ETHIOPIA – The Federal Cooperative Agency has signed a Memorandum of Understanding with the heads of regional cooperatives to construct 25 silos to be used by agricultural cooperative unions involved in teff and wheat value chain in four regional states.
The bid aims to alleviate the shortage of warehouses and help cooperative unions with a reliable and effective market outlet.
The silos will be constructed by 12 contractors under the Alliance for a Green Revolution in Africa (AGRA) project and is expected to be finalized in three months, before AGRA’s three-year project in Ethiopia is phased out.
According to AddisFortune, the program is expected to increase the income of 26,415 farmers in the four regional states, and as well build capacity of farmers involved in teff and wheat production by creating market opportunities.
Southern Regional State will get five silos, each with the capacity to hold 200 tonnes of crops.
The region’s coop agency will cover 10% of the re-design cost incurred for the silos and will sub-contract the work to two companies for US$143,444.00 (four million Birr).
Oromia Regional State will get nine silos with a total capacity of 2,000 tons, to be constructed at a valuation of US$286,888.00 (8 million Birr) while Tigray Regional State will have six silos in its central zone, to be constructed at a valuation of US$ 179,305.00 (5 million Birr).
The remaining five silos with capacities of holding 2,500ql will be constructed in Amhara Regional State, East Gojam zone, with the cooperative agencies of the regional state paying 26% of the total investment cost.
“The Cooperative Agency of Tigray Regional State will not raise any funds as it laid a foundation for one of the silos,” said Abdi Mumed, deputy director for the Agency.
“There is no well-organised information channel as well as a transparent system of wealth distribution.
“That is why they have failed to contribute to the national economy and do not fulfil their social responsibility.”
AGRA, headquartered in Kenya, was founded in 2006 through a partnership between the Rockefeller and the Bill & Melinda Gates Foundations, under the inspiration of the late Kofi Annan.