Livestock market helps revive local economy

The market was destroyed during the northern Ethiopia conflict

August 1, 2024

The Yallo livestock market is the largest market in the Afar region, serving as a vital economic hub that connects Afar with neighbouring Tigray and Amhara regions, as well as Sudan and Djibouti. The marketplace helped local communities, notably youth earning an income from helping load livestock while women set up petty trade.

Fatuma Mohammed, 28, heads the Yallo Woreda Revenue Office. According to her, before the northern Ethiopia conflict broke out the revenue office collected an average of 80,000 ETB every Tuesday, the main market day.

a train traveling down train tracks next to a wire fence — Photo: Yohannes Balcha/UNDP

The marketplace was heavily damaged during the conflict. When traders tried to use the space they faced challenges, with livestock escaping through the broken walls and gates. During the post-conflict period, tax collection dropped to 20,000 and 30,000 ETB weekly.

The Peace Support Facility financed the reconstruction of the Yallo livestock market space, including the water trough.

Fatuma said, “Tuesday is considered as a day of blessed holiday in Yalo Woreda. We are busy in receiving guests and significant amount of revenue was collected from livestock tax.” On average a pastoralist can earn up to 70,000 from selling a camel.

Following the rehabilitation and proper resumption of trading, the revenue office collects around 160,000 ETB every week. The local authorities are using this income to maintain the marketplace, rehabilitate water points, and health facilities, and address other urgent needs within the district.

IDPs returning to the area are also rebuilding their livelihoods, benefiting from the resumption of the livestock trade.

a group of people standing in front of a crowd — Photo: Fozia Ebrahim/UNDP

The Yalo market is also becoming a powerful tool for rebuilding peace and social cohesion and healing the rift caused by the conflict with neighbouring communities by fostering cultural interconnections through a shared economy.

*The Peace Support Facility (PSF) is supported by the Governments of Germany and Japan, with resources also coming from UNDP's core partners and Funding Windows. The PSF currently targets Afar, Amhara and Tigray regions, with support areas focusing on local governance, human rights and social cohesion; basic social services, economic revival; and development solutions to internal displacement.