Consultancy Services to Conduct a Diagnostic Analysis of Cooperative Development

• Country: Ethiopia
• Summary: Consultancy Services to Conduct a Diagnostic Analysis of Cooperative Development
• ETT Ref No: 64140017
• Deadline: 25 Mar 2022
• Financier: Self Financed
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
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• Description:
• Tenders are invited for Consultancy Services to Conduct a Diagnostic Analysis of Cooperative Development in Selected Sectors and Regions in Ethiopia. Over the past decade, Ethiopia has been among the fastest growing economies in the world with double-digit economic growth. Some 85 per cent of its 109 million inhabitants live in rural areas, and inclusive agricultural growth is a driver of poverty reduction. However, agricultural productivity is low due to land degradation major, poor water management, low technology usage and an underdeveloped marketing system, among other factors.[1] Increase of food prices has been another source of concern. Prices were higher year on year mainly due to macro-economic difficulties and conflict-related trade disruptions in some areas.[2] As a way of illustration, in August 2021 prices of maize have increased by 5 to 15 percent in all monitored markets including, the capital, Addis Ababa. In the Addis Ababa market, prices of teff, an important cereal in the local diet, and prices of wheat, partly imported, also increased in August 2021 by 7 and 20 percent, respectively, when they were 18 and 87 percent, respectively, higher on a yearly basis. The high prices of cereals are mainly due to the continuous depreciation of the country-s currency, which has resulted in high prices of imported fuel and inputs, the poor performance of the secondary season “Belg” harvest, completed in August with about a one-month delay, due to poor rains, the Law Enforcement Operation in the North which has caused severe disruption to agricultural activities - all exacerbated by the absence of institutional systems to absorb such shocks and build resilience in the economy.[3] Inflation has become one of the binding constraints for policy makers both in their short- and long-term efforts to advance economic progress. In the context of the devastating effects of the COVID-19 pandemic, cooperatives and wider SSE organizations around the world are mobilizing to provide relief for their workers, members, and communities. Cooperatives have responded to different aspects of the crises in the immediate to short term. Most of these responses have come from secondary and tertiary level organizations.[1] Nevertheless, cooperatives and their movements in Africa in general and in Ethiopia in particular remain relatively weak to fully contribute to poverty prevention and reduction through an increased participation in trade flows and value chains. In addition, COVID-19 also demonstrated the vast opportunities that exist for promoting innovations in a growth and recovery agenda. In the face of the pandemic, e-commerce and other digital solutions have kept food value chains alive in some countries by facilitating on-line retail, improving production efficiency and enhancing interaction of food chain actors.[2] But most cooperatives still face literacy and meaningful digital gaps that prevent them from benefitting from global efforts to leverage digitalization in COVID-19 response that may end up in further marginalizing them. Despite their large number and membership base, cooperatives in Ethiopia have not gained significant market share in production, marketing or financing. From consultative meetings between the ILO and ECC in 2021, several challenges have been identified including unprofessional and non-competititve nature of the cooperative management, due to pay and government influence which stifle incentives to take initiative and grow the coop business. Cooperatives lack internal capacity (human and technical resources for instance) and external accountability (audit, inspection) to have healthy financial controls that minimize waste and corruption. Their accounting and information management systems are generally not upto local or international good practices. Cooperatives struggle to access financing from financial institutions hence they can't grow their business or invest. Additionally, due to poor communication and historical legacy, cooperative suffer from poor reputation problem (they are seen as government/ political institutions).
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