Rapid Market Assessment Report, Kumbi Woreda, East Hararghe … · 2020. 10. 23. · Hence, before responding to the shelter and NFI needs to the IDPs through cash, CARE plan for

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© Sankalpa Acharya/CARE India

CARE

Rapid Market Assessment Report, Kumbi Woreda, East Hararghe

Zones, Oromia Region, Ethiopia

CARE Ethiopia

September, 2020

Author: Serkalem Getachew: Food Security and Livelhood Advisor, at CARE Ethiopia

2 September 2020: market assessment

Contents

1. Background ........................................................................................................................................................... 3

2. Objectives .............................................................................................................................................................. 3

3. Methodology ......................................................................................................................................................... 4

4. Limitations ............................................................................................................................................................. 4

5. Result and Discussion ............................................................................................................................................ 4

5.1. Community priority needs and availability of commodities in the market needed by the shock-affected population. .................................................................................................................................................................... 4

5.2. Market Functionality ..................................................................................................................................... 6

5.3. Financial services are available and accessible ..................................................................................................... 6

5.4. Market constraints and market response capacity ............................................................................................... 7

6. Conclusions and Recommendations ..................................................................................................................... 9

6.1. Conclusions ............................................................................................................................................................ 9

6.2. Recommendations ................................................................................................................................................. 9

Table 1: Priority needs of food and non-food commodities by amount required per month. ................................... 5 Table 2: Summary of markets, frequencies of market, and distance from the target community ............................. 5 Table 3: Traders stock Expandability capacity depend on the needs ........................................................................... 7 Table 4: Key commodities in stock before and after the shock .................................................................................... 8 Table 5: Frequency of restocking before and now ........................................................................................................ 8 Table 6: Price changes ................................................................................................................................................... 8


1. Background

East Hararghe zone is one of the 20 zones of Oromia regional state located in the Eastern part of the region, with a

total population of 3,244,378. The zone has 20 woredas, of which 5 of them are pastoralists, and the remaining 9

woredas are agro-pastoralists / depends on a mixed farming system (agriculture and livestock production). East

Hararghe zone boarding with Harari and Somali Regional state and Dire Dawa City administrative council, the zone

shares a very long boundary covering about 1410 km with the Somali Regional State. Out of the 20 woredas in the

zone, nine woredas, namely Chinaksen, Gusum, Babile, Midhega Tola, Meyu, Kumbi, Goro Gutu, Metta, and Jarso

woredas share boundaries with the Somali region.

Kumbi woreda is one of the woredas found in the East Hararghe zone, located 267 km away from Harar city. Most of

the people's livelihoods are pastoralists. The woreda has 14 kebeles with 54,458 total populations. Due to the last

couple of years, ethnic conflict between Somali and Oromo people has affected the people’s living system. Out of 14

kebeles, almost peoples in 11 kebeles were displaced and living in four IDP sites that are Mino, Kerri, Haro Boren, and

Burka Negeya. Currently, 8701 IDP households (4245 Male and 4450 Female) in this woreda and they are living in

congested and inadequate shelter conditions. Out of which, 4045 HHs need to return to their original place, but the

remaining is not interested in returns back.

Hence, before responding to the shelter and NFI needs to the IDPs through cash, CARE plan for conducting this rapid

market assessment aiming at gaining an understanding of the ability of the market to respond to an increasing demand

due to extra cash injection and the levels of target peoples access to the market. Thus, to provide general information

on market conditions and to have a better understanding of the needs of IDPs, specifically in Kumbi Woredas of CARE

implementing a shelter project, the community interviews and assessment conducted at field level and the finding

summary noted in this report.

2. Objectives The specific objectives of this rapid market assessment were:

To have a better understanding about the needs of a community where the project is planning to implement

cash assistance.

To see the capacity and stability of local markets in responding to the growing demands of communities’ due

to cash injected in the local economy.

To identify effective cash delivery mechanisms


3. Methodology The primary data sources for the assessment are representatives selected from the community, key informants from

the government, and traders. Pre-designed checklists were used to collect information from the three data sources

community, key informants, and traders. The tool prepared for traders allowed them to understand the capacity of

the market to respond to the demand to be created through cash intervention.

Accordingly, nine community discussions were held comprising of 4 male and 5 females drawn from different sections

of the community groups. To deepen our understanding of the objectives of the present study, we also conducted

three key informant interviews with the government representatives, and 11 traders were interviewed, where eight

retailers from Kumbi Mino market. In addition, to understand the nearest source market capacity, we have

interviewed three wholesalers in Bedeno woreda, Burka, and Bedeno markets.

Regarding the data analysis, we followed a thematic content analysis procedure where transcriptions was made for

the intended objectives. All the above mentioned data sources used to yield rich contextual and content details related

to the objectives of this rapid market assessment in Kumbi woredas of the East Hararge zone.

4. Limitations

Lack of availability of secondary data to compare timeline data.

Because of the COVID-19 pandemic, the planned time to conduct the assessment was very difficult to bring

the community participate.

Traders fear providing price information assuming that we are from the government taxation office.

Lack of wholesaler in the project implementation woreda.

5. Result and Discussion

5.1. Community priority needs and availability of commodities in the market needed by the shock-

affected population. Almost all FGD participants from the woreda have ranked food items, cooking oil, cooking pot, Kettle and jerrycan, as their priority needs. They listed their priority by item and amount required for Household per month.


Table 1: Priority needs of food and non-food commodities by amount required per month.

In Kumbi woreda, there is only one market place which is the Mino market, and it is a principal market for the

woreda that the majority of the peoples are using. In this market, there is the only retailer who is supplying the food

commodities that is needed by the communities a single retailer could serve more than 1000 peoples per day. In

Mino market, food commodity is only available. As the FGD participants mentioned, the price of the food items also

expensive. However, there are two alternative marketplaces in Burka and Bedeno located 120 or 150 KM away from

Kumbi woreda, respectively. As some of the people mentioned to buy the non-food items, they should have traveled

to Burka and Bedeno woreda markets. In these two markets, food and non-food items are available, and the traders

mentioned that as they could supply the non-food items to Kumbi woredas if needed. These markets serve as a

source market for the Mino market traders since the retailers in Kumbi woredas are getting the commodities from

these markets. However, since both markets are far from the woreda majority of the communities could not able

to access these markets. Besides, due to increased transportation costs, even the retailer’s demands on the items

they were buying is reduced.

Table 2: Summary of markets, frequencies of market, and distance from the target community

Key commodity Amount needed per month for HH(5 person)

Price of the Item

Sorghum, 20 Kg 20 ETB/Kg

Pasta 20 Pieces 25ETB/ 500gm

Rice 15 Kg 40 ETB/kg

Cooking oil 5 litter 35 ETB/litter

Sugar 2 kg 35 ETB/kg

Cooking pot 2 (More than a year) 300

kettle 1 For long time 300

Jerrycan(20 litter) 2 For long time 70

Hand washing Jug 1 per household 30

Washing basin 1 per household 35

Name of the marketplace

Marketplace location

Frequency of operation

Distance to the marketplace

Means of transport to access

Time to get there

Cost to get there

Mino Kumbi

weekly 200 meter No transportation required

10 minute No cost

Burka Bedeno Regular 120 KM Motor bike & ISUZU

2 hour 500 birr by motor bike and 300 birr by ISUZU

Bedeno Bedeno Regular 150 KM Motor bike & ISUZU

3 hours 500 birr by motor bike and 350 birr by ISUZU


5.2. Market Functionality Before the shock Mino market served for all peoples in 14 kebeles of Kumbi woredas, but since the shock 11 kebeles

are only using this market, the other three kebeles are using other markets located in the Somalia region. As a result,

the number of peoples coming to the marketplace has reduced by 50 %. As the traders told since the conflict, the

demand for different commodities has changed because the IDPs do not have any income sources to buy various

items from the market. Therefore the traders limited the amount and kinds of items supplying to the market.

Besides, security issues have been a concern for traders to transport the commodities as well for the communities

to access the market place. Before the shock, the key commodities that are wanted by the community like rice,

Pasta, Water, sugar, and wheat flour were the traders sourced from Somali Region, but since the shock, they are

only getting these items from Burka and other woredas of the East Hararghe zone. The shock affected the traders

by reducing regular transportation service, increased the price of the commodity and cost of transportation, and

reduced demand. Both the traders and the communities mentioned that since the shock, the price of the key

commodities went up, particularly Sorghum and sugar experience particular large price changes. This price

increment happens as a result of the security problem, and high transportation costs.

5.3. Financial services are available and accessible

Regarding financial service provider availability in Kumbi woreda, there is no financial institution at the proximity in

Kumbi woreda. The peoples to get their cash from the bank, they should go to the Bedeno woredas which are 120-

150 km away from the woreda. There are two banks, Oromia cooperative bank and Commercial bank of Ethiopia in

Bedeno woreda, and only Commercial bank of Ethiopia in Burka. All of the project targeted beneficiaries don’t have

access to financial services providers in their woreda. All of the project targeted beneficiaries don’t have access to

financial services providers in their woreda and never received the cash transfer via FSP. In terms of cash transfer

modality, the target preferred cash transfer via direct cash transfer rather than using financial service providers. It

is justified that they can’t afford to incur extra transportations to collect the cash.


5.4. Market constraints and market response capacity

The traders in the Mino market can supply food items however they could hardly provide the Non-food

items because there are no wholesalers in the woreda. Nevertheless, they mentioned that if they are communicated

early and know the demand in the market might bring the NFI items, but they may require high costs. Accordingly,

the profit margin they might request 30 – 40 %, the cost of transportation is the reason to increase the price of

items, and security instability also makes them not to travel regularly.

The market representatives mentioned three main factors that make it difficult for traders to continue their business

as normal at the moment; these includes; no regularity of transportation, inflated the price of the commodities, and

absence of wholesalers. However, the supply of key commodities will be improved if the current situation is

supported by bringing supplies into the town and avail the regular transportation service in the woreda.

Similarly, the traders stated, the three main factors that may make it difficult for them to increase the supply of key

commodities were lack of demand, transportation, security issue and lack of enough stock. As the traders mentioned

these factors can be addressed by Prior communication with transportation owners, contacting wholesalers, renting

stocks, and checking the security situation. Out of 11 interviewed traders, three of them registered in the woreda

trade office in Bedeno Woreda. Most of the traders mentioned that they stored their commodities at their shop/ in

a small shop or their houses. The shock did not directly affect the traders' stores in Kumbi woreda, but due to the

existing instability, they could not able to access the supplier market for the restoration of their stock. Besides, the

current COVID-19 pandemic increased the commodity price and is affecting the trader's storage capacity. When the

traders asked how many traders of their size are supplying this marketplace, in the Mino market, there are five, in

Burka three traders, and in Bedeno were six the same size wholesalers are available. The traders mentioned that if

the demand increased, they could restock within one week in minimum or three weeks maximum. Since the shock,

the customers are buying less amount of the key commodities like rice, Oil, Pasta, and Sugar. The demand of the

customers has changed because the costs of food items increased, due to COVID 19 restriction on transport, and

transportation cost is expensive. Moreover, as a result of insecurity condition, lack of regular transportation, COVID

19, lack of Demand, and shortage of Supply from the wholesaler’, the retailers has changed the amount of key

commodities in stock before and after the shock.

Table 3: Traders stock Expandability capacity depend on the needs

Commodity names

Time taken to respond

If demand increases by 50% If demand increases by 100%

Rice Oil Pasta Cooking Pot Jerrycan Hand washing basin

Two week Two week Two week 10 days One Week One Week

Three week Three week Three week 10 days One week One week


Table 4: Key commodities in stock before and after the shock

Commodity name Quantity in stock now

Quantity in stock normally

Reason for difference (if any)

Rice Pasta Sugar Water

5 Quintal 150 Carton 50 Kg 12 Pack

15 Quintal 250 Carton 150 KG 20 Pack

Lack of regular transportation, Security Instability, Fear of COVID 19, Lack of Demand, and shortage of Supply in the wholesaler’ market.

Table 5: Frequency of restocking before and now

Commodity name Frequency of restocking Quantity restocked each time

Before Shock Now Before shock Now

Rice Pasta Sugar

Every three month Every three month Every three month

Every Five month Every Five month Every Five month

10 Quintal 20 Carton 5 Quintal

3 Quintal 10 Carton 2 Quintal

Table 6: Price changes

Commodity name Unit Current price Price before shock

Price last year

Oil Rice Pasta Sugar

Litter Kg 500 Gram Kg

35 40 25 35

25 30 18 25

25 30 18 25


6. Conclusions and Recommendations 6.1. Conclusions In general, in the course of marketing assessment, we understood that the previous year’s conflict has affected the

market situation in Kumbi woredas. The price of commodities has been unstable and has shown an increasing trend.

In the study sites there are only limited shops and no wholesalers. These shops only have foods to buy. Our

assessment have shown that the target community in the intervention kebeles were able to prioritize their needs

of food and non-food items. Currently, the traders in Kumbi woreda are supplying food items only, but they are

willing to bring NFI items if they are communicated earlier before the cash transfer. In the same token, the

wholesalers in Bedeno woreda Burka and Bedono markets are also willing to transport the NFI items to the target

population depending on the community preference. Respondents reported that they don’t often go to the big

market centers for the fact that there is lack of transportation and even if available, not affordable.

Regarding financial service provider availability, there is no such institution at their proximity in Kumbi woreda. In

order for the people to get bank services, like withdrawing money, they should go to the Bedeno woreda which is

120-150 km away from the woreda. There are two banks, Oromia cooperative bank and Commercial bank of Ethiopia

in Bedeno woreda, and only Commercial bank of Ethiopia is available in Burka. Therfore, we learned from this rapid

market assessment that all the project targeted beneficiaries don’t have access to financial services providers in

their respective woredas and never received the cash transfer via FSP(financial service providers) . In terms of cash

transfer modality, the target beneficiaries preferred cash transfer via direct cash transfer rather than using those

financial service providers. This could be justified that they can’t afford to incur extra transportations to collect the

cash.

6.2. Recommendations Since the banks are far away from the districts, the direct cash distribution are preferred modalities and it

will minimize the cost of the households incurred for transportation.

During direct CASH transfer, all COVID-19 protection protocols need to be followed.

In collaboration with woreda government office, prior to cash distribution communicate with transport

service and traders that would enable supplier to supply the key commodities in sufficient quantities within

the timeframes required.

Assess the security situations in the area, before cash distribution.

CARE conduct market monitoring and coordinate with the local trade office to regulate the price of items,

which the trader inquired from the target beneficiaries.

Documents

Rapid Market Assessment Report, Kumbi Woreda, East Hararghe … · 2020. 10. 23. · Hence, before responding to the shelter and NFI needs to the IDPs through cash, CARE plan for