PROJECT STRATEGY

Table 17 shows the components and outputs as agreed after the refocusing of the project. The seven initial components were maintained but with a significantly reduced number of activities.

The first two components revolve around identification of foreign investors, selection of companies, analyzing needs, designing courses and consultancy services.

Components three and four focus on tanning, footwear and leather sectors. The assistance is to be provided directly or through LIDI. The outputs of these components are related to improving management systems of factories; upgrading workers’ technical capacities; production improved; re-engineering business processes and promoting leather products in international markets. These outputs were to be achieved by introducing ERP systems in different areas for LIDI and the companies; providing training on design and ISO certification, providing assistance to diversify products, implementing business process re-engineering, helping companies prepare marketing and implementation plan.

Component five is focused on technical assistance to the micro, small and medium enterprises (MSMEs) and upgrading their production processes. The outputs relate to having MSMEs production quality improved and enabling them to use CAD-CAM services; consortia of MSMEs established and having clusters of MSMEs specializing in specific stages of production. Planned activities include mapping of the SMEs, providing technical, management and design training, supporting clusters to develop into districts following the Italian industrial districts model, creating and supporting consortia.

Component six is building the capacity of LIDI to assist the factories and promote the sector. Planned outputs are to equip LIDI with the necessary IT facilities, to promote LIDI image, to train LIDI staff in marketing and project management, and to support MSMEs by LIDI. Key activities were provision of IT facilities, forging linkages

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between LIDI and other institutes such as ELIA, train LIDI staff, support LIDI to develop legal framework for consortia, enable LIDI to supervise MSMEs.

Component seven aims at improving LIDI’s capacity to provide services by providing skills, consultancy, preparing marketing plan. It focuses on strengthening LIDI’s existing services to companies and developing new ones. Key outputs are therefore LIDI’s professionalism and skills upgraded LIDIs service to companies strengthened, relations between LIDI and others institutes established.

Table 17: Planned outputs and activities of the project

Component Output

1.Identification of the companies’ technical and managerial needs and potential foreign partners

1.1 Companies needs in terms of technical assistance identified 1.2 Potential foreign investors identified

2.Identification of the appropriate assistance and/or consultancy

2.1 Detained plan of activities in support of LLPI designed and discussed among stakeholders

2.2 Appropriate technical training courses and management path formulated 2.3 New streamlined technical and consulting service for the companies to be provided in line with LIDI formation/mandate as well as CLRI redesigned and identified

2.4 Refocus assistance on management, marketing, laboratory accreditation, investment promotion, environmental aspects

2.6 Possible collaboration with USAID program, GTZ ECBP and others on the leather value chain and related activities discussed and identified with the counterparts

3. Provision of technical assistance to the tanning sector directly and through the LIDI

3.1 Tanneries’ management system upgraded in terms of efficiency and effectiveness

3.2 Workers’ technical capacities upgraded

3.3 Business processes re-engineered and upgraded

3.4 Support provided to tanneries for compliance with international

environmental standards through the preparation of individual proposals for the establishment of the secondary effluent treatment plants

4.Provision of technical assistance to the footwear and leather goods companies, both directly and through the LIDI

4.1 Companies’ management systems improved in terms of efficiency and effectiveness

4.2 Workers’ technical skills upgraded for shoe uppers, ladies bags and leather garments as well as shoe manufacture.

4.3 Business processes re-engineered and improved

4.4 Production improved through the provision of quality tests on finished products;

4.5 Ethiopian Lather products promoted in foreign markets 5.Re-qualification,

provision of technical assistance and access to financial credits to the MSMEs of the formal

5.1 Quality of the MSMEs production upgraded and complying with domestic and international standards;

5.2 MSMEs production designed according to modern techniques through the CAD-CAM services of the LLPTI

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Component Output

and informal sector 5.3 On the basis of common agreement amongst stakeholders, consortia of MSMEs of the formal and informal sector established and/or mutual guarantees associations amongst them created through the provision of a mutual guarantee fund

5.4 On the basis of common agreement amongst stakeholders, clusters of MSMEs specialized in each single phase of the production created according to the Italian industrial district model

6. Provision of Technical Assistance and focused capacity building to the LIDI

6.1 LIDI equipped with the necessary IT facilities 6.2 LIDI image promoted within Ethiopia and abroad

6.3 LIDI staff properly trained in project management and marketing 6.4 Legal framework for consortia and/or MGAs developed

6.5 MSMEs clusters supported and monitored by LIDI 7.Technical and

managerial training to the LIDI concerned staff aimed at the strengthening of the existing services and support to the establishment of new ones

7.1 Professionalism and skills of LLPTI/LIDI and staff upgraded

7.2 LLPTI and local companies’ staff trained in design through the utilization of CAD-CAM laboratory;

7.3 Companies provided with CAD-CAM design and consultancy services; 7.4 Relations established between the LLPTI/LIDI and other similar international institutes;

7.5 Competence upgrading plan for the LLPTI/LIDI staff designed and marketing plan established

7.6 LLPTI existing services strengthened and new small machineries and software needed purchased

7.7 New courses such as business process re-engineering, production line management, budgeting, costing, marketing etc offered by the LLPT/LIDI to the companies staff

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