IFAD supported programs in Ethiopia

     I.            Rural Financial Intermediation Program Phase II

The goal of the Rural Financial Intermediation Program – Phase II is to contribute to the poverty reduction in rural Ethiopia.

The program will provide access to a range of financial services for an estimated 6.9 million rural households in Ethiopia, building on the accomplishments of the Rural Financial Intermediation Program I (RUFIP I). This will be achieved through a nationwide network of Microfinance Institutions (MFIs).

Loan number(s): I-782-ET Total project cost: US$138.7 million Approved IFAD loan: US$19.5 million Approved DSF grant: US$19.5 million Project type: Rural Development Approval date: 15/09/2009Duration: 20 - 2015 Directly benefiting: 600,000 households Cofinancing:World Bank: IDA (US$80.0 million

Loan number(s): I-844-ET Total projec cost: US$248.0 million Approved IFAD loan: US$50.0 million Approvd DSF grant: US$50.0 million Project type: Credit and Financial Services Approval date: 15/09/2011

The Program will focus on: institutional development in the microfinance and cooperative sub sectors including knowledge management; improved regulation and supervision of MFIs; credit funds for MFIs Program coordination and management

 II.             Pastoral Community Development Program – phase II

Pastoralists and agro-pastoralists make up nearly 15 per cent of Ethiopia’s total population and are among the poorest and most vulnerable rural people in the country. This project is the second phase of a successful partnership between IFAD, Ethiopia’s pastoral communities, local and federal governments, and the International Development Association. It builds on successes of the first phase to improve the livelihoods of about 600,000 pastoral and agro-pastoral households – about 25 per cent of Ethiopia’s pastoralists.

In this second phase, the project increases its reach from 32 to 57 districts in the Afar, Oromia, Somali and Southern regions, where communities have high illiteracy rates, comparatively low school enrolment rates and very limited access to basic social services in health, sanitation, safe drinking water, transport and communications.

It has a people-centered, holistic approach and its aims include delivering basic social services, reducing rural poverty and enhancing economic growth. It also builds the institutional capacity of pastoral community organizations and local governments. The overall project design supports Ethiopia’s GTP and the government’s rural development, food security and pastoral development strategies and policies.

III.            Community-based Integrated Natural Resources Management Project

The degradation of natural resources is a crucial issue in Ethiopia. The country loses some 2 billion tons of fertile soil annually as a result of land degradation. In particular, siltation of water bodies is a major threat to the development of irrigation. The project targets the Lake Tana watershed in north-eastern Ethiopia. Its objectives are to enhance the access of poor rural people to natural resources such as land and water, and to introduce improved technologies for agricultural production, mainly through sustainable land management.

The project also establishes and strengthens community-based organizations, and promotes off-farm employment opportunities with the aim of relieving pressure on marginal lands. It is part of the Strategic Investment Program for Sustainable Land Management in sub-Saharan Africa, coordinated by the Global Environment Facility (GEF).

Using participatory approaches, the project involves communities in decision-making processes so as to empower them, and builds on indigenous knowledge and institutions to promote sustainable land management. By improving farmers’ land tenure security, it encourages them to invest in land improvement. Reduced siltation of water bodies creates opportunities for hydropower development. Conservation of biodiversity and improved ecosystem integrity are expected long-term benefits. Project activities are designed to:

·         Support implementation of about 650 watershed management plans;

·         Restore the productivity of a large area of degraded land;

·         Increase the productivity of agriculture, including forests and fisheries;

·         Improve food security and the incomes of people living within the Lake Tana watershed.

The project also aims to increase carbon sequestration, which should reduce greenhouse gas emissions and help mitigate climate change

IV.            Participatory Small-scale Irrigation Development Program

The program’s goal is to improve food security, family nutrition and incomes for poor rural households by developing irrigation schemes for small-scale farmers in four states of Ethiopia. The program will target poor rural households in areas that are prone to drought and food insecurity. Many of the households cultivate plots of less than 1 hectare. Specific targets include households headed by women, unemployed young people and people without land.

Total cost: US$62.8 million Approved IFAD loan: US$20.0 million Approved DSF grant: US$20.0 million Duration: 2008 - 2015 Directly benefiting: 62,000 households Status: Ongoing

The program represents an important opportunity to reform small-scale irrigation development approaches and practices in Ethiopia. The irrigation schemes developed under the program will provide a model to be scaled up and replicated across the country. To ensure sustainability and the full participation of local community members, farmers will own and manage the irrigation systems through their own water users' associations. The program will also train participants to take charge of the development process and it will encourage women to join the decision-making bodies of water users' associations.

Loan number(s): I-719-ET Total project cost: US$62.8 million Approved IFAD loan: US$20.0 million Approved DSF grant: US$20.0 million Project type: Irrigation Approval date: 18/04/2007

Other objectives are to improve access roads in areas where there are irrigation systems, and to boost agricultural productivity by improving farming practices, supporting the establishment of home vegetable gardens and strengthening agricultural support services.

   V.            Agricultural Marketing Improvement Program

This program supports the government’s commitment to improve agricultural marketing. The aim is to stabilize domestic grain prices and encourage smallholder farmers to increase production and improve their incomes. The program supports improvements in processing, storage and transport technologies, to reduce post-harvest crop losses and increase returns to farmers. In coffee-producing areas, the program is involved in establishing an auction and exchange process controlled by the project participants. It promotes decentralization of coffee processing and marketing.

The principal objective of the program is empowerment of smallholder farmers to engage in and exploit emerging market opportunities. Activities include training farmers in such matters as post-harvest management, improved access to and use of market information, grades and standards, organization, enterprise management, and the impact of HIV/AIDS on agricultural marketing.

Loan number(s): I-640-ET Total project cost: US$35.1 million Approved IFAD loan: US$27.2 million Project type: Marketing/Storage/Processing Approval date: 02/12/2004