions provided a solid foundation for tiative’s overall impact. understanding the challenges in these areas. Had it not been for that study, the innovative Local Coordination Platforms pilot idea would not have been conceived or Challenge. The lack of effective coordination mech- tested to generate proof of concept. anisms at the local level hampered collaboration. Lesson. Conducting thorough background re- Lesson. Establishing local coordination platforms search, including a comprehensive LED assess- can facilitate communication, collaboration, and ment, is essential to grasping the LED landscape knowledge sharing among stakeholders. on the ground, identifying gaps, and selecting appropriate interventions and pilot locations. Coordination Among World Bank Projects LED Core Team Challenge. Limited coordination among different World Bank-financed projects operating in the Challenge. Without the support of the LED core pilot woreda led to inefficiencies. Coordination team during the implementation of the pilot efforts were virtually nonexistent. and the facilitation of the firm’s hiring process, initial preparatory activities would not have 49 Lesson. Improved coordination and leveraging Lesson. Security considerations, such as selecting efforts among World Bank-financed projects stable locations, should be part of the priority can enhance efficiency and avoid duplication of selection criteria. efforts. Resource Management and Financial Dedicated Support for Sustainability Resources Challenge. Insufficient resources at the woreda Challenge. Constraints on financial resources and level posed a challenge to providing compre- insufficient material resources hindered proj- hensive last-mile support to communities and ect growth. Budget constraints affected project ensuring long-term sustainability. scale and scope, limiting the equipment and staffing necessary for successful LED activities. Lesson. Securing dedicated funding, technical assistance, and capacity-building support is Of particular concern was the lack of a gender essential to ensuring the sustainability of LED specialist, an unreliable internet connection, a initiatives at the woreda level. dearth of digital tools and resources for training and capacity building, a limited travel budget. Importance of Piloting Inflation caused costs to increase, and money transfers in dollars presented obstacles. Challenge. The Ethiopia LED model introduces a new approach that had not been tested in the Lesson. To secure and manage resources effec- country. It encourages collaboration among tively, it is crucial to develop a comprehen- stakeholders, including government, the private sive budget allocation plan early in the project sector, nongovernmental organizations (NGOs), cycle and to proactively explore external fund- digital platforms, and microfinance institutions, ing sources and strategic partnerships. This to work together within an ecosystem guided by multifaceted approach to financial planning an agreed woreda LED strategy that aligns with and resource mobilization helps ensure opera- the woreda development plan. It is crucial to first tional stability and supports sustainable project test and refine approaches before scaling them. implementation. Lesson. Conducting LED pilot projects can help Data and Information Management identify challenges, refine implementation strategies, and inform the design of larger-scale Challenge. Access to accurate and timely data initiatives. was limited, impeding strategic planning and resource allocation. Gaps in preliminary data Security Considerations collection at the local level complicated effec- tive project planning and decision making. Challenge. Once the pilot commenced in the selected woreda, security issues prevented Lesson. Establishing regular one-on-one meet- World Bank staff from monitoring the pilot sites, ings, designating data focal points, and creating limiting the quality of project implementation a dedicated LED unit for continuous data sharing oversight. Without the support of local firm staff are essential mechanisms for ensuring smooth and government DRDIP personnel, the chal- information flow. These structured communi- lenges would have been significantly greater. cation approaches enable informed decision 50 making and maintain consistent stakeholder Lesson. Implementing gender-inclusive measures alignment throughout the project lifecycle. and youth-targeted employment programs, along with empowering women as lead trainers Strategy Development Timeline and facilitators, is crucial to enhancing partic- ipation in local economic development initia- Challenge. Limited time allocation for LED strat- tives and ensuring that project components are egy development constrained the project’s abil- gender-sensitive. ity to design comprehensive approaches tailored to local contexts, leading to reactive adjustments Moreover, adding specific expertise, such as an during implementation. LED strategy expert with gender mainstream- ing knowledge, and recruiting trainers from a Lesson. Adequate time must be allocated for local or regional roster of experts fluent in the strategy development phases, including com- regional language, significantly enhances proj- prehensive stakeholder consultation and local ect effectiveness and cultural relevance. context analysis, to ensure effective implemen- tation throughout the project lifecycle and min- Local LED Development Capacity imize mid-project adjustments. Challenge. Local team members often lacked Skills and Capacity advanced skills in LED development, particu- larly in areas like value chain development and Challenge. Local stakeholders often lacked nec- resource mobilization, affecting the quality of essary skills for LED project execution, partic- project implementation. ularly in areas like project management and value chain development. This technical capac- Lesson. Delivering ad hoc training to the Local ity gap affected project implementation and Coordination Committee (LCC) team based sustainability. on individual assessments of required expertise was an effective approach to addressing specific Lesson. Capacity-building programs, includ- skills gaps and enhancing overall team capacity. ing targeted on-the-job training and mentor- ship for local officials, community leaders, and Digital Stakeholder Mapping Tool project staff, are essential to ensuring effective implementation that is culturally relevant and A key best practice from the LED pilot was the grounded in the regional context. Capacity introduction of a digital stakeholder mapping building should be enhanced and take place ear- tool (figure 6.1). This interactive platform, cre- lier in the project. ated using Tableau, offers several features: Gender and Youth Economic Inclusion \ Stakeholder identification. Users can click on stakeholders to see which kebele they oper- Challenge. Limited gender and youth-related eco- ate in, facilitating quick access to relevant nomic opportunities affected broader social information. inclusion goals. The absence of dedicated gen- \ Kebele overview. Clicking on a kebele reveals der specialists created gaps in addressing spe- which stakeholders are active in that area, cific gender-related needs within LED activities. promoting collaboration and partnership identification. 51 Figure 6.1. Digital Map of Identified Stakeholders \ Thematic engagement. Users can explore spe- Focus on short-term gains to build cific themes and see which stakeholders are knowledge and long-term solutions. involved and where their activities are con- The pilot’s emphasis on generating short-term centrated, aiding targeted interventions. results facilitates the rapid accumulation of knowledge, which can subsequently inform sus- The woreda has the capacity to use, maintain, tainable, long-term strategies. This approach and update the tool. allows lessons learned in the early phases to be Recommendations integrated into broader LED efforts in the future. The Kebri Beyah LED pilot initiative provided Map LED actors and activities. valuable insights regarding enhancing sustain- A critical finding of the pilot was the absence of able and inclusive economic growth in Ethiopia comprehensive information about LED actors, in general and in the Somalia region in partic- which resulted in uncoordinated efforts. To ular. The following recommendations focus on address this, there is a pressing need for thor- essential components for promoting a robust ough stakeholder mapping, which involves iden- LED ecosystem. tifying and documenting the roles and activities of various LED stakeholders, including local gov- ernment entities, NGOs, financial institutions, 52 and private sector players. Such a detailed map- sectors with significant growth potential, such as ping aligns with the stringent requirements set livestock and poultry farming, the pilot aimed to by the World Bank during the pilot phase and optimize returns by strategically selecting value improves coordination among stakeholders. It chains that offer rapid economic gains. Empow- would provide insights into the core institutions ering local capacities and promoting sustainable involved and potential governance structures practices within these value chains can improve that could enhance the effectiveness of LED ini- poultry farming efficiency, create knowledge, tiatives moving forward. and test corrective mechanisms, laying the groundwork for long-term solutions that are Strengthen stakeholder coordination and applicable to other sectors. governance structures. Improve service delivery for LED initiatives. The pilot highlighted the necessity for robust coordination frameworks to tackle complex The pilot revealed limitations in localized ser- local development challenges. Establishing a vice delivery, particularly in remote areas lacking multistakeholder platform that brings together access to financial services, markets, and infra- local governments, private sector entities, structure. To address these challenges, enhance NGOs, and community-based organizations is access to microfinance, technical training, and not only a strategic project objective but also market linkages for small businesses and coop- a key requirement set by the World Bank. The eratives while leveraging key value chains iden- insights gained from this process are invaluable tified as having high potential for short-term to improving project alignment, ensuring stake- economic growth. holder engagement, and fostering a collabora- tive approach that aligns with the overarching Build capacity and strengthen knowledge goals of the initiative. Furthermore, establishing management. clear governance structures, such as Local Coor- Ongoing capacity building is essential to ensur- dination Committees and regional advisory ing the sustainability of LED activities. Equip groups, enhances decision making and coordi- local government officials, cooperatives, and nation, with a focus on improving service deliv- community actors with skills in LED governance, ery for LED initiatives. planning, and financial management. Estab- lish frameworks for continuous monitoring and Foster public-private partnerships. learning, and organize peer-to-peer learning The pilot phase underscored how essential the events to facilitate the dissemination of best formalization of public-private partnerships is to practices. resource mobilization and project ownership. This groundwork validated the concept and empha- Promote financial access and sized the indispensable role these partnerships empowerment. play in cultivating sustainability and fostering Limited financial access poses significant shared responsibility among all stakeholders. challenges to local enterprises. The pilot rec- ommends collaborating with microfinance insti- Adopt a value chain approach. tutions and cooperatives to provide loans and A pivotal focus of the Kebri Beyah pilot was the financial services that foster business growth, enhancement of critical value chains to support while also strengthening market linkages to con- local economic development. By prioritizing nect local enterprises with broader markets. 53 Kebribeyah Market Focus on inclusion and gender integration. Enhance sustainability and scalability. The Kebri Beyah pilot placed a strong emphasis The pilot emphasized the need for sustainable on inclusion, particularly integrating women and development models and scalability. Building youth into economic activities. Ensuring women local ownership ensures that LED initiatives are have equal access to financial and technical rooted in the local context, fostering resilience resources enhances their economic indepen- and sustainability. Strengthening the ability of dence and broader contributions to develop- local governments to mobilize resources is cru- ment. Simultaneously investing in education cial to reducing reliance on external funding. and skills development programs for youth pre- pares them for active economic participation. 54 Move at the pace of the project. Formalize the roles and strengthen the capacity of LED trainers and facilitators. Adaptation of the implementation pace to match local conditions and capacity was another \ Integrate LED facilitators and trainers into critical lesson from the pilot. Ensuring that proj- future activities. ect timelines align with the community’s abil- \ Assign roles to trainers and facilitators under ity to absorb changes is vital to maintaining the LED structure to continue capacity-build- engagement and effectiveness in LED initiatives. ing initiatives. \ To ensure the retention of expertise, recog- Ensure flexibility and adaptability. nize the contributions of trainers and facili- tators by formalizing their positions as LED The pilot emphasizes the importance of keeping ambassadors. LED strategies flexible and responsive to chang- \ Conduct ongoing capacity-building activities ing local conditions. Regular reviews and adjust- that will strengthen the “train-the-trainer” ments to strategies are essential to remaining programs to ensure knowledge transfer relevant to evolving local needs, while contin- and the continuous development of new uous feedback loops can help identify chal- facilitators. lenges early and allow for adapting solutions \ Equip the woreda and the LED platform accordingly. with a portable learning platform that can deliver educational tools without an internet Develop a sustainability plan. connection. To ensure the sustainability and smooth transi- tion of the LED platform in Kebri Beyah and to Institutionalize and coordinate regular secure its role as a catalyst for long-term local meetings and coordination. economic development, a multi-faceted strat- \ Establish quarterly meetings for the LCC, with egy that includes governance, resource man- clear agendas focused on strategy updates, agement, capacity building, and community challenges, and new opportunities. engagement will be essential. Key components \ Follow the established annual calendar of of such a strategy would include the following: events to streamline activities and ensure stakeholder accountability. Strengthen the LED platform as a central hub. \ Keep the LED office operational as a central Engage community stakeholders. hub for stakeholders, equipped with essen- \ Organize biannual town halls to update the tial resources including internet access and community on LED progress and gather meeting space. feedback. Ensure inclusive participation, par- \ Use the training room to host capacity-build- ticularly by women and youth, to strengthen ing workshops, stakeholder consultations, community ownership. and value chain diagnostics. \ Establish a woreda-level LED ambassadors \ Leverage existing infrastructure by program to recognize and empower influ- - Using the furnished LED office for collab- ential community members, trainers, and orative meetings, data analysis, and public- facilitators as champions of LED principles. private engagement The ambassadors will advocate for the LED - Encouraging the use of the space as a platform, promote participation in initiatives, shared resource for NGOs, cooperative and serve as liaisons between the community associations, and government bodies. and other stakeholders. The activities of the ambassadors will include: 55 - Conducting regular outreach activities, \ Include video documentaries on successful such as workshops and community events value chain examples, dubbed in Somali, to - Sharing success stories and best practices inspire and educate. through local and digital channels. - Mentoring new stakeholders or partici- Develop a tailored communication strategy. pants to ensure effective integration into \ Use standardized templates for newslet- LED processes. ters, infographics, and social media posts to \ Establish “LED women circles” to provide ensure clarity, cohesion, and consistency of peer-to-peer learning, mentorship, and messaging. shared business opportunities. \ Implement a centralized digital platform for \ Establish a LED youth network. real-time updates, resource sharing, and streamlined coordination. Acknowledge and foster the role of the woreda \ Develop a user-friendly LED web page to share administration. progress, documents, and best practices. \ Recognize the woreda administration’s piv- \ Leverage local media, such as Somali TV, to otal role in endorsing and launching the LED share success stories and updates. pilot. \ Host exhibitions and farmers’ field days to \ Establish a partnership recognition program showcase LED achievements and foster to motivate continued support from local partnerships. government officials as a way mitigate high \ Use the LED Facebook page and WhatsApp turnover. groups to connect with tech-savvy youths \ Acknowledge and properly answer the wore- and women. da’s letter of endorsement sent to the World \ Distribute posters and fliers summarizing Bank. value chain opportunities. \ Host an annual awards event to celebrate achievements, such as “best value chain Empower women and youth. partner,” “innovative youth enterprises,” and \ Provide a platform for women to exchange “women’s empowerment champion.” knowledge, receive mentorship, and co-de- \ Advocate for integrating LED objectives into velop business opportunities. broader Woreda development plans to ensure \ Offer women targeted training on value addi- alignment and sustained commitment. tion, financial literacy, and leadership. \ Launch programs such as “Youth Entrepre- Conduct focused implementation of the neurship Challenges” with seed funding for first-year action plan. innovative ideas. \ Execute the first-year action plan with \ Partner with schools and vocational cen- diligence, emphasizing key value chain ters to integrate LED principles into youth enhancements, such as livestock and poul- education. try improvements, capacity building, and resource mobilization. \ Facilitate peer-led community discussions on value chain opportunities and best practices for women, youth, and cooperatives. 56 Strengthen partnerships. Broaden engagement and partnerships. \ Conduct stakeholder briefings and annual \ Foster inclusive governance by ensuring exhibitions to maintain active collaboration. the representation of marginalized groups, \ Leverage annual farmers’ field days to con- including women and youth, in decision- nect producers with market players and tech- making bodies. nical experts. \ Strengthen collaboration with NGOs like INKOMOKO Jijiga and private sector stake- Mobilize resources and foster financial holders to expand the platform’s reach. sustainability. \ Align the LED platform’s goals with the Somali Regional State’s broader development strat- \ Secure diverse funding streams by engag- egy to amplify impact and secure regional ing international development agencies support. such as the United Nations Development \ Under the DRDIP framework, ensure that the Programme (UNDP), the International Fund leadership role involves guiding the team and for Agriculture Development (IFAD), United fostering effective collaboration. This posi- Nations Industrial Development Organiza- tion requires strong communication skills and tion (UNIDO), Deutsche Gesellschaft für the ability to inspire others toward achieving Internationale Zusammenarbeit (GIZ), and project goals. other bilateral donors to secure funding for \ Serve as the secretariat for all LED initiatives ongoing initiatives. and support the LCC chair. \ Partner with private sector entities for co-fi- \ Assume a central role in organizing, coordi- nancing opportunities in value chain upgrad- nating, and facilitating all LED initiatives. Pro- ing and farmers’ training. vide comprehensive support to the LCC chair \ Encourage local cooperatives and businesses to ensure streamlined communication and to contribute through membership fees effective decision making. or service charges for using the LED office \ Formulate a regional advisory group to lever- facilities. age regional expertise and resources. Develop a robust plan for obtaining regional support Engage in continuous monitoring and adaptive and funding to advance LED goals. learning. \ Lead all communication efforts to enhance \ Establish a robust monitoring and evalua- transparency and collaboration among stake- tion framework to track progress against holders. Oversee monitoring evaluation, and key performance indicators, such as income learning activities to track progress, assess growth, market access, and service delivery impact, and ensure the continuous improve- improvements. ment of LED initiatives. \ Utilize the management information system \ Improve key economic sectors such as live- for real-time data collection and reporting. stock and poultry. Enhance production qual- \ Document best practices and lessons learned ity, market access, and processing capabilities to create an operational toolkit for replication to increase competitiveness and drive eco- in other woredas. nomic growth. \ Organize peer-to-peer learning events to fos- \ Provide targeted training programs for gov- ter cross-regional knowledge exchange. ernment officials, cooperatives, and other local actors to build skills and strengthen institutional capacity. 57 \ Establish a network of skilled mentors, includ- This comprehensive discussion about sustain- ing experts from NGOs, cooperatives, private ability will ensure that the LED platform becomes sector players, and local leaders, to provide a cornerstone of local economic development on-the-ground problem-solving support. in Kebri Beyah. By maintaining the office as a \ Assign mentors to specific regions or value hub, recognizing stakeholder contributions, chains to provide tailored advice and hands-on fostering inclusivity, and implementing robust support. Equip them with access to a digital communication and engagement mechanisms, platform for real-time problem reporting and the platform can serve as a replicable model for tracking. long-term growth and resilience. Extending the \ Host bimonthly troubleshooting sessions pilot phase of the LED platform is essential to where mentors can guide stakeholders facing account for delays, ensure a robust implementa- challenges. tion kick-off, and allow for a seamless transition \ Develop a rapid-response mechanism to to DRDIP II. This extension would provide the address urgent issues stalling progress, such necessary time to solidify partnerships, address as market disruptions or logistical hurdles. initial challenges, and establish a strong foun- \ Expected outcomes include increased resil- dation for the platform’s sustainability under ience of LED projects and improved capacity DRDIP II’s stewardship. The LED platform would for local actors to independently resolve chal- then be able fully achieve its goal of fostering lenges over time.’ inclusive and sustainable economic develop- \ Facilitate strategic partnerships with trad- ment in Kebri Beyah. ers, financial institutions, and social enter- prises to improve access to markets and Note on sustainability. DRDIP’s continued involve- financial services for local entrepreneurs and ment is essential to the sustainability of the cooperatives. platform. Its support of capacity building and \ Prioritize the development and upgrading of facilitation of a smooth handover process are critical infrastructure such as veterinary clin- crucial during this transition phase. In the short ics, processing units, and storage facilities to to medium term, DRDIP could act as a central support and sustain economic activities. coordinator for LED initiatives, fostering collab- \ Take the lead in collaborating with stakehold- oration among woreda, regional, and national ers to improve financial access for cooper- stakeholders to align LED activities with broader atives, women, and young entrepreneurs. development goals. Develop mechanisms to address barriers to financing and promote economic inclusion. As the LCC and woreda administration gradu- ally assume full ownership of the LED platform Note on engagement challenges. Despite clear syn- during the transitional phase, external support ergies, DRDIP II staff members have not yet will be necessary. This support should focus on: committed to regular engagement with the LED platform. DRDIP II’s current focus on its \ Appointing a woreda-level LCC focal point own extensive activities limits the potential to with a dedicated budget to replace the DMI foster active collaboration. Improving align- field team. ment between DRDIP II and the platform and \ Ensuring the preservation of all materials pro- demonstrating potential mutual benefits will be duced during the pilot project by the focal essential to securing the regular participation of person. DRDIP II. 58 \ Developing an annual workplan outlining \ Enhancing the training of trainers to ensure activities to be conducted by the LCC, such continued effectiveness and knowledge as Farmer’s Day and Women Empowerment transfer within the program. Day. \ Organizing retraining sessions for Kebri Beyah These steps will help facilitate a smooth and woreda staff and other participants who have effective transition, ensuring the continuity and benefited from training sessions conducted success of the LED platform. under the pilot project. 59 References DMI (Development Management International). 2024a. World Bank. 2006. Local Economic Development: A Kebri Beyah LED Strategy, October 1. Primer—Developing and Implementing Local Economic ———. 2024b, LED Results Achieved and Lessons Learned. Development Strategies and Action Plans. Washington Version 2, October 25. DC: World Bank. ———. 2024a. Note on Woreda LED Stakeholder Mapping ———. 2020. Ethiopia Poverty Assessment—Harnessing and Analysis. Version 2, November 3. Continued Growth for Accelerated Poverty Reduction. Ronnas, Per, and Aditya Sarkar. 2019. An Incomplete Trans- Washington, DC: World Bank. https://documents.world formation: SDG 8, Structural Change, and Full and Pro- bank.org/en/ publication/documents-reports/document ductive Employment in Ethiopia. Geneva: International detail/992661585805283077/ethiopia-poverty-assess- Labour Organization. ment-harnessing-continued-growth-for-accelerat- Rucker, Anja, and Gabriele Trah. 2007. Local and Regional ed-poverty-reduction. Economic Development. Towards a Common Frame- World Bank. 2023a. Concept note, Ethiopia LED Pilot, April. work for GTZ’s LRED Interventions in South Africa. ———. 2023b. Facilitating an Inclusive and Long-Term Eschborn: GTZ. https://www.picoteam.org/files/PIC- COVID-19 Recovery in Ethiopia with a Local Economic OTEAM%202014/Publications/GTZ%20LRED%20 Development Approach. Washington, DC: World Bank. South%20Africa%20-%202007.pdf. 60 Appendixes 61 Appendix A. Stakeholder Interests and Influence Figure A.1. Classification of Stakeholders by Level of Interest and Power to Influence Figure A.2. Classification of Stakeholders by their Relevance 62 Table A.1. Stakeholder Interests and Power to Influence Action Power to Interest Level/ Influence First Stakeholdera Categoryb Frequencyc Area of Interestd actione Rankingf Commercial Bank of Ethiopia Finance 1 High/strategic High 1 sector development DAI CSO 3 High/sector High 1 development Job Creation Office Public sector 4 High/strategic High 1 (all levels) development Kebri Beyah City Council Mayor’s Public sector 2 High/strategic High 1 Office (all levels) development Sahal Micro Finance Institution Finance 2 High/financial gain High 1 Share Company sector Somali Region Chamber of Private sector 4 High/strategic High 1 Commerce and Sectoral Association sector development Woreda Agriculture Office Public sector 1 High/strategic High 1 (all levels) development AEC Business Consultancy Private sector 4 High/sector Low 2 (DBA Inkomoko) development Cooperative and Social Affairs Public sector 2 High/sector Low 2 Office (all levels) development Danish Refugee Council Development 1 High/synergy with Low 2 partner other projects Hidase Telecom Private sector 1 High/sector Low 2 development Kebri Beyah City DRDIP II Public sector 1 High/strategic Low 2 (all levels) development Kebri Beyah Urban Productive Safety Public sector 1 High/strategic Low 2 Net and Job Program (all levels) development Livestock and Rural Development Public sector 3 High/strategic Low 2 (all levels) development Rays Microfinance Institution Finance 3 High/strategic Low 2 sector development Shabelle Bank Finance 3 High/financial gain Low 2 sector Wogagen Bank Finance 3 High/financial gain Low 2 sector Woreda Cooperative Promotion Public sector 4 High/strategic Low 2 Agency (all levels) development Action for the Needy in Ethiopia CSO 4 Low/synergy with Low 3 other projects Bureau of Women and Children Public sector 3 Low/sector Low 3 Affairs (all levels) development DICAC CSO 2 Low/knowledge Low 3 sharing (continued) 63 Table A.1. Continued Power to Interest Level/ Influence First Stakeholdera Categoryb Frequencyc Area of Interestd Actione Rankingf Ethiopian Red Cross Society CSO 2 Low/knowledge Low 3 sharing Horn of Africa Voluntary Youth Development 2 Low/sector Low 3 Committee partner development IMC Development 2 Low/synergy with Low 3 partner other projects International Rescue Committee Development 1 Low/knowledge Low 3 partner sharing OWDA CSO 1 Low/knowledge Low 3 sharing Rehabilitation and Development CSO 2 Low/knowledge Low 3 Organization sharing Save the Environment Ethiopia Development 1 Low/knowledge Low 3 partner sharing Woreda Youth and Sport Office Public sector 3 Low/sector Low 3 (all levels) development Kebri Beyah City Women and Public sector 2 Low/sector High 4 Children Office (all levels) development Mercy Corps Development 2 Low/knowledge High 4 partner sharing CSO = civil society organization; DRDIP = Development Response to Displacement Impacts Project. a. Name of identified stakeholder. b. As defined by the stakeholders themselves: public sector, private sector, finance sector, civil society organization, or development partner. c. Number of stakeholders that identified it (1–4). d. E.g., strategic development, financial gain, development of the sector, knowledge sharing, and synergy with other projects. e. High or low power. f. On a scale of 1 to 4: (1) high interest and high power to influence action; (2) high interest but low power to influence action; (3) low inter- est and low power to influence action; and (4) low interest but high power to influence action. 64 Appendix B. Sample Memorandum of Understanding Preamble Definitions For the purposes of this MoU, the following definitions apply: Local Economic Development (LED) is a strategic approach to promoting economic development in specific local areas, particularly in Kebri Beyah Woreda. LED strategy. The Kebri Beyah LED strategy validated on August 1, 2024, outlines strategic objec- tives, key actions, and initiatives to leverage local resources, strengths, and opportunities to create a self-sustaining local economy by empowering pastoral and agro-pastoral communities through implementing targeted programs to increase household incomes by 30 percent within five years. This change will be achieved by maximizing resource efficiency, promoting environmental conservation, improving economic coordination, and facilitating community-led decision making. Additionally, by establishing an LED platform, stakeholders will optimize value chains, provide tailored capacity build- ing, and develop a clear implementation roadmap for sustained growth and prosperity. LED platform. A local economic development platform is a structured framework established in Kebri Beyah to promote economic growth, job creation, and sustainable development within the woreda. The LED platform is a collaborative space where multiple stakeholders, including government enti- ties, private sector representatives, nonprofit organizations, academia, and community members come together to coordinate efforts, share resources, and implement strategies to enhance the local economy. The LED platform has engaged 37 stakeholders as of September 1, 2024. Local Coordination Committee. A structured body established at the local level to facilitate coor- dination, collaboration, and communication among various stakeholders involved in development initiatives. Consensus. A decision-making process that seeks agreement among all Parties involved. It does not require unanimity but aims for a solution acceptable to all, minimizing dissent. Casting vote. A vote the chair casts to break a tie when the vote is evenly split. 65 MEMORANDUM OF UNDERSTANDING FOR COLLABORATION ON THE LOCAL ECONOMIC DEVELOPMENT (LED) STRATEGY BETWEEN THE WOREDA AND LOCAL COORDINATION COMMITTEE (LCC) MEMBERS BETWEEN Kebri Beyah Woreda Administration AND _______________ This Memorandum of Understanding (MoU) is entered into on 10/10/2024 by Kebri Beyah Woreda Administration and between each of the undersigned members of the Local Coordination Commit- tee (LCC) of the Local Economic Development (LED) Platform in Kebri Beyah Woreda, [Kebri Beyah City], Somali Region, Ethiopia. i. Purpose This MoU aims to outline the LCC members’ roles, responsibilities, and expectations and to establish a framework for collaboration and coordination in implementing the LED strategy in Kebri Beyah Woreda. Participating institutions will benefit from joining the LED platform through increased col- laboration, resource sharing, opportunities for local economic development, and capacity building, fostering sustainable and inclusive growth. This collaboration does not create or entail any financial implications for the participating organizations and signatories. Specifically, the purpose of this MoU is to: a. Clearly outline the roles and responsibilities of each LCC member in implementing the LED strategy. b. Create a structured approach for collaboration and coordination among LCC members. c. Implement initiatives that contribute to long-term economic growth in Kebri Beyah Woreda d. Coordinate efforts to secure financial, technical, and human resources for the woreda LED strat- egy implementation. e. Ensure regular meetings and active participation in decision-making processes. ii. Members of the Local Coordination Committee Representatives are senior members, such as the Executive Director, Program Manager, or a com- parable leadership role, to ensure that decisions reflect each organization’s strategic priorities. In cases where the designated representative departs from the organization, a replacement of similar seniority should be promptly appointed. The departing representative, where feasible, should facili- tate a handover process to ensure continuity in LCC activities. This will help maintain consistency and minimize disruption to them. 66 The LCC consists of the following organizations and representatives: No Organization Name Title/Position Phone Email 1 Kebri Beyah Woreda Administration 2 Kebri Beyah Woreda Pastoral Development Office 3 City Council Job Creation Office 4 Woreda Agriculture and Natural Resource Development Office 5 Woreda Cooperative Social Affairs’ Office 6 Shabelle Bank 7 Sahal MFI 8 International Rescue committee 9 Save the Environment Ethiopia 10 Chamber of Commerce 11 Inkomoko 12 Woreda PSNP 13 DRIP II City Council 14 DRDIP II Kebri Beyah Woreda iii. Roles and Responsibilities Each LCC member organization is responsible for contributing to the implementation of LED ini- tiatives according to its expertise and available resources, underscoring each partner organization’s commitment to active involvement in the LCC’s collaborative goals. The LED strategy sets a founda- tional context for the more specific duties detailed below. • Woreda: Provide overall leadership and coordination for the LED strategy. • Woreda Pastoral Development Office, Woreda Agriculture and Natural Resource Development Office, Woreda Cooperative Social Affairs Office, and City Council Job Creation Office: Focus on sustainable agricultural practices, value chain development, and environmental management. • Inkomoko, Shabelle Bank, and Sahal MFI: Support capacity building and financial resources mobilization and provide technical advice on funding options for LED projects. • Chamber of Commerce, International Rescue Committee (IRC), and Save the Environment Ethi- opia: Offer technical expertise, support capacity building, and facilitate stakeholder engagement. Developmental Response to Displacement Impact Project (DRDIP) II City and Woreda: Coordina- tion, management, capacity building, monitoring and evaluation, and communications. 67 General Responsibilities • Active participation: LCC members shall actively participate in the LED platform and contribute to achieving its goals and objectives as outlined in the LED strategy. • Collaboration and coordination: LCC members shall collaborate and coordinate efforts to ensure the effective implementation of LED initiatives and promote sustainable economic development in Kebri Beyah Woreda. • Meetings: The LCC shall meet quarterly to discuss the progress of LED initiatives. Extraordinary meetings can be called by the chair or at the request of at least two LCC members. Specific Responsibilities • Support the development and implementation of LED projects and initiatives. • Mobilize resources, including financial, technical, and human resources, for LED activities. • Share relevant data, information, and expertise to support evidence-based decision making. • Facilitate stakeholder engagement and promote inclusivity in LED processes. • Monitor and evaluate the progress and impact of LED initiatives. • Report on activities, outcomes, challenges, and lessons learned to the LCC and relevant stakeholders. To ensure effective oversight and strategic alignment of the LED initiatives in Kebri Beyah, the LCC will establish a regional support group for strategic guidance. The Regional DRDIP II will coordinate the support group for strategic advice and ensure effective coordination, including overseeing LED strategy implementation at the woreda level; coordinating with the woreda LCC, regional government, and stakeholders; and making decisions on resource allocation and partnerships. The Regional Planning and Economic Development Bureau Representative will integrate the LED strategy into regional plans, align initiatives with economic policies, facilitate resource access, and monitor LED integration. The Regional Finance and Regional Cooperative Representative will manage finances for LED proj- ects, ensure transparent budget usage, mobilize additional funding, and oversee resource allocation. The Regional Bureau of Agriculture and Natural Resources Representative will provide agricultural and natural resource expertise and support sustainable practices in LED projects and stakeholder capacity-building programs. 68 The regional support group will be called on for specific support actions and may participate as needed. The support group will convene quarterly and engage with the LCC regularly. This team will provide high-level guidance, support, and monitoring for the LCC, and ensure that the LED strategy is aligned with broader regional and national development goals. In summary, the regional support group will be responsible for the following: • Strategic guidance: Provide strategic guidance to the woreda LCC, ensuring that the LED strategy aligns with broader regional and national goals. • Oversight and accountability: Ensure that the woreda LCC is effectively implementing the LED strategy, meeting key milestones, and achieving desired outcomes. • Resource allocation: Support the woreda LCC in securing and efficiently using financial and tech- nical resources for LED initiatives. • Risk management: Identify and address potential risks to the success of the LED initiatives, ensur- ing proactive measures are in place. • Stakeholder engagement: Facilitate engagement with key regional and national stakeholders, ensuring their support and collaboration in LED activities. • Knowledge sharing: Promote the sharing of knowledge and best practices between the woreda LCC and other regions to enhance the effectiveness of LED strategies. iv. Chair The woreda head will chair the LCC during the LED pilot. The chair will preside over meetings, facili- tate discussions, and represent the LCC in external engagements related to LED. The chair can dele- gate a member of the LCC to act in their absence. The LCC chair may rotate in the future. Responsibilities • Leadership: Preside over LCC meetings, provide overall leadership, and ensure that the commit- tee’s activities align with the LED strategy’s strategic objectives. • Decision making: Lead the decision-making process, ensure all members’ voices are heard, and facilitate reaching consensus on key issues. • Representation: Act as the primary representative of the LCC in engagements with regional authorities, external stakeholders, and the community. v. Decision Making • Consensus: The LCC shall strive to make decisions through consensus. If consensus cannot be reached, decisions shall be made by a simple majority vote. • Voting rights: Each LCC member shall have one vote in the decision-making processes, and the chair shall have a casting vote in the case of a tie. 69 vi. Meetings The LCC shall meet quarterly to discuss the progress of LED initiatives. The chair or at least two LCC members with at least three days’ notice can call extraordinary meetings. vii. Reporting Following the established template, the LCC coordinator will present quarterly reports to the chair. These reports should include updates by members on on project implementation, resource mobili- zation, challenges faced, and progress made toward meeting LED strategy objectives. viii. Confidentiality and Data Sharing The LCC members shall respect the confidentiality of sensitive information shared during LCC meet- ings and agree to handle any data or information in accordance with applicable laws and regulations. ix. Duration This MoU shall become effective on the date of its signing and shall remain in force for three years. The LCC members may amend or terminate it by mutual agreement. x. Dispute Resolution Any disputes arising from interpreting or implementing this MoU shall be resolved amicably through negotiation and consultation among the LCC members. xi. Governing Law and Jurisdiction This MoU shall be governed by and construed by the laws of the Federal Democratic Republic of Ethiopia and the laws and regulations of the Somali Regional state. xii. Intellectual Property Each Party retains ownership of its own intellectual property. The LCC members agree not to use another Party’s intellectual property without prior written consent. Any new intellectual property developed as a result of collaborative activities under this MoU shall be jointly owned by the Parties involved in creating that property unless otherwise agreed in writing. xiii. Status of the Parties Nothing in this MoU shall be deemed or construed to create a partnership, joint venture, employ- ment, or agency relationship between the Parties. The Parties acknowledge and agree that each entity is separate and distinct from the other, and no employees, personnel, representatives, agents, or contractors of one Party shall be considered employees, personnel, representatives, agents, or contractors of the other. 70 xiv. Membership, Amendments, and Unilateral Withdrawal Membership continuity and amendments: All members of the LCC are expected to actively par- ticipate and contribute toward the goals and objectives outlined in this MoU. Any amendments to this MoU require consensus from all signatories to ensure collective alignment and commitment. However, the approval of new LCC members requires only a simple majority (50 percent + 1) vote by existing members. Unilateral withdrawal: Any member organization may withdraw unilaterally from the LCC without terminating the MoU as a whole. To withdraw, the organization must: • Provide a formal written notice to the chair of the LCC at least 30 days prior to the intended with- drawal date. • Outline any ongoing responsibilities or activities that require transition to ensure that the with- drawal does not disrupt ongoing LCC operations. Responsibilities upon withdrawal: The withdrawing member shall coordinate with the chair and relevant committees to transition responsibilities, data, and resources as needed. This process is intended to uphold the continuity of the initiatives without negatively impacting other members or LED projects. Consequences of withdrawal: Upon withdrawal, the organization will no longer hold voting rights or decision-making responsibilities within the LCC. However, it may still be invited to participate in spe- cific activities or meetings related to the LED strategy on an ad hoc basis at the discretion of the chair. xv. Settlement of Disputes The Parties shall use their best efforts to settle amicably any dispute, controversy, or claim arising from this MoU or its breach, termination, or invalidity. If the Parties wish to seek such an amicable settlement through conciliation, the conciliation shall take place in accordance with applicable rules or as may be agreed between the Parties. xvi. Conflict of Interest LCC members must disclose any potential conflicts of interest regarding the LED strategy’s activities. The committee will manage such conflicts through transparent discussions. xvii. Communication LCC members shall ensure consistent and accurate external communication regarding the activities of the LED platform. The chair will oversee external communication efforts to maintain transparency and ensure proper messaging. 71 xviii. Entry of New Members New members may join the LCC with the approval of a simple majority of existing members. Pro- spective members must submit a request in writing to the chair, outlining their contribution to the LED strategy. Stakeholders may also join as members of the LED platform and participate actively. xix. Privileges and Immunities Nothing in or relating to this MoU shall be construed as a waiver, express or implied, of any of the privileges and immunities of the Parties. For the Kebri Beyah Woreda Administration: Organization Name Title/Position Date Signature For Local Coordination Committee (LCC): Organization Name Title/Position Date Signature 72 Appendix C. Results-Based Monitoring System for LED Strategy Implementation Project: LED Pilot Location: Kebri Beyah woreda, Somali region, Ethiopia Monitoring period Planned Monitoring Period 1: Date: Outputs for the period Planned Actual If actual is less or more than What actions, if any, planned, what is the effect need to be taken? on the project? Output 1: Indicator: Assumptions: Output 2: Indicator: Assumptions: Output 3: Indicator: Assumptions 73 Appendix D. Value Chain Selection Based on Stakeholder Ranking Ranking System The selection of prioritized value chains was conducted based on the International Labour Organi- zation/Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) methodology, which incor- porates economic, environmental, social, and institutional criteria. The ranking is based on a scale of one to four, focused on comparative advantages and potential: • Low priority: Minimal impact on community needs. • Moderate priority: Somewhat useful but not essential. • High priority: Important and should be supported. • Strong priority: Critical to community development and requires immediate attention. Out of the suggested 17 value chains, 4 were selected based on their rankings: livestock marketing/ livestock products, bee production, poultry, and nature conservation. Economic Environmental Institutional Value chain Factors Factors Social Factors Factors Ranking 2.1: Increase average Livestock Sustainable Poverty reduction Collaboration 4 income by 30 serve as the livestock and improvement among various percent for at least cornerstone management of livelihoods stakeholders, 3,000 pastoral of livelihoods practices can in pastoral aligned with the households (or about in the woreda, be promoted, communities, development 15,000 individuals, with over 80 such as grazing addressing plan, is supported assuming an average percent of the management inclusiveness as by a favorable household size of population and conservation the sector employs and enabling 5) by enhancing the dependent on strategies, women and other environment. quality and value of it. Stakeholders reducing marginal groups. livestock products, considered greenhouse setting distinct the substantial gas emissions targets for each main impact of and improving product category higher prices resource efficiency. within the next five and the rising years to improve demand in competitiveness. domestic and export markets. 2.2: Enhance the Poultry Waste Public health and Strengthening 4 quality and value of production is management consumer welfare. the poultry sector poultry products for a significant and bio-security requires improved about 3,000 farmers source of measures production by 40 percent within income and can minimize standards, market the next five years livelihood for environmental linkages, and to improve market many small- pollution and capacity building competitiveness. scale farmers. promote resource for farmers, efficiency. processors, and regulatory bodies. (continued) 74 Economic Environmental Institutional Value chain Factors Factors Social Factors Factors Ranking 2.3 Enhance the Expanded Positive Increased Supportive 4 quality and value of market environmental benefits for rural policies, capacity bee products by 50 opportunities impacts by communities, building, percent for 1,500 can increase supporting particularly small- and market beekeepers within income and pollination scale beekeepers/ linkages involve the next five years create women’s and ecosystem farmers by providing collaboration to improve market employment in conservation. alternative income among competitiveness. the apiculture sources. beekeepers, sector. government agencies, and other stakeholders. 2.4: Enhance Sustainable Environmental Enhance community Effective 4 sustainable land land and water conservation, resilience, reduce governance and water resource resource natural resource vulnerability to mechanisms, management management preservation, shocks, and improve stakeholder practices in pastoral practices and ecosystem the well-being of engagement, and areas by achieving a can improve resilience. pastoral populations. policy support 20 percent increase productivity, are necessary in adoption rates resilience, and to promote within the next five food security. sustainable years, targeting land and water 100,000 hectares and resource benefiting 50,000 management. pastoralists across 20 kebeles. 75 Appendix E. LED Pilot Results Framework Target Intervention/Result (Projected Means of Responsible Chain Factor Indicator Result) Collection Frequency Body Output 1 Produced note on Number of 1 Review of Mid-February M&E specialist woreda stakeholder produced stakeholder 2024 with support from mapping and analysis reports or mapping and the team notes analysis report Organized a workshop to Number of 24 Review of training Mid-February LED strategy present and validate the workshop attendance sheet 2024 expert with note at the woreda level participants support from the team Output 2 Organized an LED Number of 1 Review of End of March LED strategy platform with key LED platforms memorandum of 2024 expert with partners understanding support from the team Output 3 Prepared the woreda Number of 1 Review of End of March LED strategy LED prepared LED strategy 2024 expert with Strategy strategies document support from the team Organized workshops to Number of 2 Review of End of March LED strategy present the LED strategy organized workshop reports 2024 expert with workshops support from the team Output 4 Ongoing Number of 14 Review of Monthly LED strategy implementation of supported monitoring (early April– expert with LED strategy and local woreda report December 2024) support from the government capacity institutions team building to implement Number of 20 Review of Monthly Training specialist the strategy staff oriented monitoring (early April– with support from on LED report December 2024) the team strategy Output 5 Conducted Number 1 Review of survey October– M&E specialist measurement of of surveys report December 2024 with support from intermediary LED conducted the team outcomes and impact Output 6 Developed operational Types of 1 Review of toolkit September– LED strategy toolkit toolkit October 2024 expert and communications officer with support from the team Disseminated learning Number of 3 Review of December 2024 Trainers and and knowledge through organized workshop report communication webinars and workshops workshop and and webinar specialist0 with webinar meeting minutes support from the team 76