Volume I

(Final Report1)
Main

July, 2009
Addis Ababa Ethiopia

1
Prepared by Dr Demese Chnayalew, Dr Getinet Gebeyehu, Dr Goshu Mekonen, Ato Yaddesa Dinssa. IFPRI
Contributed Chapter 8 of the Report.
 ACKNOWLEDGEMENT

This CAADP Ethiopia Study report is a result of efforts by a number of organizations and individuals
engaged in the Agriculture and Rural Development programmes of Ethiopia. The National Consultants2
directly responsible for compiling data and information, stock, trend and gap analysis and writing the
report sought and obtained support from many organizations and individuals. Among the many, we would
like to gratefully acknowledge the support and advice obtained from the following organizations:
MoARD and its various Directorates, Institutions and Agencies, MoFED, MoWR, MoTI, MoFA, EEPCo,
ETC, CSA, NBE, Revenue and Customs Authority, and the SWG-RED&FS. From COMESA side, there
are many who deserve thanks. The consultants would also like to express their appreciation of the support
and participation of the Regional State Governments Bureaus, especially the Officials and Experts
participated in the Regional Consultation Workshop held at Debre-Zeit, Ethiopia. Special thanks goes to
H.E. Dr Abera Deresa, the State Minister of MoARD, Wondirad Mandefor, Head of the Agricultural
Extension Directorate of MoARD and the CAADP Country Office Focal Person, and Sorssa Natea of the
same Office for their guidance, facilitation and coordination of various tasks starting from the date of the
CAADP Ethiopia Study Launching Workshop held on September 6, 2008. Dr Andrea Bahm, Pim de
Keizer and Achim Fock from the RED&FS also deserve special thanks.

2
The National Consultants' team is composed of Dr. Demese Chanyalew (Team Leader), Dr Getinet Gebeyehu, Dr
Goshu Mekonen, Yadessa Dinssa. Getachew Adugna (Technical Assistant) who assisted in the collection and
compilation of data and information.
Contents
Abbreviations .............................................................................................................................................. vii

Synopsis ....................................................................................................................................................... ix

I. Introduction .......................................................................................................................................... ix

II. Country Level Objectives and Pillar Configuration ............................................................................... x

III. Methodology ........................................................................................................................................ x

IV. Findings from the Stocktaking and Institutional Analysis .................................................................... x

V. Findings from the Trend Analysis ...................................................................................................... xvii

VI. Findings from Economy Wide Model .................................................................................................xx

VII. Findings from the Gap Analysis .........................................................................................................xx

VIII. Conclusion and Recommendations ............................................................................................... xxiv

1. Introduction .............................................................................................................................................. 1

1.1 Background ......................................................................................................................................... 1

1.2 CAADP Ethiopia Pillar Configuration ................................................................................................... 2

1.3 Goals, Principles and Targets .............................................................................................................. 3

1.4 Highlights of Ethiopia’s Resources Base and Agriculture.................................................................... 5

2. Methodology and Conceptual Framework .............................................................................................. 7

2.1 Methodology....................................................................................................................................... 7

2.2 Conceptual Framework ....................................................................................................................... 9

3. Economy Wide and Sector Policies and Strategies ................................................................................ 12

3.1 Core Documents Reviewed and the Notion of Policy ....................................................................... 12

3.2 The Linkage among ADLI, RDPS and PASDEP .................................................................................... 14

4. Pillar based Situation Analysis: Policy, Strategy and Programmes ........................................................ 18

4.1 Natural Resources Management and Utilization (CAADP Pillar I) .................................................... 18

4.1.1 Existing Policies and Strategies .................................................................................................. 18

4.1.2 Existing Programs ....................................................................................................................... 20

4.2 Food Security and Disaster Risk Management (CAADP Pillar III) ...................................................... 21

iii
 4.2.1 Crop Agriculture ......................................................................................................................... 22

4.2.2 Livestock and Pastoralism .......................................................................................................... 24

4.3 Improve Rural Infrastructure, Market Access and Trade Capacities (CAADP Pillar II) ...................... 28

4.3.1 Existing policies and strategies .................................................................................................. 28

4.3.2 Existing Programme ................................................................................................................... 32

4.4 Agricultural Research and Extension System (Pillar IV) .................................................................... 33

4.4.1 Existing Policies and Strategies .................................................................................................. 33

4.4.2 Existing ARE Programmes .......................................................................................................... 36

5.1 Federal Institutions ........................................................................................................................... 41

5. 2 Regional and Woreda Institutions ................................................................................................... 42

5. 3 Development partners: NGOs, CSOs, and Donors ........................................................................... 44

5. 4 Cooperatives .................................................................................................................................... 45

5. 5 Warehouses, Commodity Exchanges and Traders Associations ...................................................... 45

5. 6 Micro Finance Institutions and Micro and Small Enterprises .......................................................... 46

5.7 Women and Youth Associations ....................................................................................................... 47

5. 8 Institutions for Agricultural Research and Extension....................................................................... 47

5.9 Private Sector Institutions................................................................................................................. 49

5.10 Capacity Building ............................................................................................................................. 49

5.10.1 Establishment and equipping Institutes .................................................................................. 50

5.10.2 Human capital formation ......................................................................................................... 50

5.10.3 Finance and Budget.................................................................................................................. 51

6. Economic Performance, Public Expenditure Review and Diagnosis ....................................................... 52

6.1 Economy-wide Performance Analysis............................................................................................... 52

6.1.1 GDP and AGDP Trends ................................................................................................................... 52

6.1.2 Poverty Trend............................................................................................................................. 54

6.1.3 Agro-processing ......................................................................................................................... 55

6.1.4 Infrastructure ............................................................................................................................. 56

iv
 6.15 Performance in Natural Resources Management and Utilization .................................................. 59

6.2 Expenditure Trend Analysis .............................................................................................................. 60

6.3 Trends in Export-Import .................................................................................................................... 62

6.3.1 Trends in Export ......................................................................................................................... 62

6.3.2 Trends in Imports ....................................................................................................................... 64

6.4 Trends in Food Production and Consumption .................................................................................. 67

6.4.1 Crop Production and Consumption ........................................................................................... 67

6.4.2 Livestock and Livestock products............................................................................................... 69

7. Gap Analysis: Policy, Strategy, Programme and Institution.................................................................... 75

7.1 Policy ................................................................................................................................................. 75

7.2 Strategy ............................................................................................................................................. 77

7.3 Programme ....................................................................................................................................... 78

7.4 Institutions ........................................................................................................................................ 82

7.4.1 Organizational aspects ............................................................................................................... 82

7.4.2 Linkage/relationship .................................................................................................................. 83

7.4.3 Capacity ...................................................................................................................................... 85

7.5 Selected Areas of Emphasis and Cross-Cutting Issues ...................................................................... 86

7.5.1 Areas of emphasis ...................................................................................................................... 86

7.5.2 Cross-Cutting Issues: Nutrition, HIV/AIDS, Gender, and Climate Change ................................. 88

8. Agricultural Growth and Poverty Reduction in Ethiopia: An Economy wide Assessment ...................... 91

8. 1 Modeling Sources of Agricultural Growth and Poverty Reduction .................................................. 91

8.2 Poverty Reduction under Ethiopia’s Current Growth Path............................................................... 94

8.3 Accelerating Agricultural Growth and Poverty Reduction ................................................................ 99

8.4 Summary of Major Findings ............................................................................................................ 107

9. Conclusion and Recommendations....................................................................................................... 109

9.1 Conclusion ....................................................................................................................................... 109

9.2 Recommendations .......................................................................................................................... 110

v
 9.2.1 Policy ........................................................................................................................................ 110

9.2.2 Strategy .................................................................................................................................... 111

9.2.3 Programmes ............................................................................................................................. 112

9.2.4 Institution ................................................................................................................................. 119

BIBILOGRAPHY .......................................................................................................................................... 123

vi
Abbreviations

AU/NEPAD African Union‟s New Partnership For Africa‟s Development

ADLI Agricultural Development Lead- Industrialization
AfDB African Development Bank
AGDP Agricultural Growth Domestic Product
AISE Agricultural Inputs Supply Enterprise
ARC Agricultural Research Center
ARES Agricultural Research and Extension Systems
ARTP Agricultural Research and Training Project
BoARD Bureau of Agriculture and Rural Development
BoFED Bureau of Finance And Economic Development
BoTI, Bureau of Trade and Industry
BoWR Bureau of Water Resources
BPR Business Process Reengineering
CAADP Comprehensive Africa Agriculture Development Program
CGE Computable General Equilibrium
CGIAR Consultative Group of International Agricultural Research
CRDA Christian Relief And Development Association
CSOs Civil Society Organizations
DA Development Agent
DAG Development Assistants Group
DRM Disaster Risk Management
DRMFS Disaster Risk Management And Food Security
EAAP Ethiopia Association Of Agricultural Professionals
ECX Ethiopian Commodity Exchange
EDRI Ethiopian Development Research Institute
EEPCo Ethiopian Electric Power Corporation
EIAR Ethiopian Institute Of Agricultural Research
EPA Export Promotion Agency
EPLAUA Environmental Protection and Land Administration and Use Agency
EPRDF Ethiopian Peoples Revolutionary Democratic Front
ERA Ethiopian Road Authority
ERTTP Ethiopian Road Travel and Transport Programme
FAO Food And Agriculture Organization
FDRE Federal Democratic Republic of Ethiopia
FeMSEDA Federal Micro and Small Enterprise Development Agency
FTC Farmers Training Center
GDP Gross Domestic Product
GoE Government of Ethiopia
GOs Government Organizations
HLI Higher Learning Institutions
IA Investment Agency
IFPRI International Food Policy Research Institute
ILRI International Livestock Research Institute
IT Information Technology
M&E Monitoring And Evaluation
MDGs Millennium Development Goals
MDGs-NA Millennium Development Goals Needs Assessment

vii
MFI Micro Finance Institutions
MoARD Ministry of Agriculture and Rural Development
MoFED Ministry of Finance and Economic Development
MoH. Ministry Of Health
MoTI Ministry of Trade And Industry
MoWA Ministry Of Women Affairs
MoWR Ministry of Water Resources
MSEs Micro And Small Enterprises
NARS Ethiopian National Agricultural Research System
NCs National Consultants
NGOs Non-Government Organizations
NP National Product
OAU Organization of African Union
ORARI Oromia Agricultural Research Institute
PALTAS Pastoral Agro-pastoral Land Tenure Administration Study
PAP Pastoral and Agro-Pastoral
PASDEP Plan For Accelerated and Sustained Development to End Poverty
PEPA Public Enterprises Privatization Agency
PIP Public Investment Programme
PM&E Planning, Monitoring And Evaluation
PPP Public Private Partnership
PRSP Poverty Reduction Strategy Program
PSC Pastoral Standing Committee
QSAE Quality and Standards Authority Of Ethiopia
RCBP Rural Capacity Building Project
RDPS Rural Development Policies and Strategies
RE&D Research Extension and Development
RECs Regional Economic Communities
RED & FS Rural Economic Development and Food Security
ReMSEDAs Regional Small Enterprise Development Agency
RRA Rural Road Authority
RUL Rural-Urban Linkage
SDPRP Sustainable Development and Poverty Reduction
SME. Small Micro Enterprise
SMS Subject Matter Specialist
SWG RED&FS Sector working group RED&FS
TVET Technical and Vocational Education and Training
UEAP Universal Electrification Access Program
UNDP United Nations Development Program
USD United State Dollar
WB World Bank
WFP, World Food Program
WMS Welfare Monitoring Survey
WTO World Trade Organization

viii
Synopsis

I. Introduction
The Comprehensive Africa Agriculture Development Program (CAADP) is a framework which
African Governments agreed on and created to accelerate growth and eliminate poverty and
hunger in the continent. Ethiopia is in the process of institutionalizing the CAADP as its
agriculture sector policy, strategy and programme formulating framework. This CAADP
Ethiopia study was conducted to assist the institutionalization process.

The African Union‟s New Partnership for Africa‟s Development (AU/NEPAD) vision and
strategic framework3 identified four pillars to guide CAADP indigenization in member countries.
These are:

Pillar I: Extending the area under rural infrastructure and reliable water control systems;
Pillar II: Improving rural infrastructure and trade related capacities for market access;
Pillar III: Increasing food supply, reduce hunger and improve responses to food emergency
crises; and
Pillar IV: Improving agriculture research, technology dissemination and adoption

CAADP also embraced the principle of agriculture-led growth as a main strategy to achieve the
Millennium Development Goal (MDG 1) of halving poverty and hunger by 2015. On this basis it
sets principles and targets to guide national sector strategies in
 the pursuit of a 6% average annual growth rate for the agricultural sector at the national
level;
 the allocation of 10% of the national budget to the agricultural sector;
 the exploitation of regional complementarities and cooperation to boost growth;
 the principles of policy efficiency, dialogue, review, and accountability, shared by all
NEPAD programs;
 the principles of partnerships and alliances to include farmers, agribusiness, and civil
society communities;
 The implementation principles assigning the roles and responsibility of program
implementation to individual countries; that of coordination to designated Regional
Economic Communities (RECs); and that of facilitation to the NEPAD Secretariat.

Ethiopia has surpassed the CAADP targets of 6% average annual agricultural growth rate and 10%
national public expenditure share for the agricultural sector for successive years before the launch of this
study. This does not mean that poverty and hunger are tackled to the level of expectation of the GoE.
Indeed the Government is still committed to allocate more resources to tackle these problems.

3
Adopted by the then OAU Heads of State and Government Summit in July 2001.

ix
II. Country Level Objectives and Pillar Configuration
At country level the goal of the CAADP study is to assist the Government with defining and
accelerating the process of implementing its agricultural development agenda in line with the
CAADP framework. In the case of Ethiopia its objective is to support the development of a
comprehensive agriculture and rural development strategy, consistent with the national
agriculture and rural development policies, which is the Rural Development Policies, and
Strategies, and implementing framework, the Plan for Accelerated and Sustained Development
to End Poverty (PASDEP). The study is also designed to assist the future national development
planning frameworks and will, in particular, inform and influence the preparation of the next
phase of the PASDEP.

This country level study keeps on the basic principles guiding CAADP implementation process, and
through careful consultation with stakeholders established indigenized CAADP Ethiopia pillars. These are
Pillar I. Improve natural resources management and utilization;
Pillar II. Improve rural infrastructure, market access and trade capacities;
Pillar III. Enhance food security and improve disaster risk management; and
Pillar IV. Improve the agricultural research and extension system.

III. Methodology
The CAADP Ethiopia study is anchored on the above indigenized pillars and conducted by
strictly following the study methodology included in the National Consultants (NCs) Terms of
Reference4 (ToR). The ToR underlines that the methodology should comprise a three-step
approach:
 Stocktaking
 Gap identification
 Institutional strengthening and capacity building
In line with the methodology proposition contained in the TOR, the six major approaches used to
conduct CAADP Ethiopia Study were (a) Two stage interviews: Before and after the Inception
Report; (b) Three stage of stocktaking; (c) Consultation workshops5; (d) Review of Document;
(e) Trend and Gap Analysis; and (f) Economy wide computable general equilibrium (CGE)
model. Below are the findings, conclusions and recommendations of the study.

IV. Findings from the Stocktaking and Institutional Analysis

Ethiopia has policies, strategies, and programmes that are documented in different legal and
official documents. The following summarizes the existing policies, strategies, programmes and
institutions which are identified through the three stage stocktaking exercises.

4
IFPRI is also contracted by COMESA to conduct investment and agricultural and income growth empirical study.

The findings of this are included as chapter 8 of this report.

5
Two workshops were conducted. One during the initial stage of report writing to consult with regional
representatives and another after the submission of the mid-term report.

x
4.1 Existing Policy
Basic principles governing agriculture development policy in Ethiopia, as clearly stated in RDPS
(2003) are:
• The labour intensive production
• Proper utilization of agricultural land
• A foot on the ground
• Taking different agro-ecological zones into account
• An integrated development path

The existing policies that induce the development efforts in the agriculture sector and arranged
according to the four indigenized CAADP Ethiopia pillars are shown below. In general at present
there are 46 national agricultural policy positions covering the four CAADP Ethiopia Pillars6.

Natural Resources: Existing Policy Issues and Statements

Policy Issues Policy Statements

Land acquisition Provide land free of charge for every Ethiopian citizen who wants his
livelihood in agriculture.
Land use Prepare a sustainable and proper land use plan.
Investment on land Ensure the right of access to land to private investors who wants to
invest on land on long or short term lease
Irrigation Development Ensure the development of multipurpose different size irrigation
schemes where appropriate.
Livestock Water Promote the availability of water nearer to pastoralists as much as
possible by providing livestock water supply to all the regions
particularly to PAP areas
Watershed Development Promote participatory watershed development to enhance watershed
based agricultural production.
Private forest development Fostering private forest development and conservation
Forest development technology Expansion of forest development technology
Market for forests Expanding market development for forests
Management of state forest Administration and management of state forests
Forest protection Protecting forest resources from threats
Information system Establishing modern information systems on forest development,
conservation and utilization
Wild life protection The wild life of the country is protected and developed.

Crop7 Agriculture: Existing Policy issues and Statements

Policy issues Policy statements
Sustained accelerated agro- Provide support and technology packages that enhance
ecological zone based crop specialization and diversification appropriate to the different agro-
production ecological zones.

Commercialization Expand and increase the quantity and quality of crops for domestic
and export markets.

6
In pillar I, II, III, and IV, 13, 10, 17, and 6 policy positions, respectively.
7
Includes field, horticultural, industrial and spices and herbs

xi
 Domestic production and
importation of fertilizer
Seed/seedling production and
supply
Ensure adequate supply of fertilizer through domestic production
and competitive and efficient fertilizer importation and marketing
system
Develop an effective seed production and supply system through
participation of public and private sectors

Integrated pest management Establish an environmentally sound system of plant protection using
integrated pest management system

Livestock8: Existing Policy Issues and Statements

Policy issues
Development with indigenous
and exotic technology
Pastoral extension package
Small ruminants development
Expansion of poultry production
Honey and wax production
Fishery development
Policy statement
Enhance livestock centered specialization development that includes
the importation of exotic breeds
Develop livestock technological extension package for pastoral areas
Expand and increase small ruminants in highly populated,
fragmented landholding , degraded and arid climate
Expand and increase Poultry production in all mixed farming
agriculture including agro pastoral areas
Develop and expand honey production with special emphasis in
irrigated areas, integrating with fruit and agro forestry
Expand fishery development and production in water bodies where
the potential is not fully exploited

Pastoralist Livelihoods and Institutions: Existing Policy Issues and Statements

Policy issue Policy statement
Livelihoods Ensure pastoral livelihoods and their asset bases through the participation of the
pastoral community and the use of pastoralist traditional and formal institutions
Social services Expand and ensure access to basic social services
Settlement Ensure settlement of PAP community members on a voluntary basis and with
adequate and appropriate attention to natural resources and environment
conservation.

Livestock and Pastoralism-Cross-Cutting : Existing Policy issues and Statements

Policy issue Policy statement
Livestock breed Enhance livestock productivity and production through breed improvement.
improvement
Animal feed Promote animal feed production and development both in natural and
compound form with due consideration for the protection of natural resources.
Animal health Improve and expand animal health services

8
Includes dairy, meat, poultry, apiculture and fish

xii
Agricultural Research and Extension System: Policy issues and Statements
Policy issue
Wise use of natural resources
Sustained supply of crop
technologies
Livestock and pastoralism
technology generation and
importation
Crop agricultural extension
Livestock agricultural extension
Extension in PAP areas
Policy statement
Enhance agricultural research programs for sustainable land
management, wise use and maximum utilization of water and forest
resources
Improve and strengthen agricultural technologies supply,
multiplication and distribution on a sustainable basis
Undertake research on breed improvement, animal health care, feed
resources, and adopt domestic and imported technologies by
ensuring the collection and documentation of information on the
same.
Enhance better extension services through improved crop
agricultural research–extension–farmer and stakeholders linkage
Enhance better extension services through improved livestock
agricultural research–extension–farmer and stakeholders linkage
Enhance better extension services in PAP areas with the
participation of traditional institutions.

Rural Infrastructure, Market Access and Trade Capacities: Existing Policy issues and
Statements
Policy Issue
Transformation
Acceleration and
competitiveness
Private sector
Domestic market
Road
Power and energy
Telecommunication
Foreign trade expansion
Trade competitiveness
Access to WTO
Policy Statement
Transform the traditional agriculture to modern and commercial agricultural
through market driven development
Accelerate market based agricultural development, and be competitive in the
international market
Accelerate private sector development by ensuring private operators remain
abide by the rules of free market
Expand and improve domestic markets emphasizing on value chain
Expand and enhance the efficient use of available rural roads and transport
services
Expand electrification to the rural kebele level
Provide telecommunication services up to kebele level with a priority to
woreda development centers and towns
Expand Export of Agricultural Products and their Markets
Enhance the competitiveness of the country in the global market
Accelerate the process of Ethiopia's accession to the World Trade
Organization (WTO)

4.2 Existing Strategy

Most of the above listed existing policies have strategies that are also contained in existing legal
and official documents. Agriculture Led-Industrialization (ADLI) is the lead national economic
development strategy. ADLI continued to influence the formulation of successive policy,
strategy, and plan documents such as the Revolutionary Democracy document which includes
policy and strategic issues, and the sector specific policy and strategy documents such as RDPS
as well as the two consecutive plans known as SDPRP and PASDEP.

xiii
According to RDPS the “agriculture-centred rural development” strategy has been adopted as a
major strategy and is expected to assist in the realization of the country‟s economic development
objective. The fundamentals of Ethiopia‟s agricultural development strategy as clearly put in
PASDEP are:
a. Adequately strengthen human resources capacity and its effective utilization,
b. Ensuring prudent allocation and use of existing land,
c. Adaptation of development path compatible with different agro-ecological zones,
d. Specialization, diversification and commercialization of agricultural production,
e. Integrating development activities with other sectors, and
f. Establishment of effective agricultural marketing system
Based on these fundamentals several sub-sector and thematic strategies have been set and
reported in the annex of this report.

4.3 Existing Programmes

In this study a programme is a framework that contains similar activities designed to bring
developmental changes (result based); and enhance growth with a continuous resource allocation
from internal and external sources via annual recurrent budget or capital budget i.e., set in a
project format. According to the FDRE government budget manual a programme is a broader
cost center of a public body or a broad objective of expenditure. This definition is also adopted in
this study. On the basis of this definition the existing programmes identified are the following:

Existing Natural Resources Programs

Programme area Existing Programmes
Water  Water harvesting and small irrigation development
Land  Sustainable land administration and use
Forest  Forest resources protection and management
Wild life  Wild life conservation

Existing Development Programmes in Crop Agriculture

Programme area Existing Programmes
Development Production
 Crop production
 Crop protection
Disaster Risk Management and Food  Food security
security  Disaster Risk Management

Existing Development Programs in Livestock Agriculture

Programme area Existing programs
Development Production
 Livestock and fishery resources
 AI service
 Animal health
 Tryps and trypanosomisais control center
Disaster Risk Management and Food  Food security
security  Disaster Risk Management

xiv
Existing Programmes in Rural Infrastructure, Market Access and Trade
Programme area Existing Programmes
Markets and marketing  Agricultural Input Supply and Marketing
 Agricultural Input Quality Control
 Warehouse Receipt and Credit Facility
 Agricultural Products Marketing Promotion (Export
included)
 Agricultural Products Quality Improvement, Standards, and
Inspection
 Agricultural Marketing Information System
 Agricultural Products Marketing (Domestic and Capacity
Building)
 Cooperatives Establishment and Strengthening
 Socio-economic Research (EIAR)
Rural infrastructure  Road Sector Development Programme-Ethiopian Rural
Travel and Transport Sub-Program
 Sugar Industry Development
 Universal Electrification Access Programme (UEAP)
 School-net
 Woreda-net
 Agri-net
Foreign trade  WTO Affairs

Existing Agricultural Research and Extension Programmes

Natural Resources Crop Agriculture
Research
 Water harvesting,
irrigation and drainage
 Moisture stress crop and
natural resources
management
 Forest resources
improvement
 Forest production and
utilization
 Soil fertility management
and resource assessment
 Socio-economics
Extension
Agricultural extension
Livestock and Pastoralism
Research
 Cereals
 Pulses
 Oilseeds
 Fiber
 Socio-economics
 Plant protection
 Agricultural extension and
technology transfer
 Agricultural mechanization
and food science
 Seed and research centers
development and
management
 Agricultural biotechnology
Extension
Agricultural extension
Research
 Agricultural extension and
technology transfer
 Feeds and grazing ,animal
nutrition and apiculture
 Milk and draught power
 Agricultural mechanization
and food science
 Agricultural biotechnology
 Meat and poultry
 Fishery and Aquaculture
 Agricultural biotechnology
 Animal Health
 Socio-economics
Extension
Agricultural extension and TVET

xv
4.4 Existing Institutions
Institutional issues are issues of organizational set up and relationship or linkages among existing
or newly emerging organization be it in the private or public sector. RDPS and PASDEP have
explicit explanations on institutions which are responsible to implement the existing policies,
strategies and programmes. These institutions are classified into seven categories: Government;
NGOs; mass organizations; private; CSOs; CBOs, donors and bilateral/multilateral institutions;
and domestic agricultural research and extension as well as CGIAR affiliated institutions.

At Federal level, MoARD is responsible for the implementation of agricultural policies and
strategies. In addition, inter ministerial institutions in the forms of committees or Boards of
MoARD, MoFED, MoFA, MoTI, MoWR, MoE and MoWUD play supportive role in
implementing pastoral, agricultural and rural development policies and strategies. Every region,
using its independent undertaking, has also similar institutional arrangements to that of the
Federal Government. This includes BoARD, BoFED, BoWR, , whereas at Woreda level, the
Woreda Administrative Councils, WoARD and Kebele Administrative and Development
Councils are the key players in implementing the agricultural policies and strategies.

One unique difference between Federal and Regional institutional arrangement is in the area of
land administration and use. At Federal level there is no separate institutional arrangement on
this matter while at Regional level there exists an institution either directly accountable to the
Regional Administrative Council or BoARD.

Commodity exchange and future markets are also part of the government‟s institution building
efforts. Cooperatives play a significant role in creating improved marketing system and
providing market information, and in other agricultural development works. The evolution of
strong service cooperatives and cooperative unions are a prelude to having commodity exchange
centers. Currently the Warehouse Receipts System is in place working with several commodities
and is strongly linked to ECX. The major financial institutions that contribute significantly to
these institutions as well as to rural and agricultural development are the existing commercial
and development banks, rural banks and cooperatives. The National Bank of Ethiopia has
developed an appropriate legal framework to promote rural banks and coordinate their
operations. Besides, Micro Finance Institutions are among the major financial institutions which
are serving the current agriculture and rural development initiatives of the many poor rural
agriculture and non-agriculture subsisting citizens.

To implement ARD policies, strategies and programmes, among the institutions recognized by
GoE are women and youth associations. To date the establishment of women and youth
associations has gone to highest level starting from Kebele up to Federal League.

The country has several agricultural research institutes established by Federal and Regional State
Governments or affiliates of the CGIAR. Leading in this aspect are EIAR, Regional ARIs‟ and
ILRI. Specifically, at the beginning of SDPRP the FDRE Government took a major leap forward
to strengthen the NARS, which includes the finance to establish new research centers to cover
the uncovered agro-ecologies particularly in lowland, pastoral and agro-pastoral areas of the
country.

xvi
The agricultural extension system of the country has federal and regional arrangements. Core in
this regard is ATVETs and FTCs. These two institutions are currently functioning to produce as
well as use the human capital that is embodied in Development Agents.

Starting from the beginning of SDPRP period, the current GoE upholds the role of the private
sector in cognizant of the sustained economic growth and employment generation which is
necessary for poverty reduction and that requires enhanced private sector investment. It opens for
private commercial farming as a result along food crops and livestock commercial farms, the
floriculture business has boomed in recent years by attracting for foreign investors. In addition to
commercial farms, private financial, higher learning and export-import organizations have also
emerged and are being expanding throughout the country. The private commercial banks have
supported the domestic agro-industry growth. The private HLI have started providing training in
specific agriculture disciplines.

NGOs, civil society organizations (CSOs), CBOs and bilateral and multilateral donors constitute
the main development partners in the implementation of RDPS, specifically the development
programmes. Currently there are hundreds of NGOs working in agriculture and rural
development areas throughout the country. There are fifteen agriculture based CSOs legally
registered by the Ministry of Justice.

MoFED plays the key role in donor coordination and resource mobilization, whereas sector
ministries implement specific programs and projects. Bilateral development cooperation is
managed by respective development cooperation agencies of the different foreign governments.
Multilateral donors are the major lenders of Ethiopia. The major multilateral donors are EU, and
UN Agencies, and financial institutions are World Bank, and African Development Bank. At
present among donors, the overarching coordinating body in Ethiopia is the Development
Assistant Group (DAG) which bring together most of the bilateral, multilateral, as well as UN
Agencies. This group seems to engage in some policy and strategy formulation process, and they
have had a participation in the PASDEP setting. Recently there is also a formation of what is
known as RED&FS group, which technically is a sub-set of DAG with a special interest and
focus in SLM, Food security and agricultural growth issues.

In terms of capacity building, the government‟s response to the challenges of agricultural

transformation and rural development rested on the establishment of and equipping of institutes
at different levels of government; human capital formation; and the provision of finance/budget.
A lot has been done in these areas although there is still more to be done. The government‟s
expenditure trends and the achievements made so far are reported in the next section.

V. Findings from the Trend Analysis

Trend analysis of the development achievements of the agriculture sector due to the
implementation of existing policies, strategies and programmes, particularly starting from the
launch of the first PRSP, namely SDPRP is carried out. The overall economic performance trend
based on indicators such as GDP, AGDP, poverty index, and the agro-processing sub-sector
performance was assessed. This is followed by analyzing the achievements made in developing

xvii
the core agriculture and rural infrastructures including irrigation, road net works, rural
electrification and telecommunication services. The trend of expenditure, and export-import
activities were also made. Finally, the trends of food production are assessed using food grain
and milk production and consumption statistics.

The following is a summary of the findings from the trend analyses:

 The economy is showing a slight structural change from agriculture to the non-agriculture
sector;
 The percent share of agriculture9 from GDP has declined from 57% to 46% in ten years
time between 1996 and 2007. The slight structural shift from agriculture to non-
agriculture, in general, indicates the success of ADLI, which from the very beginning is
set as strategy to make the economy shift to other industrious areas other than agriculture;

 Within agriculture it is the crop subsector which is leading in terms of contribution to

GDP. As of 2006/07 crop agriculture share from GDP is 30% while its share from
AGDP is 65%. For the same period the share of the livestock, and hunting subsector and
that of forestry is 12.3% and 3.9% from GDP and 26.5% and 8.4% from AGDP,
respectively.

 In general, Ethiopia bypassed the CAADP targets both in terms of the annual growth of
the agriculture sector, and the budgetary allocation. In recent years the growth rate of the
agriculture sector in terms of AGDP is about 13% and the budget allocated for agriculture
both at the Federal and Regional State Governments level is about 15%.

 The food poverty head count indices at the national level has declined from 42% in
1999/00 to 38% in 2004/05 or by 9%, while the rural food poverty head index has
declined by less than 7% from 41% to 38.5%, still greater than for the urban population
and also the national average.

 The number of agro-processing establishments is on rise. The number of Bakery Products

Manufacture was about 34.10% and 18.03% for Grain Mill Manufactures in 2000/01.
The percentage shares of the number of establishments for the same increased to 39.74%
and 18.98% in 2006/07, respectively. Similarly the share in the number of establishment
of sugar and sugar confectionery manufacture increased from 2.62% to 3.53% in between
2000/01 and 2006/07. Though the percent share of sugar and sugar confectionary in terms
of number of establishments‟ looks small (3.53%) but as of 2006/07 these establishments
rank on top in terms of value share, 27.5%.

9
Agriculture includes crop, livestock and hunting, forestry and fishing. Industry includes mining and quering,
manufacturing, electricity, gas and water. Services includes trade, hotels and resturants, transport and comunication, public
administration and defence, education, health and socail works and related .

xviii
  Agriculture water development, especially irrigation has not had adequate focus despite a
huge potential within the country. According to the recent data obtained from MoWR, the
total potential irrigable land of the country is estimated to be 3.7 million hectares. Out of
this 2.9 million hectare is the potential irrigable land with medium and large-scale
irrigation schemes. Currently less than 5% of the total irrigable area is under irrigated
agriculture.

 The road sector has registered a remarkable success in the recent years. Within a decade
the proportion of asphalt roads has doubled, from 17% to 68%. The road density/1000
Km2 (including community roads) increased from 24 Km to 104 Km.

 The provision of telephone services has shown a tremendous growth since 1995
Automatic subscription has increased rapidly. Mobile services distribution started in late
1990s. As of 1998/99 there were only 6740 mobile users in the country. These increased
to 1.95 million users by 2007/08, registering an annual growth rate of 87.8%. Another
remarkable change in the telecommunication services is the coverage of rural kebeles
having subscribed lines. By the beginning of the PASDEP period i.e., 2004/05, there
were only 60 rural kebeles that had subscribed lines. By 2007/08 this number increased to
8676 rural kebeles which means an annual growth rate of 425%.

 The nation‟s capacity to generate and produce electricity has doubled in ten years period
(1996-2006). As of 1996 the country‟s generating capacity was 416,057 KW. This
increased to 819,333 KW by 2006. Most of those who benefited are rural residents and
businesses. However, there is still an excess demand of electricity. Showing the overall
rapid economic growth, particularly the increasing light industries such as the cement
producing, food and beverage processing factories throughout the country is putting
pressure on the power and energy sector of the economy.

 The value of total exports of Ethiopia increased from 602 million US$ to 1,466 million
US$ from 1997/98 to 2007/08 with an average growth rate of about 2%. In terms of value
although coffee is the highest generator it is with a decline percent share from the total
value. This signals that export product diversification strategy is showing a positive
result.

 On the average for the last ten years more than 75% of Ethiopia‟s import by end use is for
Raw materials, Fuel, Capital tools and Consumer goods. In the importation of Capital
tools10 Industrial goods have had the highest share followed by the transport sector. The
share of agricultural tools import is negligible and remains constant.

 The trend in crop, specifically grain, production indicates that Ethiopia is fulfilling the
2100 Kcalorie per capita per day requirement. The equivalent of this in terms of
production is 2.16 Quintal per person per annum grain requirement. In Ethiopia the per
capita grain production as of 2007/08 reached 2.13 Quintal.

10
Includes machinery and equipment

xix
  Although the average daily milk yield of cow and camel is showing a slight positive
increase, the change is still small when one compares the milk production and
consumption in Ethiopia with the rest of Africa. The per capita consumption of milk of
Ethiopia is the lowest in Africa which is about 23Kg per annum.

VI. Findings from Economy Wide Model

Ethiopian computable general equilibrium (CGE) model was developed11 to capture (i) trade-offs
and synergies from accelerating growth in alternative agricultural sub-sectors; (ii) the economic
inter-linkages between agriculture and the rest of the economy; and (iii) the effects of alternative
sources of growth on household incomes and poverty.

The major finding of the model are that if Ethiopia can improve crop yields and livestock
productivity, then it should be possible to sustain six percent agricultural growth in the medium
term (during EC 1999-2008, i.e., 2006-2015). Most households are expected to benefit from
faster agricultural growth. However, some agro-ecological zones that grow higher-value cereals
and export-oriented crops and which are better situated to larger urban markets (e.g., humid
lowlands and rain sufficient highlands) stand to gain more than other parts of the country.
Comparing the effectiveness of growth driven by different sub-sectors in reducing poverty and
encouraging broader-based growth, additional growth driven by cereals have larger impacts on
poverty reduction. Besides, increases in livestock productivity can potentially reduce poverty in
pastoralist areas, particularly if marketing channels are improved so that livestock production do
not lead to sharp declines in market prices.

VII. Findings from the Gap Analysis

The positive achievements summarized above are not attained without gaps which should be
catered for further progress and efficient and effective use of available human, physical, and
financial resources. These gaps identified in the area of policy, strategy, programmes and
institutions in line with the CAADP framework are highlighted below.

7.1 Policy gap

The few areas that need to be revisited are the policy coverage‟s given to the livestock sector, the
Pastoral-Agro-pastoral areas, and the East and Central African Countries seed system
harmonization.

In general, the livestock sub-sector is not policy deficient nor is the existing policies are
hindrance to its development. The problem lies on lack of focus. Recently, a livestock Breeding
Policy and Strategy has been formulated12 and it‟s on the final stage to be submitted to the
Council of Ministers. This Livestock Breeding Policy is not, however, comprehensive enough to
include related issues such as animal health, and animal feed. In turn this should not imply that

11
By IFPRI
12
The formulation process is coordinated by MoARD

xx
there is no need for detailed separate policies on animal health and animal feed. The policy
documents in these areas should also include institutional mandates and responsibilities.

Existing policy documents have clear policy positions in PAP areas on issues of voluntary
settlement, provision of socio-economic infrastructure, as well as the environment to work with
traditional and customary institutions. What is not clearly covered is the transformation process
to cope-up with alternative livelihood options in PAP areas. There is lack of adequate policy in
this regard including the policy of PAP areas land administration13. The existing land
administration policy is mainly designed to cater the problems of land administration and use in
non-pastoral predominately highland and sedentary areas.

The seed policy and strategy issued in 1993 was followed by a proclamation No.206/2000 in
2000. The policy and strategy, as well as the proclamation did not have articles that direct
regional and international harmonization issues.

7.2 Strategy Gaps

The study found out that there is absence of strategy on:

 Forest resources utilization;
 Synchronized control breeding on small ruminants through AI;
 Bee forage;
 Animal feed development and reserve both in natural and commercial aspects catering for
the pastoral and non pastoral needs; and
 Integrated water and pasture resources development strategy

7.3 Programme Gaps

On the basis of the definition of a programme highlighted earlier, in order to assess the gap in
programmes it was essential to set up criteria for what a missed programme or a programme to
be modified should constitute to be included as a new programme in the context of CAADP
Ethiopia. Four criteria were used to classify similar activities that exist but need to be configured
in new or modified programmes. These are criterion of relevance, acceptance, sustainability, and
institutional. The existing gaps led to the identification of the new or modified programmes
reported in the Table below.

13
For example, refer to the recent Pastoral and Agro-Pastoral land Administration and Use Study, ELTAP/MoARD,
2008.

xxi
Modified/New14 Programmes by Pillar
Pillars Modified New
Pillar I  Land administration and planning  Integrated watershed management
 Forest development, conservation , and
utilization
Pillar II • Rural ICT network15 • Rural-Urban-Linkage (RUL)
• Agricultural Inputs and products • Cooperative Marketing
Quality Control and standards • Agriculture and Food Policy Research
(AFPRe)
• WTO accession and implementation
• Foreign investment
promotion/facilitation
Pillar IV Research: Research:
• Socio-economic and extension • Dairy and Meat
• Forest resources improvement and • Camel research and development
protection • Range and water resources development

7.4 Institutional Gaps

As pointed out earlier, the term institution refers to organizational aspect and/or relationship. To
make a gap analysis in terms of organizational aspects it required the understanding and
finalization of the on-going business process reengineering (BPR) exercises. Although in
principle BPR is not an exercise to change the structure of an organization, the result of the
exercise is not totally immune from bringing changes in this regard. The process is dynamic, for
example by the time the Ethiopian CAADP study started there was no Directorate in MoARD,
which was directly responsible and had a separate budget in order to undertake various activities
related to agriculture investment promotions. By the time the Regional Consultation Workshop
was conducted, it was reported that a separate directorate is established and the former related
activities which were under the Agricultural Extension Directorate is transferred to the new one.
Similarly BPR result driven organizational changes are being observed in the DRMFS sub-
sector, and in the Agriculture Marketing sub-sector. Because of such dynamism in terms of
organizational arrangements of institutions it was not easy to say a gap or weakness exists or not.
This should be addressed after the on-going BPR exercise is complete. However, it is appropriate
to recall that there is no unique institutional arrangement for the land administration and use
policy and strategy implementation at the Federal level while there are institutions established
and operate, with minor variations, at Regional level.

Notwithstanding the above, it was possible to identify institutional gaps related to linkages or
relationships i.e., synergy. This includes issues of information exchange; linkages among GOs,
NGOs, and CSOs; RE&D; quarantine, standard and quality control; warehouse receipts and
ECX; irrigation construction and use; and pastoral affairs coordination.

14
The new CAADP Ethiopia proposed programs are expected to become cost centers.
15
Including the existing agri-net and woreda net information and communication technology
(ICT)

xxii
Another issue related to institutions is capacity building. Capacity gap indeed is a serious one in
its entire dimension, i.e. human resources, working premises, equipment, machinery, furniture
and other facilities. The problem is severe at the grass root, specifically at woreda levels. In ARD
core in programme implementation are the woreda ARD offices. But most of them have no
adequate and appropriate offices, equipment and furniture; hence the recent effort to put trained
and educated human resource is subjected to underutilization.

7.5 Selected Areas of Emphasis and Cross-Cutting Issues

Within the Agriculture sector and the different programmes there is a need to focus on some
activities or areas of intervention. These include issues related PAP areas land use and
administration, land use planning, land degradation and soil erosion, forest and forest product
utilization, alternative household energy sources, multipurpose small irrigation, invasive
unpalatable weeds and shrubs, animal feeds, and trans-boundary livestock diseases, in the
livestock and pastoralism area, as well as pre and post-harvest losses, and effect of fertilizer use.
The existing land administration and use policy of the federal and land administration and use
proclamation of the regions did not address the problems related with land and natural resources
in pastoral and agro-pastoral areas.

The cross cutting issues addressed in this study include nutrition, HIV/AIDs, gender and climate
change. Although its coverage has width and depth, the recent National Nutrition Strategy (NNS)
issued by MoH, still needs to give additional focus and efforts to integrate adequately and
appropriately the nutrition issues of PAP communities, the standardization and explicit
nutritional values of the diverse crop and livestock products and by-products, and to adequately
address the productivity effect of malnutrition on food insecurity. There are extensive
interventions on HIV/AIDs by the MoH and MoWA. However, the incidence and influence of
HIV/AIDs in ARD and its effect on the availability and productivity of labour has to be
addressed via studies.

Efforts of mainstreaming gender are put in place in the various programmes of the agriculture
sector. But they are not done as fast as expected. In general gender mainstreaming needs to be
strengthened and expedited in order to increase the marginal benefit obtained from rural labour
(men and women) and in aggregate to enhance value addition in the agriculture sector.

Climate change has recently become the major concern of the GoE. During the CAADP
implementation period in Pillar III the sub-pillar on Disaster Risk Management has to design
various interventions to mitigate the problems of climate change in the country at large and the
agriculture sector specifically.

xxiii
VIII. Conclusion and Recommendations
8.1 Conclusion

The CAADP Ethiopia study is conducted in the process of institutionalizing the AU/NEPAD/
CAADP with a vision and strategic framework that outlines Africa‟s pledge to pursue its
commitment and duty to eradicate hunger and poverty and place the continent, at all levels, on a
path for sustainable socio-economic growth. According to CAADP Framework, African
countries are expected to stocktaking their agricultural policies, strategies, and programmes;
analyze gaps in these and institutional capacities, and come up with a country specific CAADP
agricultural programmes in order to attain the 6% average annual growth rate for the agricultural
sector at the national level; and allocate 10% of the national budget to the agricultural sector;
among others.

This CAADP Ethiopia study found out that Ethiopia has surpassed the 6% average annual
growth rate for the agricultural sector, and the allocation of 10% of the national budget to this
sector starting from the SDPRP period. The existing policies and strategies have contributed
tremendously to the achievement of these targets. However, this does not mean that poverty and
hunger are tackled to the level of expectation of the GoE and its partners. Indeed the Government
should continue its commitment to allocate more resources to tackle these problems. The study
also revealed that the agriculture sector remains a very critical part of the future development of
the Ethiopian economy. Its performance in recent years has been well above the average over the
CAADP targets but not one to deter the country from embarking on domestically initiated
policies and strategies that will lead the transformation process and the country‟s goal of
independence from foreign aid.

8.2 Recommendations

Policy: General

P1. Building on the policies and strategies that are already in place: This study has identified
existing policies and strategies in line with the four indigenized CAADP Ethiopia Pillars that
also fit well the present agricultural development policies and strategies of Ethiopia. Future
debates on absence or review of policies and strategies should be based on these existing policies
and strategies. The existing policies and strategies that are set in a grid format should be further
edited and published by the concerned body and be distributed to all stakeholders.

P2. Efficient and effective implementation of existing policies and strategies: During the
discussion with various stakeholders what has come clear is that in most cases it is not the lack of
policies and strategies but their implementation which is a constraint. Implementation requires
appropriate institutions with the required capacity. A lot has to be done in this area.
Implementation should not be left alone to the public sector but also to the private including
NGOs, CSOs, CBOs and donors.

xxiv
Policy: Specific

P3. Render adequate coverage to livestock policy: In general, the livestock sub-sector is not
policy deficient nor is the existing policies are hindrance to its development. But as reported in
chapter 7, identifying the existing policies was not easy in the case of the livestock and
pastoralism component of the study due to relative inexplicitness of the issues in existing official
documents (RDPS and PASDEP). In general, the livestock sub-sector has lack of focus in
specific policy regimes in an integrated and comprehensive setting.

P4. Policy to cope up with the transformation process in PAP areas: Existing policy
documents have clear policy positions in PAP areas on issues of voluntary settlement, provision
of socio-economic infrastructure, as well as the environment to work with traditional and
customary institutions. What is not clearly covered is the transformation process to cope-up with
alternative livelihood options in PAP areas. There is lack of adequate policy in this regard
including the policy of PAP areas land administration. And this should be addressed in the
soonest possible time.

P5: Review the seed policy and strategy in line with the emerging multi-country interests:
Improved seed has become a strategic commodity to influence the productivity and production of
the crop sub-sector not only in a given country but also continental and worldwide. The existing
national seed policy and strategy did not have articles that direct regional and international
harmonization issues. There was an attempt to harmonize the Ethiopian seed system with the
East and Central African Countries via the issuance of a regulation but which has not been
finalized. This has to be revisited and the necessary policy and regulatory framework need to be
in place in the soonest possible time since some of the East and Central African Countries have
already started to trade seed on the basis of the harmonization document they signed.

Strategy
Strategy: General

S1. The strategy of integrated development approach should be practiced: RDPS and
PASDEP give emphasis to the strategy of coordination and integration of managing different
development tasks. It actually states that ensuring integrated development is a guiding principle
for the agricultural policies and strategies. This study found out in most cases integrated efforts
are not well in place. Most problems are emerging by not invoking and using this integrated
development approach.

Strategy: Specific
S2. Revise the forest and forest products utilization strategy: The policy, strategy and the
proclamation on forest development, conservation and utilization document compiled by
MoARD (2007) does include statements with the term utilization. Most of it is related on how to
collect, organize and analyze information or to undertake studies. It is not clear on the strategy of
how to utilize forest and forest products with an apt forest conservation practices. This should be
written and included in the existing strategy document.

xxv
S3. Set a national strategy of synchronized breeding: Synchronized breeding is an artificial
manipulation of the reproductive cycle of animals for the purpose of fixed time breeding through
AI and as a result to achieve compact calving, lambing or kidding. The system allows aligning
the breeding programme with feed availability and marketing. This programme can be accessible
to individual farm household use through public services or undertaken by private investors
through value chain development approach. Currently this is reported to be practiced by some
private firms. Its use in the public sector is still under discussion. Whether it is to be practiced by
the public or private sector, the country needs to have a clear strategic direction. The strategies
should be developed.

S4: Set a bee forage production strategy: The current GoE policy on apiculture is to develop
and expand honey production with special emphasis in irrigated areas, integrated with fruits and
agro forestry. Traditionally honey production is common in almost all agro-ecologies that are
endowed with water resources and vegetation that serve as feed for bees. Recently the need for
bee forage practice is getting importance especially with the promotion of modern beehives in
different agro-ecologies. All these are in place without a strategy on bee forage.

S5: Review the existing animal feed strategy in line with PAP areas situations and
conditions: The recent increased incidence of drought, particularly in PAP areas has exacerbated
the problem of animal feed and is necessitating for a strategic intervention in feed reserve both in
natural and commercial aspects. However, the existing animal feed strategy give attention to the
development aspect and very little on reserve. Traditional feed reserve practices exist mostly in
non-pastoral areas. This is highly associated with the annual crop cultivation practice which
again is not the case in pastoral areas. Under PASDEP, Livelihood and Asset Building, and Basic
Social service strategies for the PAP areas are well addressed. A strategy that embrace the
reserve aspect and focus in on PAP areas should be developed. The strategy should be based on
the emerging principle of disaster risk management rather than addressing emergency situation.

Programmes

Programmes: General

PR1. Strict use of the programme approaches both in the budget appropriation and
technical situations: CAADP Ethiopia proposed programmes are either the existing
programmes recognized by the Federal Government Budget Document as cost centers or new
proposed programmes that are expected to become cost centers. Though the budgetary
appropriation to the agriculture sector is on rise, above 10% of the CAADP target, how efficient
and effective this appropriation is in terms of tackling the poverty and hunger problems is not
measurable. Programme budget should be in practice. It is only through this way that one may be
able to see how much each Birr invested in the public sector is returning positively.

PR2: Efficient and effective implementation of existing programmes: During the CAADP
Ethiopia study it was observed that there are problems of properly implementing existing
programmes with existing institutions, and available human, physical, and financial resources.
This is mostly a question of achieving achievable results using available resources. Perhaps the
ongoing BPR may resolve this problem. In any way the issue should be accorded attention and

xxvi
programme owners should set appropriate monitoring and evaluation mechanisms to efficiently
and effectively implement existing programmes with available resources.

Recommended CAADP Ethiopia programmes

The CAADP Ethiopia programmes framework combines existing, existing but modified and new
proposed programmes. The Table below presents the proposed CAADP Ethiopia national
Programmes by pillar areas. This study has reduced the existing 56 cost center programmes to 41
inclusive of modified and new ones. It is important to note again the notion of national
programmes. Here, the understanding is that given their constitutional rights the Federal and
Regional State governments can plan on various development programmes to be financed
through their established budgetary frameworks. In the context of the proposed CAADP Ethiopia
programmes, the rationale behind national programme is that those in the agriculture sector
either at Federal or Regional State governments‟ level to conceive development programmes as
indicated in the Table below, while the solicitation of funds can still take the existing approach.
Besides, the proposed CAADP Ethiopia national programmes are referred as national with the
assumption that all stakeholders will be abided with the CAADP Ethiopia framework, and the
programmes will be the cost centers whereby any other projects and interventions financed by
treasury or external sources will be registered under them. Each programme can have several
sub-programmes further classified by interventions and activities as deemed necessary for
Planning, Monitoring and Evaluation (PM&E) purposes. A programme can be implemented by
one or more than one institution at Federal and/or Regional State governments. Besides, a
programme may contain elements of policy and strategy that are broad based and shared with
other programmes.

CAADP Ethiopia National Agriculture Sector programmes

Ethiopia CAADP Programme
Pillar
Pillar I: Improve NR1: Land administration and planning
natural resources NR2: Integrated Watershed management
management and NR3: Forest development, conservation , and utilization
utilization
Pillar II: Improve RI1: Ethiopian Rural Travel And Transport Sub-Programme
rural infrastructure, RI2: Universal Electrification Access Programme
market access and RI3: Rural ICT network16
trade capacities
TD1: WTO accession and implementation
TD2: Foreign investment promotion/facilitation
MM1: Agricultural Inputs Supply and Marketing
MM2: Agricultural Inputs and products Quality Control and standards
MM3: Warehouse Receipt and Credit Facility
MM4: Agricultural Products Marketing Promotion
MM5: Agricultural Marketing Information System
MM6: Cooperative Marketing
MM7: Rural-Urban Linkage
MM8: Agriculture and Food Policy Research

16
Including agri-net and woreda net information and communication technology (ICT)

xxvii
Pillar III. Enhance FD1: Crop development
food security and FD2: Livestock and fishery resources
improve disaster risk FD3: Animal and plant health services and regulatory
management FD4: Food security
FD5: Disaster Risk Management
Pillar IV: Improve CR1: Cereals
the agricultural CR2: Pulses
research and CR3: Oilseeds
extension system CR4: Fiber
CR5: Vegetables, root and tubers and fruits
CR6: Spices and stimulants
CR7: Essential oils, medicinal plants and bio-energy
CR8: Agricultural biotechnology and Plant protection
CR9: Agricultural mechanization
SW1: Soil and water management
FR1: Forest resources improvement and protection
SE1: Socio-economic and extension research

LR1: Dairy and Meat

LR2: Poultry
LR3: Fishery and aquaculture
LR4: Camel research and development
LR5: Range and water resources development
LR6: Apiculture and silkworm
LR7: Animal health

AE1: Agricultural extension and TVET17

17
During the CAADP/AGP Joint Workshop held at Adama German Hotel-Nazreth, June 1-5, 2009 it was mentioned
that TVET may become by itself a programme.

xxviii
Programme: Scale- up

In addition to identifying CAADP Ethiopia national programmes, the ToR of this study requires
the identification of national programmes which should be scaled up. The table below presents
the programmes to be scaled up on the basis of the four indigenized Ethiopia CAADP pillars.

Programmes or Components of a Programme to Be Scaled Up by Pillar

Pillars Scale-up18
Pillar I. • In NR1-Sustainable land administration and use specifically land
certification
• In NR2- Small scale irrigation development

Pillar II • In MM4-Support the commercial agriculture emergence, expansion and

growth
• In MM5-Public private partnership (PPP)
• In MM6-Micro and small scale enterprises banks, micro-finance
institutions, and cooperative banks in pastoral and agro-pastoral areas

Pillar III. Crop

• In FD1- seed production
• In FD3-seed regulatory
• In AE1:
– Management of acid and saline soils
– Management of Vertisol
Livestock
• In FD2 and AE1-Artificial Insemination (AI) service

Institution

The following linkage and relationship weaknesses should be addressed:

IN1. Need to institutionalize and promote land administration. As reported in section five of
this report there is no significant rural land administration and utilization activity at the Federal
level. However, the Regions on the other hand, have had varying approaches to providing for
the institutional set-up for this purpose. Hence, there is a need to institutionalize and promote
land administration at the Federal level.

IN2. Establish a systematized information exchange: Exchange of information among federal

and regional institutions is one of the major weak linkages. During discussions with different
stakeholders, the information flow at all levels is based on personal relationship. There is hardly
a systematized and institutionalized information exchange between Federal, Regional or for that
matter between Regional and Woreda levels. Hence measure has to be taken to establish a
systematized information exchange that is footed in the modern ICT system.

18
The notion of scale-up in this study takes the notion of up-scaling which is used in a recent study by SNV (2008).
This notion has three dimensions in up-scaling a programme: from regional to national coverage, inclusion of other
sectors and intensifying support for the sectors.

xxix
IN3: Formalize linkages among partners: In the agriculture sector the partners of development
are several Federal Ministries and Agencies, Regional State Governments Bureaus and Agencies,
NGOs, CSOs, bilateral and multi-lateral donors,and CBOs. There are hardly formal linkages
that are governed with agreed and signed working procedures among these partners. At Federal
level the linkages among Ministries and Agencies are smooth but mostly informal. Federal and
regional level activities are not also systematically linked and institutionalized although there is
no magnificently observed problem that has jeopardized the implementation of development
interventions. Linkage between MoARD and MoTI in the area of export promotion, information
exchange and documentation need attention. Some NGOs are being blamed for not having
coordinated development interventions even in a given woreda. The influence of CSOs in
Ethiopia‟s agriculture and rural development policy formation and implementation is
insignificant and requires stimulation. Donor communities have their own way of working
amongst themselves, say in the established DAG framework, and RED&FS, but again the
differences and similarities are not clearly set. Some NGOs may join these groups but at large
the NGOs have also their own association such as CRDA. But all NGOs are not also a member
of this association. Such groups as well as Federal and Regional State governments‟ have no
formal linkage with CSOs. In general, all these development partners need to work under a
known procedure and system if they all are interested to contribute to the development of
Ethiopia‟s ARD sector.

IN4. Review the Research, Extension and Development (RE&D) system: In spite of
governments support and increasingly funded agricultural research, yet research has not been
able to sufficiently address the problems and constraints of the agriculture sector. Specifically the
livestock sub-sector has suffered from inadequate technology generation and transfer. Inadequate
vertical and horizontal collaboration among research institutes and weak research extension
farmers‟ linkage tended to the woreda level appears to be some of the institutional challenges
contributing to the lack of effectiveness in the RE&D chain. Besides, in the existing RE&D
system the pastoral and agro pastoral issues are not adequately covered. Hence it is timely to
review the RE&D system putting the agro-ecology and integrated approach into perspective.

IN5. Revisit the Status of the Ethiopian Seed system. Improved seed as a national strategic
agricultural input needs emphasis with its complexity starting from production up to marketing
distribution and use. In cognizant of this, quality control and the integration and working
relationship among public and private research, development and multiplication agencies have
become vital to facilitate the production and supply of improved seeds to the farming
communities. However, this relationship falls short of the desired level of integration and
coordination and as a result there is lack of adequate quality control measure, and excess demand
for improved seeds. Furthermore, the system is not giving a fair competitive ground for ESE.
ESE is at a cross road of being a profitable parastatal and a non-profit making development
supporting enterprise of the government functioning with controlled prices and protected labour.
Besides, the linkage between the ESE and the emerging Regional SEs like the one of Oromia
need to be clear not only in the marketing sphere but also in the use of sole basic and pre-basic
seed suppliers such as Bako ARC in the case of hybrid maize. In general, the system should be
reassessed in terms of organizational and relational aspects so that all actors can work closely i.e.
the public, private sector dealers, CSOs, specifically the newly organized Seed Association,

xxx
NGOs, development partners as well as those enterprises working in the seed business but
located in neighboring countries.

IN6. Strengthen linkage among quarantine, standard and quality control institutes.
Agricultural inputs quarantine, standard and quality control both in crop and livestock agriculture
calls for a strong linkage among relevant institutions such MoARD‟s Animal and Plant Health
Regulatory Directorate, Agricultural Marketing Directorate, Customs Authority, Private input
producers and traders. As appropriate CSOs, particularly those established within the agriculture
sector should come in a formal linked institutional arrangement in order to address national
issues of agricultural inputs and outputs quarantine, standard and quality issues.

IN7. Review the use of the warehouses under the warehouse receipt and credit programme by
ECX: Warehouse receipt and credit and the ECX are timely undertakings but the linkage
between the two in practices needs reexamination. There is no harm if ECX use the warehouses
for commodities that are traded through the exchange system. However, this should not deter the
focus of using the warehouse receipt and credit system for the many small holders who are
subject to unreasonable price deals at times of harvest but critical cash needs. They should be
receiving the service adequately and timely to keep their produce in the warehouse system even
if they are not trading through the exchange facility.

IN8. Smoothen the constructed irrigation facilities transfer to developers and end users: The
linkage between MoARD, MoWR, BoARD and BoWR on irrigation infrastructure construction
and use needs a reexamination. While those responsible to construct medium and large scale
irrigation infrastructure are MoWR and BoWR, there is no clear and institutionalized linkage
between them and MoARD and BoARD in terms of transfer of the physical infrastructure and
the work to be done jointly till the actual targeted beneficiaries are in use of the facility. The
reexamination should include the assessment and recommendation of how to repair and maintain
existing facilities.

IN9. Review the institutional arrangement to coordinate PAP areas development

interventions:
The Government of Ethiopia has given a high priority for the wholestic development of the PAP
areas. This is manifested through the establishment of the Pastoral Standing Committee in the
House of Representatives, and Inter-Ministerial Board under the MoFA, and the special
coordination Offices of the PAP areas. Currently, the pastoral institutions located in the different
Federal institutions are not communicating systematically with strong legal base. Each institute
appears to take its own course of action. There is a gap in terms of having a legalized body which
have the mandate to mobilize internal and external resources (fund) and align indigenous
traditional institutions with formal institutions (research centers, Universities, administration etc)
for the purpose of development in the PAP areas. Overall, on pastoral affairs there is a need to
reexamine the role of coordination offices in various ministries and that of the technical
committee and also the institutional arrangements to efficiently and effectively implement
development interventions designed at Federal and Regional State Governments levels with a
clear guideline on the implementation of projects financed with internal and external sources.

xxxi
IN10. Render special focus to strengthen the market infrastructure of PAP products: In
general, in terms of marketing there are challenges that impede the smooth transaction of
pastoral commodities. The terms of trade between livestock and grain need to be stabilized to
achieve Pastoral food security. Therefore, pastoral grain and feed reserve mechanism need to be
created, with the aim of stabilizing prices of the livestock and grain commodities during hard
time. The animals to be exported are brought from the remotest part of the pastoral areas, usually
by trekking. Tracking routes and resting areas are not well developed in the pastoral areas, and
the animals lose weight by the time they reach the secondary market. The other challenge is the
lack of market information and networks on the comparative advantage of the pastoral
commodities. Because of these factors and additional factors like ban of the livestock import
(Trade ban), and natural calamities (drought, flood, etc), the pastoralists engage in illicit cross-
border trading. Illicit cross-border trade could be minimized by strengthening the domestic and
foreign market system through the establishment of export abattoirs, networked with PAP
structure; quarantine and inspection stations, and strengthening both non mobile and mobile
veterinary services.

IN11. Enhance the capacity development interventions: Despite the GoE efforts to build the
capacity of Federal and Regional institutions19, capacity gap remains still as a serious one in its
entire dimension, i.e. human resources, working premises, equipment, machinery, furniture and
other facilities. It has been noted that the good intentions of BPR are being challenged by the
practical absence of the needed capacity in Federal and Regional program implementing
institutions. At Regional and Federal levels, in most research and training institutes there are
problems of getting adequate trained and educated staff. The problem is even severe at the grass
root, specifically at woreda levels. Most of them have no adequate and appropriate offices,
equipment and furniture. It is also important to note the deficiencies that exist at ATVET and
FTC levels. These are two core institutional arrangements that have contributed positively to the
recent achievements of high growth rate in the agriculture sector. Recently the government also
commissioned a study to re-orient ATVETs from the training of DAs to a broader agriculture
sector support giving institutions in a multi dimensional way. However, these institutions‟
requirements in terms of human resources and facilities are wanting. FTCs still need additional
capacity strengthening interventions. They rarely have furniture and the minimum facility to
provide training to farmers. Same is true in terms of reorienting and strengthening ATVETs to
produce skilled and trained agriculturalists as well as serve as a center of promotion for
improved agricultural services.

19
The GoE has gone further to the extent of setting a separate Ministry of Capacity Building.

xxxii
 Comprehensive Africa Agriculture Development Program
Ethiopia Study
(Draft Report20)

1. Introduction
1.1 Background
The African Union‟s New Partnership for Africa‟s Development (AU/NEPAD) vision and
strategic framework21 outlines Africa‟s pledge to pursue its commitment and duty to eradicate
hunger and poverty and place the continent, at all levels, on a path for sustainable socio-
economic growth. The Federal Democratic Republic of Ethiopia (FDRE) Government is entirely
committed to the overall AU/NEPAD objectives and principles. In particular, Ethiopia is in the
process of institutionalizing the Comprehensive Africa Agriculture Development Program
(CAADP) as its agriculture sector policy, strategy and programme formulating framework,
which is an initiative and a pillar of the NEPAD.

CAADP is a framework which African Governments agreed on and created to accelerate growth
and eliminate poverty and hunger in the continent. In this regard, the CAADP agenda will
significantly contribute to, if not critically determining, Africa‟s achievement of two of the eight
Millennium Development Goals (MDGs) targets and contribute significantly to the other six
MDGs. This means that the CAADP specific objectives can be translated as follows22:

a. Tangible reduction, and the eventual eradication of poverty, hunger and malnutrition-
MDG1;
b. Sustainable use of natural resources, bio-diversity and bio-safety, and control of damages
emanating from climate change-MDG7; and
c. Contribute to the achievement of other MDGs, especially equality and empowerment of
women-MDG3, reduce child mortality through improved nutrition-MDG4, and develop a
Global Partnership for development-MDG8.
At country level CAADP is a framework which identified four pillars to guide defining and
developing the agriculture agenda.

The CAADP Pillar frameworks are:

 Stocktaking and baseline analytical work including public expenditure review and diagnosis;
 Monitoring and evaluation, peer review and knowledge/information sharing; and
 Partnership and coalition building/strengthening and capacity building.

20
CAADP national consultants: Dr Demese Chanyalew (Agricultural Economist, Team Leader), Dr Getinet
Gebeyehu (Crop Specialist), Dr Goshu Mekonnen (Livestock and Pastoralism Specialist), and Yadessa Dinssa
(Natural Resources Specialist), and Getachew Adugna (Technical Assistant).
21
Adopted by the then OAU Heads of State and Government Summit in July 2001.
22
Accelerating CAADP Implementation: A Guide Building on Initial Experiences 2005-2007

1
As a framework at country level, CAADP set its implementation objective; and this is to
influence development and economic investment plans and implementation with quality
investment programmes. Quality programmes are those which
i. Address “real” issues that are likely to bring the most impact by achieving targeted
levels in the productivity of crop and animal agriculture productivity;
ii. Represent the best economic rationalization and offering the best option for highest
returns on the investment;
iii. Represent the most optimal exploitation of national and continental natural and human
resources; and
iv. Offer the best inter-sector, inter-discipline and multi-partner implementation with
comprehensive and integrated approaches.

1.2 CAADP Ethiopia Pillar Configuration

The above CAADP pillars are setting the overall strategic approach which the Head of States set
to come up with a continental framework; this does not restrict member countries to strictly
adhere to. Within the framework, the countries are allowed to adjust to their own economic
situations and conditions23.

In the case of Ethiopia pillar configuration starts with the NCs own initiative but eventually
endorsed by the participants of the Regional Consultation Workshop24 and finally the top
management of Ministry of Agriculture and Rural Development (MoARD). The final version is
presented below side by side with the AU/ NEPAD/ CAADP setting. This version is core in
terms of addressing the goals, principles and targets of CAADP in the Ethiopian context.

23
As an example see the Rwanda CAADP Compact, Kigali, March 31, 2007.
24
Held on 6-7 March 2009 at Debre Zeit, Ethiopia (minutes of the workshop are attached as Vol. II Annex R2).

2
 AU /NEPAD/ CAADP and Ethiopia Pillar Configuration
CAADP Pillar CAADP Ethiopia
Pillar Target
Pillar I: Extending the Improve natural Land
area under rural resources management Water
infrastructure and and utilization Forest
reliable water control
systems
Pillar II: Improving Improve rural Rural infrastructure
rural infrastructure and infrastructure, market Trade( domestic and foreign)
trade related capacities access and trade Markets and marketing
for market access capacities
Pillar III: Increasing Enhance food security Crop production and productivity
food supply, reduce and improve disaster Livestock production and productivity
hunger, and improve risk management Pastoral and agro-pastoral livelihood
response to food Agricultural extension services
emergency crisis
Pillar IV: Improving Improve the agricultural Crop research
agricultural research, research and extension Livestock research
technology system Pastoral and agro-pastoral livelihood
dissemination and research
adoption Soil and water management research
Forest research
Socio-economic and extension research
Source: CAADP Ethiopia Study National Consultants

1.3 Goals, Principles and Targets

The terms of reference (ToR) clearly stated the main goal of CAADP at continental and country
level. At continental level, the goal is to help African countries reach a higher path of economic
growth through agriculture-led development which eliminates hunger, reduces poverty and food
insecurity, and enables expansion of exports. As a program of the African Union, it emanates
from, and is fully owned and led by African governments. Although continental in scope, it is an
integral part of national efforts to promote agricultural sector growth and economic development.
It is not a set of supranational programs to be implemented by individual countries. It is rather to
be understood as a common framework, reflected in a set of key principles and targets that have
been defined and set by the Heads of State and Government, in order to: (i) guide country
strategies and investment programs, (ii) allow regional peer learning and review, and (iii)
facilitate greater alignment and harmonization of development efforts.

CAADP embraced the principle of agriculture-led growth as a main strategy to achieve the
Millennium Development Goal (MDG 1) of halving poverty and hunger by 2015. On this basis it
sets it‟s principles and targets to guide national sector strategies in
 the pursuit of a 6% average annual growth rate for the agricultural sector at the national
level;
 the allocation of 10% of the national budget to the agricultural sector;

3
  the exploitation of regional complementarities and cooperation to boost growth;
 the principles of policy efficiency, dialogue, review, and accountability, shared by all
NEPAD programs;
 the principles of partnerships and alliances to include farmers, agribusiness, and civil
society communities;
 the implementation principles assigning the roles and responsibility of program
implementation to individual countries; that of coordination to designated Regional
Economic Communities (RECs); and that of facilitation to the NEPAD Secretariat.

At country level, specifically in Ethiopia, the goal of the CAADP study is to assist the
Government of Ethiopia (GoE) with defining and accelerating the process of implementing its
agricultural development agenda in line with the CAADP framework. Its objective is to support
the development of a comprehensive agriculture and rural development strategy, consistent with
the national development policies and frameworks, the Rural Development Policies and
Strategies(RDPS), the Plan for Accelerated and Sustained Development to End Poverty
(PASDEP)) and the country‟s vision of achieving middle income country in the next 20 years.
The exercise will also strongly position the agricultural and rural sector in the future national
development planning frameworks and will, in particular, inform and influence the preparation
of the next phase of the PASDEP.

This country level study keeps on the basic principles guiding CAADP implementation process,
as developed and agreed at a stakeholders‟ retreat in Pretoria, South Africa, in 2005, namely, that
the national level sector policies and frameworks should primarily be aligned with the CAADP
principles and targets. Of course, Ethiopia has surpassed the CAADP targets of 6% average
annual agricultural growth rate and 10% national public expenditure share for the agricultural
sector. This does not mean that poverty and hunger are tackled to the level of expectation of the
GoE. Indeed the Government is still committed to allocate more resources to tackle these
problems.

4
1.4 Highlights of Ethiopia’s Resources Base and Agriculture

Ethiopia has a total area of 112 million hectares out of which about 45% is arable25. As of
2007/08 the total cultivated area is about 11 million hectares26. Agriculture is practiced mainly
by smallholders, roughly as of 2007/8 numbered 13.2 million, with average land holding of 0.93
ha. The country has a potential irrigable land of about 3.7 million ha. Of which, as of 2007/08,
2.9 million hectare is suitable for medium and large-scale irrigation schemes. Currently only 3%
of the total area is irrigated. The pastoral and agro-pastoral (PAP) areas are estimated to cover
more than 60% of the total landmass inhabiting 10 million people in seven Regional States
(Biruk Yemane, 2007). The PAP areas in Ethiopia are almost situated in the peripheral regions of
the country, characterized by unpredictable and unstable climatic conditions; and very fragile
and hostile environment.

According to the 2007 human population census, Ethiopia‟s population is 73.9 million, of which
51% are female, and with an annual rate of growth of 2.6%. Of the total population 83 percent
live in rural areas mainly subsisting on agriculture.

Overall, Ethiopia‟s natural resources base, the soil, the climate, the relative humidity, the
vegetation types are the foundations of agriculture and could be over laid to give what is known
as the agro-ecological zones. There are 32 major agro-ecological zones. The different agro-
ecological zones, extensive arable land and high population in rural areas make Ethiopia an
agrarian country. Agriculture, therefore, is the mainstay of the national economy contributing
about 46 % of Gross Domestic Product (GDP), over 90% of export, and 83% of employment.

Ethiopia has high potential for agricultural development and these agro-ecological classifications
have important implications for strategies in development of the agriculture sector.
The 32 major agro-ecological zones are grouped under six major categories27 consisting:
 Arid Zone – less productive and pastoral and occupies 53.5 million ha (31.5 percent of
the country );
 Semi-arid - less harsh and occupies 4 million ha (3.5 percent of the country );
 Sub-moist – occupies 22.2 million ha (19.7 percent of the country) highly threatened by
erosion.
 Moist – covers 28 (103) ha (25 % of the country) of the most important agricultural land
of the country, and cereals are the dominant crops.
 Sub-humid and Humid – cover 17.5 (103) ha (15.5 % of the country) and 4.4 million ha
(4 % of the country) respectively; provide the most stable and ideal conditions for annual
and perennial crops; home of the remaining forest and wildlife and biological diversity;
 Per-humid – covers about 1 million ha (close to 1% of the country) and suited for
perennial crops and forests.

25
Source: National Bank, MOWR and CSA 2007/08
26
According to Zewdie et.al, (2008) this approximately covers 74.2% annual crops, 6% perennial crops, 8.7%
pasture lands, 7.6% fallow, 0.8% woodlands, and 2.7% others.
27
Source:

5
The six categories are further divided into three major agro ecological zones which includes
moisture reliable, low moisture and pastoral areas28 as indicated in the figure below.

Indeed the classification can further be narrowed into two: Pastoral and non-pastoral. In the non-
pastoral areas there are two distinct modes of agricultural production: smallholder and
commercial. The smallholder account for 96% of annually cultivated land, large scale farms,
which occupy only 4% of the cultivated land range from 50 hectares for horticultural crops to
4,000 hectares for field crops. The pastoral areas can further be seen in terms of pure pastoral
and agro-pastoral areas. In these areas there are also irrigation schemes that are catering to the
broader national agriculture development as well as specific contributions to pastoralists, for
example the development of irrigated pasture as it is contained in the recent Tendaho-Kesum
irrigation scheme in Afar. Similar practices are also emerging in different parts of Borena, South
Omo, Gode, and Gambela.

Examining agriculture by its sub-sectors indicates that crop production and forestry contributes
about 72% of AGDP while livestock accounts for 28% percent as of 2007/08. This statistics
indicates the economic contribution of the livestock sub-sector is low despite the high potential
the country has29.

28
RDPS, 2002
29
In terms of number of cattle Ethiopia is top in Africa and 1oth in the world.

6
2. Methodology and Conceptual Framework
2.1 Methodology
The following six major approaches were used in conducting CAADP Ethiopia Study.

 Two stage interviews: Before and after the Inception Report

 Three stage stocktaking
 Regional Consultation workshop
 Review of Document
 Trend and Gap Analysis
 Econometric modeling (by IFPRI )

The terms of reference of the NCs are a detailed one30. The above approaches are in line with the
methodology proposition contained in the ToR. It underlines that the methodology should
comprise a three-step approach:
 The first phase focuses on the stocktaking review of existing policies, strategies,
investment programmes and resource allocation in the agricultural and rural sector as
well as the sector‟s performance in relation with the CAADP targets;

 The second phase, which utilizes the outputs of phase one, will identify the gaps in the
ongoing policies, strategies and programmes and indicate where policy and strategy
updates should be. Identify programmes to scale-up or new interventions and areas of
investment and for sustained agricultural and income growth, poverty reduction, and food
and nutrition security in order to achieve the national CAADP and MDG targets; and

 The third phase focuses on assessing existing agricultural and pastoral institutions and
identifies the necessary institutional strengthening and capacity building requirements
for effective formulation and implementation of investment programmes for achieving
the national CAADP and MDG targets, and monitoring and evaluation of the agricultural
sector performance.

According to the ToR successful implementation of the CAADP agenda will require strong and
effective institutional arrangements at the federal, regional state and sector levels. The national
consultants, in collaboration with IFPRI, were expected to conduct an assessment of the
necessary institutional strengthening and capacity building requirements for effective delivery of
CAADP. Possible linkages with regional and international organizations and initiatives were also
part of the task assigned in order to find out adequate collaboration mechanisms, including the
review and dialogue processes. This will be consistent with the NEPAD spirit of peer review and
drawing on best practices. The role of bilateral and multilateral development partners will also be
examined in this regard.
Unlike several studies which make interviews after submitting inception reports, the NCs found
out it was relevant to conduct interviews with selected stakeholders in order to garner
methodological underpinnings and refinements. Secondly, this interview helped to identify key

30
Refer Vol. II. Annex R1

7
stakeholders which should not be missed from the interview schedule. The same approach also
helped to identify or receive relevant review documents and discuss on matters related to
previous similar studies.

The National Consultants Team designed three stage stocktaking, gap analysis and institutions
and their capacities assessment. The first stage was to take stock of existing policies, strategies
and programmes following the four pillars of CAADP. This was completed and the 2nd stage was
undertaken by taking the first stage findings to the various stakeholders at the Federal ministries,
and others including donor groups, such as the rural economic development and food security
(RED & FS), as well as NGOs and civil society organizations (CSOs). During this stage the
consultants discussed on the existing policies and strategies, and programmes and solicited
additional information to identify if there were any missed polices, strategies and programmes,
or to get information on what the stakeholders feel in terms of noticeable gaps in these areas. On
the basis of this, the NCs reviewed the first stage findings and prepared a document for the
Regional Consultation Workshop. This document consists of the following sections:
1. Background on CAADP,
2. Methodology of the national study and expected outcome
3. Conceptual framework which was developed for an earlier agricultural growth workshop,
and later on refined and included in the IR
4. Findings from the first two stages stocktaking, gap analysis, and institutional assessments
5. Notes on pair wise ranking methods to rank proposed investment areas and programmes
within each investment area

Specifically item four above followed a grid analysis which simply is based on a matrix of
policies, strategies, and programmes on the column side and the four pillar components on the
row side.

Regional Consultation Workshop was organized by the CAADP Ethiopia Focal Point Office.
The participants31 were invited from all Nine Regional State Governments. From each region
four bureau heads or senior staff from the four pillar areas were invited. In addition to this, the
directors of the various Directorates of the MoARD were invited32. The participants were invited
to be informed about the work done and at the same time to discuss the above document
prepared by the NCs both in the general and group work sessions33.

Before conducting the gaps analysis, it was prudent to make a performance trend analysis of the
sector as a result of the existing policies and strategies implementation, particularly starting from
the launch of the first PRSP, namely SDPRP. The trend analysis was done in three major
categories based on secondary data obtained from official sources34. First, in terms of the overall
economic performance indicators, such as GDP, AGDP, expenditure and related statistics,
secondly, is using food production indicators, and thirdly the trend in export-import (trade).

31
Please see Vol. II Annex R3 for list of participants.
32
Minutes of Regional Consultation Workshop are attached as Vol. II Annex R2.
33
See the attached programme of the workshop.
34
CSA, NBE, MoFED, Customs Authority, and other relevant institutions

8
IFPRI took a share in the Ethiopia CAADP study to conduct economy wide empirical analysis
using computable general equilibrium (CGE) model. The model is considered in order to
prioritize the various investment programmes in the agricultural sector for achieving the CAADP
six percent growth target. Cognizant of the Ethiopia‟s recent AGDP growth rate, which is
recently around 10%, and budgetary allocation, which is around 15%, the CGE model is
expected to capture the trade-offs and synergies from accelerating growth in various agricultural
sub-sectors, as well as the economic inter-linkages between agriculture and the rest of the
economy.

The findings of this study are organized in two different volumes. This volume contains the main
findings, conclusions and recommendations including the matrix for existing policies, strategies,
instruments and programmes. Volume II contains results of documentation review and tables of
relevant data used in the performance and expenditure trend analysis.

2.2 Conceptual Framework

It was important to set a conceptual framework to guide both the NCs and IFPRI team in
undertaking the CAADP Ethiopia study. Of course, the Agriculture Growth Workshop organized
by the RED&FS on November 11, 2008 also necessitated the same task. The NCs presented the
conceptual framework (see Box 1 below) during this Workshop.

Box 1. The Conceptual Framework for CAADP Ethiopia Study

Hunger /poverty = f (National production)
National production = Agricultural production + Non-agricultural production
National Production = f (NR, HR, IF, IS)

Where NR = Natural resources

HR= Human resources
IF = Infrastructure (economic and social)
IS = Policies, strategies and institutions
Notes:
1. This production function brings together the four pillars of CAADP to ADLI Ethiopia
2. Growth is a positive change in national production due to changes in one or more of the factors of
production on the right hand side.
3. It is important to recognize the role and influence of foreign contribution on the national
production

The economic potential as well as actual production level, in conventional terms, the national
product (NP) or the gross domestic product (GDP) is a result of various programmes and
interventions undertaking both in the public and private sector in agriculture and non-agricultural
spheres. Whether it is agriculture or non-agriculture production, it is a function of natural
resources (land, water, forest etc), human resources, infrastructure, polices, strategies and
institutions. In a Recardian way this can be rephrased to land (natural resources), labour (human
resources), infrastructure (capital) and the rest representing technology and management.
In the context of CAADP Ethiopia study, the national production function model which is
presented in the box is the core conceptual base to address the complex policy, strategy and

9
programmes for the reduction of hunger and poverty. This conceptual framework depicts hunger
and poverty as a function of the agricultural production, which is part of the national production
system, in simple terms measured by AGDP. According to this conceptual framework,
agricultural output will be an objective rather than a constraint in the CAADP economy wide
growth function. It could be realized through sound development programmes and investment
projects by the public and private sectors. The framework also embraces the CAADP initiative
that programmes of positive effect should be scaled up, when necessary new programmes should
be initiated and invested to achieve the CAADP targets. The scaling up as well as the new
programmes designing and implementation should be bound by a prior determined economy
wide policy and strategy that ensures the achievement of MDGs, specifically MDG1 and MDG7
by 2015. In addition to these, the conceptual framework also entails those existing programmes
which have not been implemented efficiently and effectively should be reinvigorating to achieve
a preset efficiency and effectiveness measures.

In general based on the above conceptual model, the NCs conceive any investment programme
that has to be part of CAADP Ethiopia should fulfill the test of relevance, efficiency,
effectiveness, sustainability, as well as coherence with existing and changing institutional
arrangements that open up for the involvement of all partners responsible to work together and
meet MDGs. Besides, it should clearly set the linkage between programmes and projects.

The CAADP investment programmes, which fulfill the quality35 test, should avail to the
development of sound investment projects design and implementation with acceptable economic
and financial rate of returns. Any project whether financed by internal source or external bi-
lateral or multilateral sources should come under the CAADP programme. The later should in
turn be contained in the government budgetary framework as a cost center 36. The foreign input,
though not depicted explicitly in the conceptual framework, is no doubt that it is relevant and an
essential ingredient in the national production system of countries like Ethiopia. Hence in the
area of scaling up, new programme development and implementation, as well as in the
institutional capacity development, the foreign sector support is vital but it has to follow the
aforementioned programme-project linkage. Commitments and actual resources (physical and
financial) coming from foreign actors partly indicate the likelihood of implementing the
recommended programmes towards achieving the MDGs. The programmes and specific
interventions shall be those identified using participatory approaches and agreed by stakeholders
who are well informed and understand the situations and conditions at the grass root level
affecting the lives of the poor and hungry people.

Furthermore, in the national production function presented in the above box, an intervention can
be an output or input depending on the level of the production stage and type of product. For
example a soil and water conservation intervention could be an output in terms of rehabilitated
and fertility augmented land or when soil conservation is practiced on land, which is under
production it becomes an indirect input to increase crop production. Besides, it is important to
recognize the net effects of programmes/interventions on economic growth. For example, a
conducive policy environment to attract businesses in the unregulated wood processing industry,
in a direct way, may contribute positively to the GDP growth but indirectly to environmental

35
Please refer sub-section 1.1 above
36
Please see more on the definition of programme below.

10
damage due to harm inflicted by the industry on the destruction of forest and the natural
environment. Such negative outcome may make the net impact of the policy regime negative
even in terms of growth indicators. Another example could be the use of inorganic fertilizer
which may enhance the productivity and production of farm commodities but unless it is
practiced with appropriate conservation practices may lead to the inefficient and unsustainable
use of land due to its negative acidity augmenting factor.

The next level of conceptualization is how to apply the above conceptual framework in the actual
stocktaking, and institutional capacity development situation and gap analysis as well as in the
econometric model. For this the important task was to identify the key terms contained in the
conceptual framework and which will have a detrimental role in understanding the situation and
gap analysis of this study. The key terms are policy, strategy, programme, institution,
agricultural development, and food Security. In the context of CAADP Ethiopia study

Policy: A statement of course of action set by the government in the management of agricultural
development affairs. It could be formulated and implemented at different levels of government
and expressed in the form of laws, rules and regulations, and broad goal oriented guiding
declarations that affect different economic and social agents and institutions.

Strategy: The route to achieve

the desired policy goals via Box 2. The Functional Setting of Institutions, Agricultural
specific elaborations of the Growth, and Food Security
resources to be mobilized
Institutions= organizations + relations or linkages among
(means), the institutions which organizations
will activate and control the Agricultural Development=Agricultural Growth + Change
means, and the conditions and
situations which may constrain Food Security = f(P,I,E), where
their use in a given strategic P=Production
I=Income
cum development plan.
E=Entitlement (access to resources)
Strategies link the policy goals
to programmes that are set in a given plan period.

Programme: A framework that contains similar activities designed to bring developmental

changes (result based); and enhance growth with a continuous resource allocation from internal
and external sources via annual recurrent budget or capital budget i.e., set in a project format.

According to the FDRE government budget manual a programme is a broader cost center of a
public body or a broad objective of expenditure. This definition is also adopted in this study. A
programme may have sub-programmes and further contains projects as the government budget
manual and the Public Investment Programme (PIP37) document defines and bound by resources
(human, financial, and physical) via the capital budget appropriation or non-project regular
government development interventions with the recurrent budget (resources) provisions.

37
(PIP is a three year rolling plan for capital and recurrent expenditure which uses Indicative planning figures for
the resource envelope

11
As shown in box 2, institutional issues are not only issues of organizational set up but
relationships or linkages among existing or newly emerging organizations either in the private or
public sector. Agricultural development has to major components: growth and change. Growth is
measured by monetary value of final goods and services produced in a given period of time (for
example AGDP). Change could be related to reduction of poverty, hunger, food insecurity,
unemployment as well as inequity issues to resources and wealth access and distribution.

Food security is one of major areas of focus which is also explicitly contained in the CAADP
pillars. In order to comprehend the assessment of existing policies and strategies it is essentially
to understand the three core elements of food security, i.e. production, income and entitlement.
Literature has an extensive coverage38 on these elements. The findings of this study are also
based on the conceptualization of the same in the Ethiopia context.

3. Economy Wide and Sector Policies and Strategies

It was essential to assess existing economy wide and sector policies and strategies before
identifying pillar based policies, strategies, and programmes. This chapter addresses the overall
economy wide policies and strategies of the country‟s development by presenting a highlight on
relevant documents, and revealing the linkage between policy documents and ADLI. .

3.1 Core Documents Reviewed and the

Notion of Policy The Basic Objective of
The stocktaking exercise started by reviewing Economic Development in
policy, strategy and programme documents of the Ethiopia:
FDRE and Regional States Governments, published To build a market economy in
and unpublished but relevant study reports, progress which (i) a broad spectrum of the
reports of various Ministries and Bureaus. The core Ethiopian people are beneficiaries,
reviewed government documents are the (ii) dependence on food aid is
Revolutionary Democracy39, Rural Development eliminated; and, (iii) rapid
Policy and Strategies (RDPS, 2003), Industrial economic growth is assured.
Development Strategy (2002)*, Implementation
Capacity Building Strategies and Programmes* (2003), Sustainable Development and Poverty
Reduction (SDPRP, 2002), a Plan for Accelerated and Sustained Development to End Poverty
(PASDEP, MoFED 2006), as well as the recent EPRDF 7th Annual Meeting Report*40 policy and
plan documents. In addition to these several relevant studies conducted and the publication made
to communicate the study results to end users are reviewed 41. This include Millennium
Development Goals Needs Assessment (MDGs-NA)for the Agriculture and Rural Sector and
related MDGs reports ((MOFED, 2002; MoFED, & UN 2004); the Implication of WTO‟s
Agreement on Agriculture, Sanitary and Phyto-sanitary agreements on Ethiopia‟s relevant sector
economic policies, strategies and laws (1999); and several other studies by academicians and
researchers in the relevant areas, which are listed in the reference section and cited in the various
sections of this report as deemed necessary. It is important to note that MDGs –NA has been
38
For details see the review volume of this study.
39
Text in Amharic
40
* Text in Amharic
41
A separate volume on review of documents is prepared

12
used in the preparation of PASDEP and it seems that it will continue to be useful in the next
phase of five year programme after the end of PASDEP period, which also ends by 2015, which
is the end of the MDGs period.

The PASDEP in addition to being MDG compliant was also the lead document in the
stocktaking exercise. It includes the progresses and achievements under the SDPRP42; sector
policies, strategies, and programs of the PASDEP43 which includes agriculture, infrastructure,
trade, and capacity building among others.

As indicated in the introduction of

Economy wide strategy:
PASDEP, its objective is to define the
Agriculture development Led Industrialization
nation‟s overall strategy for development
(ADLI)
for the five years; to lay out the
directions Ethiopia wants to take, with
Sector strategy:
the ultimate objective of eradicating
Agriculture-centred rural development (RDPS)
poverty; and to outline the major
More specifically: Agriculture-led development
programmes and policies in each of the
major sectors. As a document of Five-Year Development Plan, the main objective of PASDEP
is44 to lay out the directions for accelerated, sustained, and people-centered economic
development as well as to pave the groundwork for the attainment of the MDGs by 2015.
Overall, PASDEP is a plan document which has passed through an extensive process of debate
and review within the government, adopted by the Council of Ministers, as well as by the
Parliament, and was finally adopted as a legal document, defining the national development plan
for the 5-year period, 2005/06-2009/10.

It is important to make note of what these policy documents imply in the context of this study.
As defined in the previous section policy documents are documents that explicitly state the
governments‟ positions in terms of its action to direct the national economic development at
large, and the agriculture sector specifically, for example RDPS (2003). There is some confusion
in terms of considering Agriculture-Led Industrialization (ADLI) as a policy. In this study, ADLI
is considered as the lead national economic development strategy and its specific strategic
contribution to various sectors are incorporated in the sector policy documents such as RDPS or
the Industrial Development Strategy, or even in the periodic plan documents such as PASDEP.
In the context of Ethiopia it is also important to note that the lowest level of government that
ensures the formulation and implementation of policy is kebele (Demese, 2004). Starting at this
level law, rules, regulations and directives that affect different economic and social agents as
well as institutions do also present the policy stances; hence the documents are policy documents
too. Strategies do link the policy goals to programmes that are set in a given plan period, say
PASDEP (2005/06-2009/10).

42
Chapter 1
43
Chapter 7
44
Chapter 4

13
3.2 The Linkage among ADLI, RDPS and PASDEP

The Agricultural Development Led-Industrialization (ADLI) strategy was the first

comprehensive strategy launched by the EPRDF government and it continued to influence the
formulation of successive policy, strategy, and plan documents such as the Revolutionary
Democracy document which includes both policy and strategic issues, and the sector specific
policy and strategy documents such as RDPS and the Industrial Development Strategy
documents as well as the two consecutive plans that are ADLI complaint known as SDPRP and
PASDEP. SDPRP is Ethiopia‟s First Generation PRSP and its successor development plan is
PASDEP.

The Federal Democratic Republic of Ethiopia in its major rural development policies and
strategies document underscores the basic objective of the nation's economic development
endeavors:
To build a market economy in which (i) a broad spectrum of the Ethiopian people are
beneficiaries, (ii) dependences on food aid is eliminated; and, (iii) rapid economic
growth is assured.
Furthermore in the RDPS, it is stated that rapid economic development would be ensured
through agriculture-led and rural- centered development. Trade and industry will grow faster
following and in alliance with agriculture. Agriculture accelerates trade and industry
development by supplying raw materials, creating opportunities for capital accumulation and
enhancing domestic market. In this regard the basic directions of agriculture and rural centered
development revolves around the extensive utilization of human labor; proper use and
management of land, water and other natural resources; agro–ecology based development
approach; integrated approach to development; targeted interventions for drought–prone and
food insecure areas; encouraging the private sector; enhancing the benefits of the working
people; and enhanced use of agricultural technical and vocational training.
According to RDPS the “agriculture-centred rural development” strategy has been adopted as a
major strategy and is expected to assist in the realization of the country‟s economic development
objective. More specifically it follows an agriculture-led development strategy. By this it does
not mean only developing the strategic sector of agriculture. It also means that a favourable
environment will be created for the accelerated and sustainable development of the non-
agricultural sectors. Development of trade and industry in Ethiopia cannot be sustainable without
the development of agriculture, since it is growth in this sector that will form the primary market
and generate capital and labour necessary for their development.
The CAADP Ethiopia NCs undertook the review of existing policies; strategies and programmes
within the agricultural sector with the encouraging government position on such undertakings as
explicitly stated in the RDPS (see box 3). The statements contained in the box reflect the
government‟s readiness to learn lessons from past policies and strategies and continue by
correcting the mistakes of the past if deemed important by reviewing existing policies and
strategies on the basis of the dynamics of national and international economic activities.

CAADP pillar based policies and strategies which are identified and analyzed, this study are
twigged to RDPS and PASDEP with a clear understating of the GoE development objectives
contained in the sector wide strategy, namely “rural-and agriculture-centred development”.
This strategy entails that in the development process the following will be attained:

14
  The majority of the population is made beneficiary and participates in the process rather
than being simply on-lookers;
 Development should be seen from the perspective of equity and the objective of
eliminating poverty; Box 3: Policies and Strategies are Subject to Review
 The policy adopted ensures “Building on policies already on the ground and taking into
economic development through consideration practical experiences and lessons learnt over the
increased capital formation and past ten years as well as considering the development experiences
of countries which have attained rapid economic development, the
the use of modern technology; Government has now formulated specific policies and strategies to
 Direct assistance and/or support guide rural and agricultural development. The government also
stands ready to translate these strategies into concrete action. ...It
measures will be provided from is important to device policies, strategies and programmes that
the government particularly if will help us implement the goals we have set. But it is perhaps
population groups are vulnerable even more important to be able to revise these as the need arises
and to adjust our goals according to developments over time.”
to deprivation, poverty, disease RDPS, MoFED 2003
and ignorance;
 However, the development
approach does not envision the option of supporting non-working persons on welfare and
other support, whether desired or not i.e. it rules out a direct support while the approach
enhances the productive capacity of the working population and to direct this capacity for
development via improving labours‟ health status, work initiative and skill levels; and
overall;
 The development strategy seeks to enhance productive use of labour and land and
because of shortage of capital the government will not apply capital-intensive production
methods to land for the development of agriculture.
 The purchasing power of the rural population is increased;
 A market-oriented economy is created

As presented and explained in part Basic principles governing agriculture development

two section one of RDPS the basic policy (RDPS)
principles that govern agricultural • The labour intensive strategy
development policy in Ethiopia • Proper utilization of agricultural land
include the following: • A foot on the ground
Labour intensive strategy: The • Taking different agro-ecological zones into
basic premise of this strategy is account
that accelerated and sustained • An integrated development path
growth can be brought about in
Ethiopia not through capital-
intensive but through labour-intensive production methods. This strategy focuses on developing
the agricultural skills and work initiatives of farmers. The strategy does not envisage employing
backward technology and excess labour. In RDPS it is explicitly stated that one of the main
reasons for Ethiopia to adopt the strategy of Agricultural Development-led Industrialization is
lack of capital. It is believed that agriculture, especially smallholder agriculture, can be
developed with relatively less capital outlay.

Proper utilization of agricultural land: This basic principle emanates from a believe that the
path that will guide the agricultural strategies and policies depends on the use of land that

15
ensures broad access in a manner that will maximize its contribution to overall development, and
that promotes sustainability of the natural resource base.

A foot on the ground: This principle recognizes that it is necessary to record and pass on to the
next generation practical experiences and indigenous knowledge, and to make effective use of
this knowledge in our development efforts. In other words the strategies for agricultural
development will seek to draw opportunities for growth inherent within the available manpower
and technology.

Taking different agro-ecological zones into account: This principle embodies that all efforts
will be based on detailed development plans for each agro-ecological zone. The broad
categorization of the zones include (i) the eastern and to some extent the southern arid lands
where the main livelihood is cattle herding, (ii) the western lowlands where there are large
uncultivated lands and a small population, and (iii) the highlands which are ideal for farming but
where farm land is limited and rapidly being eroded and where population density is high.

Integrated development path: This principle recognizes that agricultural development embraces
a large number of different products and activities. Therefore, the agricultural development
efforts will follow a development path that seeks to promote integrated activities.
As highlighted above ADLI and RDPS, among Box 4. Fundamentals of Ethiopia’s
other sector strategies, are used to lead the agricultural development strategy
preparation and implementations of the two (PASDEP)
successive PRSPs: SDPRP and PASDEP. The a. Adequately strengthen human resources
latest reviewed and conditioned policies, capacity and its effective utilization,
b. Ensuring prudent allocation and use of
strategies and programmes of rural and existing land,
agricultural development, infrastructure, trade, c. Adaptation of development path compatible
and markets and market access are contained in with different agro-ecological zones,
d. Specialization, diversification and
PASDEP. In the chapter that deals with sector commercialization of agricultural production,
policies, strategies, and programs of the e. Integrating development activities with other
PASDEP45 there are six fundamental agricultural sectors, and
f. Establishment of effective agricultural
development strategies (see box 4). marketing system

PASDEP is footed on eight pillars (MoFED, 2006). These are:

 Building all-inclusive implementation capacity;
 A massive push to accelerate growth;
 Creating the balance between economic development and population growth;
 Unleashing the potentials of Ethiopia‟s women;
 Strengthening the infrastructure backbone of the country;
 Managing risk and volatility; and
 Creating employment opportunities.

45
Chapter 7

16
During the PASDEP period, small farmers are expected to play a leading role in agricultural
development of the country. To this end, the Government will facilitate appropriate conditions
through providing necessary infrastructure, land and new technologies to enable small farmers
obtain relevant market information and fairly compete with well to do farmers, cooperatives, and
the modern private sector at large. The emphasis on small farmers, however, is not deterrence for
specialized, commercial farms undertaking. As one of the fundamental strategies indicate,
specialization, diversification and commercialization of agricultural production has been
promoted based on agro-ecological zones. In view of this, farmers and pastoralists have been
encouraged to focus on agricultural activities where they have the best comparative advantage.
Besides, this strategy provides for the acceleration of agricultural development as well as the
development of agro-industry, and there by contribute to the overall growth of the economy.
Furthermore, the strategy gives prominence for targeted interventions for drought prone and
food insecure area: areas that are characterized by erratic rainfall, soil degradation, low per
capita availability of farm land. In these areas the major agricultural development activity to be
undertaken is aimed at increasing the income of the farmers and pastoralists through activities
focused to enhance food security through measures to reduce the volatility of production (for
example through irrigation where feasible), and increasing off-farm income opportunities, and,
where appropriate, voluntary resettlement to more productive areas. Livestock resource
development with a special focus on small ruminants, small-scale irrigation and water harvesting
are also part of this strategy.

In general the CAADP Pillar based existing policy, strategy, and programme identification, the
trend and gap analysis, as well as the recommended changes in the policy, strategy and program
areas should be linked to the above basic objectives of economic development, economy wide
strategy, sector-wide strategy, basic principles governing agricultural development policy, and to
the fundamentals of Ethiopia‟s agricultural development strategy. The next chapters present the
situation analysis findings on policy, strategy and programme according to the CAADP Ethiopia
pillar configurations. The chapters following it present the trend, gap analysis and the
recommendations.

17
4. Pillar based Situation Analysis: Policy, Strategy and Programmes

This chapter contains the stocktaking on policies, strategies, programs related to the four
CAADP Ethiopia Pillars. Existing policies and strategies are identified mainly from PASDEP
and RDPS. The complete list of existing policies, strategies and programmes is as shown in the
annex.

The existing policies and strategies identified were presented for various stakeholders for further
discussion and refinement at the different stages of the stocktaking exercises 46. Specifically
stakeholders were asked to solicit their feedbacks for any missing but existing policy and
strategy as well as for any suggestion for a new policy and strategy to be considered to ensure the
development of Ethiopia‟s CAADP responsive policies and strategies which eventually
contribute to effective and efficient implementation of Ethiopia‟s agriculture sector programmes.
All stakeholders met for this purpose seem to concur that in terms of existing policies and
strategies the country has what is reported in the annex is up to date. Some pointed out that no
country has policies and strategies that are exhaustive and be able to cater for all needed
development interventions. What is important is to recognize the dynamics of policy and strategy
formation which is conditional to national and international economic affairs changes. Given
this, the problem in Ethiopia today is not much of a paucity of policies and strategies in the
agriculture sector but that of implementation problems. At present there are 46 national
agricultural policy positions and several strategies covering the four CAADP Ethiopia Pillars47.
Often the discussions made revolved around the problems of implementation that are mostly
associated with institutions and capacity problems48.

4.1 Natural Resources Management and Utilization (CAADP Pillar I)

4.1.1 Existing Policies and Strategies

Under Article 40 of the Federal Constitution of 1995, every Ethiopian has the right to the
ownership of property. This right includes the right to acquire, to use and, in a manner
compatible with the rights of other citizens, to dispose of such property by sale or bequest or
transfer. The Constitution also states that the right to ownership of rural land and urban land, as
well as of all natural resources, is exclusively vested in the State and in the peoples of Ethiopia.
Land is the common property of the Nations, Nationalities, and Peoples of Ethiopia, and shall not
be subject to sale or to other means of exchange. Extending these, RDPS and PASDEP contained
detailed policy directives revolving around appropriate land use planning; land information data
base; traditional and communal land use system specifically targeting PAP areas. Table 4.1.1
gives the detailed policy statements related to this.

Land policy remained a constitutional proper which was further elaborated in the policies and
strategies contained in RDPS and PASDEP. In the context of CAADP Ethiopia Pillar I, broadly,

46
For the stages, please refer to the methodology section of this report.
47
In pillar I, II, III, and IV, 13, 10, 17, and 6 policy positions, respectively.
48
The issue of institutions (both in terms of organizational set up and linkages) and capacity requirements is
discussed in section 4 of this report.

18
the policy issues and policy statements related to natural resources management and utilization
revolve around land, water, forest and wildlife. The existing policies in this regard are listed
below Table 4.1.1

Table 4.1.1 Policy Issues and Policy Statements for Core Pillar Components

Policy Issues Policy Statements

Land acquisition Provide land free of charge for every Ethiopian citizen who wants his
livelihood in agriculture.
Land use Prepare a sustainable and proper land use plan.
Investment on land Ensure the right of access to land to private investors who wants to
invest on land on long or short term lease
Irrigation Development Ensure the development of multipurpose different size irrigation
schemes where appropriate.
Livestock Water Promote the availability of water nearer to pastoralists as much as
possible by providing livestock water supply to all the regions
particularly to PAP areas
Watershed Promote participatory watershed development to enhance watershed
Development based agricultural production.
Private forest Fostering private forest development and conservation
development
Forest development Expansion of forest development technology
technology
Market for forests Expanding market development for forests
Management of state Administration and management of state forests
forest
Forest protection Protecting forest resources from threats
Information system Establishing modern information systems on forest development,
conservation and utilization
Wild life protection The wild life of the country is protected and developed.

According to the Ethiopian Water Resources Management Policy (MoWR, 1999), the detailed
policy directives on water revolve around issues of drinking water supply, livestock water
supply, water supply for industrial use, sanitation, and integrated water supply and sanitation.
Core for agriculture however, are policy issues related to irrigation development, livestock water
supply and watershed management. These are also included in the Water Resources Management
Policy, with specific sections. The specifics related to these policy regimes are those reported in
Table 4.1.1. Of course, the Water Resources Management Policy gives details, for example by
magnifying the development and enhancement of small-scale irrigated agriculture and grazing
lands, as well as the development and enhancement of small, medium and large-scale irrigated
agriculture.

The forest policy and strategy of the country was published by MoARD in 2007. The policy
statements, as presented in Table 4.1.1, revolve around issues of private forest development,
forest development technology, market for forests, and management of state forest, forest
protection, and information system.

19
The strategies to implement the above land, water and forest policies are contained in RDPS,
PASDEP, and water sector policy and strategy (2001), as well as in the Policy, Strategy, and
Proclamation on Forest Development, Conservation and Utilization (MoARD, 2007). Some of
the strategies are also elaborated with prior set instruments. The detailed strategies and
instruments that commensurate with the above policy regimes are reported in the annex. For
example the strategies for the policy of preparing a sustainable and proper land use plan are
listed in Table 4.1.2.

Table 4.1.2 Example on Existing Policy, Strategy and Instrument Linkage

Policy: Prepare a sustainable and proper land use plan
Strategy
 Prepare and implement a guiding land use master 
plan that considers agro- ecological zones
 Prepare and promote watershed based
participatory land use planning
 Prepare land management plan that considers
different agro-ecological zones and soil and
water conservation principles
Promote and encourage the system of
controlling free grazing and cultivation on slope
areas
 Establish land information database system
Instrument
Prepare methodology and guidelines
 Survey and land registration
 Prepare maps for land resource plan
 Enforcement of existing laws
 Provision of land holding certificates
 Promotion of public information and
awareness
 Capacity building at all levels
 Recognition of pastoral traditional
institutions

4.1.2 Existing Programs

As defined in Chapter three a programme is a framework that contains similar activities or a
broader cost center of a public body. In the context of a framework approach according to
PASDEP, the natural resources conservation and management programs are the following:
 Watershed development and natural resource management;
 Soil and water conservation;
 Forest resource management;
 Water management for irrigation; and
 Sustainable land use management.

However, the cost centered natural resources programs as obtained from MoARD Planning and
Programming Directorate and EIAR Planning and Budget Department are the following:
 Water harvesting and small irrigation development;
 Sustainable land administration and use;
 Forest resources protection and management; and
 Wild life conservation.

20
4.2 Food Security and Disaster Risk Management (CAADP Pillar III)

Pillar III has two sub-pillars: Food Security and Disaster Risk Management. Both sub-pillars
focus on crop agriculture, livestock and pastoralism, as well as relevant elements of natural
resources and the environment.

Food security is a function of production/supply of food, income, and entitlement. The

production aspects of food are contained mainly in the crop and livestock husbandry, while the
supply side includes issues of imports/aid in addition to production. In the food security realm
stability of supply and access to supply (purchasing power and access to market) are critical
areas of concern. Income reflects the opportunity and realization of earning from self or other
employment engagements that at least, ensure an individual‟s ability and capability to meet daily
dietary requirement, while entitlement refers to the ownership or access to land. In the context of
agriculture specifically farming, food security can also be ensured through non-farm income and
employment by promoting and strengthening the micro-and small-scale enterprises,
supplementary employment and income generating schemes, and improving the food marketing
system.

Disaster risk management is one sub-pillar of the indigenized CAADP Ethiopia Pillar III. The
AU /NEPAD/ CAADP pillar was focusing on response to emergency crises. During the serious
of discussions made with various stakeholders49 in the context of Ethiopia, emergency is taken as
part of a bigger policy and strategic framework which is identified as an issue of disaster risk
management. This issue has been already institutionalized through the recent practices of
business process reengineering.

In a nut shell Disaster risk management, as adopted by GoE, has put people at the centre and
designed to manage vulnerability (shocks) in a decentralized manner by focusing on all-hazards
in a multi-sector approach. In this conceptual setting the vulnerability profile involves risk
analysis, hazard assessments, and vulnerability analysis. In more elaborated way vulnerability
profile-based disaster risk management requires:

• Designing and implementing disaster risk reduction interventions/programmes to

minimize vulnerabilities and disaster risks; and
• Strengthening hazard monitoring, forecasting, early warning, and response system for
effective DRM

These conceptual underpinnings is important to identify policies, and strategies, as well as

programmes that are relevant to lead to the achievement of MDGs, specifically target one and
two, i.e. reducing poverty and hunger by half at the end of 2015. Below the identified existing
policies, strategies and programmes are discussed in two major parts: Crop agriculture, and
livestock and pastoralism. It is important to note that, the following policy statements direct both
parts, and they should be considered as integral parts of the policy statements listed on Tables
4.2.1 and 4.3.1.

49
Including the discussions with the State Minister for DRMFS, and the Director of the DRM Directorate of
MoARD

21
 Assure accelerated agriculture growth through a sustainable basis;
 Import, adopt, and distribute technology; and
 Reduce food aid and strengthen economic independence.

4.2.1 Crop Agriculture

4.2.1.1 Existing Policies and Strategies

The economic policy environment has a vital role to play on the effective implementation of the
food security program. Table 4.2.1.1 presents the policy issues related to crop agriculture and
food security from RDPS, PASDEP and other commodity specific policy documents issued by
GoE. In relation to crop agriculture, RDPS states that utmost attention is to be given to
increasing productivity and production through sustainable conservation based agriculture, and
irrigation development in the different agro-ecological zones of the country.

Table 4.2.1 Crop50 Agriculture Policy issues and Statements

Policy issues Policy statements
Sustained accelerated agro- Provide support and technology packages that enhance
ecological zone based crop specialization and diversification appropriate to the different
production agro-ecological zones.

Commercialization Expand and increase the quantity and quality of crops for
domestic and export markets.
Domestic production and Ensure adequate supply of fertilizer through domestic
importation of fertilizer production and competitive and efficient fertilizer importation
and marketing system
Seed/seedling production and Develop an effective seed production and supply system
supply through participation of public and private sectors
Integrated pest management Establish an environmentally sound system of plant protection
using integrated pest management system

Each one of the above policy statements are further accompanied by strategies, instruments and
programs51. For example for the policy to provide support and technology packages that
enhance specialization and diversification appropriate to the different agro-ecological
zones, the identified strategies and instruments are as listed in Table 4.2.1.2.

50
Includes field, horticultural, industrial and spices and herbs
51
Refer the attached annex for a grid which contains existing policies, strategies, programmes and instrument

22
Table 4.2.1.2 Example on Existing Policy, Strategy and Instrument Linkage
Policy: Provide support and technology packages that enhance specialization and diversification
appropriate to the different agro-ecological zones
Strategy Instruments
 Increase production and productivity by proper agriculture  Intensification and area
land utilization to meet domestic food needs expansion agricultural land
 Ensure the provision and supply , distribution and integrated with modern
application of agricultural technologies in a sustainable agricultural inputs and
manner appropriate scientific and
 Strengthen the effort of specialization, diversification and traditional management
commercialization of field crops on agro-ecological practices
settings , where their productivity is the highest (adequate  lime application
rainfall, and low moisture)  Better drainage management
 Transformation of the smallholder farmer through practices
specialization and diversification of agricultural  Use of crop technology
commodities /management packages
 Increase production and productivity and harvests from differentiated by agro-
Vertisol fields ecological zones
 Increase productivity of land by providing for improved  Use of crop agriculture
agronomic practices of acidic soils research findings for the
 Expand irrigated agriculture through efficient irrigation various agro ecological
water use zones
 Enhance the quantity and quality of products for local  Training farmers on
agro-industry and to augment foreign exchange earnings technology packages
 Enhance agricultural and agro-industry developments to
contribute to the overall growth of the economy
 Support the development of large scale commercial
agriculture and encourage the private sector participation
where it is feasible
 Strengthening of human resources capacity and its
effective utilization
 Strengthen the participation of the private sector
 Promote the production and quality of high value/cash
crops
 Enhance food security through measures to reduce the
volatility of production (low moisture areas)
 Reduce pre- and post-harvest losses to improve quality

4.2.1.2 Existing Programs

In order to implement the food security policies and strategies that are related to crop agriculture
GoE put in place the development programs which are listed below. These programmes are
identified from the 2001 E.C (2008/09) annual budget appropriations for MoARD and approved

23
by MoFED. Of course during the discussions we had with the Planning and Programming
Directorate of MoARD, and as explained later in the chapter which deals about gaps, even in this
fiscal year the implementation of various activities which were planned under the crop
production programme are actually those implemented by the Agricultural Extension
Directorate. Similarly that of crop protection is implemented by the Animal and Plant Health
Regulatory Directorate.

In the case of the Disaster Risk Management and Food Security sector of MoARD, it is
important to recall that programmes such as the Productive Safety Net Program (PSNP),
Household asset building, and Resettlement programmes do exist but are not by themselves cost
centers. The cost center is the Food Security Programme, and it is for this reason that the Table
below includes only this.

Table 4.2.1.3 Existing Development Programmes in Crop Agriculture

Programme area Existing Programmes
Production
Development  Crop production
 Crop protection
Disaster Risk Management and  Food Security
Food Security  Disaster Risk Management

4.2.2 Livestock and Pastoralism

4.2.2.1 Existing Policies and Strategies

The rural development policy and strategy recognize that livestock is one of the major
contributors to agricultural growth next to staple food crops. The national and sector policies and
strategies contained in the RDPS/PASDEP are developed to ensure food security, poverty
reduction, and elimination of hunger both in the pastoral and non-pastoral areas. Within the
framework of RDPS, in the drought prone zones the recommended livestock species are poultry
production, beekeeping, and dairy production. Furthermore, small ruminant production (sheep
and goats) are receiving special attention in areas characterized by high population, fragmented
land holding, land degradation, and arid climate. In moisture adequate areas, on livestock
development there is a policy which provides emphasis on animal feed resources development,
while in semi-nomadic areas the introduction of beekeeping technology through the extension
service is given due emphasis. In addition natural resource protection and animal resources
development are the strategies that are pursued to ensure food security in the drought prone
zones. Table 4.2.2.1 presents the existing livestock policies identified from the aforementioned
documents. In this Table, the policies are presented by the core commodity areas of the livestock
and pastoralism sub-sector that are also critical in attaining the national food security policies
and strategies52. These commodities are milk, meat, egg, honey and fish products. Commodities
like milk, meat and fish are the focus areas to ensure food security in pastoral , agro pastoral and
non- pastoral areas, while that of egg and honey are also becoming alternative source of food as

52
Refer the annex for a grid which contains existing policies, strategies, programmes and instrument in this sub-
pillar.

24
well as income mostly in agro-pastoral and non-pastoral areas. In addition to the livestock
policies that also cover PAP areas, PAP areas do contain other policies that are related to
livelihood and traditional resource management issues. These are presented in Table 4.2.2.2. In
addition to these two Tables, Table 4.2.2.3 presents the policies related to cross-cutting issues
such as genetic intervention, animal feed, and animal health. These are also important areas of
policy and strategy for pastoral and non-pastoral areas.

Table 4.2.2.1 Existing Livestock53 Policy Issues and Policy Statement

Policy issues
Development with indigenous
and exotic technology
Pastoral extension package
Small ruminants development
Expansion of poultry
production
Honey and wax production
Fishery development
Policy statement
Enhance livestock centered specialization development that
includes the importation of exotic breeds
Develop livestock technological extension package for
pastoral areas
Expand and increase small ruminants in highly populated,
fragmented landholding , degraded and arid climate
Expand and increase Poultry production in all mixed farming
agriculture including agro pastoral areas
Develop and expand honey production with special emphasis
in irrigated areas, integrating with fruit and agro forestry
Expand fishery development and production in water bodies
where the potential is not fully exploited

Table4.2.2.2 Existing Policies Related to Pastoralist Livelihoods and Institutions

Policy issue Policy statement
Livelihoods Ensure pastoral livelihoods and their asset bases through the participation of
the pastoral community and the use of pastoralist traditional and formal
institutions
Social services Expand and ensure access to basic social services
Settlement Ensure settlement of PAP community members on a voluntary basis and
with adequate and appropriate attention to natural resources and
environment conservation.

Table 4.2.2.3 Policies Related to Cross-Cutting Issues in Livestock and Pastoralism

Policy issue Policy statement
Livestock breed Enhance livestock productivity and production through breed
improvement improvement.
Animal feed Promote animal feed production and development both in natural and
compound form with due consideration for the protection of natural
resources.
Animal health Improve and expand animal health services

53
Includes dairy, meat, poultry, apiculture and fish

25
The basic policy directions related to livestock and pastoralism includes those strategic directions
discussed in chapter three. These are the use of compatible development path with different agro
ecological zones, integrated development path, and targeted interventions for drought-prone and
food insecure areas. RDPS also recognizes that pastoralism is an important social system which
has a significant contribution to agricultural growth. The policy to ensure pastoral livelihoods
and their asset bases addresses issues of drought; livestock marketing; veterinary; livestock feed;
water development; and environmental protection and management; natural resources
degradation (particularly the range cover in the pastoral areas), as well as settlement. The policy
to expand and ensure access to basic social services emanated from the inadequacy /lack of basic
social services such as education and health issues are addressed under this category. The policy
to recognize and use traditional institutions to perform development works is established with the
principles of integrating traditional and modern categories of institutions in the pastoral areas.
These are traditional institutions (clans, tribes, lineage, age groups, resource use groups, etc.) and
the modern state political and administrative institutions including the kebele setting. The two
systems support each other to effectively function in pastoral areas. Therefore, there is a need to
capitalize on the indigenous knowledge and institutions by taking into consideration this basic
principle. RDPS also addresses that these institutions should be used, as appropriate, to support
the voluntary settlement of PAP community members in a way it is environmentally friendly and
promotes proper use of natural resources.

According to PASDEP the accelerated increase in meat and milk productivity and production is
planned to be achieved mainly through improvement in the production of animal feeds; animal
health care; and genetic intervention. The genetic intervention policy regime includes different
breed improvement interventions. Genetic improvement of large and small ruminant and poultry
mainly focus on the improvement of the indigenous breeds in their local habitat using selective
breeding for pure breed improvement and cross breeding with known exotic breeds to improve
productivity and production of milk, meat and egg. Livestock with short gestation periods like
sheep and goats as well as poultry and beekeeping are considered as important contributors for
pillar III (food security) supported with access to credit and market. Although their role as source
of foreign revenue is not captured by policy and strategy, these species could be an important
source of cash income for the households which will enable them access to food.

The policy on animal feed resources development has the strategies and instruments listed on
Table 4.2.2.4. In the area of pastoralists‟ livelihood and institutions, the strategies for the policy
to ensure pastoral livelihoods and their asset bases through the participation of the pastoral
community and the use of pastoralist traditional and formal institutions are shown in Table
4.2.2.5.

Table 4.2.2.4 Strategy and Instruments on Animal Feed

Policy: Promote animal feed production and development both in natural and compound form
Strategy Instrument
 Improve forage production and supply  Forage banks
 Expand industrial animal feed  Planting leguminous and multipurpose
 Improve quality of crop residue trees
 Improve natural pastures  Development of back yard forage and
 Improve oil cake supply pasture feed

26
  Zero grazing- stall feeding in the
highlands
 Construction of molasses depots in Afar
and Somali Regions
 Silage making

Table 4.2.2.5 Strategy and Instruments on Pastoral Livelihoods

Policy: Ensure pastoral livelihoods and their asset bases through the participation of the pastoral
community and the use of pastoralist traditional and formal institutions
Strategy Instruments
 Develop participatory drought  Livelihood options: fishery, agro-pastoralism,
management mechanism herd diversification,
 Encourage preservation of hay and dry  Focusing on timely restocking and destocking
season forage reserve activities
 Control drought induced livestock  Commercialization of livestock rearing
diseases objectives
 Facilitate local cross border trading  Training of community based animal health
 Establish MFIs that is tailored to the workers
pastoralist way of life  Establish community based drought EWS
 Expand strategically placed dry season  Encroachment control ,reforestation,
water points desertification control
 Strengthen participatory watershed  Retrieval and modernization of rotational
management range use system
 Encourage livelihood diversification  Rehabilitation/construction of feeder roads
 Strongly initiate traditional NRM  Encourage agro-forestry social forestry
mechanism intervention

4.2.2.2 Existing Programs

Similar to the other thematic areas, the livestock and pastoralism cost centered existing programs
were collected from the Planning and Programme Directorate of MoARD and EIAR. These
programmes are presented in Table 4.2.2.6. As it can be seen from the list there is no as such cost
centered programme for PAP areas. This is because the existing set up in MoARD is taking the
PAP issues as part of the established system. Besides in regions that are designated as PAP
regions, the Bureaus of Pastoral, Agricultural and Rural Development do have explicit
programmes catering the pastoral and agro-pastoral interest. Cognizant of these there are indeed
major interventions, be it by federal or regional state institutions, in the areas of improving
livestock quality, expansion of animal health services, water points, feed production, breed
improvement and development of market infrastructure. The provision of drinking water, grazing
land and extension service for livestock production are essential components of support that will
be provided to the pastoral communities. PASDEP involves a range of tailored program and
policy responses that are specific to PAP areas and the people. These include livelihood and asset

27
building, access to basic social services, and pastoral institution development supported with
access to credit and market.

Table 4.2.2.6: Existing Development Programs in Livestock

Programme area Existing programs
Development Production
 Livestock and fishery resources
 AI service
 Animal health
 Tryps and trypanosomisais control center

Disaster Risk Management and Food  Food security

security  Disaster Risk Management

4.3 Improve Rural Infrastructure, Market Access and Trade Capacities (CAADP
Pillar II)

4.3.1 Existing policies and strategies

In this pillar of the study the assessment of policies and strategies started from the PASDEP
pillars (MoFED, 2006). Specifically, under the pillar “Massive Push to Accelerate Growth”,
the following three sub-pillars pave the ground for what is to be done in terms of existing policy
and strategy assessment. These sub-pillars are
1. Accelerating market based agricultural development,
2. Accelerating private sector development, and
3. Strengthening Rural-Urban Linkage (RUL)
The three sub-pillars are also linked to the policies and strategies contained in RDPS. The
existing policies governing the improvement of rural infrastructure, market access and trade
capacities at national level are presented in Table 4. 3.1.

Each policy statement is accompanied with various strategies, programmes and instruments54.
For example, the core strategies and instruments of the policy of transforming agriculture
through market based agricultural development are shown in Table 4.3.2. The government is
committed to transform the economy of the country led by a market driven agriculture sector
which is strongly linked with the industry and becomes a base for an industrial economy
formation. Because of this recently it gave an increased attention for agricultural commodities
marketing; improving the post–harvest technologies that are available to and used by farmers;
reducing the length of the marketing chain by expanding the role of cooperatives and associated
commodity/service based unions; promoting the use of grades and standards, to improve market
information; expanding the production of exportable crops; promoting out grower schemes and
other forms of contract farming; up grading markets close to the farmer as well as establishing
central markets in the major towns of agricultural produce surplus areas (RDPS,2002)

54
Refer the annex for details

28
Commercial agriculture which is catering both the domestic and export market and uses the
modern information technology (IT) system is the main elements of this strategy. Besides, the
strengthening of RUL has been accepted as a core strategy in transforming the agricultural
economy of the country. This is indeed an important strategy in a country which is also
aggressively working to urbanize its population in order to provide adequate and appropriate
economic and social infrastructures. Embodying RUL as a strategic component of Agriculture
and rural development emanated from the recognition that growth of agriculture will be
enhanced as increased demand from farmers' fuels, and the growth in small towns and trading
centers is hastened, as well as through supply-chain linkages among rural and urban actors and
institutions.

The RUL specific strategies which are explicitly listed in PASDEP i.e., integrating markets,
opening up the flows of labor, and access to income-earning opportunities between towns and
surrounding rural areas, are indeed multi-dimensional and pave the ground for integrated rural-
urban vibrant modern socio-economic system formation.

Table 4.3.1: Existing Policies on Improvement of Rural Infrastructure, Market Access and
Trade Capacities
Policy Issue Policy Statement
Transformation Transform the traditional agriculture to modern and commercial
agricultural through market driven development
Acceleration and Accelerate market based agricultural development, and be
competitiveness competitive in the international market
Private sector Accelerate private sector development by ensuring private operators remain
abide by the rules of free market
Domestic market Expand and improve domestic markets emphasizing on value chain
Road Expand and enhance the efficient use of available rural roads and
transport services
Power and energy Expand electrification to the rural kebele level
Telecommunication Provide telecommunication services up to kebele level with a priority
to woreda development centers and towns
Foreign trade expansion Expand Export of Agricultural Products and their Markets
Trade competitiveness Enhance the competitiveness of the country in the global market
Access to WTO Accelerate the process of Ethiopia's accession to the World Trade
Organization (WTO)

The reviewed policy documents revealed that to accelerate market based agricultural
development; the strategy will revolve around a major effort to support the intensification of
marketable farm products, both for domestic and export markets, and by both small and large
farmers. The expectation is that the major effort is to be exerted by the private sector, which
includes millions of small farmers. However, at the early stages of transition to market
agriculture, the role of the public sector has paramount importance and hence a range of public
investments and services are considered to help jump-start the process.

29
Table 4.3.2: Strategies and Instruments Contained in the Transformation Policy
Policy: Transforming agriculture through market based agricultural development
Strategy
 Abandon the traditional system
of agricultural production and
adopt market-oriented approach
 Strengthen the linkage between
agriculture and industry.
 Promote specialization,
diversification and
commercialization of
agricultural production,
 Widen the export market base
commodities to increase foreign
exchange earning
 Establish and provide adequate,
timely and accurate market
information
Strengthening Rural-Urban Linkage
(RUL) via the following specific
strategies:
- Integrating markets,
- Opening up the flows of
labor, and
- Access to income-earning
opportunities between towns
and surrounding rural areas.
Instruments
 establish and strengthen commodity exchange
markets/center;
 develop commodity exchange and future markets;
 build the capacity of agricultural marketing
institutions;
 establish agricultural marketing information system;
 establishing warehouse receipt and inventory system;
 strengthen quality control, standardization (domestic
and adopting international standards) and grading
system;
 Provide measuring devices befitting the system
 expand and strengthen abattoirs and centers for
keeping live animals;
 Set up standards institute
 Design and implement certification system
 Carefully prepare development packages
 Strengthening of cooperatives (service and unions),
small-scale credit associations
 capacity development of private investors
 Develop and expand telecommunications; roads;
electric power; and other economic infrastructures in
the rural
 Disseminate information through mass media and
technologies such as internet
 Contract appropriate international networks to obtain
international market information
 improved rural access roads,
 building up of small rural towns,
 improved telecommunication access,
 continued spread of general education and technical-
vocational training,
 development of small-scale credit markets, and
 towns expansion, and standardization on the basis of
the services rendered
 Support towns to have well formulated development
plans.
30
In the case of PASDEP‟s sub-pillar to accelerate private sector development, a strategy of
exploiting niche markets has been considered. Among those targeted for niche market
exploitation are livestock, horticulture and floriculture, and mining.

To improve and strengthen domestic market the strategy set includes undertake quality control
activities in the major warehouse facilities; improved seed production on farmers‟ plots, and
conducting relevant market studies to improve the supply and quality of other inputs.

The pillar to strengthen the infrastructure backbone of the country is inclusive of provision
of infrastructure in terms of expansion of the road network, clean water supply, irrigation, urban
development, electricity supply, and telecommunication services. In setting PASDEP, the
government did make it clear that one of the challenges in view of the provision of these
infrastructures is to redress the regional imbalances in infrastructure, especially in the less-
developed regions. In some cases, this will not be cost-effective, because of low concentrations
of population, or the high costs of reaching remote areas, but to the extent that it is possible
within available resources, efforts are being made to expand the connection of these areas. As
part of this effort, it has been indicated that there is more regional decentralization of large
national level institutions (such as ETC and EEPCo) to render them further integrate their
activities with localized planning needs.

Specifically, the roads network program, as stated in PASDEP involves a major expansion of
the road network with targets of constructing new roads by 2010 (90% of them in rural areas)
and improved maintenance. The program‟s emphasis is on facilitating growth-both in agriculture
and the modern sector-by opening up corridors and port linkages, tourism areas, as well as
linking emerging regions better to the rest of the country. It was also clearly stated that the
success of the road sector development program does not only depend on physical construction.
The efficiency and sustainability of transport services and the enhanced road network also need
to be supported by appropriate policies55. Overall, the primary objective of the Road Program
under PASDEP is:
 To sustain road sector reforms and to restore and expand Ethiopia‟s road network and
provide a sustainable level of essential road infrastructure to the rural population;
 Side-by-side, the program assists in developing a strong management and technical
capacity to manage the road network; and
 The development of the capacity of the domestic construction industry.

The government has realized that the access to electric power in rural areas is negligible and
given its resources and the support of partners it is determined to electrify rural Ethiopia in the
shortest possible time. Electricity is essential both as an input into the growth of the modern
sector, which is needed to provide jobs and export earnings, but also as an essential ingredient of
the rural transformation agenda to provide the basis for businesses and production in small to
medium sized towns, and as an input into agriculture, for irrigation pumping, commercial
agricultural production, and processing. It is also an important part of the social transformation,
allowing children the light for studying, providing basic cold-chain services at health centers,
and the use of more modern techniques and equipment at hospitals and secondary schools.

55
Refer the annex for the on-going key strategies and instruments

31
PASDEP included statements that confirm that people in poverty-afflicted rural areas frequently
suffer from the so-called 'vicious circle' of energy poverty. As they are energy poor, they have no
energy to operate machines, so they achieve low productivity. Low productivity results in small
surpluses and little cash, and hence less money to buy improved energy services. Furthermore, as
shown in the 2004 WMS results, they then rely heavily on firewood for heat, light, and cooking,
further degrading the resource base. Attempt is being made to break this circle.

In telecommunications the core policy position revolves around upgrading and expanding the
telecommunications network and services admitting that these are essential to modernize the
sector and bring about national growth as well as greatly support the rural economy. It is
believed that having basic telephone access in villages allows farmers to get information on
prices for their crops and livestock products. It also improves efficiency of local administration,
encourages the development of trade and small businesses, and facilitates the provision of social
services such as health, education and agricultural extension. At the wider level, cheap and
reliable domestic and international communications, including access to the internet, is found to
be important not just for businesspersons and exporters, but also to carry out duties of
government, support the teaching-learning process, keep personal or family ties. Already,
Ethiopia has made a huge investment in the basic multimedia backbone including the laying of
fiber optic cables, and the introduction of satellite and radio communication technologies. In the
past three years these have facilitated the school-net, woreda-net and agri-net programs.

4.3.2 Existing Programme

Existing programmes in pillar II are also identified from PASDEP and annual budget
appropriation documents. Table 4.3.3 presents the existing programmes.

During the assessment of existing programmes, it was found out that the term programme is
being used for non-cost centered undertakings in order to embrace major development initiatives.
For example the roads programme, more specifically the Ethiopian Road Travel and Transport
Programme (ERTTP) and the power supply programme. There are also projects which are not
clearly shown under existing cost center programmes under the Federal Agencies, such as the
Ethiopian Commodity Exchange (ECX) project.

ERTTP will continue to be a key part of the roads programme. It is a programme which fits well
with the CAADP initiative since it focuses on reducing the travel and transport burden of the
rural population by constructing road infrastructure, providing social and economic infrastructure
facilities and enabling the people to utilize the road infrastructure effectively. Moreover, the
ERTTP is expected to better support agricultural and other commercial activities in the regions,
and thus provide a sound and sustainable foundation for the on-going economic development
effort in the country. The major element of the power supply program during the PASDEP
period has been the launch of a large-scale rural electrification program, called the Universal
Electrification Access Program (UEAP).

32
Table 4.3.3 Existing Programmes in Markets and Marketing, Rural Infrastructure and
Foreign Trade
Programme area Existing Programmes
 Agricultural Input Supply and Marketing
Markets and marketing  Agricultural Input Quality Control
 Warehouse Receipt and Credit Facility
 Agricultural Products Marketing Promotion (Export included)
 Agricultural Products Quality Improvement, Standards, and
Inspection
 Agricultural Marketing Information System
 Agricultural Products Marketing (Domestic and Capacity
Building)
 Cooperatives Establishment and Strengthening
 Socio-economic Research (EIAR)

Rural infrastructure  Road Sector Development Programme-Ethiopian Rural Travel

and Transport Sub-Program
 Sugar Industry Development
 Universal Electrification Access Programme (UEAP)
 School-net
 Woreda-net
 Agri-net

Foreign trade  WTO Affairs

4.4 Agricultural Research and Extension System (Pillar IV)

4.4.1 Existing Policies and Strategies

Setting up universities and research institutes oriented to agriculture and rural development, and
generating and preparing country-wide technology packages in collaboration with different
partners is the focus areas of GoE as it is elaborated in RDPS part three: Managing the Rural
Development. According to this policy framework, the national research system is set with
federal and regional arrangements involving research and higher learning institutions. Similarly
the agricultural extension system has also a federal and regional set up.
The Ethiopian National Agricultural Research System (NARS) comprises- Ethiopian Institute of
Agricultural Research, Regional Agricultural Research Institutes, Higher Learning Institutes, as
well as the CGIAR partners, such as ILRI. The Ethiopian Institute of Agricultural Research is
one of the main research actors in the country‟s agricultural research system playing a leading
role in undertaking agricultural research and coordinating research activities. Currently the
Ethiopian NARS undertakes agricultural research in the areas of crop technology, soil and water
technology, livestock technology, forestry technology, and agricultural mechanization.

33
The agricultural extension system at federal level does the preparation of country wide
technology packages and improving these in collaboration with the regions. It also performs
coordination and training provision activities. The regional level extension system prepare
regional development packages based on the packages developed at federal level, and
disseminate the same to beneficiaries through the development agents (DA) assigned at kebele
level. Throughout the nation a research and extension linkage has been established via advisory
councils to facilitate the formulation of technological packages and its implementation.

Both the agricultural research and extension systems (ARES) are directed by existing policies
that are presented in Table 4.4.1.

Table 4.4.1 Agricultural Research and Extension System Lead Policy issues and Statements
Policy issue Policy statement
Wise use of natural resources Enhance agricultural research programs for sustainable land
management, wise use and maximum utilization of water and
forest resources
Sustained supply of crop Improve and strengthen agricultural technologies supply,
technologies multiplication and distribution on a sustainable basis
Livestock and pastoralism Undertake research on breed improvement, animal health
technology generation and care, feed resources, and adopt domestic and imported
importation technologies by ensuring the collection and documentation of
information on the same.
Crop agricultural extension Enhance better extension services through improved crop
agricultural research–extension–farmer and stakeholders
linkage
Livestock agricultural extension Enhance better extension services through improved livestock
agricultural research–extension–farmer and stakeholders
linkage
Extension in PAP areas Enhance better extension services in PAP areas with the
participation of traditional institutions.

Furthermore, these policy regimes have strategies and instruments56. For example the crop
agriculture research policy of sustained supply of technologies, and the livestock and pastoralism
research policy of domestic technology generation strategies and instruments are those indicated
in Table 4.4.2.

56
Refer to the annex for details

34
Table 4.4.2 Selected Strategies and Instruments on ARES
Policy: Crop Research-Sustained supply of technologies
Strategy Instrument
 Adapt and generate and release varieties  Introduction and adaptation
with improved agronomic and protection  Hybridization
practices that can be used in crop  Labour intensive technology packages for
diversification and specialization for food extension service
crops and high value vegetables , spices,  Strengthen research-extension-farmers
coffee and tea council at different levels
 Maintain improved varieties and multiply
breeder and pre-basic seeds and seedlings
of released varieties of crops and
distribute them to stakeholders
Policy: Livestock and Pastoralism-Domestic technology generation
 Improve the production and  Importation of technologies
productivity of livestock through  Adaptive trial
selection and cross-breeding  Technology testing and verification
 Generate better technology  Labour intensive technology information
information packages packaging
 Release of improved technologies
 Multiplication of released technologies

The agricultural research programmes are obtained from the 2008/09 budgetary appropriation
documents of MoFED. According to the information obtained from EIAR, the research
programmes are being reformulated and the reformulated programmes implementation has
already started in this fiscal year, i.e. 2008/09. Furthermore those listed as programmes under
research are known by MoFED as projects but still remaining as cost centers. Therefore, on the
basis of the definition given earlier in chapter two, those listed in Table 4.4.2 are considered as
existing programs contained in pillar IV.

35
4.4.2 Existing ARE Programmes

Natural Resources Crop Agriculture Livestock and Pastoralism

Research Research
 Water harvesting,  Cereals
irrigation and drainage  Pulses
 Moisture stress crop and  Oilseeds
natural resources  Fiber
management  Socio-economics
 Forest resources  Plant protection
improvement  Agricultural extension and
 Forest production and technology transfer
utilization  Agricultural mechanization
 Soil fertility and food science
management and  Seed and research centers
resource assessment development and
 Socio-economics management
Agricultural biotechnology
Research
 Agricultural extension and
technology transfer
 Feeds and grazing ,animal
nutrition and apiculture
 Milk and draught power
 Agricultural mechanization
and food science
 Agricultural biotechnology
 Meat and poultry
 Fishery and Aquaculture
 Agricultural biotechnology
 Animal Health
 Socio-economics

Extension Extension Extension

 Agricultural extension  Agricultural extension and  Agricultural extension and
and TVET TVET TVET

36
5. Institutions
RDPS and PASDEP have explicit explanations on institutions which are responsible to
implement the existing policies, strategies and programmes discussed in previous chapter. As
indicated in Table 5.1.1. These institutions are classified into seven categories. These are
 Government
 NGOs
 Mass Organizations
 Private
 CSOs
 Donors and bilateral/multilateral institutions
 Domestic agricultural research and extension as well as CGIAR Affiliated institutions

This classification is also used to assess the state of existing institutions in the CAADP Ethiopia
study. Except CSOs, Donors, and the CGIAR affiliated institutions, the others role and expected
synergy is highlighted in RDPS and PASDEP. The NCs, however, went further to capture the
existing synergy using the different forums to discuss with stakeholders. The outcome of the
discussion is summarized in Table 5.1.2. Multilateral and Bilateral donors are also essential
development partners in the execution of policies and strategies, while NGOs and CSOs are
stakeholders and implementing bodies working in line with the GoE policies and strategies.
RDPS also directs private sector institutions activities by providing favorable environment for
production, investment, and market and trade. In this context, they are also stakeholders and
beneficiaries of the agriculture and rural development policies and strategies.

Table 5.1.1 Category and Organizations involved in Policy, Strategy and Programme
Implementation
Category Organization
Government Federal MoARD, MoTI, MoFED, MoWR, Cooperative
Agency, DRMFS, EIAR , Higher Learning
Institutions (HLI), Investment Agency (IA),
EPA,QSAE,ERA,PEPA, Customs Authority,
Wildlife Authority
Regional BoARD, BoTI, BoFED , BoWR, EPLAUA,
Cooperative Agency, IA, RRA,TVET, FTC
Local Woreda Administration, Woreda Development
Offices, Kebele Council and Administration,
Community Based Organizations
NGOS CRDA, Agri-service, Sasakawa-2000, Pastoralist
Forum, MFIs, SLUF
CSOs 14 disciplinary based agricultural professional
societies; EAAP, Think-Thank Groups
Donors and bilateral/multilateral institutions FAO, UNDP, WFP,RED&FS, DAG
Mass Organizations Cooperatives, Women Association, Youth
Association
Private Commercial farms, Import/export organizations,
HLI, Consulting Firms, Commercial Banks
CGIAR Affiliated ILRI, Global Mountains Programme

37
Source: CAADP Ethiopia Study National Consultants

Table 5.1.2: Organizational Setting, Responsibility, Synergy and Partnership

Category Organizations Synergy and partnership
Responsibility Setting
Government Federal Agriculture MoARD  Capacity building/training
/Public and Rural  Financial mobilization
Development  Technical support and advisory
 Technology generation and packaging
 Monitoring and evaluation
 Mobilize resources for food security and
DRMFS emergency
 Resettlement of people
 Livelihood and asset building
 Technical support and skill training
Cooperative  Provision of credit facilities
Agency  Technical and professional support
 Provide licenses for cooperative legal
framework
EIAR  Supply of improved agricultural
technologies
 Training and advisory services
IBCR  Germplasm conservation and exchange
 Awareness creation on germplasm
conservation and utilization
Finance and MoFED  Budget appropriation and allocation
Budget  Provide advice and guideline in policy
,strategy and programs
 Monitoring and evaluation on budget use
and Expenditure
Ethiopian  Facilitate input–output
Revenue and clearance(agricultural inputs)
Customs
Authority
Trade and MoTI  Facilitate trade between regions and
industry federal
 Promote products at national and
international level
 Provide access to market information at
national and international
 Provide skill training and capacity
building on business and trade and
entrepreneurship
QSAE  Issues quality standards for agricultural
products
 Public awareness creation

38
 Federal MoFA  Coordinate inter-ministerial board
Affairs established to oversee the development
in the PAP areas
 Prepare quarterly and biyearly progress
report on the implementation of PAP
development activities and submit to the
inter-ministerial board
Water MoWR  Provides technical support for irrigation
Resources development
Development  Issues guidelines on water resources
utilization
 Provides training on water resources
management and utilization
Education MoE/ HLI  Trained manpower
 Technology generation
 Consultative and training services
Environment EPA  Impact assessment for agricultural
protection development projects
 Technical support for the regions
 Financial mobilization
Infrastructure MoWUD/  Provide public connectivity
ERA/ETC/EE  Facilitate marketing networks
PCo  Access to social service and economic
facilities
 Training support
Regional Agriculture BoARDs  Capacity building at all levels
and rural  Technical support and advisory
Development  Technology generation and packaging
 Technical support and guidance
 Financial mobilization
 Monitoring and evaluation
Finance and BOFEDs  Budget appropriation and allocation
Budget  Provide and advise on the financial and
budgetary matters
 Monitoring and evaluation on budget use
and expenditure
Water BOWRs  Provides technical support for irrigation
resources development
development  Issues guidelines on water resources
utilization
 Provides training on water resources
management and utilization
Environment EPLAUAs  Technical support on environment
protection and protection and land administration for
land the woredas and kebeles
administration  Guiding and issuing land use certificate
for farmers
 Facilitate and allocate land on lease for

39
 private investors
 Impact assessment for agricultural
development projects in the region
Cooperatives Cooperative  Technical and professional support for
establishment Agencies the establishment and strengthening of
and cooperatives
strengthening  Provide licenses for cooperative legal
framework
 Facilitates marketing opportunities for
agricultural produces
 Facilitate access to credit
 Assists the supply and distribution of
agricultural inputs
Infrastructure BoTI/BoWUD  Provide public connectivity within the
/RRAs region
 Facilitate marketing networks
 Access to social service and economic
facilities
 Training support to woredas
Woreda Agriculture WoARDs  Survey, register and issue land holding
and rural certificate for farmers
Development  Technical support and advisory
 Technology generation and packaging
 Provides technical support for small
scale irrigation development
 Provides training on water resources
management and utilization
 Technical and professional support for
the establishment and strengthening of
cooperatives
 Provide licenses for cooperative legal
framework
 Facilitates marketing opportunities for
agricultural produces
 Facilitate access to credit
 Assists the supply and distribution of
agricultural inputs
 Capacity building/training
 Financial mobilization
 Monitoring and evaluation
Finance and Woreda  Budget appropriation and allocation
Budget council/admin  Provide and advise on the financial and
istration budgetary matters
 Monitoring and evaluation on budget use
and expenditure
Kebele Development Kebele  Community mobilization
Council/  Facilitate for the issuance of land
Administratio holding certificate
n  Assist in the establishment of primary

40
 cooperatives
 Participate in project implementation
and follow up
Mass At all Voluntary Women  Promote the organizational aspects of
organizations levels of association for Associations women and youth
governm development  Facilitate the participation of women and
ent youth in community development
Youth  Advocate for the protection of women
Associations and youth rights and privileges
 Entrepreneurship
Private Finance Commercial  Provide service to private commercial
banks farmers
MFIs  Provide credit services
 Facilitate savings and money
transactions
Research and Research  Technology generation and use
Development Departments  Employment
Commercial  Contribute to food security
farms  Export expansion
Import/export  Import substitution
organizations  Provide marketing information on
exportable and importable commodities
Source: CAADP Ethiopia Study National Consultants

5.1 Federal Institutions

Institutions are key elements of a policy formulation and implementation process. They can be
seen from the stand point of organizational set-up and relationship or linkages among
organizations. In the public sector organizational set-up follows Ministries, Authorities,
Agencies, Bureaus, Commissions, and Offices. The relationship or linkage refers to the formal
system in place in order to facilitate the working relationships and linkages between or among
such organizations at all levels of government (federal, regional, zonal, and woreda). Of course,
Kebele is the lowest level of government set up with its own institutional arrangements.

At the federal government level, the main development tasks are (a) building the rural
development capacities of regions, (b) setting up Universities and Research Institutes oriented to
rural development, and (c) providing financial and technical support. Currently we have seven
Universities which have distinctly established colleges or faculties of agriculture. The Federal
Government also has the responsibility of preparing country-wide technology packages and
improving these in collaboration with the regions. Further, the Federal Government performs the
task of coordinating agricultural marketing and the supply of inputs on a countrywide basis. It
performs these development tasks without any compromise to the decentralization policy of the
Government (RDPS, 2002).
At Federal level, MoARD is responsible for the implementation of agricultural policies and
strategies fostering a sustainable value chain development for the public and private actors
engaged from the supply of inputs to the sale of raw or processed agricultural commodities.

41
These spheres of activities and responsibilities of MoARD have been executed through Disaster
Risk Management and Food Security Agency, Ethiopian Grain Trading Enterprise (EGTE),
Ethiopian Institute of Agricultural Research, Cooperative Agency, Ethiopian Seed Enterprise,
Institute of Biodiversity Conservation and Research, Horticultural Development Agency, and
National Veterinary Institute. In addition, inter ministerial institutions in the forms of committees
or Boards of MoARD, MoFED, MoFA, MoTI, MoWR, MoE and MoWUD play supportive role
in implementing pastoral, agricultural and rural development policies and strategies (Table 5.1.2)
In the PAP areas for the implementation of RDPS the institutional arrangement at the federal
level include:
o Pastoral Standing Committee(PSC) in the House of Representative,
o Inter-Ministerial Board consisting of nine Ministers, coordinated by the Ministry of
Federal Affairs,
o Pastoral Areas Development Departments, under the Ministry of Federal Affairs
(MoFA), and
o Developing Regions Coordination Office in each of the nine Ministries.

The Heads of the Coordination Office under each Ministry makes the Technical Committee
under the Inter-Ministerial Board. Planned activities by each Ministry are discussed at the
Technical Committee level, and agreed action plan document is presented to the Inter-Ministerial
Board for endorsement. The endorsed document is then released for implementation by
members, under the coordination of MoFA. MoFA compiles quarterly and bi-yearly reports and
submit to the PSC in the parliament and the Inter-Ministerial Board. For example, MoARD has a
Developing Regions Coordination Office, which mainly coordinates the extension activities in
PAP areas. EIAR oversees the research interest of the PAP areas through its Developing Regions
Capacity Coordination Office. The pastoral institutional arrangements at the federal level,
encompasses four developing PAP regions, which include Afar, Somali, Gambella, and
Benshangule Gumuz. Semi-Pastoral regions like Oromia, and SNNPRS stand by their own
institutional arrangements. Oromia and SNNPR have established Pastoral Commission and
Bureau, respectively, while Afar and Somali have established Bureaus of Pastoral, Agriculture
and Rural Development.

In addition to the institutions discussed above, as shown in Tables 5.1.1 and 5.1.2, there are
institutions which directly or indirectly affect the agriculture development initiatives of the
country. These include Quality and Standards Authority of Ethiopia (QSAE), and Revenue and
Customs Authority.

5. 2 Regional and Woreda Institutions

Every region, using its independent undertaking, has also similar institutional arrangements to
that of the Federal Government. This includes BoARD, BoFED, BoWR, EPLAUA, RRA,
whereas at Woreda level, the Woreda Administrative Councils, WoARD and Kebele
Administrative and development councils are the key players in implementing the agricultural
policies and strategies.

42
As reported in a recent study57, there is practically no significant rural land administration and
utilization activity at the Federal level. The four Regions: Amhara, Oromyia, SNNPR, and
Tigray on the other hand, have had varying approaches to providing for the institutional set-up
for this purpose. In Amhara, Environmental Protection and Land Administration and Use
Authority (EPLAUA) is directly accountable to the Regional Administrative Council, whereas in
Tigray EPLAUA operates under the Bureau of Agriculture and Rural Development. In Oromyia
and SNNPR, rural land administration and utilization activity is under Natural Resources and
Land Administration and Use Department of the Bureau of Agriculture and Rural
Development58.

Regional administrations are responsible in training professionals and technicians working in

Woredas and Kebeles and deploy and promote them. Regional administration further have the
responsibility of preparing regional development packages which are well adapted to the peculiar
conditions of their respective regions and present and explain to Woredas, and also of following
up their implementation and revise them as required on the basis of agricultural development
packages forwarded by the federal government institutions. Further, Regional Councils approve
annual budgets to Woredas, and support in implementing infrastructural projects, which are
beyond the implementation capacities of Woredas. As regards to agricultural marketing and
supply of inputs, regional administrations are responsible in implementing such plans in
accordance with overall development plan elaborated at the federal government level.
Woredas will formulate broad woreda-level development directions and kebeles will base their
development work on these guidelines. Woredas will cooperate with kebeles in providing
technical and financial assistance and doing development work that is beyond the capacities of
kebeles. In addition, woredas are expected to mobilize various development capacities obtainable
from different resource bases besides the government allocated financial resources. In this case,
one task that should be accorded priority is the effort that needs to be made to coordinate the
development initiatives of NGOs operating in woredas. It would be appropriate to create a
favourable environment in which the resources and technical know-how of local and
international NGOs can be properly utilized. These NGO‟s should know the development plan of
the woredas, and kebeles, and efforts should be made to understand that the plan is consistent
with the overall rural development strategy, and their role in the development should be clearly
established and agreed upon. Further, efforts are being made on the part of NGO‟s to mobilize
resources from other sources for the implementation of woreda development plans.
In the PAP regions, the civil service operational system starting from the regional level down to
the lowest administrative rank should be the same in terms of both organization and manpower.
The important point that is underscored is that the political leadership and organizational
structure could change depending on the particular conditions prevailing in each region. RDPS
explicitly states that with regard to community based organizations structures, there is no need to
make PAP areas the same as those to be set up in other regions. If development works can be
performed more productively under the ethnic structures, it should be done that way (RDPS,
2003). Besides extension workers assigned to the PAP areas are being given training mainly on

57
ELTAP study to Assess Rural Land Valuation and Compensation Practices in Ethiopia (ARLVCE), October 2007,
Addis Ababa, Ethiopia.
58
Recently there is a change. For example in Oromyia it is currently under a new Bureau named “Bureau of Land
and Environmental Protection”.

43
livestock development and related subjects. Specifically, the agricultural extension services are
increasingly focusing on livestock feed, animal health and related activities.

5. 3 Development partners: NGOs, CSOs, and Donors

NGOs, civil society organizations (CSOs), and bilateral and multilateral donors constitute the
main development partners in the implementation of RDPS, specifically the development
programmes. Currently there are hundreds of NGOs working in agriculture and rural
development areas throughout the country. Most of them are under the umbrella of the Christian
Relief and Development Association (CRDA). CRDA plays a leading role in facilitating the
works of the NGO taskforce, but responsibilities of resources mobilization are that of the NGO.
On the government side, Disaster Risk Management and Food Security Agency coordinates
NGOs involved in emergency and relief operations.

There are fifteen agriculture based CSOs legally registered by the Ministry of Justice. Most of
them are discipline based societies such as Crop Science, Animal Production, Horticulture,
Agronomy and Physiology, Plant Protection, Weed Science, Veterinary, Soil Science, Forestry,
Agricultural Engineering, and Agricultural Economics Professional Societies/Associations.
Recently an umbrella organization which is registered as Ethiopian Association of Agricultural
Professionals (EAAP) in various disciplines and addresses development and policy issues that
are cross-cutting and multi-disciplinary by emphasis is established.

Broadly the donors can be categorized into bilateral and multilateral. On the part of the
Ethiopian government, MoFED plays the key role in donor coordination and resource
mobilization, whereas sector ministries implement specific programs and projects. Bilateral
assistance includes technical cooperation, project/program supports and sector development.
Bilateral development cooperation is managed by respective development cooperation agencies
of the different governments such as CIDA of Canada, USAID of USA, GTZ of Germany and
DFID of UK. Multilateral donors are the major lenders of Ethiopia. The major multilateral
donors are IDA and IFC59, AfDB, EU, and UN Agencies. In view of CAADP their focus areas
are food security, poverty reduction, natural resources management and environmental
protection; and crosscutting issues of governance, gender, HIV/AIDS, nutrition and investment
on economic and social capital.

Mostly the support that comes through the bilateral and multilateral institutions takes a project
format. The project aid often is combined with technical assistance and capacity building, in
addition to specific grass root oriented development interventions. Some pursue non-project
support which includes sector development programs in education, health, road and water.

At present among donors, the overarching coordinating body in Ethiopia is the Development
Assistants Group (DAG) which bring together most of the bilateral, multilateral, as well as UN
Agencies. This group seems to engage in some policy and strategy formulation process, and they
have had a participation in the PASDEP setting. Recently there is also a formation of what is

59
Institute of Development Association and International Finance Cooperation respectively

44
known as RED&FS group, which technically is a sub-set of DAG with a special interest and
focus in SLM, Food security and agricultural growth issues.

Development cooperative objectives generally focus on poverty alleviation, and in line with the
government strategy, specific interventions are mainly directed to agricultural development and
food security as well as social services. Area focuses of interventions are education, health, food
security, and institutional capacity building.

5. 4 Cooperatives

In the RDPS document it is stated that in countries like Ethiopia where millions of farmers are
engaged in subsistence agriculture on fragmented farm plots, cooperatives play a significant role
not only in creating improved marketing system and providing market information, but also in
other agricultural development works. It would be no exaggeration that neither meaningful
agricultural development nor an efficient agricultural marketing system can materialize in
Ethiopia without having a visible breakthrough in the development of cooperatives.

Cooperatives play important role which include facilities to collect and provide storage services;
credit services to farmers; access to credit by expanding rural banking; facilitate trade
transactions; and provide agricultural machinery, equipment and implements to farmers on lease.
Hence, setting up and strengthening cooperatives is critical in implementing rural development
policies and strategies in Ethiopia. The strength of cooperatives is dependent on the support that
they are rendered in terms of a strict monitoring of the application of cooperative laws. The
effort being made to instill behavioral change to eliminate outside interferences in cooperative
operation is going along the strict enforcement of cooperative legislation. Recently cooperatives
are getting technical assistance which enables them to gain legal personality and recognition.
According to the information obtained from the Cooperative Agency, leaders and members of
cooperatives are getting leadership and other relevant training. Indeed such endeavors will
prepare cooperative leaders and members to better meet their respective roles more effectively.

5. 5 Warehouses, Commodity Exchanges and Traders Associations

Establishment of commodity exchange and future markets are also part of the government‟s
institution building efforts. The evolution of strong service cooperatives and cooperative unions
are a prelude to having such commodity exchange centers. As indicated in RDPS the
establishment of commodity exchange centers was essential to facilitate the gathering of reliable,
timely and complete information including market price information. The relevance and
importance of international market information, especially commodity prices, is quite evident.
Therefore, the commodity exchange center (ECX) is established to facilitate the gathering of
such reliable, timely and complete information.

Currently the Warehouse Receipts System is in place. It focuses initially on maize, sorghum and
wheat, but currently works with other commodities and is strongly linked to ECX. It was initially
initiated in the Ministry of Trade and Industry (MoTI) via a proclamation in October 2003 to
provide a Warehouse Receipts System for stakeholders. Immediately the system became
operational through establishment of an authority accountable to the MoARD.
45
5. 6 Micro Finance Institutions and Micro and Small Enterprises

Broadly the policy and strategies, as well as the institutional aspects of the rural financial system
are addressed in RDPS. In this document as a strategy considerable weight is accorded to
strengthen institutions engaged in rural finance and create new ones, because otherwise
agricultural development can be sluggish, and its contribution to the development of other
sectors will be undermined. The major financial institutions which can contribute significantly
to rural and agricultural development are the existing commercial and development banks, rural
banks and cooperatives. The National Bank of Ethiopia should develop an appropriate legal
framework to promote rural banks and coordinate their operations. It is the policy of the
Government that although it may give them special assistance owing to the crucial role they play
in rural development, they must be absolutely free from any kind of interference. Linkage among
these institutions is also detrimental. Because of this efforts are being made to forge between
rural banks and cooperatives through cooperative banks, exemplary in this case is the
Cooperative Bank of Oromia, as this is vital for rural and agricultural development in general.

Micro Finance institutions are one of the major financial institutions which are serving the
current agriculture and rural development initiatives of the many poor rural agriculture and non-
agriculture subsisting citizens. The GoE in its RDPS document recognized that the promotion of
comprehensive farm input retailing system can be achieved through strengthening and expansion
of rural Micro Finance Institutions (MFI) in addition to service cooperatives and farm input
retailers. Indeed the creation of efficient and effective agricultural credit institutions, which have
been liaising with the existing formal and informal financial institutions to extend the
agricultural credit to farmers has increased farm input consumption, particularly fertilizer.

The growth and expansion of microfinance institutions has helped the emergence, and
proliferation of Micro and Small Enterprises (MSEs) mostly in rural agriculture areas. Indeed
MSE emergence and expansion has also been supported by National Micro and Small
Enterprise Development Strategy. This strategy emanated from the growing urban and small-
town economy, and increased domestic demand. The MSEs are particularly important in the
context of Ethiopia‟s poverty reduction strategy as they are seed-beds for the intensified
development of medium and large enterprises (vertical integration), and because they absorb
agriculturally under-employed labor, and diversify the sources of income for farming families
(horizontal integration). Areas of high potential for MSEs include animal husbandry, poultry,
silk harvesting, honey production, small-scale garment manufacturing and metal work,
construction, and increasingly urban-based services (for example solid waste collection, parking
lots, small shops and repair services).

 It is the strategy of the government to strengthen MSE by its support, mostly channeled
through the Federal Micro and Small Enterprise Development Agency (FeMSEDA), and
increasingly through regional ReMSEDAs.

Efforts have been initiated in the direction of value chain approach for tourism, floriculture,
agro-processing, construction, meat, leather products and textiles and garments. This is also core

46
in the interest of CAADP as it is indicated in Pillar II, where access to markets and trade capacity
building is vital for the development of the agriculture sector.

5.7 Women and Youth Associations

To implement agricultural rural development policies, strategies and programmes, among the
institutions recognized by GoE are women and youth associations. RDPS has a detailed
discussion on why it is important to mobilize youth and what has to be done in this regard. To
effectively mobilize the youth, they need to have their own organization through which they can
campaign for their own rights and economic interests. Youth associations contribute a great deal
to the active participation of youths in rural development. Similarly women‟s associations to be
organized at kebele level are expected to make a significant contribution to the political and
developmental participation of women and the benefits they derive from such participation.
Special development efforts targeting women have been made so that they can gain the benefits
of rural development which they deserve. That is in order to ensure the participation of women in
rural development, it was also necessary to increase their productive capacity so that women can
be employed in all fields of activity on equal footing with men.

To date the establishment of women and youth associations has gone to highest level starting
from kebele up to Federal League. The main task of these associations is to make them key
players in the growth and development of the agriculture and rural economy both as self
employed entrepreneurs or sources of skilled and unskilled labour for the growing and expanding
rural agriculture industries. The government has promoted agricultural entrepreneurship to make
the youth of rural areas stay around their communities via small business start up. Business start
up, in addition to entrepreneurial ability, is receiving government support and facilitation for
private sector expansion via SME.

5. 8 Institutions for Agricultural Research and Extension

RDPS endorsed sustained agricultural development requires a continuous process of

technological change. Such continuous progress needs to be supported by a well-resourced
institutional system for research and technology supply. At the start of the first PRSP (SDPRP)
the country already had a considerable capacity in agricultural research but with main
shortcoming of not covering all agro-ecological zone of the country. In terms of capacity it also
falls short of the many requirements that, the acceleration of the growth process demands.
Therefore, the strategy embodied in RDPS was to significantly augment the research capacity in
terms of volume and quality. Today as a result of this strategy, the country has several
Agricultural Research Institutes established by Federal and Regional State Governments of
Ethiopia or affiliates of the CGIAR. Leading in this aspect are EIAR, Regional ARIs‟ and ILRI.
Specifically, at the beginning of SDPRP the FDRE Government took a major leap forward to
strengthen the NARS by committing itself to borrow more than 78 Million USD, which includes
the finance to establish new research centers to cover the uncovered agro-ecologies particularly
in lowland, pastoral and agro-pastoral areas of the country. This task has continued by
incorporating the research and extension component in the ongoing Rural Capacity Development
Project. In addition to these, to boost the national capacity on agricultural research, the nation is

47
taking advantage of the many Universities and Colleges that are scattered in the different regions
and agro-ecological zones.

The new direction in the formation and strengthening of NARS is footed on RDPS lead strategic
area that is, while maintaining the efforts to develop new indigenous technologies the major
focus will be on selecting and adapting technologies available abroad. It recognized that
surveying, selecting and adapting foreign technologies all require a considerable degree of
research and professional expertise. This is also found to be strategically compatible with the
generation of our new technologies.

The institutional reformation in the research system was not seen in isolation. The agricultural
extension service system has also been in focus during the whole process of strengthening
existing and establishing new research centers. As pointed out in RDPS the generation and
selection of appropriate technologies need to be disseminated through strong agricultural
extension service system, a system that is a major component of the agricultural and rural
development strategy. In addition to the research and extension system, for a successful
promotion and use of newly generated or selected, and imported agricultural technologies the
entire technology transfer process should embrace both duplication and diffusion efforts.

The technology duplicating system has several institutions in it. In the public sector the major
ones are the Ethiopian Seed Enterprise, and the recently established Regional Seed Enterprises.
On the livestock side there is the National Artificial Insemination Center, which is currently
operating through four sub-branches located in Oromia, Tigray, Amhara and SNNP Regional
States. There is also the National Veterinary Institute producing and supplying animal vaccines
and drugs. These institutions primarily focus on the biological technologies 60. In the private
sector in the seed system there are Pioneer Hybrid and other Small Seed Enterprises. There are
also institutions such as Agricultural Inputs Supply Enterprise (AISE) which procure and
distribute fertilizers and chemicals via different agents. In addition to these, there are several
Public and Private Enterprises that are engaged in the multiplication and distribution of farm
implements.

The agricultural extension system of the country has federal and regional arrangements. Core in
this regard is ATVETs and FTCs. These two institutions are currently functioning to produce as
well as use the human capital that is embodied in Development Agents. ATVETs train DAs and
the DAs in turn use FTCs to train farmers so that the later can augment their knowledge to
increase the productivity of farm resources and ultimately increase their income via increased
production and better marketing. At present the agricultural extension system deploy four DAs at
each kebele, crop production, livestock production, natural resource management, and home
economics. In addition, there is one animal health assistant per three kebeles, and one
cooperative expert serving five kebeles. Furthermore, as part of the system, Research-Extension-
Farmer Linkage Council has been established to oversee and advise technology generation,
packaging and dissemination. It is structured from woreda up to the federal level with committed
resources.

60
A detailed coverage is made in the Review Volume of this study.

48
5.9 Private Sector Institutions

In the above discussions the role of the private sector has been reflected where necessary.
However, it is important to address this sector‟s role in the agriculture sector development in line
with the specifics stated in the policy and strategy documents. Starting from the beginning of
SDPRP period, the current GoE upholds the role of the private sector in cognizant of the
sustained economic growth and employment generation, which is necessary for poverty
reduction and that, requires enhanced private sector investment (SDPRP, 2002). In RDPS the
government has stated the participation of the private sector to play an important role in
implementing the development policies, strategies and programs. Of course, one may say that
private investors have made significant contribution to the agricultural development of the
country since the period of the Haileselassie regime. The efforts made during this regime,
however, were curtailed during the Derge era. With the change of governments, EPRDF during
and after transition period, has revitalized the role the private sector. It started by privatizing the
State Farms and opening them for private commercial farming. The floriculture business has also
flourished in recent years as a result of the favorable policy environment GoE created for foreign
investors. In addition to commercial farms, financial, higher learning and export-import
organizations have also emerged and are being expanding throughout the country. The private
commercial banks have supported the domestic agro-industry growth. The private HLI have
started providing training in specific agriculture disciplines. This is expected to expand, and also
for the institutions to embark in agricultural research. As well as described in the RDPS,
Ethiopia provides organizations, management and financial resources to establish connection
with internationally known companies, and this has helped many organizations engaged in
export-import activities. In the private sector, there are several associations including Ethiopian
Live Animal Traders Association, Ethiopian Meat Exporters Association, Horticulture
Association, Coffee Traders Association, Pulses and Oil Crops Traders‟ Association.

One very important institutional arrangement recognized and promoted by RDPS is the out-
growers‟ scheme. Linkage between private investors and smallholders in the agricultural
production, will make to maximizing benefit for both partners, and contribute meaningfully to
make agricultural development efforts more productive. One such link the policy and strategy in
the agriculture sector encouraged is the out-growers scheme. Such schemes were strategic in
densely populated highlands of the country, since could address the land shortage often
encountered by private investors wishing to engage in the production of high value crops. As a
result such schemes are expanding in the coffee and tea investment areas, and there are
beginnings in the horticulture industry. This is in addition to formerly established out-growers
schemes in the area of malt barley production, and the sugar cane production.

5.10 Capacity Building

The government‟s response to the challenges of agricultural transformation and rural

development for poverty reduction among other things rests on capacity building which includes:
 The establishment of and equipping institutes at different levels of government;
 Human capital formation; and
 The provision of finance/budget.

49
5.10.1 Establishment and equipping Institutes
The government in its Federal, Regional, Zone and Woreda structure has established and
continuously gives support to equip the MoARD, BoARD, and Zone and Woreda Offices. At the
Federal level, and in some Regional State Governments these institutions have constructed their
own premises or they are in the process of building. Most of them have computers, photocopiers
and other electronic gadgets.

5.10.2 Human capital formation

The agriculture sector human capital formation is footed on a chain of education and training
institutes. It involves higher, middle level and grass-root institutes. In the area of HLIs, the
number of Universities with agricultural faculties/colleges has risen from four to eleven.
Specifically the former agriculture based Universities, namely Haromaya, Jimma, Debub, and
Mekele have build their capacities with modern laboratories and other teaching facilities to
render degree programs up to PhD level.
In addition to these institutions that cater for highly skilled and educated personnel, the
government has built training centers to produce development agents and train the many
smallholder farmers. Prominent in this regard are ATVETs and FTCs. The specific objective of
ATVET is to create and develop human resource and institutional capacity that would have a
desirable impact over the medium-and long-term capacity building. It is producing middle to
junior level skilled and agricultural practitioners who are compatible with high-level skill and
technology. The objective of the middle level component is to train and produce skilled labor
force that would serve as teachers and development agents in the “Farmers Training Center”
(FTC) located at kebele level and self-employed entrepreneurs. FTCs are expected to provide
agricultural extension and information services that can speed up entrepreneurship as well as
demonstrations for the diffusion of modern technologies and improved practices in agriculture.
During PASDEP it is planned to establish 3,000 FTCs in addition to the 15,000 that have been
established during SDPRP period. The Farmers Training Centers (FTCs) are used for the
provision of advisory services, IT services, skill training, demonstrations and entrepreneurship.
They provide training for farmers in the areas of entrepreneurship parallel to production, soil and
water management and market and marketing oriented courses.

Training and workshops are among the key interventions used for social sensitization, awareness
creation, and tools of creative thinking and engineering to tackle problems of production, soil
and water management, market and marketing, and youth dependency and lack of
entrepreneurial motivations. The whole purpose of training is to periodically analyze and assess
the technology, market and marketing and policy factors that influence farmers, traders, women,
development agents, agricultural marketing and cooperative development, and those involved in
the disaster prevention and emergency operations and develop a comprehensive strategic
implementation plan to upgrade and enrich skills and knowledge. The training interventions are
expected to cater for the training courses, modules, seminars and workshop (with detailed
contents, reading references, service providers, faculty, etc), for the Senior staff of MoARD,
SMS, Development Agents, farmers, women, traders, cooperative leaders, and opinion leaders.

50
5.10.3 Finance and Budget
In recent years the commitment of GoE to build the capacities of public institutions has been
reflected on the increasing budgetary appropriations from the treasury as well as its willingness
to borrow or solicit support from bilateral and multilateral donors and financial institutions.
Chapter six of this study report gives details in this regard. Already the government annual
budgetary appropriation has reached to 15%, which is higher than the CAADP target of 10%. In
addition to the budget from treasury, the government has increased its commitment to borrow or
solicit financial support from bilateral and multilateral donors and financial institutions. The
examples in this area are the ARTP, and the current RCBP. The ARTP was designed to support
the agriculture sector through the generation and enhancement of economically viable,
sustainable, and ecological sound technologies for crop and livestock production and natural
resources management. The components of ARTP are agricultural research management,
improve the agricultural research system centers network and human resource development. The
total project cost was USD 90.6 million i.e., USD 60 million from IDA and 18.2 million from
IFAD and USD 12.4 million from GoE. The RCBP components include technical and vocational
education and training for agriculture; agricultural advisory services; agricultural research;
improving information and communication systems in MoARD; development of agricultural
marketing institutions; and project management with a total cost of about 71 million USD.

51
 6. Economic Performance, Public Expenditure Review and Diagnosis
The previous chapters gave the background to the CAADP Ethiopia study and the results of its
policy, strategy, programmes identification as well as the institutional arrangements that are in
place for the implementation of the policies, strategies and programmes. At this juncture it is
prudent to make a trend analysis of the economic growth and changes i.e. the development
achievements of the agriculture sector due to the implementation of existing policies and
strategies, particularly starting from the launch of the first PRSP, namely SDPRP.

The subsections below present the trend analysis61 findings in different sub-sections. First, the
overall economic performance trend based on indicators such as GDP, AGDP, poverty index,
and the agro-processing sub-sector performance are presented. This is followed by the discussion
about the achievements made in developing the core agriculture and rural infrastructures
including irrigation, road net works, and rural electrification and telecommunication services.
The expenditure trend analysis results are reported in a separate sub-section followed by a report
on the trend of export-import activities. Finally, in this chapter, the trends of food production are
presented using food grain and milk production and consumption statistics.

6.1 Economy-wide Performance Analysis

6.1.1 GDP and AGDP Trends

The performance of Ethiopia‟s

economy, like other economies, can
be measured with GDP as well as
specific indicators of welfare such
as poverty index. In Ethiopia, the
GDP growth rate directly and
heavily depends on the performance
of the agriculture sector though in
recent years the dominance of
agriculture, in terms of contribution
to GDP, is declining. Put differently
the economy is showing a slight
structural change from agriculture to
the non-agriculture sector.

61
The data sources for the different sub-sections of this chapter are CSA, MoFED, NBE, EEPCo, ETC. A separate
volume of this study that presents the data in tabulated forms is prepared and readers are advised to look this for
detailed information.

52
The percent share of agriculture62 from GDP has declined from 57% to 46% in ten years time
between 1996 and 2007 (Figure 6.1). The share of the service sector is increasing. Its share has
increased from 34% to 42% during the same period.

The slight structural shift from agriculture to non-agriculture, in general, indicates the success of
ADLI, which from the very beginning is set as strategy to make the economy shift to other
industrious areas other than agriculture. It should be emphasized that ADLI was not designed as
a strategy for the agriculture sector but as a strategy to lead the whole economy in the
transformation process from traditional non-market oriented agriculture to market oriented
agriculture and industrial economy.

Within agriculture it is the

crop subsector which is
leading in terms of
contribution to GDP. The
crop sub-sector percent
share of AGDP and hence
GDP is on rise since
2003/04 (Figure 6.2). As of
2006/07 crop agriculture
share from GDP is 30%
while its share from AGDP
is 65%. For the same period
the share of the livestock,
and hunting subsector and
that of forestry is 12.3%
and 3.9% from GDP and
26.5% and 8.4% from
AGDP respectively. For a
country with the largest
livestock population in
Africa and tenth in the
world the performance of
the livestock sector is still
very low. A lot has to be
done in this sector
institutional and capacity
building starting from
production to supply and
marketing of live animals,

62
Agriculture includes crop, livestock and hunting, forestry and fishing. Industry includes mining and quering,
manufacturing, electricity, gas and water. Services includes trade, hotels and resturants, transport and comunication, public
administration and defence, education, health and socail works and related .

53
animal products and by-products both to the domestic and international markets. The pastoral
system of production, which is mainly livestock, contributes 9% to the national GDP.

In general, Ethiopia bypassed the CAADP targets both in terms of the annual growth of the
agriculture sector and budgetary allocation, which is 6% and 10%, respectively. In recent years
the growth rate of the agriculture sector in terms of AGDP is about 13% (Figure 6.3) and the
budget allocated for agriculture both at the Federal and Regional State Governments level is
about 15%. 63

6.1.2 Poverty Trend

Table 6.1 and 6.2 below present a summary reproduced from the annual review report of
PASDEP (September 2006) and shows the past trends and the situation at the beginning of the
PASDEP period. National poverty has declined significantly on every count of the indices
shown. The unprecedented trend during this period was that the decrease in national poverty, in
terms of income head count index, was actually attributable to the larger decline in rural poverty
compared to that in urban poverty64.

Table 6.1: Trends in Poverty Indices at National Level and by Rural and Urban Areas
Level Indices Changes in the Indices (%)
1999/00 2004/05 2004/05
1995/96 1999/00 2004/05 over over over
1995/96 1995/96 1999/00
Trends in Total Income Head Count Poverty Indices
National 0.455 0.442 0.387 -2.7 -14.8 -12.4
Rural 0.475 0.454 0.393 -4.4 -17.1 -13.4
Urban 0.332 0.369 0.351 11.1 5.9 -4.7
Trends in Food Poverty Head Count Indices
National 0.495 0.419 0.380 -15.5 -23.3 -9.2
Rural 0.516 0.411 0.385 -20.4 -25.5 -6.5
Urban 0.365 0.467 0.353 28.0 -3.3 -24.5
Source : PASDEP, 2006

Table 6.2: National Level Poverty/ Welfare Trend in the 1st Two Years PASDEP Period
Indicator Base Line PASDEP
(Achievements by end 2005/06 2006/7 Target
of 2004/05) (2009/10)
Total poverty head count (%) 39 36.6 34.6 29
Food poverty head count (%) 38 35.6 33.5 28

Source: MoFED, PASDEP Annual Progress Report, 2006/07

The food poverty head count indices at the national level has declined from 42% in 1999/00 to
38% in 2004/05 or by 9%, while the rural food poverty head index has declined by less than 7%

63
Detail findings on these and other economic trend and expenditure analysis are reported in sub-section 6.2.
64
For details refer to Vol. II Table AP1 and AP2.

54
from 41% to 38.5%, still greater than for the urban population and also the national average.
Table 6.1 also shows an increase in the poverty gap index for the rural areas – which is an
indicator of the depth of poverty or how far rural households‟ average per adult
income/consumption is from the poverty line – may at face value imply that the resources
(largely government resources) allocated and used in poverty reduction rural programs during the
period have not been sufficient to enable bring the rural poor to at least the national level
average. The poverty severity index for the rural areas – an indicator that measures the distance
of the income/consumption of the poorest of the poor from the poverty line – seems to present an
even worse picture in terms of its decline (or the absence of decline in this case) relative to the
urban areas in particular where the growth rate has been much lower. This implies the need for
the government‟s rural development programs to improve their strategy and method of targeting
the poorest of the poor. Overall, the decline in rural poverty is substantial. The decline in rural
poverty can be attributed to the pro-poor programs that have been implemented in rural areas
including, among others, the food security and the productive safety net programs.

According to the PASDEP Annual Progress Report, 2006/07, beyond the relative aggregate
measures presented above, nationally the number of poor people is reported to have declined
from 28,063,909 (1999/00) to 27,523,414 (2004/05) or by close to 2%.

One important aspect in the food poverty

analysis is the price trend of major food
sources. The available data indicates that
agricultural commodity retail prices are
increasing at an increasing rate compared
to the change in per capita income, which
is sluggish. Figure 6.4 shows specifically
the trend in the retail prices of the major
staple food crops i.e., teff, wheat and
maize. Although the trend follows what is
also happening in the international market,
if it continuous then the purchasing power of consumers, specifically the poor, will be eroded
tremendously and the incidence of hunger may rise unless the government continues the support
that it is giving to subsidize food crops.

6.1.3 Agro-processing
Another important area which reflects the contribution of existing policies and strategies to a
positive change in the economy at large and the agriculture sector specifically is the registered
growth in the agro-processing sub-sector. This change has been depicted by rates of change in
terms of emergence and expansion of agro-processing industries and their value addition.
Figure 6.5 indicates the positive change in the number of establishment and the growth rate for
food products and beverage manufacturing. Manufacture of vegetable and animal oils and fats,
manufacture of grain mill products, manufacture of bakery products, manufacture of sugar and
sugar confectionery and tinning and dressing of leather, manufacture of foot wear, luggage and
handbags are the top five agro-processing activities (Figure 6.6). In the agro-processing industry
establishment the number of Bakery Products Manufacture was about 34.10% and 18.03% for
Grain Mill Manufactures in 2000/01. The percentage shares of the number of establishments for

55
the same increased to 39.74% and 18.98% in 2006/07, respectively. Similarly the share in the
number of establishment of sugar and sugar confectionery manufacture increase from 2.62% to
3.53% in between 2000/01 and 2006/07.

Though the percent share of sugar and

sugar confectionary in terms of
number of establishments looks small
(3.53%) but as of 2006/07 these
establishments rank on top in terms of
value share, 27.5%, followed by the
Tinning and Dressing of Leather,
manufacture of foot wear, luggage and
hand bags share which is about 17%
(Figure 6.7). The shares of
Manufacture of Sugar and Sugar
Confectionery increased from 25.4%
to 27.5% between 2000/01 and 2006/0765 while shares of Manufacture of Grain Mill from agro-
processing industry declined from 10% to 7.2% during this period. Looking at Figure 6.5 and 6.6
concurrently shows that the agro-processing sub-sector establishments is dominated by bakeries
with small contribution to the annual value product compared to the few sugar based processing
plants relatively with very high value addition. Indicating a lot has to be done in terms of
promoting and supporting high value added agro-processing establishments.

6.1.4 Infrastructure
Pillar II of CAADP requires the assessment of
rural infrastructure that is indispensable for the
development of the agriculture sector. The key
infrastructures identified in this regard are
irrigation, roads, electricity and
telecommunication.
65
For various years see the different pie-graphs in the
Review document

56
Ethiopia‟s agriculture particularly the crops-subsector is heavily dependent on rain. The
performance of the agriculture sector, therefore, varies with the vagarious of nature, rain and
associated climatic changes. Agriculture water development, especially irrigation has not had
adequate focus despite a huge potential within the country. According to the recent data obtained
from MoWR the total potential irrigable land of the country is estimated to be 3.7 million
hectare. Out of this 2.9 million hectare is the potential irrigable land with medium and large scale
irrigation schemes. Currently less than 5% of the total irrigable area is under irrigated
agriculture. The irrigated area varies from small to large size schemes with a variation among
regions. As can be seen from figure 6.8, recently Amhara regional state leads by having the high
proportion of SSI66 (28.5%) while Afar is leading with a high concentration of MSI (58.5%).
Afar and Oromiya are the only two regions with LSI with a share of 54% and 46% respectively.

The road sector has registered a remarkable success in the recent years. Within a decade the
proportion of asphalt roads has doubled, from 17% to 68% (Table 6.3). The road density/1000
sq.km (including community roads) increased from 24km to 104km.

Table 6.3: Selected Indicators for roads conditions and situations

Indicators 1997 2002 2007 2008

Proportion of Asphalt roads in Good Condition 17% 35% 64% 68%

Proportion of Gravel roads in Good Condition 25% 30% 49% 53%
Proportion of Rural roads in Good Condition 21% 28% 46% 49%
Proportion of Total Road network in Good Condition 22% 30% 49% 53%
Road Density/ 1000 sq. km 24.1km 30.3km 38.6km 40.3km
Road Density/ 1000 Population 0.46km 0.49km 0.55km 0.56km
Road Density/ 1000 sq. km (including community roads) 24km 30.3km 91.4km 104
Road Density/ 1000 Population (including community roads) 0.49km 0.49km 1.3km 1.45km
Proportion of area more than 5km from all weather road 79% 75% 68% 67%
Average distance to all weather road 21.4km 17km 13km 12.4km
Source: Ethiopian Road Authority, 2007/08

The provision of telephone services has shown a tremendous growth since 1995 (Figure 6.9).
Automatic subscription has increased rapidly. Mobile services distribution started in late 1990s.
As of 1998/99 there were only 6740 mobile users in the country. These increased to 1.95 million
users by 2007/08, registering an annual growth rate of 87.8%. Another remarkable change in the
telecommunication services is the coverage of rural kebeles having subscribed lines. By the
beginning of the PASDEP period i.e. 2004/05, there were only 60 rural kebeles that had
subscribed lines. By 2007/08 this number increased to 8676 rural kebeles which means an annual
growth rate of 425% (Figure 10).

66
SSI=Small Scale Irrigation, MSI=Medium Scale Irrigation, LSI=Large Scale Irrigation

57
Number of beneficiaries67 that got electricity under the Universal Rural Electricity Access
Program is presented in Table 6.4. The nation‟s capacity to generate and produce electricity has
doubled in ten years period (1996-2006). As of 1996 the country‟s generating capacity was
416,057 KW. This increased to 819,333 KW by 2006. Most of those who benefited are rural
residents and businesses. However, there is still an excess demand of electricity. Showing the
overall rapid economic growth, particularly the increasing light industries such as the cement
producing, food and beverage processing factories throughout the country is putting pressure on
the power and energy sector of the economy.

Table 6.4: Number of beneficiaries that got electricity under Universal Rural Electricity Access
Program
Number Number Number
Region (2005/06) (2006/07) (2007/08)
Afar 3 16 9
Amhara 47 230 319
Benshangul-Gumuz 3 20 28
Dire Dawa 1 2 5
Gambella 1 12 7
Harari 1 1 3
Oromia 68 284 499
SNNP 34 186 36
Somali 6 20 37
Tigray 13 61 38
Total 177 832 1221
Source:- UREAP

67
Cities/Kebeles/Villages

58
 Source: CSA

6.15 Performance in Natural Resources Management and Utilization

The trend of executing different NRM and utilization activities for the PASDEP period (2006-
2008) was obtained from MoARD NR directorate. The major components targeted in the
PASDEP natural resources conservation and development plan are establishment of natural
resources information database; issuance of land holding certificates; preparation of woreda level
land use planning; identification of degraded land for intervention; moisture conservation; soil
fertility management; and forest demarcation and small irrigation development.

Table 6.8 below gives the natural resources conservation and development targets and
achievements for this period. Overall, the achievements on some of the activities are encouraging
while on some others not. For example, the achievement in tree seed distribution is close to
1000% followed by works on water conservation. The least achieved planned activity is the land
use planning. It was planned to undertake eight woreda level land use plan but in the three
PASDEP years none was done.

59
Table 6.8 Natural resources conservation and development targets and achievements
(2006-2008)
Nr. Activities Unit Target of the three Achievement %
years (2006-2008 )
1 Establishment of woreda level No. 385 12 3.1
Natural Resources Information
database
2 Land holding certification 1st Million 3.7 4.1 111.1
level No.
3 Land holding certification 2nd Million 0.5 0.6 111.9
level No.
4 Woreda level land use planning No 8 - 0.0
5 Delineation of degraded land Ha. 332.0 500.0 150.6
(„000)
6 Identification of SWC Ha.(„000) 996.0 770.9 77.4
intervention areas
7 Moisture conservation Ha.(„000) 1210.0 424.8 35.1
8 Soil fertility management Ha.(„000) 2991.0 _ 0.0
9 Forest demarcation Ha 740.0 450.0 60.8
10 Multi-purpose tree plantation Ha 2268.0 517.9 22.8
11 Tree seed distribution Qt. 1535.0 14831.0 996.2
12 Seed center establishment No. 5.0 _ 0.0
13 Small scale irrigation Ha.(„000) 281.0 171.1 60.9
development
14 Water conservation Ha.( 27.9 63.6 228.4
„000)
Source: MoARD, NR Department.

6.2 Expenditure Trend Analysis

The government of Ethiopia is constitutionally divided into two: the Federal and the Regional
State Governments. The two tier government systems have their own independent budget
appropriation mechanisms although there are linkages through various programmes on the basis
of subsidy arrangements. Cognizant of these arrangements the CAADP Ethiopia Study adopted a
notion of national expenditure on agriculture and related activities by aggregating the available
expenditure on the same at Federal and Regional levels68.

As Figure 6.12 indicates the Federal Government budget to the agriculture and natural resources
sector has exceeded the CAADP target of 10% since 2005/06. Generally the total Federal budget
allocated to Agriculture and Natural Resources69 has increased from 9.4% in 1993/94 to 15.5 %

68
The NCs extends their appreciations and thanks to those Departments in MoFED which cooperated in availing the necessary data in this regard.
69
Agriculture and Natural resources includes the budget for MoARD, EIAR, IBCR and allocation for water resources development outside
MoARD. The expenditure on Agriculture Development includes only the MoARD allocation. Similar understanding has to hold for the Regional
expenditure figure.

60
in 2007/08. On average, in between 1993/94 and 1997/98 the share declined from 9.4 % to 2.9%.
The trend was reversed when the GoE issued the new comprehensive policy and strategy
document, RDPS, and starts to implement programmes that are based on these policies and
strategies as of 2001/02.

The trend in the regional state governments‟ budgetary appropriation is similar to that of the
federal government. Till recent years the regional state governments‟ budget share of agriculture
and natural resources has been more than 15% (Figure 6.13). It was higher than the federal share
by about an average of 5% per annum till the end of the SDPRP period, 2004/05 (Figure 6.14).
In recent years, at regional state governments level though the share of the agriculture and
natural resources sector is still around 15%; it is the road sector which starts to receive the
biggest share. This again is a healthy trend. Roads, specifically in regions, are critical
infrastructure to stimulate the growth and expansion of sound market driven commercial oriented
agriculture (Figure 6.15). Overall roads construction is getting a prime importance not only at
Regional State Governments level, but also at federal level (Figure 6.16). From the long-term
national economic development perspective, the expenditure on roads and electricity generation
is a commendable move by the GoE70.

70
Although according to some discussants this has increased the government expenditure tremendously and perhaps
might have contributed to the inflationary situation in the context of text book macro economics explanation.

61
6.3 Trends in Export-Import

6.3.1 Trends in Export

The value of total exports of Ethiopia increased from 602 Million US$ to 1466 US$ from
1997/98 to 2007/08 with an average growth rate of about 2% (figure 6.17 and 6.18). This change
is a result of quantitative, qualitative and price changes. The quantity of traditional export items
has increased and also new export product mix is created including the export of flowers (Figure
6.19).

62
Total volume and value of agricultural commodities exports have shown positive trends. Coffee,
Pulse and Oil seeds are the three main export agricultural commodities in volume terms. In terms
of value although coffee is the highest generator it is with a decline percent share from the total
value. This signals that export product diversification strategy is showing a positive result
(Figure 6.20). Pulses export is showing an upward trend. Pulse export increased sharply from
2002/03 to 2007/08. Oilseeds export also showed a positive growth trend but the volume
exported drops sharply in 2007/08, mainly due to international market situations. Live animals
export have started to grow while the newly established floriculture industry is expanding with
an increasing share of the export value.

63
Although the total value of exports is on rise since early 2000/01 (Figure 6.17) the contribution
of exports to GDP has not changed much (Figure 6.21). On the other hand the percent share of
imports is on rise with an increasing deficit in trade. Implying the country is importing a lot with
declining foerign exchange generating ability.

6.3.2 Trends in Imports

On the average for the last ten years more than 75% of Ethiopia‟s import by end use is for Raw
materials, Fuel, Capital tools and Consumer goods (figure 6.22).

Raw material
The major imported raw materials are semi-finished goods, chemicals, fertilizers, textile inputs.
Semi-finished goods have been the leading imported items for the last 18 years. Fertilizer
importation follows this in recent years.

64
Capital tools
In the importation of Capital tools71 Industrial goods have had the highest share followed by the
transport sector (Figure 6.20). The share of agricultural tools import is negligible and remains
constant. This indicates little is done in terms of making agriculture capital intensive. Put
differently, the progress made in the agricultural sector is heavily dependent on non-capital
goods and services reflecting the policy emphasis i.e., dependence on labor and land with the
promotion and distribution of biological and chemical technologies such as improved seeds,
fertilizer, and pesticides. However, there is a need to make a slight shift in this aspect given the
emphasis that the government is according to commercialization. The policy on commercial
farms promotion, particularly the promotion of private large scale commercial farms in lowland
and thinly populated areas is explicitly set during the PASDEP document preparation. In order to
implement this, therefore, emphasis should be given to increase the importation of machinery
and equipment in the agriculture sector. By intervening this way agriculture indeed will remain
the source of surplus value that will support the non-agriculture sector development.

It is important to revisit Figure 6.21 implications. This figure shows that predominantly the
foreign exchange obtained from agriculture exports is being used for non-agricultural imports
particularly for heavy duty machinery, tracks and equipment. Of course the export revenue is not
sufficient to cover imports; hence the trade deficit is wide. This may not be worrying since in the
long run the investment in the non-agriculture sector is expected to yield positive return and
enhance export revenues from the non-agriculture sectors. However, agriculture should also get
its own share to grow with modern practices both in terms of machinery and equipment and as
stated above this can be started by encouraging commercial large scale farms to be capital
intensive. The small holder agriculture can still be exploited by using the relatively available
abundant labour and land resources using improved biological and chemical technologies, such
as seed, fertilizer, semen, and vaccine.

71
Includes machinery and equipment

65
Consumer Goods
In terms of consumable goods imports, the share of cereals and food items, on the average, is
about 8% and 1.4% respectively between 2003/04 and 2007/08 (Figure 6.25). On one side this
indicates that in terms of agricultural products the country is heavily consuming what it is
producing. On the other side recently there is an increasing trend of food items importation
especially between 2003/04 and 2007/08. The per capita value of imported cereals and other
food is not changing much (Figure 6.26). This trend indicates that Ethiopia‟s Economy has
become increasingly integrated with the rest of the world and hence what is happening in the rest
of the world does affect Ethiopia in turn. In the world, starting from 2006 there is a hike in food
prices coupled with climatic changes that has affected the productivity and production of
agricultural commodities.

66
6.4 Trends in Food Production and Consumption

6.4.1 Crop Production and Consumption

The trend in crop, specifically grain, production indicates that Ethiopia is fulfilling the 2100
Kcalorie per capita per day requirement. The equivalent of this in terms of production is 2.16
Quintal per person per annum grain requirement. Figure 6.27 shows in Ethiopia the per capita
grain production as of 2007/08 reached 2.13 Quintal72. This achievement is partly because of the
increased emphasis accorded to the promotion of biological and chemical agricultural inputs in
RDPS and PASDEP.

The total cropped area has increased from 9.44 Million hectare in 2000/01 to 10.95 million
hectares in 2007/08. The Ethiopian farmers traditionally use crop rotation, fallowing, farmyard
manure and some form of compost to improve soil fertility. However, the use of industrially
manufactured chemical fertilizer has gained popularity and the importation and distribution of
the two inorganic fertilizers namely, DAP and Urea is on rise (Figure 6.28). According to the
CSA data, a total of 5.6 million hectares, 45% of land under crops, was fertilized in 2007/08
(Table 6.6). Of the total area for each crop species 64.8, 56.6, 51.4 and 44.8%, of vegetables,
root and tubers, cereals, and permanent crops were fertilized, respectively. Recent data obtained

72
For detail see the review document of this study

67
from the Agricultural Marketing and Inputs Directorate indicate that the consumption of
chemical fertilizers in 2008 crop season was 487,600 tons, 62% of which was DAP and the
remaining 38% is urea. This amount converts to only 27.6 kg/ha DAP and 16.9 kg/ha Urea.
Obviously, this compares very poorly even with the average national recommendation of
100kg/ha DAP and 50 kg/ha urea, which converts to 41kg/ha of nitrogen and 46kg/ha phosphate
(87 kg/ha active ingredient).

Table 6.6 Area Planted with Improved Seeds and Fertilizers in Ethiopia
Crop Total area Area covered with
(ha) Improved seeds Fertilizers
Area (ha) % Area (ha) %
Cereal 8,730,001 412,629 4.73 4,486,814 51.40
Pulses 1,517,662 6,309 0.42 304,396 20.06
Oil crops 707,059 2,273 0.32 86,577 12.24
Vegetables 119,091 501 0.42 77,118 64.76
Root crops 184,329 2,251 1.22 104,349 56.61
Others (temporary) 97,677 102 0.10 32,814 33.59
Permanent crops 1,039,313 465,654 44.80
Total 12,395,132 424,065 3.4 5,557,722 45.00
Source: Central Statistics Authority, 2007/08

As reported in the earlier chapters in order to increase the production of food crops GoE has
identified improving the efficiency of the seed system as one of the most effective means of
meeting the Millennium Development Goals at large and the nation‟s food security objectives
specifically. According to crop survey report (CSA, 2007/08) the area under field crops and
horticultural crops covered by seeds of improved varieties in 2006/07 was 424,065 hectares,
3.4%, of the total area under crops (Table 6.6). Though this is a low level of distribution the
trend as depicted by Figure 6.29 is showing an upward move. Important to note is the lowest
distribution reported for the year 2002/03 which is due to the severe drought conditions.

68
Overall the effect of using fertilizer and improved seeds has to be captured by changes in
productivity, i.e. yield per hectare. Table 6.7 shows that the average grain yield has increased
from 11.24 Qt/hectare to 14.71 Qt/hectare between 2000/01 and 2007/08. This is an increase of
31% in a period of less than a decade. This implies that the countries effort to fulfill its food
security objective can be hastened through the use of modern biological and chemical
agricultural inputs.

Table 6.7: Yield73 (Quintal/hectare) by Major Crops Category

Year
Crop category 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Grain 11.24 12.72 11.64 11.95 12.14 13.16 14.12 14.71
Cereals 12.17 13.67 10.03 12.87 13.13 14.38 15.20 15.71
Pulses 8.70 10.04 7.65 9.43 10.00 9.84 11.45 11.75
Oilseeds 4.25 4.88 4.14 5.48 6.38 6.10 6.70 8.73
Source: Calculated from CSA 2000-2008 Data

6.4.2 Livestock and Livestock products

The cattle population in Ethiopia has been increasing during 2003-2008. It increased from 38
million to 47 million heads of cattle. In the same period, the sheep and goats population
increased from 16 million to 26 million, and from 14 million to 22 million, while the camel
population increased from 471,145 thousand to one million (Figure 6.30)

73
For details in cropped area and production please refer the Review volume of this study.

69
In terms of growth, most species recorded positive annual growth rates (Figure 6.31) the highest
being that of camel. This indeed reflects the recent surge in live camel as well as camel meat sale
both in local and international markets.

The trend of the livestock population of Afar, Somali, South Omo, Borona, and Guji Zones of
the Oromia regional states combined were examined separately, to have an overview of the
livestock population status in the PAP areas. The cattle population declined between the year of
2005 and 2006, and stabilized thereafter, while sheep showed a drastic decline in the year 2006
and fluctuated less thereafter. The goat population showed a positive trend, except in the year
2006. Camel showed a dramatic increase since 2005/06. Furthermore, the growth rate of the
camel population in the recent years indicate that, the pastoralist are making a structural change
in their livestock herd composition in favor of camel. This is partly due to the drought
frequency, which makes the loss of assets in terms of cattle and small ruminants not easily
recoverable. Therefore, the contribution of camel for food security in the PAP area is becoming
more pronounced.

70
The recent CSA data indicates that average milk yield per cow is increasing by less than 10%,
while percent change in the camel‟s average daily milk productivity is erratic (Table 6.7). The

71
frequency of honey harvest per year is showing a steady increase during the PASDEP period.
This may indicate that, the introduction of modern beehives and other bee-keeping technologies
are gaining ground. The increase in the camel milk production in recent years exactly coincides
with increase in the camel population during the same period. Hence, camel is becoming an
important animal as a source of milk, meat, transport, entertainment, and foreign earnings.
The trend in total egg production was unstable (Figure 6.37), perhaps influenced by the
fluctuation of the food supply of the households. The feed requirement of the poultry is closely
related to food requirement of the household. If the household is deficient in food supply, the
poultry also suffers.

Table 6.7 Milk Productivity

Year
Species 2003/04 2004/05 2005/06 2006/07 2007/08
Average daily milk yield (liter/cow) 1.324 1.233 1.357 1.457 1.521
% change - -6.9 9.6 5.9 7.2
Average daily milk yield (liter/camel) 4.182 3.532 3.667 3.403 4.274
% change - -1542 3.7 -7.2 25.6
Average honey harvest/year 1.0 1.44 1.49 1.48 1.49
Source: CSA, 2007/08

Although the average daily milk yield of cow and camel is showing a slight positive increase, the
change is still small when one compares the milk production and consumption in Ethiopia with
the rest of Africa. The per capita consumption of milk of Ethiopia is the lowest in Africa which
is about 23Kg. per annum. As shown on Figure 6.38, a study (Tesfaye et.al, 2008) reported that
in recent years the average per capita milk consumption in Africa, on the average, is 37.2kg. The
Sub-Saharan average is below this, which is 27.5kg. Ethiopia has been consuming on average
below the Sub-Saharan level although the trend in the last four years is that it is closing the gap.
It is important to note that the neighboring country, Kenya, has registered a high level of per
capita milk consumption even higher than the Africa average (Figure 6.38). This indicates
Ethiopia has to invest more to tap its potential in milk production and consumption. Studies
indicate even with indigenous breed the daily milk production per animal can go up to 4 liters.
The current average production per animal per day is slightly higher than 1 liter. Hence investing
on improved management of indigenous breeds can lift up Ethiopia‟s average close to that of

72
Africa in the short run. In the medium to long term the investment on genetic, feed resources,
and animal health service improvement should get attention.

The genetic makeup of the dairy population is over 99% indigenous. The improved breed is
estimated to make only one percent. Currently, limited genetic improvement of the indigenous
breed through AI is undergoing in several Regions. The breed improvement program is
undergoing using both exotic (Jersey and Holstein) and indigenous breed. The annual semen
production by breed is as depicted in Figure 6.39. Holstein-Friesian provides the largest bulk of
semen output followed by Jersey74.

The trend on total livestock vaccine production and vaccine export is on the increase during
PASDEP period (Figure 6.40); while the trend of vaccine used domestically distribution is
declining. Total number of livestock vaccinated is depicted in Figure 6.41. It appears that, the

74
For Regional Distribution refer the Review Volume of this report.

73
total vaccination coverage is less than 15% on the average. Among the species receiving
vaccination, cattle get the largest percentage share, followed by sheep and goats, while poultry
and camel receive the lowest share despite their strategic importance for food security purposes
(Figure 6.42).

74
7. Gap Analysis: Policy, Strategy, Programme and Institution
The performance of the agriculture sector as a result of existing policies, strategies, programmes,
and institutions, as discussed in the previous chapter, is encouraging. Overall, there is a positive
trend towards achieving MDG goals, though it may not be achieved as set in 2000 for 2015. On
aggregate, the food production per capita is on rise, poverty is on the decline, exports are
increasing with a slight indication of diversification, significant improvement on core rural
infrastructures such as roads, telecommunication, and rural electrification, with a continuous
government commitment to spend about 15% of its annual budget in agriculture, which has
contributed to a continues growth in the economy with about 10% average annual GDP growth
rate. However, these positive achievements are not attained without gaps which should be
catered for further progress and efficient and effective use of available human, physical, and
financial resources. This chapter presents the gaps identified in the area of policy, strategy,
programme and institutions in line with the
CAADP framework. Policy Gap
 The relative inexplicitness of Livestock
7.1 Policy policy
There is no country that can claim to have a  Inadequate coverage of the Pastoral-agro
full-fledged agriculture and rural development pastoral development issues
policy, ready to address development issues  Lack of policy to harmonize the
and problems emanating from the changing Ethiopian seed system with the rest of
domestic and international economic and Eastern and Central Africa Countries
social affairs. What is important is the government‟s readiness to review its policies and respond
to such changes. In this regard it is important to recall what the GoE stated in RDPS, i.e.

“Building on policies already on the ground and taking into consideration

practical experiences and lessons learnt over the past ten years as well as
considering the development experiences of countries which have attained
rapid economic development, the Government has now formulated specific
policies and strategies to guide rural and agricultural development. The
government also stands ready to translate these strategies into concrete
action. ...It is important to device policies, strategies and programmes that
will help us implement the goals we have set. But it is perhaps even more
important to be able to revise these as the need arises and to adjust our
goals according to developments over time.”

In view of CAADP framework, and the indigenized Ethiopian pillars, the policies presented in
chapter four are found to be adequate. The few areas that need to be revisited are the policy
coverage given to the livestock sector, the Pastoral and Agro-pastoral areas, and the East and
Central Africa countries seed system harmonization.

Though the NCs identified the existing policies of the agriculture sector, particularly this was not
easy in the case of the livestock and pastoralism component of the study due to relative
inexplicitness of the issues in existing official documents (RDPS and PASDEP). In general, the
livestock sub-sector is not policy deficient nor is the existing policies are hindrance to its
development. The problem lies on lack of focus. Recently, a livestock Breeding Policy and

75
Strategy has been formulated75 and it‟s on the final stage to be submitted to the Council of
Ministries. This Livestock Breeding Policy is not, however, comprehensive enough to include
related issues such as animal health, and animal feed. In turn this should not imply that there is
no need for detailed separate policies on animal health and animal feed. The policy documents in
these areas should also include institutional mandates and responsibilities. It is important to note
here that there are proclamations on animal diseases and control (Proclamation No.267/2002),
meat inspection (Proclamation No. 81/1976), and public health (Proclamation No. 200/2000).
These proclamations do give emphasis to animal health disease control and public health. But
draft regulations on diseases prevention and control, animal movement and registration and
licensing animal health professionals are on the process to be proclaimed.

Besides, the livestock resources are untapped as they should because of less emphasis given to
the policy of putting up the necessary development and regulatory programmes with visionary
long lasting investment thinking in the dairy and meat industry with value chain concept. This
industry is a highly potential industry to make Ethiopia gain more foreign revenue from niche
markets in the Middle East, Asia as well as West Africa.

Existing policy documents have clear policy positions in PAP areas on issues of voluntary
settlement, provision of socio-economic infrastructure, as well as the environment to work with
traditional and customary institutions. What is not clearly covered is the transformation process
to cope-up with alternative livelihood options in PAP areas. Individuals are changing from
pastoral to non-pastoral occupations be it in agriculture, commerce, and urban businesses.
Particularly the recent conducive local administration setting as a result of the decentralization
policy which increased the expansion of road networks, water, rural electricity and
telecommunication infrastructure, and the enhancement of urbanization created a new interest in
pastoral communities to become part of the new domestic and international economic order.
There is lack of adequate policy in this regard including the policy of PAP areas land
administration76. The existing land administration policy is mainly designed to cater the
problems of land administration and use in non-pastoral predominately highland and sedentary
areas.

Improved seed has become a strategic commodity to influence the productivity and production of
the crop sub-sector not only in a given country but also continental and worldwide. The seed
policy and strategy was first issued in 1993 followed by a Proclamation No.206/2000 in 2000.
The policy and strategy, as well as the proclamation did not have articles that direct regional and
international harmonization issues. There was an attempt to harmonize the Ethiopian seed system
with the East and Central Africa countries via the issuance of a regulation but which has not been
finalized. This has to be revisited and the necessary policy and regulatory framework need to be
in place in the soonest possible time since some of the East and Central African countries have
already started to trade seed on the basis of the harmonization document they signed.

75
The formulation process is coordinated by MoARD
76
For example, refer to the recent Pastoral and Agro-Pastoral land Administration and Use Study, ELTAP/MoARD,
2008.

76
7.2 Strategy
RDPS and PASDEP Strategy Gaps
give emphasis to the
strategy of coordination Absence of strategy on:
and integration of  Forest resources utilization
managing different  Synchronized control breeding on small ruminants through AI
development tasks. It  Bee forage
actually states that  Animal feed development and reserve both in natural and commercial
ensuring integrated aspects catering for the pastoral and non pastoral needs.
development is a  Integrated water and pasture resources development strategy
guiding principle for
the agricultural policies and strategies. The NCs found out in most cases integrated efforts are
not well in place. This means there is a weak use of the governing economy wide strategy. Most
problems are emerging by not invoking and using integrated development approach. For
example, in pastoral areas integration is weak between water and pasture resources development.
Integration between natural resources conservation, livestock resources development as well as
crop cultivation practices.

The various policies under the four Ethiopian CAADP Pillars have strategies which are
explained in RDPS, PASDEP, and other related strategy documents 77. These strategies are listed
in the annex. But there are some areas where the strategies are not stated or clearly explained.

The Policy, strategy and the proclamation on forest development, conservation and utilization
document compiled by MoARD (2007) does include statements with the term utilization. Most
of it is related on how to collect, organize and analyze information or to undertake studies. It is
not clear on the strategy of how to utilize forest and forest products with an apt forest
conservation practices.

Synchronized breeding is an artificial manipulation of the reproductive cycle of animals for the
purpose of fixed time breeding through AI and as a result to achieve compact calving, lambing or
kidding. The system allows aligning the breeding programme with feed availability and
marketing. This programme can be accessible to individual farm household use through public
services or undertaken by private investors through value chain development approach.
Currently, this is reported to be practiced by some private firms. Its use in the public sector is
still under discussion. The core issue here is whether it is to be practiced by the public or private
sector or both, the country need to have a clear strategic direction.

The current GoE policy on apiculture is to develop and expand honey production with special
emphasis in irrigated areas, integrated with fruits and agro-forestry. Traditionally, honey
production is common in almost all agro-ecologies that are endowed with water resources and
vegetation that serve as a nectar source for bees. Recently, the need for bee forage practice is
getting importance especially with the promotion of modern beehives in different agro-ecologies.
All these are in place without a strategy on bee forage.

77
There are several agricultural input or output strategy documents prepared on a commodity basis by MoARD and
affiliated agencies.

77
Under PASDEP, livelihood and Asset Building, and Basic Social service strategies for the PAP
areas are well addressed. However, the existing animal feed strategy gives attention to the
development aspect and very little on reserve. Traditional feed reserve practices exist mostly in
non-pastoral areas. This is highly associated with the annual crop cultivation practice which
again is not the case in pastoral areas. Recently, the increased incidence of drought, particularly
in PAP areas has exacerbated the problem of animal feed and is necessitating for a strategic
intervention in feed reserve both in natural and commercial aspects. The strategy should be based
on the emerging principle of disaster risk management rather than addressing emergency
situation.

7.3 Programme

As defined in chapter two a programme is a framework, that contains similar activities designed
to bring developmental changes (result based); and enhance growth with a continuous resource
allocation from internal and external sources via annual recurrent budget or capital budget i.e.,
set in a project format. It is also a broader cost center of a public body or a broad objective of
expenditure. Cognizant of this definition, in order to assess the gap in programmes it was
essential to set up criteria for what a missed programme or a programme to be modified should
constitute to be included as a new programme in the context of CAADP Ethiopia. Four criteria
were used to classify similar activities that exist but need to be configured in new or modified
programmes. These are:

 Relevance: Relevance to the implementation of the national agricultural development

policies and strategies

 Acceptance: Whether accepted to or seemingly acceptable as a “cost center” by the

GoE Budget System

 Sustainability: The likelihood of the programme to sustain in the changing national

and international economic affairs specifically in tackling agricultural development
problems and challenges.

 Institutional: Easiness to relate to or contained in existing implementing institutions.

78
Table 7.1 Modified/New78 Programmes by Pillar
Pillars Modified New
Pillar I  Land administration and planning  Integrated watershed management
 Forest development, conservation ,
and utilization
Pillar II • Rural ICT network79 • Rural-Urban-Linkage (RUL)
• Agricultural Inputs and • Cooperative Marketing
products Quality Control and • Agriculture and Food Policy Research
standards (AFPRe)
• WTO accession and implementation
• Foreign investment promotion/facilitation
Pillar IV Research: Research:
• Socio-economic and extension • Dairy and Meat
• Forest resources improvement • Camel research and development
and protection • Range and water resources development

Pillar I

The programmes in this pillar under the column new/modified are modified programmes.

Land Administration and Planning: In this program two major components are expected to be
undertaken namely, land administration and land use planning. Land use planning deals with
resource inventory for proper planning and classification of lands according to its best use and
propose appropriate land management. The land use planning plays a vital role in land
improvement and productivity through proper management and intensification of lands in all
agro-ecological zones whether the use is for agriculture or not. Especially land use planning is
vital in the traditional cultivated agricultural areas to implement the specialization and
diversification policies and strategies of the GoE following the principle of sustainable land
management as well as to contribute to the natural resources management and productivity of
lands in the pastoral and agro-pastoral areas.

The current land administration deals mainly with tenure security and legislations on land and
land resources. This component of the modified program has been an on-going program by itself
though it has not been implemented effectively due to inadequate capacity at all levels. Besides,
there has been a gap in terms of focus in the PAP areas, which actually seems to be totally
absent. Hence, the proposed modified program of land use planning and administration is found
to be vital to bring all aspects of land use plan and administration in a synchronized manner
covering both pastoral and non-pastoral areas in the different agro-ecological zones.

78
The new CAADP Ethiopia proposed programs are expected to become cost centers.
79
Including the existing agri-net and woreda net information and communication technology
(ICT)
79
Integrated watershed management: Water harvesting and small- scale irrigation‟ is an existing
programme within MoARD. The current national level developmental interventions in these
areas are contained in a broader effort namely “integrated watershed management (IWM).” IWM
technically includes water harvesting, traditional and small scale irrigation activities as well as
farmers practices to conserve moisture through agro-forestry practices. Hence this new
programme is proposed to be part of the CAADP Ethiopia initiatives and considered as a
separate cost center for future action.

Forest Development, Conservation, and Utilization: The existing cost center programme at
the Federal level is the forest protection and management. The issue of development and wise
management of forest which is conservation as well as the utilization aspect seems to be
submerged. Therefore, it is technically appealing to put the programe as Forest Development,
Conservation, and Utilization.

Pillar II

The three new programmes added are RUL, Cooperative Marketing, and AFPRe. These
programmes are identified in the process of redefining or reconfiguring the existing programmes
on the basis of recent strategic changes made by the government or on programme gap
assessment after examining existing policies and strategies.

RUL: As reported in the policies and strategies sub-section of this section, RUL has been
recognized as core strategic area in transforming the agricultural economy of the country in
RDPS. RUL specific strategies are also explicitly listed in PASDEP. These include i.e.,
integrating markets, opening up the flows of labor, and access to income-earning opportunities
between towns and surrounding rural areas, are indeed multi-dimensional and pave the ground
for integrated rural-urban vibrant modern socio-economic system formation. However, there was
no single programme that was established to implement various activities related to RUL within
the sector. Hence, a new programme is proposed to cater for implementation of various RUL
related interventions. RUL should be seen not only from information system aspects, but also
from the angle of putting the necessary infrastructure and facility, and the broader issue of
transformation: transforming the current traditional agriculture to market oriented urban driven
growth.

Cooperative Marketing: The cooperative marketing component of the cooperative

establishment and strengthening Agencies 80 is transferred to the agricultural marketing and input
departments, seeking a new place as a cost center, hence a new programme.

AFPRe: Market studies has been identified as part of the policy to Improve and Strengthen
Domestic Market as well as the policy to Expand the Export of Agricultural Products and their
Markets but without a coordinating programme at a national level. The need for various studies
in the area of agricultural markets, marketing, market access, prices and trade is explicitly stated
in existing policy and strategy documents. Several studies are being undertaken in these and

80
Which is the only programme that the Cooperative Agency is registered in the budget system of the Federal
government

80
other areas of the sector but mostly done by consultants coming from abroad, say IFPRI. The
capacity of undertaking such studies within the country by institutions such as EDRI and EIAR
are wanting and even in the case of EIAR it seems vanishing. In such a situation there is a need
for a programme within the national system which should be responsible to coordinate various
agriculture, food, marketing and price policy or development studies. The programme must be
able to establish a system of researchable problem identification, identifying potential research
institutes both in the public and private sector, soliciting finance for the study/research,
outsourcing the research or study for national and international firms, M&E, and preparing
policy briefs to policy makers as appropriate.

Agricultural Inputs and Products Quality Control and Standards: This modification is based
on the merging of the existing three programmes, namely (a) agricultural inputs quality control,
(b) agricultural products quality improvement, and (c) standards and inspection. Agricultural
inputs on the crop side include improved seed, fertilizers, pesticides, and farm machinery.
Livestock inputs include biological (vaccine, veterinary drugs, semen, antisera, hormones, and
breeds); laboratory and field equipment/instruments, reagents and chemicals, and feed resources
(compound feed, industrial by products, feed additives, pasture and forage seeds). The
production, importation, distribution, control and regulation of these important inputs are done
by different institutions in uncoordinated manner. It is imperative that, for the purpose of
enhancing, promoting, and controlling the use of these inputs, they should be handled by one
programme, i.e., Agricultural Inputs and Products Quality Control and Standards.

Pillar IV

Forest Resources Improvement and Protection: There is an existing forest resources

improvement research programme. However, the research should not only contain on
improvement but also on causes of deforestation and on mitigation measures to protect forest
from human and animal‟s interference and destruction. The research should be multi-disciplinary
since the cause and mitigation measures may not necessarily be only biological, but also socio-
economic by nature such as poverty, scarcity of cultivable land, search for firewood etc.

Dairy and Meat Research Program: The current cost center research programmes are Milk
and Draught Power, and Meat and poultry. There is an on-going review process at EIAR
expected to bring these two as sub-programmes under the Ruminant Research programme( BPR
to Be Document,2008). However, with the growing importance of dairy and meat both for the
domestic and international market, as well as the need to integrate dairy with meat production
excluding poultry, there is a need to put in place a separate Dairy and Meat Research Program.
This programme should maximize the duality concept. That is, the cattle used in one component,
say in dairy, can also be used for meat. The male calves that are generated from the dairy
research sub-programme will be transferred to the meat research sub-programme. This way the
research facilities and human resources can be shared or used interchangeably or can be
integrated into one research unit. Therefore, integrating these two commodities into one research
program will be cost effective and their result for development undertakings will be lucrative.

81
Camel Research and Development Programme: Camel has been an important animal in the
PAP areas. Traditionally, it provides milk, meat, transport, draught, and entertainment for the
households. Recently, besides its traditional value, has become a source of income. The demand
for live camel, camel milk and camel meat is on rise both in domestic and international markets.
Because of natural and economic factors, the pastoral herd structure is changing in favor of
camel. Yet, camel is little known animal in the scientific world. Its veterinary drug requirement,
vaccination, feed requirement, and reproductive behavior are unknown. For example, recently
there is a lethal camel disease out breaks in the PAP areas which the veterinarians are unable to
control it, because both the disease and the host are unknown to them. This phenomenon justifies
that camel research and development program should be launched in the NARS.

Range and Water Resources Development Research: At a national level there is no explicit
research programme that addresses range issues together with water resources development. On
the other hand, the government is embarking on medium to large-scale irrigation schemes, such
as Tendaho Kesem, which has a strong component range land improvement with pasture and
forage development interventions. This effort requires an integrated approach of range and water
resources development and a research programme that supports it.

Socio economics and extension research: The existing arrangement present the socio
economics research programme and the agriculture extension and technology transfer research
programme separately. What the socio economics research programme does have some
components that are closely linked to the extension activities. Hence it is proposed the two be
merged and become under one programme.

7.4 Institutions

As pointed out in the chapter that covered the methodology of CAADP Ethiopia study as well as
the chapter that covers the report on existing institutions, chapter 5, the discussion could be on
organizational aspect and/or relationship. Besides, one can also assess the capacity gaps within
and across institutions.

7.4.1 Organizational aspects

With the various stakeholders in terms of organizational aspects often leads to the understanding
and finalization of the on-going business process reengineering (BPR) exercises. Although in
principle BPR is not an exercise to change the structure of an organization, the result of the
exercise is not totally immune from bringing changes in this regard. The process is dynamic. For
example by the time the Ethiopian CAADP study started there was no Directorate in MoARD,
which was directly responsible and had a separate budget in order to undertake various activities
related to agriculture investment promotions. By the time the Regional Consultation Workshop
was conducted it was reported that a separate directorate is established and the former related
activities which were under the Agricultural Extension Directorate is transferred to the new one.
Similarly BPR result driven organizational changes are being observed in the DRMFS Sub-
sector, and in the Agriculture Marketing sub-sector. Because of such dynamism in terms of
organizational arrangements of institutions, it was not easy to say a gap or weakness exists or
not. This should be addressed after the on-going BPR exercise is complete. However, it is
appropriate to recall, as reported in section 5 of this study, that there is no significant rural land

82
administration and utilization activity at the Federal level while there are related issues to be
addressed in an organized and coordinated way.

7.4.2 Linkage/relationship
Notwithstanding the above, it was possible to
identify institutional gaps related to linkages or
relationships i.e., synergy. This includes issues
of information exchange; linkages among GOs,
NGOs, and CSOs; RE&D; quarantine, standard
and quality control; warehouse and ECX;
irrigation construction and use; and pastoral
affairs coordination.
Institutional gap issues related to
linkages or relationships
 Information exchange;
 Linkages among GOs, NGOs, and CSOs;
 RE&D;
 Quarantine, standard and quality control;
 Irrigation construction and use;
 Warehouse and ECX;
 Pastoral affairs coordination

Information exchange
Exchange of information among federal and regional institutions is one of the major weak
linkages. During discussions with different stakeholders, the information flow at all levels is
based on personal relationship. There is hardly a systematized and institutionalized information
exchange between Federal, Regional or for that matter between Regional and Woreda levels.

Linkages among GOs, NGOs, and CSOs

Federal level linkage among Ministries and Agencies is smooth but mostly informal. However,
federal and regional level activities are not also systematically linked and institutionalized.
Linkage between MoARD and MoTI in the area of export promotion, information exchange and
documentation need attention. The vanishing or dismantling of the Export Promotion Agency
(EPA) need a reassessment in view of maintaining already established export markets,
documenting a retrieval of accumulated relevant data and information, and maintaining
sustainable link with the rest of the world. Currently these activities seem to be distributed to
Directorates within MoTI, MoARD, and Horticulture Development Agency.

Some NGOs were blamed for not having coordinated development interventions even in a given
woreda. Sometimes three or more embark in identical projects in a given woreda and sometimes
in adjacent kebeles resisting the advice of woreda officials and experts not to do so.

Individual NGOs interventions sometimes bring contradiction with the traditional systems, for
example in PAP areas on water resources development. Some pastoralists believe that water
points contribute to pasture land degradation with human and animal population concentration
around them. Besides, some pastoral communities do not agree with NGOs water sources
development interventions since the NGOs eventually hand over the output to the formal
administration (PALTAS, 2008).

The discussion with various stakeholders about CSOs revealed that the influence of such
societies in Ethiopia‟s agriculture and rural development policy formation and implementation is
insignificant and requires stimulation.

83
Research, Extension and Development (RE&D)
In spite of government support and increasingly funded agricultural research, yet research has
not been able to sufficiently address the problems and constraints of the agriculture sector.
Specifically the livestock sub-sector has suffered from inadequate technology generation and
transfer. Inadequate vertical and horizontal collaboration among research institutes and weak
research extension farmers‟ linkage extended to the woreda level appears to be some of the
institutional challenges contributing to the lack of effectiveness in the RE&D chain.

In the realm of RE&D the pastoral and agro-pastoral issues are not adequately covered. Both
livestock and crop improved technological inputs are required in the PAP areas. However, these
are not available as required because of the little attention given to the RE&D issues of PAP
areas. Since, there is a technological gap in the PAP areas, investment in pastoral and agro-
pastoral research and extension is highly required. These investments should focus on institution
and capacity building, technology introduction, screening, testing, verification, packaging,
implementation, monitoring and evaluation.

Quarantine, standard and quality control

Agricultural inputs quarantine, standard and quality control both in crop and livestock agriculture
calls for a strong linkage among relevant institutions such MoARD‟s Animal and Plant Health
Regulatory Directorate, Agricultural Marketing Directorate, Revenue and Customs Authority,
Private Input Producers and Traders. For example in the case of seed production, supply and
regulation chain, first the production is often not demand driven. Secondly, the system to prevent
adulteration is not functional, even the few cases that are noticed were not subject to legal
scrutiny due to gaps in the legal system. Thirdly, there is a paucity of regulatory mechanism to
regulate the procurement and distribution of agricultural inputs, specifically on chemicals and
improved seeds.

In the livestock sector similar to the improved seed, there is a problem of standard and quality
control related to semen, vaccine and animal health drugs. Semen as an input received very little
attention and adulteration is reported in several instances. Same is in the vaccine and animal
drugs business.

Warehouse and ECX

Warehouse receipt and credit and the ECX are timely undertakings but the linkage between the
two in practices needs reexamination. There is no harm if ECX use the warehouses for
commodities that are traded through the exchange system. However, this should not deter the
focus of using the warehouse receipt and credit system for the many small holders who are
subject to unreasonable price deals at times of harvest but critical cash needs. They should be
receiving the service adequately and timely to keep their produce in the warehouse system even
if they are not trading through the exchange facility.

Irrigation construction and use

The linkage between MoARD, MoWR, BoARD and BoWR on irrigation infrastructure
construction and use needs a reexamination. While those responsible to construct medium and
large-scale irrigation infrastructure are MoWR and BoWR, there is no clear and institutionalized

84
linkage between them and MoARD and BoARD in terms of transfer of the physical
infrastructure and the work to be done jointly till the actual targeted beneficiaries are in use of
the facilities. Particularly in terms of repair and maintenance interventions and those responsible
for it are not clearly established and institutionalized, like those of Water Users Association in
the small-scale irrigation facilities use and management.

Pastoral affairs coordination

The Government of Ethiopia has given a high priority for the wholestic development of the PAP
areas. This is manifested through the establishment of the Pastoral Standing Committee in the
House of Representatives, and Inter-Ministerial Board under the MoFA, and the special
coordination Offices of the PAP areas. Currently, the pastoral institutions located in the different
Federal institutions are not communicating systematically with strong legal base.
In this regard, on pastoral affairs there is a need to reexamine the role of coordination offices in
various ministries and that of the technical committee. Each institute appears to take its own
course of action. There is a gap in terms of having a legalized body which have the mandate to
mobilize internal and external resources (fund) and align indigenous traditional institutions with
formal institutions (Research Centers, Universities, Administration etc) for the purpose of
development in the PAP areas.

7.4.3 Capacity
Capacity gap indeed is a serious one in its entire dimension i.e., human resources, working
premises, equipment, machinery, furniture and other facilities. BPR is bringing new and
encouraging way of doing things. As one of its guiding principles BPR is to make efficient and
effective use of available resources. Tasks are expected to be accomplished with least number of
staff, timely with a support of modern equipment such as computers. But according to the
discussion with various stakeholders, the problem is that the means to provide the necessary
support and hence to achieve the designed change is not in place. Because of this, pressure is
mounting on few individuals who are not equipped as expected in the BPR principles. In general
the good intentions of BPR are being challenged by the practical absence of the needed capacity
in program implementing institutions.

The problem is even severe at the grass root, specifically at woreda levels. In ARD core in
programme implementation are the woreda ARD offices. But most of them have no adequate and
appropriate offices, equipment and furniture; hence the recent effort to put trained and educated
human resource is subjected to underutilization. For example, it was found out that there is a
cooperative agency at Federal level and each region also has its cooperative agency, and also the
woreda gets a staff assigned for cooperative affairs. But the actual work of establishing and
strengthening cooperatives is at woreda level. But the woreda staff handling cooperative affairs
mostly does not have office space, equipment and other facilities. The staff has a meager annual
operation budget.

It is also important to note the problem that exists at ATVET and FTC levels. These are two core
institutional arrangements that have contributed positively to the recent achievements of high
growth rate in the agriculture sector. However, their contribution would have been more had it
been that their requirements in terms of human resources and facilities were fulfilled. The
discussion with the relevant stakeholders revealed that FTCs still need additional capacity

85
strengthening interventions. They rarely have furniture and the minimum facility to provide
training to farmers. Same is true in terms of reorienting and strengthening ATVETS to produce
skilled and trained agriculturalists. Capacity building in the area of curriculum development and
implementation is highly needed.

At regional and Federal level, in most research and training institutes there are problems of
getting adequate trained and educated staff. This is partly because of the emerging and
expanding public and private HLI which are competing for the little trained personnel available
in the current labour market. For example, the Debre Zeit Animal Health Institute has suffered
from shortage of staff despite its efforts to recruit. Another example is in the area of trade. In the
WTO Affairs Department of MoTI, human capital formation is the major bottleneck despite the
aggressive short and long-term training given to the staff because those trained are not staying
and attrition rate is high because they leave the department in search of lucrative jobs,
particularly to join private institutions with attractive incentive structures.

7.5 Selected Areas of Emphasis and Cross-Cutting Issues

7.5.1 Areas of emphasis

Within the Agriculture sector and the different programmes that exist there is a need to focus on
some activities or areas of intervention. These include issues related PAP areas land use and
administration, land use planning, land degradation and soil erosion, forest and forest product
utilization, alternative household energy sources, multipurpose small irrigation, invasive
unpalatable weeds and shrubs, animal feeds, and trans-boundary livestock diseases, in the
livestock and pastoralism area, as well as pre and post-harvest losses, and effect of fertilizer use.

The existing land administration and use policy of the federal and land administration and use
proclamation of the regions did not address the problems related with land and natural resources
in pastoral and agro-pastoral areas. The problems occurred in these areas due to this gap have
been discussed in this report and other reports (ELTAP,2008 ). Therefore, it is recommended to
devise the policy which gives emphasis for these areas and considers the situation and customs
of the community in managing and utilization of natural resources in agro-pastoral and pastoral
areas.

The policy gap in comprehensive land use planning is constraining the proper utilization of land
and conservation of land resources to enhance production and productivity. Without proper land
use plan in place, the current trend of using the land unwisely and without plan will further
exacerbate the current problems on agricultural production and economic growth. From this
point of view, a comprehensive land use policy which considers all the agro-ecological zones of
the country must be formulated, which supports the existing land tenure policy to be
implemented successfully and improve the rural development of the country.

The issue of land degradation and soil erosion has been discussed at different times by different
people. The efforts so far done in the country is almost related with drought and relief that
focuses mostly on drought prone areas, while the issue of soil erosion is every where in the
country. In the policy document analysis, soil and water conservation is stated as strategy for

86
integrated watershed management. Therefore, soil and water conservation as part of land
management requires due attention by government to have clear policy and strategy which
accommodate all the agro-ecological zones of the country.

The soil and water conservation activities are mostly done at community level with labour
contribution. For this purpose it is recommended that any activity performed at community level
must be income based, to improve the livelihood of the community and enhance proper
conservation and utilization of resources.

In forest management and protection, all the policy statements concentrate on expansion of forest
coverage through plantation. The utilization of forest and forest products and non timber
products including dry land species products, management should get due attention from the
economic value of the resources, example, incense, resin, bamboo, honey and forest coffee etc.

In our country the demand of house hold energy depends on woody bio-mass which contributes
to deforestation and land degradation. To alleviate this problem it is recommended to look for
alternative household energy through community woodlots development, use of fuel saving
technology and renewable energy sources.

Irrigation is one of the important tools for agricultural development when properly used and
managed. Most of the time irrigation is used for fruits and vegetable production which are
directly linked with markets and infrastructures. It is recommended that it must not be limited to
these products only, alternatively irrigation must be used for other opportunities like fattening
and feed production which have a significant role in income generating at house hold level.

The two critical constraints in the PAP areas are shortage of water resources, the degradation,
and shrinkage of the rangeland. The rangeland productivity is declining due to reduced rangeland
size, cyclic drought and erratic rainfall, and infestation by invasive unpalatable weeds and
shrubs. Low rangeland productivity together with shortage of rainfall leads to low pasture
productivity reflected by poor animal performance and productivity. Low animal productivity in
PAP area implies food insecurity of the households. Therefore, the issue of decline in range land
productivity calls for close attention with a multi-disciplinary research and development
endeavor.

Improving animal feeds and nutrition are critical issues in the Ethiopian livestock development
context. Feed shortage is becoming a very critical issue both in the highlands, where land
shortage is prevalent, and in the lowlands, where range degradation and invasion by invasive
weeds is spreading. In the midst of this, the expansion of compound animal feed industry by the
private sector is non-existent. The households are still following the traditional livestock rearing
system, which is open grazing. An alternative livestock rearing, feeding, and management
system need to be sought. It is high time that, the traditional and subsistence livestock production
system needs to be replaced by scientific management and production system. A system which
can augment the productivity and production of the nation‟s livestock resources with a well
designed policy and strategic goals, including the maximization of livestock owners income and
improving their living standards.

87
Parallel to improving animal feeds and nutrition in the context of scientific management and
production system, animal health services are essential elements for livestock development. In
order to enhance the national contribution of the livestock sub-sector to GDP major trans-
boundary disease like FMD, CBPP, and CCPP need to be controlled, and eliminated. Particularly
this should be given special attention in PAP areas, which are also vulnerable for illicit cross-
border trading. Illicit cross-border trade could be minimized by strengthening the domestic and
foreign market system through the establishment of export abattoirs, networked with PAP
structure; quarantine and inspection stations, and strengthening both non mobile and mobile
veterinary services. In general, since the PAP areas economy heavily depends on livestock, their
competitiveness in the international trade is highly essential but dictated by the state of animal
health in the areas. Unless, the country heavily invests on the animal health services, the
competitiveness in international livestock trade can‟t be realized. Especially, the development of
camel vaccine should receive a priority.

Ethiopia looses annually a tremendous amount of agriculture produce due to pre and post harvest
losses. The pre-harvest loss is related to endogenous and exogenous problems. Endogenous is
referring to farmer‟s failure to properly manage the necessary agricultural practices starting from
land preparation to harvest. Exogenous factors are those related to natural uncertainties like
drought and pest outbreak. Available data indicates annually 15-20% loss of potential grain
production due to pre-harvest mal-practices and natural disasters. Similarly up to 30% of post
harvest losses are reported due to inappropriate collection, transport, storage, treatment of pests
and rodents, loading and unloading etc. For example, the data for 2007/08 indicates the nation
would have gained additional about 32 million quintals of grain had it reduced the loss say to
10%.
Since the introduction of inorganic fertilizer in the 1960s, the consumption of fertilizer has been
on rise but remaining far below expected coverage. This is partly because of little emphasis
given to establish and reinforce soil laboratory capacity in the different agro-ecological zones of
the country targeting not only distribution but also fertilizer use efficiency.

7.5.2 Cross-Cutting Issues: Nutrition, HIV/AIDS, Gender, and Climate Change

Nutrition is indeed is a cross cutting issue both in terms of technical and institutional aspects. For
example the availability and access to food is the responsibility of MoARD while the utilization
and dietary health and care is that of the MOH. On the basis of this nutrition strategy has been
drafted and revised about five times in the last two decades. During this time claims of
ownership of nutrition programmes by different institutions specifically MoARD and MoH has
contributed to prohibit effective implementation of designed strategies. Currently it seems this
problem is getting a solution. The recent National Nutrition Strategy (NNS) issued by MoH,81
which was based on the study coordinated by MoARD/UNICEF in 200582 indicates clearly that
it is the MOH which will form and lead a national coordinating committee, and in turn this
committee is expected to ensure the presence of integrated and wholestic nutrition programme
designing and implementation at different levels of governments. The consultants team
appreciated the coverage of the latest NNS document but still additional focus and efforts are

81
FDRE, National Nutrition Strategy, MOH, January 2008, Addis Ababa (Text in Amharic).
82
An Assessment of the causes of malnutrition in Ethiopia: A Contribution to the Formulation of a National
Nutrition Strategy for Ethiopia, November 2005.

88
needed to integrate adequately and appropriately the nutrition issues of PAP 83 communities, the
standardization and explicit nutritional values of the diverse crop and livestock products and by-
products, and to adequately address the productivity effect of malnutrition on food insecurity84.

During the stocktaking exercise hardly there exists a unique cost centered programme on
HIV/AIDs and Gender within the ARD sector. It was found out emphasis has been given to these
issues85. Although there are extensive interventions by the MoH and MoWA, still the incidence
and influence of HIV/AIDs in ARD and its effect on the availability and productivity of labour is
being addressed through limited studies. In spite of the positive performance of agricultural
growth, this sector is facing a serious challenge by HIV/AIDS. Hence, the existing limitations in
expediting the assessment of the impact of HIV/AIDS in the productivity of agriculture labour
and as a consequence on production need to be addressed without ado.

Efforts of mainstreaming gender are put in place in the various programmes of the agriculture
sector. But they are not done as fast as expected. Some stakeholders relate the prevalence of
problems in adopting appropriate processing technology and post-harvest to gender issues. For
example, in the rural Ethiopia, whole milk is not marketed, but butter and cheese, locally
processed, are. But both the processing and marketing is done mainly by women using traditional
methods. Attempts to improve the traditional processing methods have not been successful so far
partly because the gender conflicts related to the control of cash income from sale of these items.
Same is true in poultry rearing. Similar efforts to promote high value cash crops, specifically
horticultural crops are being challenged with the gender issue. It is mostly women that practice
home gardening or have time to manage small-scale irrigated agriculture. But rewards to labour
are not often going in terms of labour contribution made to such activities. In general gender
mainstreaming needs to be strengthened and expedited in order to increase the marginal benefit
obtained from rural labour (men and women) and in aggregate to enhance value addition in the
agriculture sector.

Climate change has recently become the major concern of the GoE. Particularly the government
has given due attention to the impact of climate change on meeting the goals of reducing hunger
and setting a sustained food secure country. In a recent report by one of the top officials of
MoARD86, by 2020 up to 250 million people in the Sub-saharan Africa are expected to have less
water. In areas where agriculture is dependent on rainfall yields will drop by 50% and many
livestock breeds may not be able to tolerate the climate change. Ethiopia at large and its
agriculture sector specifically is extraordinary sensitive to climate change that impact everyday
practices. Global warming (carbon emissions, high fuel consumptions, and environmentally
unfriendly manufacturing and consumption practices) will seriously affect Ethiopia‟s agriculture.

A rise in temperatures as well as increases in rainfall variability are expected to reduce crop
yields, exacerbate livestock losses, and a s a result impose food stress on households livelihoods,

83
The NCs are aware of recent undertakings in this regard. (See USAID, 2009 in the bibliography)
84
For details refer Demese‟s contribution (Chapter 3) of the above study.
85
During the MDGs Needs Assessment HIV/AIDS and Gender were considered as separate self standing study
areas and documents were issued accordingly.
86
Mathewos Hunde. “Climate Change and Ethiopian Agriculture.” Early Warning and Response Directorate,
DRMFSS, MoARD, February 2008 (PPP).

89
and undermine development interventions. Therefore during the CAADP implementation period
in Pillar III the sub-pillar on Disaster Risk Management has to design various interventions to
mitigate the problems of climate change in the country at large and the agriculture sector
specifically.

90
8. Agricultural Growth and Poverty Reduction in Ethiopia: An Economy wide
Assessment87

This chapter analyzes agricultural growth options that can support the development of a more
comprehensive agriculture and rural development programmes with a focus on the goal of
reducing poverty and hunger that is also in alignment with the principles and objectives CAADP
collectively defined by African countries as part of the broader NEPAD agenda.

8. 1 Modeling Sources of Agricultural Growth and Poverty Reduction

Dynamic Regional Economywide Model of Ethiopia (DREME)

A new Ethiopian computable general equilibrium (CGE) model was developed to capture (i)
trade-offs and synergies from accelerating growth in alternative agricultural sub-sectors; (ii) the
economic inter-linkages between agriculture and the rest of the economy; and (iii) the effects of
alternative sources of growth on household incomes and poverty. This model is called the
Dynamic Regional Economywide Model for Ethiopia (DREME). Although this chapter focuses
on the agricultural sector, DREME also contains information on the non-agricultural sectors. In
total DREME identifies 65 sub-sectors, 24 of which are in agriculture (see Table 8.1.1).
Agricultural crops fall into five broad groups: (i) cereal crops, which are separated into teff,
barley, wheat, maize, and sorghum and millet; (ii) pulses and oilseeds, which is separated into
pulses, such as beans, and oilseed crops, such as groundnuts; (iii) horticulture, which is separated
into fruits, vegetables, and enset; (iv) higher-value export-oriented crops, which are separated
into cotton, sugarcane, tobacco, coffee, tea, and cut flowers; and (v) other crops, which includes
chat and other staples, such as root crops. DREME also identifies four livestock sub-sectors,
including cattle, milk, poultry, and other animal products.

To complete the agricultural sector, DREME has two further sub-sectors capturing forestry and
fisheries. Most of the agricultural commodities listed above are not only exported or consumed
by households but are also used as inputs into various processing activities in the manufacturing
sector. The seven agricultural processing activities identified in the model include meat and fish
processing, dairy, grain milling; sugar refining, beverages, tobacco, and other foods. The
agricultural sub-sectors also use inputs from non-agricultural sectors, such as fertilizer from the
fertilizer sector and marketing services from the trade and transport sectors.

87
Prepared by International Food Policy Research Institute

91
Table 8.1.1: Sectors in the DREME model
Agriculture Other manufacturing
1 Teff 35 Textiles
2 Barley 36 Clothing
3 Wheat 37 Leather products
4 Maize 38 Wood products
5 Sorghum 39 Paper and publishing
6 Pulses 40 Petroleum
7 Oilseeds 41 Fertilizer
8 Vegetables 42 Chemicals
9 Fruits 43 Non-metallic minerals
10 Enset 44 Metals and products
11 Cotton 45 Machinery
12 Sugarcane 46 Vehicles and transport equipment
13 Tea 47 Electronic equipment
14 Chat 48 Other manufacting
15 Tobacco Other industry
16 Coffee 49 Coal
17 Flowers 50 Natural gas
18 Other crops 51 Other mining
19 Cattle 52 Electricity
20 Milk 53 Water
21 Poultry 54 Construction
22 Animal products Private services
23 Fisheries 55 Wholesale and retail trade
24 Forestry 56 Hotels and catering
Agricultural processing 57 Transport
25 Meat 58 Communications
26 Dairy 59 Financial services
27 Vegetable products 60 Business services
28 Grain milling 61 Real estate
29 Milling services 62 Other private services
30 Sugar refining Public services
31 Tea processing 63 Public administration
32 Other foods processing 64 Education
33 Beverages 65 Health
34 Tobacco processing
Source: Dynamic Regional Economywide Model of Ethiopia (DREME).

DREME also captures regional heterogeneity. Farm production is disaggregated across four rural
zones, as shown in Table 8.1.2. These include Zone 1a (humid cereals region); Zone 1b (humid
enset region), Zone 2 (drought-prone region); and Zone 3 (pastoralist region). These zones
reflect different agro-ecological and climatic conditions across the country.

DREME captures the initial cropping patterns in each of the four zones. The representative
farmer in each zone responds to changes in production technology and commodity demand and
prices by reallocating their land across different crops in order to maximize incomes. These
farmers also reallocate their labor and capital between farm and non-farm activities, including
livestock and fishing, wage employment, and diversification into non-agricultural sectors, such
as transport, trade and construction. Thus, by capturing production information across sub-
national regions, DREME combines the national or macroeconomic consistency of an
economywide model with zonal-level production models. DREME is thus an ideal tool for
92
capturing the growth linkages and income-and price-effects resulting from accelerating growth in
different agricultural sectors.

Table 8.1.2 Zones in the DREME model

Zone 1a: Humid cereals region Zone 1b: Humid enset region
Addis Ababa SNNPR Alaba Special
Afar Zone 3 Amaro Special
Amhara North Gonder Basketo Special
North Shewa Benchi Maji
South Gonder Burji
Benishangul Assosa Dawro
Kemashi Dirash Special
Metekel Gamo Gofa
Oromiya Adama Special Gedeo
Arssi Guraghe
Bale Hadiya
Borena Kaffa
East Shewa Kembata-Tembaro
East Wollega Konso Special
Guji Konta Special
Illubabor Sheka
Jimma Sidama
Jimma Special Silte
North Shewa Wolayta
South West Shewa Yem Special
West Shewa
West Wollega
SNNPR South Omo

Zone 2: Drought prone region Zone 3: Pastoralist region

Afar Zone 1 Dire Dawa
Amhara Agew Awi Harari
East Gojam Oromiya East Harerghe
North Wollo West Harerghe
Oromiya Zone Somali Jijiga
South Wollo Liben
Wag Hemra Shinile
West Gojam
Tigray Central Tigray
Eastern Tigray
North Western Tigray
Southern Tigray
Western Tigray
Source: Dynamic Regional Economywide Model of Ethiopia (DREME).

Finally, DREME endogenously estimates the impact of growth on household incomes and
poverty. There are 12 representative household groups in the model, disaggregated by rural
zones, small and large urban centers, and poor/non-poor status. „Poor‟ is defined here as
including all households falling into the lowest two per capita expenditure quintiles (i.e., the
poorest 40 percent of the population). Each household questioned in the 2005/06 household
income and expenditure survey is linked directly to the corresponding representative household
in the model. This is the micro-simulation component of DREME. In this formulation of the
model, changes in representative households‟ consumption and prices in the CGE model

93
component are passed down to their corresponding households in the survey, where total
consumption expenditures are recalculated. This new level of per capita expenditure for each
survey household is compared to the poverty line, and standard poverty measures are
recalculated. Thus, poverty is measured in exactly the same way as standard poverty estimates,
and changes in poverty draws on the consumption patterns, income distribution and poverty rates
captured in the latest household income and expenditure survey.

Data sources for the model

The core dataset capturing the economic structure of the Ethiopian economy is the 1998/99 (i.e.,
2005/06) social accounting matrix (SAM) developed by the Economic Development Research
Institute (EDRI). This was then extended to include the four agro-ecological zones, and the
disaggregation of household groups. The latter was done using the same household survey that
was used to construct the SAM. Zonal-level agricultural production and area data were taken
from the 1998/99 (i.e., 2005/06) agricultural sample survey, and, together with EDRI, were used
to identify the four zones and to disaggregate production. DREME is therefore consistent with
recent agricultural production levels and yields at the zonal level.

8.2 Poverty Reduction under Ethiopia’s Current Growth Path

In this section we use DREME model to examine the impact of Ethiopia‟s current growth path
on poverty reduction. This „business-as-usual‟ or baseline scenario draws on production trends
for various agricultural and non-agricultural sub-sectors. Ethiopia has experienced rapid growth
during 1991-2000 (i.e., 1998-2007), with national GDP growing at almost eight percent per year.
During this period the agricultural sector did not grow quite as rapidly, with an average growth
rate of six percent per year. However, much of this rapid economic growth has occurred in the
last few years, and it is uncertain whether in today‟s global economic recession, such rapid
growth can still be achieved over the near-term. Accordingly, the baseline scenario takes a more
cautionary position and assumes average annual agricultural growth of four percent per year
during 2002-2008 (i.e., 2009-2015) (see Table 8.1.3). Although this is below the recent spike in
agricultural GDP growth rates, it still assumes a fairly strong performance by the agricultural
sector over the coming decade.

94
Table 8.1.3: Sector growth results from model scenarios
GDP Average annual GDP growth rate, 2009-2015 (%)
share, Baseline Cereals Export- Livestock All Non-
2009 (%) crops agric. agric.
(1) (2) (3) (4) (5) (6)
Total GDP 100.00 5.64 6.02 6.21 6.35 6.41 7.69
Agriculture 36.84 4.13 5.16 5.66 5.86 5.94 6.05
Cereals 13.16 5.05 7.49 7.54 7.63 7.68 7.78
Teff 3.38 4.65 5.35 5.46 5.54 5.56 5.75
Barley 1.58 5.54 7.16 7.34 7.43 7.49 7.89
Wheat 2.83 6.12 12.65 12.46 12.61 12.69 12.42
Maize 3.48 4.20 5.23 5.37 5.43 5.46 5.65
Sorghum 1.90 5.23 6.16 6.30 6.38 6.41 6.72
Pulses & oilseeds 3.74 3.39 3.63 4.04 4.11 4.14 4.06
Pulses 2.69 3.62 3.95 3.94 4.03 4.08 3.96
Oilseeds 1.04 2.77 2.77 4.31 4.31 4.31 4.31
Horticulture 2.68 4.73 4.87 4.92 4.97 4.98 5.09
Vegetables 1.23 4.27 4.51 4.62 4.71 4.73 4.87
Fruits 0.20 5.71 6.01 6.03 6.13 6.18 6.72
Enset 1.24 5.03 5.03 5.03 5.03 5.03 5.04
Export crops 4.35 3.77 3.77 7.36 7.36 7.36 7.37
Cotton 0.44 4.00 4.00 7.34 7.34 7.34 7.36
Sugarcane 0.27 4.32 4.32 5.94 5.94 5.94 5.97
Tobacco 0.01 -0.08 -0.08 1.72 1.72 1.72 1.73
Coffee 3.53 3.72 3.72 7.55 7.55 7.55 7.56
Cut flowers 0.09 3.22 3.22 4.14 4.14 4.14 4.14
Other crops 3.19 3.07 3.26 3.20 3.24 3.26 3.16
Chat 1.40 2.44 2.44 2.43 2.44 2.44 2.45
Other crops 1.78 3.56 3.88 3.78 3.85 3.88 3.71
Livestock 5.55 3.22 3.31 3.34 4.46 4.48 4.63
Cattle 0.52 1.99 1.92 1.83 1.99 2.01 3.09
Milk 2.90 3.80 3.95 4.06 5.14 5.16 5.34
Poultry 0.37 3.52 3.65 3.72 4.68 4.69 4.70
Animal products 1.76 2.54 2.56 2.46 3.95 3.96 3.86
Other agriculture 4.18 3.77 3.84 3.90 3.93 4.47 5.02
Fisheries 0.03 0.74 0.56 0.16 0.15 2.35 2.58
Forestry 4.15 3.78 3.86 3.93 3.95 4.48 5.03
Industry 21.32 6.03 6.09 6.18 6.43 6.48 8.03
Manufacturing 13.15 6.53 6.60 6.74 7.12 7.19 8.59
Agro-processing 10.47 6.33 6.53 6.63 7.08 7.14 7.86
Meat processing 4.81 6.43 6.47 6.45 6.89 6.96 7.54
Dairy 3.30 6.42 6.51 6.56 7.30 7.37 8.11
Grain milling 0.15 6.54 11.86 10.72 10.75 10.86 11.27
Sugar refining 0.43 4.51 4.44 6.01 6.00 6.02 6.20
Other foods 0.53 5.53 5.73 6.38 6.49 6.51 6.96
Beverages 0.71 6.71 6.89 6.99 7.07 7.15 9.00
Tobacco processing 0.10 7.33 7.35 7.75 7.76 7.82 9.67
Other industry 7.62 5.33 5.35 5.38 5.39 5.42 7.22
Services 41.83 6.69 6.71 6.70 6.74 6.79 8.86
Private 32.53 6.97 7.00 6.99 7.03 7.10 9.64
Public 9.30 5.65 5.66 5.66 5.67 5.67 5.83
Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).

95
Note: Simulation results are cumulative, such that the Export-Crop scenario (2) contains the results from the Cereals
scenario (1), plus additional productivity gains for export crops. Similarly, the Livestock scenario (3) contains the
productivity gains for both cereals and export crops (i.e., from the previous two scenarios).

More than half of agriculture‟s strong growth performance during 1991-2000 (i.e., 1998-2007)
was driven by land expansion, with the rest resulting from changes in cropping patterns and
improvements in yields. For example, land area under maize cultivation expanded by 2.2 percent
per year during this period, while yields improved each year by 1.5 percent. Similar patterns
were observed for other cereals, with the only exception being wheat, where land area expanded
extremely fast at 5.5 percent per year, compared to yield growth of 2.7 percent. Long-term
agricultural growth has thus been driven more by expanded cultivated land than by
improvements in cropping technologies. The Baseline scenario is calibrated to production trends
from 1991-2000 (i.e., 1998-2007) and so it assumes that land expansion will continue along its
long-term path, with about two-thirds of production increases driven by area expansion. This is
equivalent to an increase in total harvested land by 2.6 percent per year during 2002-2008 (i.e.,
2009-2015), which is slightly below to the rural population growth rate of 3.0 percent. According
to production trends, land area expansion varies across zones. Cultivated land growth is 2.2
percent per year in Zones 1a and 1b (humid regions), 3.2 percent in Zone 2 (drought-prone
region), and 3.7 percent in Zone 3 (pastoralist region). As shown in Table 4, the non-agricultural
sectors are expected to maintain their strong performance over the coming decade, with
manufacturing and services growing more rapidly than agriculture at 6.5 and 6.7 percent
respectively.

The four percent agricultural growth rate in the Baseline scenario is based on more detailed
production trends for different agricultural sub-sectors. Table 4 shows the assumptions made
about each sub-sector‟s yield growth. We initially adopt the teff yield of 0.76 tons per hectare
that was observed in 1998/99 (i.e., 2005/06) and then assume that teff yields grow at 2.85 percent
per year such that Ethiopia achieves a sustained national average teff yield of 1.01 tons per
hectare by 2008 (i.e., 2015). Land area under teff cultivation also grows at 1.66 percent each year
under the Baseline scenario, such that overall production expands by 4.56 percent. This is
entirely consistent with observed production patterns for 1991-2000 (i.e., 1998-2007). Moreover,
yield and area expansions vary at the zonal-level based on actual production trends. The Baseline
thus reflects expected improvements in the performance of the teff sector over the next decade
without the introduction of any new programs and investments other than those already in place.
Similarly, for wheat, we assume that initial yields continue to grow rapidly at 3.39 per year, and
that yields rise to 2.18 tons per hectare by 2008 (i.e., 2015). National and regional production of
each of the five cereals crops in DREME is thus calibrated to closely reproduce long-term
production trends.

96
Table8.1.4: Production targets for baseline and agricultural growth scenarios
Crop yields Crop production Crop land area
Levels (mt/ha) Growth rates (%) Levels (1000 mt) Growth rates (%) Growth rates (%)
Initial Baseline Target Baseline Target Initial Baseline Target Baseline Target Baseline Target
2005 2015 2015 2005-15 2005-15 2005 2015 2015 2005-15 2005-15 2005-15 2005-15
Cereals
Teff 0.76 1.01 1.12 2.85 3.89 2,191 3,423 3,636 4.56 5.19 1.66 1.25
Barley 1.00 1.31 1.55 2.69 4.42 1,271 2,169 2,462 5.49 6.84 2.72 2.31
Wheat 1.20 1.67 2.18 3.39 6.19 2,230 3,986 6,086 5.98 10.56 2.50 4.11
Maize 1.72 2.00 2.37 1.53 3.26 3,647 5,475 5,950 4.15 5.02 2.58 1.70
Sorghum 1.12 1.44 1.58 2.50 3.44 2,608 4,385 4,738 5.33 6.15 2.76 2.63
Pulses &oils
Pulses 0.92 1.00 1.00 0.80 0.84 1,110 1,595 1,646 3.69 4.02 2.86 3.16
Oilseeds 0.77 0.75 0.84 -0.22 0.82 778 1,022 1,134 2.77 3.84 3.00 3.00
Horticulture
Vegetables 4.17 4.39 4.41 0.51 0.56 954 1,462 1,507 4.36 4.68 3.83 4.10
Fruits 13.73 15.08 15.15 0.94 0.99 436 770 793 5.84 6.15 4.85 5.11
Enset 7.52 7.55 7.55 0.03 0.04 211 346 346 5.04 5.04 5.00 5.00
Export crops
Cotton 1.01 1.01 1.26 0.00 2.23 86 127 159 4.00 6.32 4.00 4.00
Sugarcane 33.69 34.72 38.70 0.30 1.39 1,617 2,466 2,749 4.31 5.45 4.00 4.00
Tea 0.96 0.90 0.97 -0.59 0.09 5 8 9 5.37 6.09 6.00 6.00
Tobacco 0.67 0.73 0.83 0.94 2.22 3 3 3 -0.07 1.20 -1.00 -1.00
Coffee 0.66 0.61 0.79 -0.74 1.81 172 248 320 3.72 6.39 4.50 4.50
Flowers 1.00 1.13 1.20 1.19 1.82 10 14 15 3.22 3.86 2.00 2.00
Other crops
Chat 0.77 0.80 0.80 0.42 0.42 120 152 152 2.43 2.43 2.00 2.00
Other staple 4.89 5.03 5.05 0.28 0.32 1,576 2,445 2,488 4.49 4.67 4.19 4.34
All crops 2.61 2.61
Source: Crop targets drawn from consultations with CAADP stocktaking team and representatives from the Ministry of Agriculture; final sector targets are based
on results from the Dynamic Regional Economywide Model of Ethiopia (DREME).
.

97
National production trends were used to calibrate the Baseline growth rates for non-cereals
crops. Particularly rapid production growth was observed for the horticultural crops, including
fruits, vegetables and enset. However, unlike cereals, these high growth rates were driven more
by land expansion than by improvements in crop yields. For example, during 1991-2000 (i.e.,
1998-2007), enset yields remained unchanged at 7.55 tons per hectare, but cultivated land area
grew extremely fast. This is reflected in the Baseline scenario, where the five percent production
growth rate is solely driven by a five percent expansion of enset land area. Similar biases
towards land expansion over yield improvements were observed for pulses, oilseeds, and other
staples, such as root crops.

Industrial and export crops performed quite well during 1991-2000 (i.e., 1998-2007), with the
exception of tobacco, whose production levels declined slightly. This is reflected in the Baseline
scenario. For example, coffee and cotton production rises by 3.72 and 4.0 percent per year
respectively during 2002-2008 (i.e., 2009-2015). The Baseline scenario therefore assumes that
the export-oriented continue to grow rapidly, albeit slower than the major staple crops. Only
tobacco production is expected to decline based on long-term trends.

Livestock is a key agricultural sub-sector generating a significant share of agricultural GDP, and
with strong upstream linkages to meat processing in the manufacturing sector (see Table 8.1.3 ).
The Baseline scenario assumes that livestock GDP will expand at a rate of 3.2 percent per year.
This is below the rapid growth of the crop sectors, but is entirely consistent with livestock GDP
growth rates reported in national accounts for 1991-2000 (i.e., 1998-2007). The Baseline
scenario does reflect more rapid growth in the milk and poultry sub-sectors. Fisheries and
forestry are also agricultural sub-sectors in DREME, with the latter generating 4.15 percent of
total agricultural GDP in 1998/99 (i.e., 2005/06). Based on national accounting for the period
1991-2000 (i.e., 1998-2007), the Baseline scenario assumes that fisheries GDP grows slowly at
0.74 percent per year during 2002-2008 (i.e., 2009-2015). For the forestry sub-sector, the
Baseline scenario assumes that value-added in this sub-sector will grow at 3.78 percent per year.

Drawing on the above trends, DREME simulation results indicate that, with four percent growth
in the agricultural sector and more rapid growth in the non-agricultural sectors, overall national
GDP will grow at an average rate of 5.64 percent during 2002-2008 (i.e., 2009-2015). This is just
below the average GDP growth rate of six percent observed for 1991-2000 (i.e., 1998-2007),
reflecting a slight deceleration in economic growth over the coming decade. With population
growth at 3.0 percent per year, this means that per capita GDP grows rapidly at 2.64 percent.
With rising per capita incomes and fairly balanced growth across all sectors, DREME estimates
that poverty will decline from 40 percent to 21 percent during 1999-2008 (i.e., 2005-2015) (see
Figure 8.1.1). Relatively balanced growth across both agricultural and non-agricultural sectors
means that national income growth is fairly evenly distributed across both rural and urban areas
and agro-ecological regions. For example, poverty falls in small centers from 33.95 to 19.11
percent by 2008 (i.e., 2015), while rural poverty declines from 41.31 to 21.55 percent. This rapid
poverty reduction, and despite an expanding population, the absolute number of poor people in
Ethiopia would decline from 25.8 million people in 1999 (i.e., 2005) to 18.2 million by 2008
(i.e., 2015). While this is a significant reduction in the number of poor people living in Ethiopia,
it reveals the persistent burden of poverty in the country and emphasizes the need for reinforcing
pro-poor sources of economic growth.

98
Figure8.1.1: National poverty results from model scenarios.
40
National poverty headcount (%)

35

30

25

Baseline scenario
20
All agriculture scenario
15 With non-agriculture scenario

10
2005 06 07 08 09 10 11 12 13 14 15

Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).
Note: The „poverty headcount‟ is the percentage share of the population living below the poverty line. We assign the
poverty line so that 40 percent of the population is classified as „poor‟ (i.e., the bottom two expenditure quintiles).

8.3 Accelerating Agricultural Growth and Poverty Reduction

In the previous section we described the results of the Baseline scenario, which estimated the
impact of Ethiopia‟s current growth path on poverty reduction. We found that while economic
growth over the coming decade is expected to remain robust and will halve the national poverty
rate, it will reduce the number of poor people by less than one-third. Therefore, in this section we
examine whether the six percent agricultural growth target identified by CAADP is achievable,
based on reasonable sub-sector growth potentials. We also estimate the potential contribution of
different agricultural sub-sectors in helping Ethiopia substantially reduce poverty throughout the
country.

A sustained six percent agricultural growth rate is achievable

Accelerated crop production is modeled by increasing yields in order to achieve yield targets
identified for 2008 (i.e., 2015). Taking teff as an example, under the Baseline scenario we
assumed that average yields would rise from 0.76 to 1.01 tons per hectare during 1999-2008 (i.e.,
2006-2015) (see Table 8.1.4 ). In this section we model more ambitious teff yield improvements,
with the annual yield growth rate for teff rising from its current 2.85 percent per year to 3.89
percent per year. This implies that national average teff yields will rise consistently over the next
decade to reach 1.12 tons per hectare by 2008 (i.e., 2015). This national target yield was
identified together with the CAADP stocktaking team and in consultation with the Ministry of
Agriculture and Rural Development (MOARD). The yields of other crops were also increased in
a similar manner but to differing degrees based on long-term trends and potential yields (see
Figure 8.1.2).

99
Figure 8.1.2: Current, expected and targeted crop yields
2.50
Accelerated yield growth target, 2015

Expected yields under baseline scenario, 2015

2.00
Current yields, 2005
Crop yield (mt/ha)

1.50

1.00

0.50

0.00

Coffee
Tobacco
Cotton
Wheat

Maize

Chat
Teff

Barley

Oilseeds
Sorghum

Flowers
Source: Crop targets drawn from consultations with CAADP stocktaking team and representatives from the Ministry
of Agriculture; final sector targets are based on results from the Dynamic Regional Economywide Model of Ethiopia
(DREME).

Five different scenarios were designed for this analysis. In Scenarios 1-3 we target specific
groups of crops or agricultural sub-sectors, including cereals (Simulation 1); export-oriented
crops (Simulation 2); and livestock (Simulation 3). For instance, in the „cereals-led growth‟
scenario we increase total factor productivity (TFP) for all cereals crops so as to achieve the
crop-specific yield target shown in Table 4. In the non-crop scenarios, such as „livestock-led
growth‟, we also increase total factor productivity (TFP) to achieve targeted GDP growth rates.
The results of each simulation are cumulative, so that Simulation 2 includes the effects of
Simulation 1, Simulation 3 includes the effects of Simulation 2, and so on. In the „all agriculture‟
scenario (Simulation 4), we include additional growth from the fisheries and forestry sub-sectors.
This is equivalent a „CAADP‟ scenario, since it captures all possible sources of additional
agricultural growth. Finally, in the „non-agriculture‟ scenario (Simulation 5), we accelerate
economic growth in not just the agricultural sector, but in non-agriculture as well. The results of
these scenarios are discussed below.

Under the „All Agriculture‟ scenario, agricultural growth accelerates to just below six percent per
year for the period 2002-2008 (i.e., 2009-2015) (see Table 8.1.3). This is driven by a strong
expansion in cereals production. For example, wheat production increases from four million tons
under the Baseline scenario to over six million tons under the „All Agriculture‟ scenario (see
Table 4). Similarly large expansions of coffee production are also achieved under this
accelerated scenario. Thus, even though the additional growth required for other crops is less

100
pronounced, the achievement of the six percent agricultural growth target remains ambitious.
Livestock growth would also have to accelerate from an annual average growth rate of 3.22
percent per year under the Baseline scenario to 4.48 percent under the „All Agriculture‟ scenario.
However, despite these challenges, the results from DREME indicate that if the crop yield and
livestock productivity targets can be achieved by 2008 (i.e., 2015) then Ethiopia will be able to
achieve and sustain the six percent agricultural growth target set forth by CAADP.

Since agriculture is more than a third of the Ethiopian economy, the acceleration of agricultural
growth increases the national GDP growth rate from its current 5.64 percent per year to 6.41
percent per year. Faster agricultural growth also stimulates additional growth in the non-
agricultural sectors, by raising final demand for non-agricultural goods and by lowering input
prices and fostering upstream processing. For instance, under the „All Agriculture‟ scenario, the
GDP growth rate of agriculture-processing in the manufacturing sector increases from 6.33
percent under the Baseline scenario to 7.14 percent per year. Achieving the six percent
agricultural growth target therefore has economywide growth-linkage effects for non-agriculture.

Finally, we examine the impact of accelerating economic growth outside of agriculture. In the
„Non-agriculture‟ scenario we increase the productivity growth rates of the nonagricultural
subsectors by an additional two percentage points per year during 2002-2008 (i.e., 2009-2015).
As shown in Table 8.1.4 , this causes the national GDP growth rate to increase from 6.41 percent
under the „All Agriculture‟ scenario to 7.69 percent. Faster nonagricultural growth also
stimulates additional demand for agriculture, thus helping raise agriculture‟s GDP growth above
the six percent target. The increase in demand for agricultural products is larger for cereals and
livestock, which form a larger share of urban households‟ and nonagricultural workers‟
consumption baskets, and whose incomes are rising as a result of faster nonagricultural growth.
Thus, accelerating agricultural growth has positive economy wide effects, which can be further
strengthened by an expanded nonagricultural sector.

Agricultural growth greatly reduces poverty

The acceleration of agricultural growth to around six percent per year under the „All Agriculture‟
scenario and its spillover effects into non-agriculture causes poverty to decline by a further 4.1
percentage points. This is shown in Figure 1, where the share of Ethiopia‟s population under the
poverty line falls to 16.95 percent by 2008 (i.e., 2015) under the CAADP scenario compared to
21.05 percent under the Baseline scenario. Thus, taking population growth into account,
achieving the six percent growth target lifts an additional 3.6 million people above the poverty
line by 2008 (i.e., 2015). This is sufficient to almost halve the number of poor people in Ethiopia
today (i.e., 25.8 million).

Faster agricultural growth benefits a majority of households. However, not all households in all
agro-ecological zones benefit equally from achieving the higher crop yields and faster sub-sector
growth rates targeted under the „All Agriculture‟ growth scenario. Table 8.1.4 shows how
poverty rates change under the various scenarios. Poverty declines amongst both rural and urban
households, although the declines are largest in rural areas. Moreover, the largest declines in
rural poverty rates occur in the two zones where poverty is initially highest: humid enset region
(Zone 1b) and drought-prone region (Zone 2). Within urban areas, it is households outside of the

101
large urban centers that benefit more from faster agricultural growth. This is because households
in smaller urban areas typically have lower incomes than households in, for example, Addis
Ababa, and so usually spend a larger share of their incomes on food and agricultural products.
They are thus more likely to benefit from faster agricultural growth than households in larger
urban centers. However, these differences withstanding, poverty declines in large urban centers
by over three percentage points under the „All Agriculture‟ scenario.

Table 8.1. 4: Household poverty results from model scenarios

Initial poverty Final year poverty headcount, 2015 (%)
headcount (%) Baseline Cereals Export- Live- All Non-
crops stock agric. agric.
2005 2008 (1) (2) (3) (4) (5) (6)
National 40.01 35.12 21.05 18.28 17.30 17.05 16.95 12.69
Rural regions 41.31 36.02 21.55 18.66 17.66 17.51 17.33 12.64
Humid cereals (1a) 38.19 32.93 18.75 16.51 15.71 15.45 15.36 10.93
Humid enset (1b) 44.92 40.04 26.02 23.20 21.26 21.06 20.51 15.72
Drought-prone (2) 47.97 42.02 25.72 21.38 20.80 20.96 20.88 15.10
Pastoralist (3) 27.70 23.27 11.94 9.70 8.66 8.25 8.26 6.02
Small urban centers 33.95 30.86 19.11 16.62 16.05 15.27 15.56 13.57
Large urban centers 32.95 30.44 17.63 15.99 14.55 13.94 14.28 11.70
Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).
Note: The „poverty headcount‟ is the percentage share of the population living below the poverty line. We assign the
poverty line so that 40 percent of the population is classified as „poor‟ (i.e., the bottom two expenditure quintiles).

102
The impact of agricultural growth on households‟ incomes and poverty depends on a number of
factors. One key factor is the geographic distribution of agricultural production. As indicated in
Table 8.1.5, higher-value export-oriented crops are grown more intensively in certain zones.88
Coffee, for example, is concentrated in the humid cereals region (Zone 1a). However, it forms a
large share of agricultural GDP in the humid enset (Zone 1b), and is also an important source of
agricultural earnings for entire the pastoralist region (Zone 3). Similarly, while cereals form a
large share of agricultural GDP in the humid cereals region (Zone 1a), it actually contributes a
larger share to the poorer drought-prone region‟s agricultural GDP (i.e., it is 46.44 percent in
Zone 1a and 50.15 percent in Zone 2). Finally, livestock is a key sector in all regions,
contributing between 15 and 20 percent to agricultural GDP. These concentrations of particular
crops and sub-sectors will influence how agricultural growth driven by certain sectors affects
poverty in different parts of the country.

The sources of additional incomes also vary across representative households within zones. Not
surprisingly, households that already depend more on cereals tend to benefit more from cereals-
led growth. However, there are two forces driving changes in production following sub-sector-
specific yield improvements. First, increasing cereals yields directly effects farm incomes since it
increases the quantity of output that a farm produces using the same quantity of factor inputs.
However, increased production faces demand constraints such that prices typically fall following
yield increases. Thus, the direct impact of improved crop yields for a specific farm household is
its net effect on crop production, weighted by the share of the household‟s land allocated to
producing that crop. This direct effect therefore assumes that land allocations remain fixed.
However, farmers may reallocate land in response to changes in relative prices. Thus, the
indirect impact of crop yield improvements is the potentially positive impact of reallocating land
to other crops. Thus it is important to note that, while we model cereals-led growth by increasing
cereals yields, some of the gains under this scenario are derived from diversification into other
higher-value crops facing better demand conditions. DREME captures both direct and indirect
effects in its assessment of the effects of improved yields in different sub-sectors.

Figure 8.1.3 shows the importance of taking demand constraints and relative price changes into
account. Wheat, for example, faces domestic demand constraints and has weaker linkages to
upstream food processing and foreign markets. As such, when wheat production increases
substantially under the „All Agriculture‟ scenario, its prices decline dramatically (i.e., by over 13
percent in real terms or relative to the overall consumer price index). By contrast, some
agricultural subsectors do not experience yield improvements under the „All Agriculture‟
scenario, such as pulses and horticulture, and so increased household incomes causes real prices
for these crops to rise. Finally, some crops may also have stronger linkages to upstream
processing and foreign markets, such as tobacco, which means that while their prices do decline
under the „All Agriculture‟ scenario, they fall by less than for cereals.

88
Note that agricultural GDP in Table 5 excludes fisheries and forestry (i.e., only includes crops and livestock).

103
Table 8.1.5: Regional growth results under model scenarios
Initial Average annual GDP growth rate, 2009-2015 (%)
agric. Baseline Cereals Export- Livestock All Non-
GDP crops agric. agric.
share (%) (1) (2) (3) (4) (5) (6)
National (all zones)
Agriculture 100.00 4.18 5.32 5.87 6.09 6.12 6.18
Cereals 40.30 5.05 7.49 7.54 7.63 7.68 7.78
Pulses & oils 11.44 3.39 3.63 4.04 4.11 4.14 4.06
Horticulture 8.20 4.73 4.87 4.92 4.97 4.98 5.09
Export crops 13.31 3.77 3.77 7.36 7.36 7.36 7.37
Other staples 9.75 3.07 3.26 3.20 3.24 3.26 3.16
Livestock 17.00 3.22 3.31 3.34 4.46 4.48 4.63
Humid cereals (1a)
Agriculture 100.00 4.19 5.49 6.06 6.30 6.33 6.39
Cereals 46.44 5.53 7.90 7.95 8.02 8.07 8.17
Pulses & oils 11.85 2.48 2.80 3.25 3.29 3.31 3.22
Horticulture 6.22 3.06 3.27 3.31 3.32 3.33 3.39
Export crops 13.98 3.77 3.77 7.35 7.35 7.35 7.36
Other staples 5.79 0.82 1.16 1.07 1.14 1.16 0.96
Livestock 15.72 3.27 3.36 3.39 4.79 4.81 4.97
Humid enset (1b)
Agriculture 100.00 3.89 4.22 5.18 5.50 5.52 5.58
Cereals 16.27 -0.99 1.41 1.44 1.61 1.65 1.65
Pulses & oils 7.19 6.61 6.63 6.64 6.79 6.84 6.76
Horticulture 24.51 5.90 5.90 5.96 6.00 6.01 6.15
Export crops 24.65 3.75 3.75 7.33 7.33 7.33 7.34
Other staples 7.13 5.80 5.81 5.77 5.81 5.84 5.85
Livestock 20.25 3.24 3.32 3.35 4.82 4.83 4.98
Drought-prone (2)
Agriculture 100.00 4.64 6.21 6.40 6.55 6.59 6.65
Cereals 50.15 5.55 8.30 8.33 8.46 8.51 8.62
Pulses & oils 16.13 3.71 3.88 4.39 4.46 4.49 4.43
Horticulture 3.05 3.99 4.26 4.38 4.43 4.45 4.62
Export crops 3.09 3.96 3.96 7.26 7.26 7.26 7.28
Other staples 9.89 4.42 4.67 4.59 4.64 4.67 4.52
Livestock 17.70 3.13 3.22 3.25 3.67 3.68 3.84
Pastoralist (3)
Agriculture 100.00 3.43 3.72 4.35 4.50 4.51 4.56
Cereals 17.18 1.01 2.35 2.43 2.68 2.72 2.85
Pulses & oils 4.59 6.11 6.32 6.63 6.95 6.99 6.87
Horticulture 5.53 8.23 8.61 8.68 8.93 8.97 9.10
Export crops 14.23 3.73 3.73 7.52 7.52 7.52 7.53
Other staples 40.28 3.36 3.44 3.41 3.42 3.43 3.42
Livestock 18.19 3.13 3.21 3.24 3.68 3.70 3.85
Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).
Note: Agricultural GDP in this table excludes fisheries and forestry, since these two sectors are not regionalized in
DREME. The national agricultural growth rate is therefore slightly higher in this table.

104
Figure 8.1.3: Changes in real market prices from baseline values under „All Agriculture‟
scenario.
1.050

1.025 Pulses
Relative price index (baseline scenario = 100)

Tobaco
1.000

0.975 Cattle

0.950 Sorghum
Teff

0.925
Poultry
Coffee
0.900
Milk
Maize
0.875
Wheat

0.850
2005 06 07 08 09 10 11 12 13 14 15

Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).
Note: These are real prices changes for selected products relative the prices achieved under the baseline scenario
(adjusted for changes in the overall consumer price index). They therefore show how additional production places
downward pressure on some commodities‟ prices, but rising incomes and demand allow some commodities‟ prices
to rise when growth is accelerated.

In summary, DREME results indicate that it is possible for Ethiopia to reach the CAADP target
of six percent agricultural growth. It will, however, require substantial improvements in crop
yields and livestock productivity over a relatively short period of time (i.e., seven years). If these
crop- and sub-sector-level targets can be achieved then the resulting broader-based agricultural
growth is likely to benefit households in both rural and urban areas. However, the higher growth
potential of certain export crops and better market conditions in certain parts of the country may
cause uneven income growth and poverty reduction. The livestock sub-sectors also contribute to
agricultural growth and poverty reduction throughout the country. Finally, accelerating
nonagricultural growth can reduce some of the demand constrains on agricultural growth

105
Comparing sub-sector growth in terms of growth and poverty reduction

The previous section highlighted the potential contributions of different crops and sub-sectors in
increasing agricultural growth and poverty reduction. However, the different sizes of these sub-
sectors made it difficult to compare the effectiveness of sector growth in reducing poverty.
Understanding how growth-poverty linkages vary at the sub-sector and household level is
important for designing pro-poor growth strategies in different parts of the country. In this
section we calculate poverty-growth elasticities that allow us to compare the „pro-poorness‟ of
growth in alternative sub-sectors. These elasticities are endogenous outcomes from the model
results. Growth affects individual households differently due to heterogeneity across household
groups. The above analysis has shown how, with differences in household and farm
characteristics, changes in income and consumption across households can differ considerably
from average changes at the national level. Thus, to capture growth-poverty linkages, changes in
the distribution of incomes, which are primarily determined by a country‟s initial conditions,
need to be understood. In the previous section we saw how households in certain regions have
better opportunities to produce export-oriented crops, and are thus better positioned to benefit
from export-crop-led agricultural growth. However, export-crop-producing households are
typically less poor than other rural households. Thus, agricultural growth driven by export crops
may have less of an impact on poverty, especially amongst the poorest households. By contrast,
cereals tend to be a more important source of agricultural incomes for poorer households. Thus,
growth in cereals may be more effective at reducing poverty than similar growth in export crops.

The „poverty-growth elasticity‟ measures the responsiveness of the poverty rate to changes in per
capita agricultural GDP growth. More specifically, the elasticity measures the percentage change
in the poverty rate caused by one percent increase in agricultural GDP per capita. Table 6 shows
the calculated poverty-growth elasticities under the different growth scenarios. The results
indicate that agricultural growth driven by cereals is most effective at reducing poverty in the
drought-prone region (Zone 2), where households are generally poorer and depend more heavily
on incomes from cereals production. For similar reason, cereals-led growth is also effective at
reducing poverty in smaller urban centers, where households are poorer than in larger centers
and thus spend a larger share of their incomes on purchasing cereals and milled grains. In
contrast, expanding export crops is most effective at reducing poverty in the humid enset region
(Zone 1b) and amongst households in larger urban centers, who are better endowed with capital
and other assets needed to produce export crops. Finally, livestock production is especially
effective at reducing poverty in urban areas and amongst rural households in the pastoralist
region (Zone 3). Urban consumers spend a larger share of their incomes on meat and dairy and
so benefit more when production in this sector expands. Overall, however, it is cereals that is
most effective at reducing national poverty, since a larger share of poor household depend on
cereals for their incomes, and since more poor consumers (in rural and urban areas) spend a
greater share of their income on cereals and milled grains.

106
Table 8.1.6: Poverty-growth elasticities from model scenarios
Percentage change in poverty headcount rate from a one percent
increase in national agricultural GDP led by the following sectors…
Cereals-led Export-crops-led Livestock-led
National -0.99 -0.70 -0.42
Rural regions -1.01 -0.70 -0.25
Humid cereals (1a) -0.86 -0.61 -0.46
Humid enset (1b) -0.89 -1.22 -0.29
Drought-prone (2) -1.30 -0.34 0.22
Pastoralist (3) -1.21 -1.12 -1.05
Small urban centers -1.02 -0.46 -1.52
Large urban centers -0.68 -1.18 -1.21
Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).
Note: The „poverty headcount‟ is the percentage share of the population living below the
poverty line. We assign the poverty line so that 40 percent of the population is classified as
„poor‟ (i.e., the bottom two expenditure quintiles).

The previous section concluded that to increase agricultural growth and reach the six percent
growth target, it will be necessary to encourage growth in a number of agricultural sub-sectors.
The poverty-growth elasticities suggest that cereals should be afforded a high priority in any
strategy aimed at substantially reducing poverty. Moreover, cereals already form a large part of
the agricultural sector and have high enough growth potential to substantially raise agricultural
and national GDP. Cereals are therefore a priority sector for increasing investments.

8.4 Summary of Major Findings

Continued high levels of agricultural growth would reduce poverty

The CGE model results indicated that if Ethiopia can improve crop yields and livestock
productivity, then it should be possible to sustain six percent agricultural growth in the medium
term (during EC 1999-2008, i.e., 2006-2015). Agricultural growth at six percent per year would
increase overall GDP growth by one percentage point per year relative to the base run. This
higher growth rate would reduce national poverty to 17 percent by EC 2008 (i.e., 2015), 4
percentage points lower than the 21 percent poverty rate that would have been achieved without
additional agricultural growth. This means that the higher growth under the accelerated
agricultural growth scenario would lift an additional 3.6 million people above the poverty line by
EC 2008 (i.e., 2015).

Not everyone will benefit equally under the CAADP growth scenario

Most households are expected to benefit from faster agricultural growth. However, some agro-
ecological zones that grow higher-value cereals and export-oriented crops and which are better
situated to larger urban markets (e.g., humid lowlands and rain sufficient highlands) stand to gain
more than other parts of the country. Furthermore, poverty amongst households in some zones
will remain high, despite faster agricultural growth. Finally, both rural and urban households
benefit from faster agricultural growth, although rural households benefit more. This is because
agricultural commodities are an important part of the consumption baskets of both urban and
rural households.
107
The composition of agricultural growth matters

Comparing the effectiveness of growth driven by different sub-sectors in reducing poverty and
encouraging broader-based growth, additional growth driven by cereals have larger impacts on
poverty reduction. This is because these crops are already large and so can contribute
substantially to achieving broad-based agricultural growth. Yield improvements in these crops
not only benefit households directly, by increasing incomes from agricultural production, but
also by allowing farmers to diversify their land allocation towards other higher-value crops.
Cereals are also effective at raising rural real incomes and reducing poverty, especially amongst
the poorest households. Thus, high priority should be afforded to improving cereals yields and
opening market opportunities for upstream processing to reduce demand constraints.

Increases in livestock productivity can potentially reduce poverty in pastoralist areas, particularly
if marketing channels are improved so that livestock production do not lead to sharp declines in
market prices.

108
9. Conclusion and Recommendations
9.1 Conclusion
The CAADP Ethiopia study is conducted in the process of institutionalizing the AU/NEPAD/
CAADP with a vision and strategic framework that outlines Africa‟s pledge to pursue its
commitment and duty to eradicate hunger and poverty and place the continent, at all levels, on a
path for sustainable socio-economic growth. The CAADP agenda is to contribute to Africa‟s
achievement in terms of tangible reduction, and the eventual eradication of poverty, hunger and
malnutrition. In addition to these it is also designed to address the agricultural policies, strategies
and programmes to achieve sustainable use of natural resources, bio-diversity and bio-safety, and
control of damages emanating from climate change.

According to CAADP Framework, African countries are expected to stocktaking their

agricultural policies, strategies, and programmes; analyze gaps in these and institutional
capacities, and come up with country specific CAADP agricultural programmes in order to
attain:
i. 6% average annual growth rate for the agricultural sector at the national level;
ii. allocate 10% of the national budget to the agricultural sector;
iii. exploit regional complementarities and cooperation to boost growth;
iv. develop principles of policy efficiency, dialogue, review, and accountability, shared by
all NEPAD programs;
v. adhere to the principles of partnerships and alliances to include farmers, agribusiness, and
civil society communities.

This CAADP Ethiopia study found out that Ethiopia has surpassed the 6% average annual
growth rate for the agricultural sector, and the allocation of 10% of the national budget to this
sector starting from the SDPRP period. The existing policies and strategies have contributed
tremendously to the achievement of these targets. However, this does not mean that poverty and
hunger are tackled to the level of expectation of the GoE and its partners. Indeed, the
Government should continue its commitment to allocate more resources to tackle these
problems. The study also revealed that the agriculture sector remains a very critical part of the
future development of the Ethiopian economy. Its performance in recent years has been well
above the average over the CAADP targets but not one to deter the country from embarking on
domestically initiated policies and strategies that will lead the transformation process and the
country‟s goal of independence from foreign aid.

The recommendations made below are based on the basic aspiration to tackle poverty and hunger
as well as achieve other MDG goals with a renewed effort where the GoE, NGOs, and the donor
community come together and driven by the policies, strategies and programmes framed within
the Ethiopia CAADP four indigenized pillars. The recommended policy, strategy, and
programmes should be used to inform and influence the preparation of the next phase of the
PASDEP under a common CAADP vision and strategic move.

109
9.2 Recommendations

9.2.1 Policy

9.2.1.1 General
Building on the policies and strategies that are already in place: This study has identified
existing policies and strategies in line with the four indigenized CAADP Ethiopia Pillars that
also fit well with the present agricultural development policies and strategies of Ethiopia. During
the CAADP study, stakeholders pointed out that no country has policies and strategies that are
exhaustive and be able to cater for all needed development interventions. What is important is to
recognize the dynamics of policy and strategy formulation which is conditional to national and
international economic affairs changes. The study found out that in general the problem in
Ethiopia today is not much of a paucity of policies and strategies in the agriculture sector but that
of implementation problems. Besides, the problem is that many do not know them in the
specificity and pillar and programme oriented manner. Hence, the existing policies and strategies
that are set in a grid format should be further edited and published by the concerned body and be
distributed to all stakeholders. Hence, future debates on absence or review of policies and
strategies should be based on these existing policies and strategies.

Efficient and effective implementation of existing policies and strategies: During the
discussion with various stakeholders, what has come clear is that in most cases it is not the lack
of policies and strategies but their implementation which is a constraint. Implementation requires
appropriate institutions with the required capacity. A lot has to be done in this area.
Implementation should not be left alone to the public sector but also to the private including
NGOs, CSOs, CBOs and donors.

9.2.1.2 Specific
Render adequate coverage to livestock policy: In general, the livestock sub-sector is not policy
deficient nor is the existing policies are hindrance to its development. But as reported in chapter
7, identifying the existing policies was not easy in the case of the livestock and pastoralism
component of the study due to relative inexplicitness of the issues in existing official documents
(RDPS and PASDEP). Recently, a livestock Breeding Policy and Strategy has been formulated.
There are also proclamations on animal diseases and control (Proclamation No.267/2002), meat
inspection (Proclamation No. 81/1976), and public health (Proclamation No. 200/2000). For
example, though it is still at its final stage to be submitted to the Council of Ministries, the draft
Livestock Breeding Policy is not comprehensive enough to include related issues such as animal
health, and animal feed. This should not imply that there is no need for detailed separate policies
on animal health and animal feed. The policy documents in these areas should also include
institutional mandates and responsibilities. In general the livestock sub-sector has lack of focus
in specific policy regimes in an integrated and comprehensive setting.

Policy to cope up with the transformation process in PAP areas: Existing policy documents
have clear policy positions in PAP areas on issues of voluntary settlement, provision of socio-
economic infrastructure, as well as the environment to work with traditional and customary
institutions. What is not clearly covered is the transformation process to cope-up with alternative
livelihood options in PAP areas. Individuals are changing from pastoral to non-pastoral

110
occupations be it in agriculture, commerce, and urban businesses. Particularly the recent
conducive local administration setting as a result of the decentralization policy which increased
the expansion of road networks, water, rural electricity and telecommunication infrastructure,
and the enhancement of urbanization created a new interest in pastoral communities to become
part of the new domestic and international economic order. There is lack of adequate policy in
this regard including the policy of PAP areas land administration. And this should be addressed
in the soonest possible time.

Review the seed policy and strategy in line with the emerging multi-country interests:
Improved seed has become a strategic commodity to influence the productivity and production of
the crop sub-sector not only in a given country but also continental and worldwide. The existing
national seed policy and strategy did not have articles that direct regional and international
harmonization issues. There was an attempt to harmonize the Ethiopian seed system with the
East and Central Africa countries via the issuance of a regulation but which has not been
finalized. This has to be revisited and the necessary policy and regulatory framework need to be
in place in the soonest possible time since some of the East and Central African countries have
already started to trade seed on the basis of the harmonization document they signed.

9.2.2 Strategy

9.2.2.1 General
The strategy of integrated development approach should be practiced: RDPS and PASDEP
give emphasis to the strategy of coordination and integration of managing different development
tasks. It actually states that ensuring integrated development is a guiding principle for the
agricultural policies and strategies. This study found out in most cases integrated efforts are not
well in place. Most problems are emerging by not invoking and using this integrated
development approach.

9.2.2.2 Specific
Revise the forest and forest products utilization strategy: The policy, strategy and the
proclamation on forest development, conservation and utilization document compiled by
MoARD (2007) does include statements with the term utilization. Most of it is related on how to
collect, organize and analyze information or to undertake studies. It is not clear on the strategy of
how to utilize forest and forest products with an apt forest conservation practices. This should be
written and included in the existing strategy document.

Set a national strategy of Synchronized breeding: Synchronized breeding is an artificial

manipulation of the reproductive cycle of animals for the purpose of fixed time breeding through
AI and as a result to achieve compact calving, lambing or kidding. The system allows aligning
the breeding programme with feed availability and marketing. This programme can be accessible
to individual farm household use through public services or undertaken by private investors
through value chain development approach. Currently this is reported to be practiced by some
private firms. Its use in the public sector is still under discussion. Whether it is to be practiced by
the public or private sector or both, the country needs to have a clear strategic direction. The
strategies should be developed.

111
Set a bee forage production strategy: The current GoE policy on apiculture is to develop and
expand honey production with special emphasis in irrigated areas, integrated with fruits and agro
forestry. Traditionally honey production is common in almost all agro-ecologies that are
endowed with water resources and vegetation that serve as feed for bees. Recently the need for
bee forage practice is getting importance especially with the promotion of modern hives in
different agro-ecologies. All these are in place without a strategy on bee forage.

Review the existing animal feed strategy in line with PAP areas situations and conditions:
The recent increased incidence of drought, particularly in PAP areas has exacerbated the problem
of animal feed and is necessitating for a strategic intervention in feed reserve both in natural and
commercial aspects. However, the existing animal feed strategy gives attention to the
development aspect and very little on reserve. Traditional feed reserve practices exist mostly in
non-pastoral areas. This is highly associated with the annual crop cultivation practice which
again is not the case in pastoral areas. Under PASDEP, Livelihood and Asset Building, and Basic
Social service strategies for the PAP areas are well addressed. A strategy that embrace the
reserve aspect and focus in on PAP areas should be developed. The strategy should be based on
the emerging principle of disaster risk management rather than addressing emergency situation.

9.2.3 Programmes

9.2.3.1 General
Strict use of the programme approaches both in the budget appropriation and technical
situations: CAADP Ethiopia proposed programmes are either the existing programmes
recognized by the Federal Government Budget Document as cost centers or new proposed
programmes that are expected to become cost centers. Though the budgetary appropriation to the
agriculture sector is on rise, above 10% of the CAADP target, how efficient and effective this
appropriation is in terms of tackling the poverty and hunger problems is not measurable.
Programme budget should be in practice. It is only through this way that one may be able to see
how much each Birr invested in the public sector is returning positively.

During the assessment of existing programmes it was found out that the term programme has
been used for non-cost centered undertakings in order to embrace major development initiatives.
For example, the PSNP which is and should be part of the national food security programme, or
the roads programme, more specifically ERTTP, and the power supply programme(UEAP).
There are also projects which are not clearly shown under existing cost center programmes under
the Federal Agencies, for example, the Ethiopian Commodity Exchange (ECX) project.
Technically all these should be embraced with a well set development programmes framework
and be institutionalized where they fit well, and ones they are accepted any project or
interventions be it internally or externally financed should be coordinated or implemented under
the auspices of the programme‟s process owner. Ongoing initiatives, for example the SWG
RED&FS programmes should be mainstreamed in the proposed CAADP agriculture sector
programmes. Similarly any donor initiative with the term programme may exist but with a clear
understanding and integration with the national CAADP agriculture sector programmes. For
example, PSNP remains under the Food Security Programme of the DRMFS sub-sector of
MoARD.

112
Efficient and effective implementation of existing programmes: During the CAADP
Ethiopia study it was observed that there are problems of properly implementing existing
programmes with existing institutions, and available human, physical, and financial
resources. This is mostly a question of achieving achievable results using available resources.
Perhaps, the ongoing BPR may resolve this problem. In any way, the issue should be accorded
attention and programme owners should set appropriate monitoring and evaluation mechanisms
to efficiently and effectively implement existing programmes with available resources.

9.2.3.2 Recommended CAADP Ethiopia programmes

The CAADP Ethiopia programmes framework combines existing, existing but modified and new
proposed programmes. Table 9.1 presents the proposed CAADP Ethiopia national Programmes
by pillar areas. This study has reduced the existing 56 cost center programmes to 41 inclusive of
modified and new ones. It is important to note again the notion of national programmes. As it
was explained in chapter six, in the context of budget allocation and expenditure analysis the
national system refers to a combination of the Federal and Regional State Governments budget
appropriation and use. Here, the understanding is that given their constitutional rights the Federal
and Regional State Governments can plan on various development programmes to be financed
through their established budgetary frameworks. The relationships often are via the subsidy
arrangements, where the Federal government gives annual subsidy to the regions. Besides, there
are large scale development undertakings whereby the Federal government undertakes the
responsibility of the financial arrangements, including borrowing from international financial
institutions, such as the World Bank (WB) and African Development Bank (AfDB), while
Regional State Governments become partners in the implementation. These include irrigation
and road projects among others.

During the study period it was found out that the MoARD is in the process of configuring the
different activities within in the sector into nine directorates cum programmes (Table 9.2).
According to the explanations of some of the Directors within MoARD these programmes will
become cost centers recognized and accepted by MoFED. However, the consultants‟ inquiry
with the concerned officials in MoFED revealed that this matter has not been yet considered and
for some years to come the existing cost centre programmes registered by MoFED remain the
basis of budget appropriation, project formulation and implementation. Hence, in this situation
the way to accommodate the MoARD suggestion is as indicated in Table 9.3. Again this leads to
a problem when further examined according to the CAADP principles and pillar configurations.

First, only six out of the nine MoARD suggested programmes are directly aligned with the
CAADP pillars (see Table 9.3). For example, the agricultural investment support; planning and
programming; and procurement, finance and property administration programmes are not easily
aligned with the CAADP pillars, and hence not shown in Table 9.3. Secondly, the MoARD
suggested programmes do not give room to include the CAADP programme components related
to rural infrastructure, trade and agricultural research.

113
The above mentioned explicit problems associated with the suggested MoARD programmes as
well as the plausible variations that may emerge if each regional state takes their own actions of
configuring the agricultural activities in different programs made the CAADP consultants to
stick to the CAADP Ethiopia national programmes identified and listed in Table 9.1.

Table 9.1 CAADP Ethiopia National Agriculture Sector programmes

Ethiopia CAADP Programme
Pillar
Pillar I: Improve NR1: Land administration and planning
natural resources NR2: Integrated Watershed management
management and NR3: Forest development, conservation , and utilization
utilization
Pillar II: Improve RI1: Ethiopian Rural Travel And Transport Sub-Programme
rural infrastructure, RI2: Universal Electrification Access Programme
market access and RI3: Rural ICT network89
trade capacities
TD1: WTO accession and implementation
TD2: Foreign investment promotion/facilitation
MM1: Agricultural Inputs Supply and Marketing
MM2: Agricultural Inputs and products Quality Control and standards
MM3: Warehouse Receipt and Credit Facility
MM4: Agricultural Products Marketing Promotion
MM5: Agricultural Marketing Information System
MM6: Cooperative Marketing
MM7: Rural-Urban Linkage
MM8: Agriculture and Food Policy Research
Pillar III. Enhance FD1: Crop development
food security and FD2: Livestock and fishery resources
improve disaster risk FD3: Animal and plant health services and regulatory
management FD4: Food security
FD5: Disaster Risk Management
Pillar IV: Improve CR1: Cereals
the agricultural CR2: Pulses
research and CR3: Oilseeds
extension system CR4: Fiber
CR5: Vegetables, root and tubers and fruits
CR6: Spices and stimulants
CR7: Essential oils, medicinal plants and bio-energy
CR8: Agricultural biotechnology and Plant protection
CR9: Agricultural mechanization
SW1: Soil and water management
FR1: Forest resources improvement and protection
SE1: Socio-economic and extension research

89
Including agri-net and woreda net information and communication technology (ICT)
114
 LR1: Dairy and Meat
LR2: Poultry
LR3: Fishery and aquaculture
LR4: Camel research and development
LR5: Range and water resources development
LR6: Apiculture and silkworm
LR7: Animal health
AE1: Agricultural extension and TVET90

The proposed CAADP Ethiopia national programmes are referred as national with the
assumption that all stakeholders will be abided with the CAADP Ethiopia framework, and the
programmes will be the cost centers whereby any other projects and interventions financed by
treasury or external sources will be registered under them. Put differently, in the context of the
proposed CAADP Ethiopia programmes, the rationale behind the notion of national programme
is that, the Federal or Regional State governments‟ level actors in the agriculture sector, are to
conceive development programmes as indicated in Table 9.1 while the solicitation of funds can
still take the existing approach explained above. Each programme can have several sub-
programmes further classified by interventions and activities as deemed necessary for Planning,
Monitoring and Evaluation (PM&E) purposes. A programme can be implemented by one or
more than one institution at Federal and/or Regional State governments. Besides, a programme
may contain elements of policy and strategy that are broad based and shared with other
programmes.

90
During the CAADP/AGP Joint Workshop held at Adama German Hotel-Nazreth, June 1-5, 2009 it was mentioned
that TVET may become by itself a programme.

115
Table 9.2 Programme configuration under discussion in MoARD
Sr. No Directorate/programme description
1 Animal and plant health regulatory
2 Agricultural extension
3 Agricultural investment support
4 Agricultural marketing
5 Natural resources management
6 Early warning and response
7 Food security coordination
8 Planning and programming
9 Procurment, finance, and property administration

Table 9.3: Agriculture Sector programmes Configuration Comparison: CAADP Vs

MOARD Suggetion
Ethiopia CAADP Programme Sub-Programme
Pillar
Pillar I: Improve Natural NR1: Land administration and planning
natural resources Resources NR2: Integrated Watershed management
management and Management NR3: Forest development, conservation , and
utilization utilization

Pillar II: Improve Agricultural MM1: Agricultural Inputs Supply and Marketing
rural infrastructure, Marketing MM2: Agricultural Inputs and products Quality
market access and Control and standards
trade capacities MM3: Warehouse Receipt and Credit Facility
MM4: Agricultural Products Marketing Promotion
MM5: Agricultural Marketing Information System
MM6: Cooperative Marketing
MM7: Rural-Urban Linkage
MM8: Agriculture and Food Marketing and Price
Policy Research
Pillar III. Enhance Animal and FD3: Animal and plant health services and regulatory
food security and plant health
improve disaster risk services and
management regulator
Early warning FD5: Disaster Risk Management
and response
Food security FD4: Food security
Pillar IV: Improve Agricultural AE1: Agricultural extension and TVET
the agricultural extension
research and service
extension system

116
9.2.3.3 Scale- up
In addition to identifying CAADP Ethiopia national programmes, the ToR of this study requires
the identification of national programmes or components of a programme which should be scaled
up. Table 9.2 presents the programmes to be scaled up on the basis of the four indigenized
Ethiopia CAADP pillars.

Table 9.2 programmes or components of a programme to be scaled up by pillar

Pillars Scale-up91
Pillar I. • In NR1-Sustainable land administration and use specifically land
certification
• In NR2- Small scale irrigation development
Pillar II • In MM4-Support the commercial agriculture emergence, expansion
and growth
• In MM5-Public private partnership (PPP)
• In MM6-Micro and small scale enterprises banks, micro-finance
institutions, and cooperative banks in pastoral and agro-pastoral areas
Pillar III. Crop
• In FD1- seed production
• In FD3-seed regulatory
• In AE1:
– Management of acid and saline soils
– Management of Vertisol
Livestock
• In FD2 and AE1-Artificial Insemination (AI) service

As it has been briefly indicated above scaling up refers to expand or intensify the implementation
of a particular programme or an intervention within a programme at a national level or to
undertake the implementation that was under a particular sector in a multi-sectoral approach. For
example, one of the interventions identified for scaling up is the AI service. Currently this
service is a cost center by itself but in the CAADP Ethiopia framework it is recommended to be
part of the newly proposed agricultural extension and ATVET national programme.

Land certification: It is expected to continue as one of the interventions within the land
Administration and planning national programme. In order to improve land tenure security, the
Regional States began a process of providing “simple” temporary landholding certificates,
known as the first stage certification process. In this stage, farmers receive temporary certificates
with no geo-referencing or mapping of land parcels. Through this process land certificates were
issued to 6.3 million households out of a total target of 13 million rural households in the four
major Regional States–Amhara, Oromia, Tigray, and Southern Nations, Nationalities, and
Peoples (SNNP). The Government‟s target is to provide Stage 1 certificates to the remaining 6.7
million households and to scale up for a successful 1 million households land administration

91
The notion of scale-up in this study takes the notion of up-scaling which is used in a recent study by SNV (2008).
This notion has three dimensions in up-scaling a programme: from regional to national coverage, inclusion of other
sectors and intensifying support for the sectors.

117
pilot issuing permanent certificates, with geo-referencing and mapping of individual land
parcels. This is also recommended as one of the CAADP scaling up intervention. .

Small-scale irrigation development: MoARD and BoARDs are expected to engage in all size
irrigation schemes to promote efficient and effective use of water for agriculture purposes.
Construction of irrigation schemes could be multi-institutional. Large- and medium- scale
irrigation schemes are the responsibilities of MoWR and small-scale irrigation schemes are that
of BOWRs. At present there is an extensive work in the area of integrated watershed
management in terms of small-scale irrigation scheme development. In areas where such
schemes have been promoted, agricultural practices are diversifying and as a result the farmers‟
income and their living standard are improving. This needs more support and scaling up using
appropriate water harvesting technologies including the promotion and supply of regular and
treadle pumps as appropriate.

Scale up the support for commercial agriculture emergence, expansion and growth. The
high growth performance of the agriculture sector, above 10% annual growth rate of AGDP, is
attained mainly because of governments increased spending in the biological and chemical (seed
and fertilizer) and institutional support services that cater for stakeholders‟ agriculture of the
country. This being a superb achievement for additional gains in performance large-scale
commercial agriculture emergence, and growth should be enhanced via appropriate support,
specifically by availing this sub-sector to procure, own and use the necessary capital tools.
Agriculture is still far behind from being modern and mechanized, hence, while what was started
in transforming small holders traditional agriculture towards modern market oriented agriculture,
supports to large-scale commercial agriculture with investment support packages similar to what
has been done in the flower industry should be given for individuals coming up with sound and
feasible projects both in annual and perennial crops production which may cater the domestic
and export market.

Public private partnership (PPP) should be scaled up and strengthened with prior set
guidelines for agricultural investment areas and the promotion of the same either as private or
joint venture investment undertakings. The PPP strengthening strategy should be inclusive of
NGOs, CSOs, donors and CBOs and all should be partners in the context of clearly established
and institutionalized agricultural development programmes of the country.

Scale up micro and small scale enterprises banks, micro-finance institutions, and
cooperative banks in pastoral and agro-pastoral areas: One important area of intervention
that needs to be scaled up in all areas but especially in pastoral areas is the financial system. At
present since there is a favorable policy on the financial system, rural financial institutions have
become operational in many parts of rural Ethiopia. The strategy is in place to expand rural
financing systems (banks, micro-finance institutions, and cooperative banks), aimed at catering
the needs of micro and small scales enterprises as well as small resources poor farmers.
However, financial institutions that cater the pastoral need, whose delivery system is geared to
the pastoral way of life and community structure of the people living in the pastoral areas, are yet
to be established. This has to be scaled up and if possible by encouraging the Mobile Banking
System with an initial experience exchange effort with that of Kenyan Commercial Bank.

118
Seed production and regulatory activities: These are components of the crop development and
the animal and plant health regulatory services, respectively. As it was reported in the earlier
chapter there is a huge excess demand for improved seed, particularly hybrids. This gap needs to
be narrowed with an aggressive seed production scale up interventions that promote the
production both in the public and private sector including the smallholders. One of the factors
contributing to existing shortage is the limitations of producing basic seeds. Currently in case of
maize it is only the Bako ARC of ORARI which is producing the basic seed of hybrid maize and
distributing the same throughout the country. This has to change with a well conceived and
planned scale up intervention.

Parallel to this the government has to scale up its seed regulatory activities. During the
discussions with various stakeholders‟ malpractices in the improved seed business seems to be
rampant and hence needs urgent scaled up intervention.

Management of acid, saline soils, and Vertisol: In recent years the Ethiopian Agricultural
Extension System both at Federal and Regional level is expanding with the promotion of new
packages. Besides, the establishment of ATVET and FTCs has helped for wider adaptation of
improved biological and chemical technologies. Although the services in this regard has to
continue with increased coverage, special emphasis has to be rendered for scaling up of the
management of acid and saline soils, as well as management of Vertisol. The nation is losing
previously cultivable land due to the former and it is not exploiting its potential in agriculture in
the latter. Hence, the scaled up interventions in these two intervention areas is highly timely.
Furthermore such interventions should be part of the integrated watershed management
approach.

Scaling up the AI service: Both RDPS and PASDEP state that livestock productivity and
production can be increased through breed improvement, feed resources development, and
animal health care. Breed improvement can be achieved through selection and cross-breeding.
The technological instruments for breed improvement include AI and embryo transfer. The latter
requires skilled manpower and expensive equipment, while the former is a simple technology
which is currently practiced in the country. But at present there is one national AI center in Addis
Ababa with sub-stations at Assela (Oromiya); Wolayita (SNNPRS), Bahir Dar (Amhara
Regional State), and Mekelle (Tigray). However, semen is only produced at the national AI
center and the sub-centers get their supplies from this center. Given the rising demand for the AI
service it seems producing and supplying only from one national center is becoming a constraint.
Hence the capacity of the sub-centers has to be scaled up to a level of full-fledged regional AI
centers capable of semen collection, processing and distribution.

9.2.4 Institution
Need to institutionalize and promote land administration. As reported in section five of this
report there is no significant rural land administration and utilization activity at the Federal level.
However, the Regions on the other hand, have had varying approaches to providing for the
institutional set-up for this purpose. Hence, there is a need to institutionalize and promote land
administration at the Federal level.

119
Establish a Systematized Information exchange: Exchange of information among federal and
regional institutions is one of the major weak linkages. During discussions with different
stakeholders, the information flow at all levels is based on personal relationship. There is hardly
a systematized and institutionalized information exchange between Federal, Regional or for that
matter between Regional and Woreda levels. Hence, measure has to be taken to establish a
systematized information exchange that is footed in the modern ICT system.

Formalize Linkages among Partners: In the agriculture sector the partners of development are
several, Federal Ministries and Agencies, Regional State Governments Bureaus and Agencies,
NGOs, CSOs, CBOs, and bilateral and multi-lateral donors. There are hardly formal linkages
that are governed with agreed and signed working procedures among these partners. At Federal
level the linkages among Ministries and Agencies are smooth but mostly informal. Federal and
regional level activities are not also systematically linked and institutionalized although there is
no magnificently observed problem that has jeopardized the implementation of development
interventions. Linkage between MoARD and MoTI in the area of export promotion, information
exchange and documentation need attention. Some NGOs are being blamed for not having
coordinated development interventions even in a given woreda. The influence of CSOs in
Ethiopia‟s agriculture and rural development policy formation and implementation is
insignificant and requires stimulation. Donor communities have their own way of working
amongst themselves, say in the established DAG framework, and RED&FS, but again the
differences and similarities are not clearly set. Some NGOs may join these groups but at large
the NGOs have also their own association such as CRDA. But all NGOs are not also a member
of this association. Such groups as well as Federal and Regional State governments‟ have no
formal linkage with CSOs. In general, all these development partners need to work under a
known procedure and system if they all are interested to contribute to the development of
Ethiopia‟s ARD sector.

Review the Research, Extension and Development (RE&D) System: In spite of governments
support and increasingly funded agricultural research, yet research has not been able to
sufficiently address the problems and constraints of the agriculture sector. Specifically the
livestock sub-sector has suffered from inadequate technology generation and transfer. Inadequate
vertical and horizontal collaboration among research institutes and weak research extension
farmers‟ linkage tended to the woreda level appears to be some of the institutional challenges
contributing to the lack of effectiveness in the RE&D chain. Besides, in the existing RE&D
system the pastoral and agro pastoral issues are not adequately covered. Hence, it is timely to
review the RE&D system putting the agro-ecology and integrated approach into perspective.

Revisit the Status of the Ethiopian Seed system. Improved seed as a national strategic
agricultural input needs emphasis with its complexity starting from production up to marketing
distribution and use. In cognizant of this, quality control and the integration and working
relationship among public and private research, development and multiplication agencies have
become vital to facilitate the production and supply of improved seeds to the farming
communities. However, this relationship falls short of the desired level of integration and
coordination and as a result there is lack of adequate quality control measure, and excess demand
for improved seeds. Furthermore, the system is not giving a fair competitive ground for ESE.
ESE is at a cross road of being a profitable parastatal and a non-profit making development

120
supporting enterprise of the government functioning with controlled prices and protected labour.
Besides, the linkage between the ESE and the emerging Regional SEs like the one of Oromia
need to be clear not only in the marketing sphere but also in the use of sole basic and pre-basic
seed suppliers such as Bako ARC in the case of hybrid maize. In general, the system should be
reassessed in terms of organizational and relational aspects so that all actors can work closely i.e.
the public, private sector dealers, CSOs, specifically the newly organized Seed Association,
NGOs, development partners as well as those enterprises working in the seed business but
located in neighboring countries.

Strengthen linkage among quarantine, standard and quality control institutes: Agricultural
inputs quarantine, standard and quality control both in crop and livestock agriculture calls for a
strong linkage among relevant institutions such MoARD‟s Animal and Plant Health Regulatory
Directorate, Agricultural Marketing Directorate, Revenue and Customs Authority, Private input
producers and traders. As appropriate CSOs, particularly those established within the agriculture
sector should come in a formal linked institutional arrangement in order to address national
issues of agricultural inputs and outputs quarantine, standard and quality issues.

Review the use of the warehouses under the warehouse receipt and credit programme by ECX:
Warehouse receipt and credit and the ECX are timely undertakings but the linkage between the
two in practices needs reexamination. There is no harm if ECX use the warehouses for
commodities that are traded through the exchange system. However, this should not deter the
focus of using the warehouse receipt and credit system for the many small holders who are
subject to unreasonable price deals at times of harvest but critical cash needs. They should be
receiving the service adequately and timely to keep their produce in the warehouse system even
if they are not trading through the exchange facility.

Smoothen the constructed irrigation facilities transfer to developers and end users: The
linkage between MoARD, MoWR, BoARD and BoWR on irrigation infrastructure construction
and use needs a reexamination. While those responsible to construct medium and large scale
irrigation infrastructure are MoWR and BoWR, there is no clear and institutionalized linkage
between them and MoARD and BoARD in terms of transfer of the physical infrastructure and
the work to be done jointly till the actual targeted beneficiaries are in use of the facility. The
reexamination should include the assessment and recommendation of how to repair and maintain
existing facilities.

Review the institutional arrangement to coordinate PAP areas development interventions: The
Government of Ethiopia has given a high priority for the wholestic development of the PAP
areas. This is manifested through the establishment of the Pastoral Standing Committee in the
House of Representatives, and Inter-Ministerial Board under the MoFA, and the special
coordination Offices of the PAP areas. Currently, the pastoral institutions located in the different
Federal institutions are not communicating systematically with strong legal base. Each institute
appears to take its own course of action. There is a gap in terms of having a legalized body which
have the mandate to mobilize internal and external resources (fund) and align indigenous
traditional institutions with formal institutions (research centers, Universities, administration etc)
for the purpose of development in the PAP areas. Overall, on pastoral affairs there is a need to
reexamine the role of coordination offices in various ministries and that of the technical

121
committee and also the institutional arrangements to efficiently and effectively implement
development interventions designed at Federal and Regional State Governments levels with a
clear guideline on the implementation of projects financed with internal and external sources.

Render special focus to strengthen the market infrastructure of PAP products: In general, in
terms of marketing there are challenges that impede the smooth transaction of pastoral
commodities. The terms of trade between livestock and grain need to be stabilized to achieve
pastoral food security. Therefore, pastoral grain and feed reserve mechanism need to be created,
with the aim of stabilizing prices of the livestock and grain commodities during hard times. The
animals to be exported are brought from the remotest part of the pastoral areas, usually by
trekking. Tracking routes and resting areas are not well developed in the pastoral areas, and the
animals lose weight by the time they reach the secondary market. The other challenge is the lack
of market information and networks on the comparative advantage of the pastoral commodities.
Because of these factors and additional factors like ban of the livestock import (Trade ban), and
natural calamities (drought, flood, etc), the pastoralists engage in illicit cross- border trading.
Illicit cross-border trade could be minimized by strengthening the domestic and foreign market
system through the establishment of export abattoirs, networked with PAP structure; quarantine
and inspection stations, and strengthening both non mobile and mobile veterinary services.

Enhance the capacity development interventions: Despite the GoE efforts to build the
capacity of Federal and Regional institutions92, capacity gap remains still as a serious one in its
entire dimension, i.e. human resources, working premises, equipment, machinery, furniture and
other facilities. It has been noted that the good intentions of BPR are being challenged by the
practical absence of the needed capacity in Federal and Regional program implementing
institutions. At Regional and Federal levels, in most research and training institutes there are
problems of getting adequate trained and educated staff. The problem is even severe at the grass
root, specifically at woreda levels. Most of them have no adequate and appropriate offices,
equipment and furniture. It is also important to note the deficiencies that exist at ATVET and
FTC levels. These are two core institutional arrangements that have contributed positively to the
recent achievements of high growth rate in the agriculture sector. Recently the government also
commissioned a study to re-orient ATVETs from the training of DAs to a broader agriculture
sector support giving institutions in a multi dimensional way. However, these institutions‟
requirements in terms of human resources and facilities are wanting. FTCs still need additional
capacity strengthening interventions. They rarely have furniture and the minimum facility to
provide training to farmers. Same is true in terms of reorienting and strengthening ATVETs to
produce skilled and trained agriculturalists as well as serve as a center of promotion for
improved agricultural services.

92
The GoE has gone further to the extent of setting a separate Ministry of Capacity Building.

122
 BIBILOGRAPHY

ASARECA. Harmonization of Seed Policy and Regulations in Eastern and Central Africa:
The Ethiopian Seed Industry Study, 2001, Uganda

Awuor, Thomas. Review of Trade and Markets Relevant to Food Security in the Greater
Horn of Africa: A special report by the Famine Early Warning Systems Network (FEWS
NET). USAID, June 2007.

Beruk Yemane. Natural Resource and Environmental Management Considerations and

Climate Healing Steps in Ethiopia: MDGs and Pastoral Developments: Opportunities and
Challenges in the New Ethiopian Millennium. Pastoral Form of Ethiopia, 2007

CSA. Agriculture Sample Survey from 2000 -2008, Addis Ababa, Ethiopia

Demese Chanyalew. Agricultural Policy and Farm Price Support in Ethiopia. Commercial
Printing Enterprise, Addis Ababa, 2004.

Demese Chanyalew. A New Paradigm for Agricultural Water Development and

Management: Analyzing Ethiopia‟s Position in Africa. Proceedings of the 10th Annual
Conference of the Agricultural Economics Society of Ethiopia, Addis Ababa, May 2008.

Deininger, Klaus, Songqing Jin, Berhanu Adenw and Samuel Gebre-Selassie. “Mechanisms
for Land Transfer in Ethiopia: Implications for Efficiency, Equity and Non-Farm
Development.” Ethiopian Journal of Economics, Vol. X, No.1 Aril 2001

DFID. Pro Poor Growth Briefing Note 2. How to Accelerate Pro Poor Growth: A Basic
Framework for Policy Analysis, September2004.

ECA. Land Tenure systems and their Impacts on Food Security and Sustainable
Development in Africa,. Addis Ababa, 2004

ELTAP. Pastoral and Agro-Pastoral land Tenure and administration Study. Addis Ababa.
2008

Eshetu Bekele. Status of Extreme Poverty and Hunger in Pastoral Areas of Ethiopia, in the
Proceeding of the 4th National Conference on Pastoral Development in Ethiopia, Pastoral
Forum of Ethiopia, Addis Ababa, Ethiopia.2007

Ethiopian Institute of Agricultural Research (EIAR) “As is and to Be” documents of

Livestock, Crops, Soil and Water Management, and Forest Management., EIAR, Addis
Ababa, Ethiopia. 2008

Ethiopian Seed Enterprise. Annual Reports of ESE, Addis Ababa,

Ethiopia. 2000-2008

123
Ethiopia: Rural Investment Climate Assessment. Concept Note May 30, 2006

Ethiopia Commodity Exchange (ECEX) Project.

EREDPC. Ethiopian Rural Energy Development and Promotion Center Integrated Rural
Energy Development Strategy, Addis Ababa, Ethiopia, 2004

Ethiopia: The Path to Self -Resiliency. Condensed Report (Draft), Prepared for CHF-Partners
in Rural Development, May 2007

Ethiopian Society of Animal Production (ESAP). Livestock Production and the

Environment- Implications for Sustainable Livelihoods: Proceedings of the 7th Annual
Conference of the ESAP, Addis Ababa, Ethiopia, 2000

ESAP. Pastoralism and Agro-Pastoralism: Which Way Forward? Proceedings of the 8th
Annual Conference of ESAP, Addis Ababa, Ethiopia, 2001

Ethiopia Economic Association (EEA). Report on Ethiopian economy: EEA, 2000Addis

Ababa, Ethiopia, 2005.

EEA/EEPRI. “Land Tenure and Agricultural Development in Ethiopia.” Ethiopian Economic

Association/Ethiopian Economic Policy Research Institute, Addis Ababa, Ethiopia, 2002.

EPDRF. Feature of Ethiopian Economy: New Vision, a Publication of the 7th EPDRF Annual
Conference, Hawassa , Ethiopia (Text in Amharic), 2008.

FAO. Working paper No.16. Integrated Natural Resources Management to Enhance Food
Security. Rome.

FAO. Pastoralists in the marginal areas of the horn of Africa. Some development issues,
Rome, May 2000.

Federal Democratic Republic of Ethiopia (FDRE), Ministry of Agriculture and Rural

Development (MoARD). Horn of Africa Consultation on Food Security: Country Report
Ethiopia. MOARDAddis Ababa, Ethiopia, May 2007.

FDRE, Ministry of Finance and Economic Development (MoFED). Rural Development

Policies and Strategies. Addis Ababa, Ethiopia, 2003

FDRE/MoFED. Sustainable Development and Poverty Reduction Program (SDPRP), Addis

Ababa, Ethiopia, 2002

FDRE. Ethiopia: Building on Progress- A Plan for Accelerated and Sustained Development
to End Poverty (PASDEP) (2005/06-2009/10).” MOFED, Addis Ababa. 2006.

124
FDRE/MoFED. Building on Progress: A Plan for Accelerated and Sustained Development to
End Poverty Annual Progress report 2005/06

FDRE/MoFED. Millennium Development Goals Need Assessment: The Rural Development

and Food Security Sector in Ethiopia, Addis Ababa, Ethiopia, 2004.

FDRE. Rural Capacity Building Project. Draft Project Implementation Manual Main Text,
October 2006

Food Security Strategy (FSS, Addis Ababa, Ethiopia), 2002

Future Agricultures. Intensification of Smallholder Agriculture in Ethiopia: Options and

Scenarios., March 2006

FDRE. Constitution of the Federal Democratic Republic of Ethiopia. Federal Negarit Gazeta.
1st Year No. 1. Addis Ababa, 21st August 1995.

FDRE. Rural Land Administration and Use Proclamation. Proclamation No. 456/2005.
Federal Negarit Gazeta. 11th Year No. 44. Addis Ababa, 15th July, 2005.

FDRE. Rural Development Policy and Strategies (RDPS). MOFED, Addis Ababa, 2003.

FDRE. Industry Development Strategy (Nehasse 1994 E.C.), Addis Ababa,2003.

FDRE. Implementation Capacity Building Strategy and Programmes (Yekatit 1994 E.C.)
Addis Ababa.

FDRE/MoARD. Productive Safely Net programme Implementation Manual, August 24,

2004.

FDRE/MoARD, Ethiopian Commodity Exchange (ECEX) Project, Project Description, July

6, 2006.

Federal Cooperative Commission and Livestock Marketing Authority. Dairy Market

Development project in Addis Ababa and Nearby Area Addis Ababa, Ethiopia, January,
2004.

Gete, Z., P.Trutmann, and Aster, D. (eds), Fostering New Development Pathways:
Harnessing Rural-Urban Linkages (RUL) to Reduce Poverty and Improve Environment in
the highlands of Ethiopia. Proceedings of Planning Workshop on Thematic Research Area of
the Global Mountain Program (GMP) Held in Addis Ababa, Ethiopia, August 29-30, 2006b.

Gezahegn Ayale, Steven Were Omamao, and Eleni Gabre-Madhin (eds.). The State of Food
Security and Agricultural Marketing in Ethiopia. Proceedings of a Policy Forum Jointly
Sponsored by the Ethiopian Development Research Institute (EDRI) and the East Africa

125
Food Policy Network of the International Food Policy Research Institute (IFPRI). Ghion
Hotel, Addis Ababa, Ethiopia, May 15-16, 2003.

ILRI. Strategy 2010: Making the Livestock Revolution Work for the Poor. ILRI 2000,
Nairobi, Kenya

Institute of Development Studies. Ethiopia‟s Productive Safety Net Program (PSNP)-Trends

in PSNP Transfers within Targeted Households. Final Report, Sussex, UK. Indak
International PVT L.C., Addis Ababa, Ethiopia, 10 August 2006

Irish Aid- Ethiopia. Migration and Rural-Urban Linkages in Ethiopia. Case Studies of Five
Rural Two Urban Sites in Addis Ababa, Amhara, Oromia, and SNNP Regions and
implication for policy and development practices, June 2006

John Pender and Dawit Alemu. Determinants of Smallholder Commercialization of Food

Crops: Theory and Evidence from Ethiopia., June 2007

John Smith and Alemayehu Reda. FEDR, Livestock Marketing Authority Livestock Market
Information system for the Borana Zone of the Oromia Region Liben Zone of the Somali
Region, by, Chemonic International, Addis Ababa, October 2000

MoARD. Livestock Master Plan Study, 2008

Ministry of Agriculture. National Livestock Development Program. Addis Ababa ,Ethiopia.

1997.

Ministry of Agriculture and Rural Development (MoARD). Livestock Breeding Policy and
Strategy (Amharic Version), 2008.

MoARD. Livestock Development Master Plan Study. Phase-I Data Collection and Analysis:
Policy and Institutions. Vol T, Addis Ababa Ethiopia, 2007

MoARD. Pastoral and Agro-Pastoral Land Tenure and Administration Study. Volume I and
II., Addis Ababa, Ethiopia. 2008

MoTI/MoARD. The Implication of WTO‟s Agriculture, Sanitary and Phytosanitary

Agreements on Ethiopia‟s Relevant Sectoral Economic Policies, Strategies and Laws. A
Study Report Prepared by the Agriculture Sub-Committee, November, 1999 (Un-published).

MOFED and the United Nations Country Team. “Millennium Development Goals Report
Challenges and prospects for Ethiopia,” volume, MainText, Addis Ababa March 2004.

MOFED and the United Nations Country Team. “Millennium Development Goals Needs
Assessment: The Rural Development and Food Security Sector in Ethiopia, Addis Ababa, December
2004.

126
Ministry of Water Resources (MoWR). Water Sector Strategy, Ministry of Water Resources,
Addis Ababa, Ethiopia, 2001

MoWR. Water Sector Development Program, 2002-2016, Addis Ababa, Ethiopia.

MoNRDEP. Ethiopian Forestry Action Program. Addis Ababa, 1994

MoWR, EARO, IWMI, ILRI,. Integrated Water and Land management research and
Capacity Building priorities for Ethiopia, Addis Ababa, 2002

National Animal Health Service Strategy (Amharic version).MoARD, Addis Ababa,

Ethiopia, 2005.

Organization for the Economic Cooperation and Development. Promoting Pro Poor Growth.
Pastoral Area Development Study (PADS), Volume 1-9, PFE 2006

Rainbow Management and Development Consultants. PSNP Implementation Capacity

Enhancement Requirement of Four Regional States., March 2006

Royal Netherlands Embassy-SNV Netherlands Development Organization-Irish Embassy.

BOAM Support to Business Organizations and their Access to Markets in Ethiopia, 2005-
2010, Mid Term Review, Final Report 15th April 2008. Prepared by Teklu Kidane, Woody
Maijers, and Hans Posthumus, April 2008.

Regional Land Management Unit (RELMA), “Assessment of Competence Gaps in Linking

Agricultural Production with Value Adding and Marketing: The Ethiopia Case. (Unpublished
Final Report). By Demese Chanyalew and Demissie G/Michael, Addis Ababa, Ethiopia,
February 2005.

Rwanda IFPRI Discussion paper 00689. Agriculture Growth and Investment Options for
Poverty Reduction in, January 2007

Siseraw Dinku Institutional Scan of Governmental and Donors Agencies Involved in Rural
Development in Ethiopia, February 2003

SLE. Market-Driven Development and Poverty Reduction: A Value Chain Analysis of Fresh
Vegetables in Kenya and Tanzania. SLE Publication Series, January 2008

Small Scale Producers in Modern Agri-food Markets. Recovering Markets, April 2007

Sustainable Utilization of Natural Resources for Improved Food Security (SUN-Program).

Gender Study, January 2008

Tesfaye Kumsa, Zegeye Yigezu, and Itana Ayana. Livestock Resource Potentials:
Constraints and Opportunities for Intervention by Private Sector, Chamber of Commerce and
sida ,Addis Ababa, Ethiopia. 2008

127
Tesfaye Teklu, “Rural Lands and Evolving Tenure Arrangements in Ethiopia: Issues,
Evidence and Policies.” Discussion paper 10, Forum for Social Studies, Addis Ababa,
Ethiopia, 2003.

USAID. Review of Trade and Markets Relevant to Food Security in the Greater Horn of
Africa Special Report by the Famine Early Warning System Network (FEWS NET), June
2007

USAID, SC, FIC, Tufts University. Milk Matters: A Literature Review of Pastoralist
Nutrition and Programming Responses. Kate Sadler, Carol Kerven, Muriel Calo, Michael
Manske and Andy Catley, February 2009.

Wageningen International. Farmers, Seeds and Varieties: Supporting Informal Seed Supply
in Ethiopia., 2008,

World Bank. Pastoral Community Development Project II (Adaptable Program Lending).

May 5, 2008

World Bank. Ethiopia Agriculture and Rural Development Public Expenditure Review
1997/98- 2005/06. February 2008

World Bank. Well-being and Poverty in Ethiopia. The Role of Agriculture and Agency, June
18, 2005

World Bank. Are There Lessons for Africa from China‟s Success against Poverty? Policy
Research Working Paper 4463. The World Bank Development Research Group Office of the
Director, January 2008

128