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Feasibility study of proposal for Zone Chickpea cultivation

Sida is establishing a Public Private Partnership Programme (SPPPP) as a component of Sida’s Business for Development (B4D) Programme. SPPPP intends to mobilise the private sector to pro-actively engage in poor countries through investments, trade, technology transfer and problem-solving. The programme aims at solving problems in the business environment which result in private under-investments, distorted competition, or inefficient use of resources, i.e. not subsidising a business venture as such. Expected outcomes are engagement of poverty groups in gainful employment and production and increased integration of poor countries in the global economy. Sida’s involvement is meant to be additional to a business venture which adds benefits to poor people, for which the Sida support is critical to have maximum positive impact for people living in poverty.

Sida has received an application for a SPPPP from Omega Farms Plc. (Ethiopia) together with Nevado Roses (Sweden). The proposal, called Zone, aims to create a large scale production of chickpeas for domestic and export markets based on cooperation with small holder farmers in the area as well as the development of the women farmers to become vegetable outgrowers to Omega Farms. Sida’s involvement is proposed to focus on capacity development of farmers, farmer’s organisation and possibly community service development.

In order to assess the feasibility of the proposed project and its context, Sida proposed that a brief feasibility study should be conducted. The purpose of the study was to 1) compile and analyse information and present conclusions in order to assess the feasibility of the proposal and 2) to make recommendations for possible in depth preparation and revision of the proposal, both to Sida and to the applicants. ORGUT’s work was based on Sida’s Guidelines for a Swedish Public Private Partnership Programme.

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