Enterprises in agro-processing sector recognize the positive impact of ProAgro Ethiopia project support on Workplace Safety and Cooperation in their Productivity

A first batch of 20 Small and Medium Enterprises (SMEs) in Ethiopia’s agro-processing sector have signed to pilot an initiative on improving Workplace Standardization, Occupational Safety, Cooperation and increasing productivity. The eight-month intervention was undertaken in collaboration with the Ministry of Industry and the Ethiopia Kaizen Excellence Centre (KEC). The latter institution is an affiliated government agency tasked to promote workplace standardization, enhance productivity, ensure quality and safety, and the well-being of employees.

A baseline assessment found instances of low productivity resulting from, absence of systems to mitigate productivity and Quality losses, low-capacity utilization rate, and weak industrial innovation systems. These conditions were attributed to lack of investment in workforce development, absence of workplace cooperation, and high occupational safety and health risks, and poor incentives.

On 4-6 November 2023, the group of mainly agri-processing enterprises supported by the ProAgro Ethiopia project convened to share their experiences, and to showcase the impact of the ILO support which were based on ILO SCORE and the Kaizen principle of “improving productivity by making a work environment more efficient”.

Enterprise Managers shared qualitative and quantitative data on the rate of improvement due to the intervention. Occupational Safety and Health (OSH) policies, employee suggestion schemes and incentive mechanisms were introduced at the system level which significantly impacted employees' morale, skills, and daily performance.

A total of five enterprises made upward adjustments to wages as a result of employee feedback systems.

In terms of productivity benefits, enterprises recorded average cost savings of 4.6 million Ethiopian Birr; 80% improvement in workplace organization for better safety, and over 65% reduction in waste. Enterprises also brought their products for exhibition.

All participating Enterprises received awards from ILO as an incentive. While appreciating the support of ILO and the Kaizen Excellence Centre, they committed to maintaining a regular platform to continue to share and learn. Managers requested additional support in areas of quality and certification to increase their market.