Project description / objective
To contribute to sustainable poverty reduction and social stability through improved livelihoods in Addis Ababa.
The programme specifically aims to increase the incomes of 200,000 poor people (50 per cent women and 75 per cent youth) through increased access to wage and/or self-employment opportunities.
Market system focus
1. Urban informal labour markets
LIWAY is targeting systemic constraints that prevent the urban poor, particularly women and youth, gain benefits from the supply and exchange of labour in the ‘hustle’ economy. This economy involves a diverse range of temporary, transient, disorganised and informal activities where women and youth are systematically disadvantaged in terms of access to, and benefits from, opportunities.
2. Microenterprise production & exchange markets
Microenterprise, the other main pursuit of the urban poor, is highly complex and diverse. By looking at cross-cutting constraints that prevent women and youth from starting or growing their businesses, LIWAY aims to increase the benefits derived from engagement in a wide variety of microenterprises.
Addressing the demand for the many commodities produced by microenterprises is problematic. Thus, interventions focus on factors affecting the production and exchange of goods and services.
3. Cross-sectoral constraints for urban growth-oriented formal firms
LIWAY intends to address cross-sectoral constraints affecting the city’s many growth industries. While foreign investment in new industries gets much attention, most formal sector opportunities are within existing domestic firms that produce a variety of goods primarily for the domestic market. Hundreds of less prominent formal firms would potentially offer employment opportunities for women and youth if they were able to increase their competitiveness and grow in a labour-intensive way.
4. Skills development
Currently under diagnosis.
1. Labour markets
Addressing constraints to the supply and exchange of women and youth labour so as to increase their incomes.
Job matching services
Employers cannot mobilise sufficient labour at short notice. The government has the remit to maintain records of job seekers and match them with available opportunities. LIWAY is introducing a commercial service provider to pilot a digital alternative to the government database. It aligns with:
- government incentives for reducing employment
- employers’ incentives to mobilise labour
- the target group’s incentive to increase their income
- the service provider’s incentive to generate profit
The supply of labour is constrained by competing demands for women’s time - especially childcare. LIWAY’s interventions in supporting the childcare market should result in releasing women to the labour market and helping them increase their incomes. In the initial stages an experimental design is being implemented to find a commercially viable model for low-cost childcare before identifying a scale solution.
Addressing constraints that prevent women and youth from starting or growing their own businesses.
Retail space provision
Microenterprises of all kinds need to sell their products and services. In Ethiopia their ability to do so it affected by an inefficient distribution of space by government and various types of private sector players. Through different interventions LIWAY is developing models for more effective public allocation of space to favour microenterprises and new models of private space provision which are more suited to the needs of microenterprises.
Digital marketing services
As well as physical space, higher growth potential microenterprises are constrained by limited access to higher value markets. LIWAY is piloting the introduction of an online marketplace for the sale of microenterprise products. This includes new agent-based models for sourcing, payments and distribution.
3. Growth sector
Addressing constraints that stop employers of women and youth from growing and creating more jobs.
Human resources services
Labour inefficiency prevents firms from growing - including search and training costs. LIWAY has identified that poor human resources management is key.
LIWAY is intervening to introduce improved human resources management. It is working in both skills development and business development to introduce industry standard practices with a view to improving retention, productivity, and creating more jobs as a result.
Production management services
The competitiveness of growth sector firms is undermined by outdated production management. Whether a factory is producing canned goods or shoes, the standard practice means that firms are inefficient and cannot compete and grow. LIWAY is introducing both improved training curricula and service delivery models to improve production management practices in a sustainable way.
[uploaded: June 2019]