Agricultural Growth Programme - Agri-Learning Ethiopia · Agricultural Growth Programme –...

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Agricultural Growth Programme – Agribusiness Marketing and Development Project (AMDe), Ethiopia MID-TERM EVALUATION REPORT February 2015 This publication was produced at the request of the United States Agency for International Development. It was prepared independently by Tufts University. The authors of the report are John Fox, Amare Ghizaw, Amdissa Teshome and Nigussie Alemayehu. Agriculture Knowledge, Learning, Documentation and Policy Project (AKLDP), Ethiopia

Transcript of Agricultural Growth Programme - Agri-Learning Ethiopia · Agricultural Growth Programme –...

  

Agricultural Growth Programme – Agribusiness Marketing and Development Project (AMDe), Ethiopia

MID-TERM EVALUATION REPORT

February 2015

 

  

 

 

 

 

 

 

 

 

 

This publication was produced at the request of the United States Agency for International Development. It was prepared independently by Tufts University. The authors of the report are John Fox, Amare Ghizaw, Amdissa Teshome and Nigussie Alemayehu.

Agriculture Knowledge, Learning, Documentation and Policy Project (AKLDP), Ethiopia

  

AgriculturalGrowthProgramme‐AgribusinessandMarketDevelopment(AMDe)Project,EthiopiaEXTERNALMID‐TERMPERFORMANCEEVALUATIONREPORTUSAIDContractNumber:663‐13‐000006AgricultureKnowledge,Learning,DocumentationandPolicy(AKLDP)ProjectImplementedby:FeinsteinInternationalCenterFriedmanSchoolofNutritionScienceandPolicyTuftsUniversityAfricaRegionalOfficePOBox1078AddisAbabaEthiopiaTel:+251(0)11618014www.agri‐learning‐ethiopia.orgDisclaimerTheviewsexpressedinthisreportdonotnecessarilyreflecttheviewsoftheUnitedStatesAgencyforInternationalDevelopment(USAID)ortheUnitedStatesGovernment.

  

ContentsExecutiveSummary.........................................................................................................................................i 1.  Introduction.............................................................................................................................................1 1.1  Ethiopia’sagriculturesector....................................................................................................................1 1.2  FeedtheFutureandAMDeinContext..................................................................................................1 1.3  TheMid‐TermEvaluation..........................................................................................................................2 1.4  Methodology....................................................................................................................................................3 

2.  EvaluationFindings..............................................................................................................................3 2.1Progressmadeundereachofthefourmajorresults..........................................................................4 Result1:ImprovedCompetitivenessoftheValueChains.....................................................................4 Result2:ImprovedAccesstoFinanceandInvestment.......................................................................10 Result3:ImprovedEnablingEnvironment..............................................................................................11 Result4:StimulateInnovationandInvestment.....................................................................................13 

2.2  Improvementsingenderequity...........................................................................................................14 2.3  Improvementsinnutritionaloutcomes............................................................................................15 2.4  Effectiveresourceuse..............................................................................................................................16 2.5  Projectdesignandmanagement..........................................................................................................18 2.6  Sustainability...............................................................................................................................................19 2.7  Management.................................................................................................................................................21 

3.  Recommendations...............................................................................................................................21 AnnexesAsetofAnnexesweresubmittedasaseparatedocumenttothemainreportasfollows:Annex1StatementofWorkAnnex2EvaluationTeamMembers–CurriculumvitaeAnnex3ConflictofInterestformsAnnex4WorkplanAnnex5BibliographyAnnex6ListofplacesvisitedandpeopleinterviewedAnnex7ToolsusedListofTablesTable1: AverageyieldincreasestoDecember2014Table2: ValueofincrementalsalesattributedtoFTFinterventionsTable3: ProgressagainstindicatorsandLOPtargetsforResult1Table4: Policies,regulations,administrativeproceduresbytheirstagesofdevelopmentTable5: InnovationgrantsawardedbyregionTable6: InnovationgrantsawardedbyvaluechainTable7: Incentive‐basedwomenmembershipdriveTable8: NumberofjobscreatedListofFiguresFigure1: NumberofclientsbenefitingfromfinancialservicesFigure2: BudgetusebyvaluechainFigure3: IllustrationofthecollaborativemechanismsbetweenFTFpartners

  

AcknowledgementsTheEvaluationTeamwishestothankthestaffoftheAgribusinessandMarketDevelopment(AMDe)Projectforprovidingmonitoringreportsandrelateddocumentation,answeringquestions,arrangingmeetingswithimplementingpartnersandbeneficiariesintheregionsandAddisAbaba,andcommentingonthedraftMid‐TermEvaluationreport.

TheEvaluationTeamalsowishestothankthestaffoftheAgricultureKnowledge,Learning,DocumentationandPolicy(AKLDP)ProjectfortheirinsightsintoEthiopia’sagriculturesectorandtheirsupportinfinalizingtheMid‐TermEvaluationreport.ThanksalsotoTuftsUniversityAfricaRegionalOfficestaffintheAddisAbabaofficefortheirlogisticalandadministrativesupport.Inparticular,theEvaluationTeamwouldliketoexpresstheirthankstoFasilYemane,TsionFisseha,YemiserachWoldearegay,andTewabaKehinet.

TheauthorsaregratefultoAdrianCullis,ChiefofParty,AKLDP,fortechnicaleditingofthedraftreport.

Finally,theEvaluationTeamwishestothankthemanyrepresentativesoffederalandlocalgovernment,theAgricultureTransformationAgency,industryassociations,FederalCooperativeAgency,FarmersCooperativeUnions,PrimaryCooperatives,andsmallholderfarmers—bothmenandwomen—whogaveoftheirtimesofreelytoattendfocusgroupdiscussionsorbeinterviewedindividually.TheirperspectivesonEthiopia’schangingagriculturalsectorandonthecontributionmadebytheAMDeprojecthavebeenofparticularimportanceinthewritingofthisreport.Thiscooperationnotwithstanding,theviewsexpressedinthisMid‐TermEvaluationarethoseoftheEvaluationTeamandanymistakesormisrepresentationsaretheirresponsibilityalone.NoteonEthiopia’sadministrativestructureKebele—thesmallestadministrativeunitinEthiopia.KililorRegion—consistsofanumberofzones;Ethiopiacompriseseightmainregions.Woreda—equivalenttoadistrictinothercountriesandthesecond‐lowesttieroflocalgovernment.Zone—consistsofanumberofworedas.

  

Acronyms

ACDI/VOCA AgriculturalCooperativeDevelopmentInternational/VolunteerOverseasCooperativeAssociation

AGP AgriculturalGrowthProgramme oftheMinistryofAgricultureAKLDP AgricultureKnowledge,Learning,DocumentationandPolicyProjectAMDe AgribusinessandMarketDevelopmentAMSAP AdvancedMaizeSeedAdoptionProgramATA AgriculturalTransformationAgencyATVETs AgriculturalTrainingforVocationalExtensionTrainersCAADP ComprehensiveAfricaAgricultureDevelopmentProgrammeCASCAPE CapacityBuildingforScalingupofEvidence‐BasedBestPracticesin

AgriculturalProductioninEthiopiaCIAFS CapacitytoImproveAgricultureandFoodSecurityEAB EthiopianApicultureBoardECEA EthiopianCoffeeExportersAssociationECX EthiopianCommodityExchangeEGTE EthiopianGrainTradeEnterpriseEHBPEA EthiopianHoneyandBeeswaxProducersandExportersAssociationEIAR EthiopianInstituteofAgriculturalResearchENGINE EmpoweringNewGenerationstoImproveNutritionandEconomic

OpportunitiesEthiopiaProjectFAO FoodandAgricultureOrganization(UN)FCA FederalCooperativeAgencyFCU FarmersCooperativeUnionFTF FeedtheFutureStrategyoftheUnitedStatesGovernmentGoE GovernmentofEthiopiaGRAD GraduationwithResiliencetoAchieveSustainableDevelopmentHa Hectare(10,000m2)LMD LivestockMarketingDevelopmentLOP LifeofProjectM&E Monitoring&EvaluationMoA MinistryofAgricultureMoI MinistryofIndustryMoT MinistryofTradeMT MetricTonnesMTE Mid‐TermEvaluationM4 Membership,Money,Management,andMarketingAssessmentNGO Non‐governmentalOrganizationPC PrimaryCooperativePIF PolicyInvestmentFrameworkPMP PerformanceManagementPlanPSNP ProductiveSafetyNetProgrammePRIME PastoralistAreasResilienceImprovementthroughMarketingExpansionP4P PurchaseforProgressRuSACCO RuralSavingsandCreditCooperativeSLMP SustainableLandManagementProjectSM4M SellMoreForMore(atrainingmodule)SNNPR SouthernNations,Nationalities,andPeoples’RegionSoW StatementofWorkUSAID UnitedStatesAgencyforInternationalDevelopmentUSG USGovernmentVC ValueChainWALN WomaninAgribusinessLeadershipNetwork

  

WASH Water,Sanitation,andHygieneWFP WorldFoodProgramme (UN)ZoI ZonesofInfluence

ExecutiveSummaryThisExternalMid‐TermEvaluation(MTE)oftheUSAIDEthiopiaMission‐fundedAgriculturalGrowthProgram—AgribusinessandMarketDevelopment(AMDe)Projectwascarriedoutintwophases,NovemberandDecember2014andJanuary2015.TheScopeofWorkwasdevelopedbyUSAIDandaddressedbyateamofthreeconsultants—aninternationalteamleaderandthreelocalconsultants.Duringthereview,theEvaluationTeamvisited26AGPworedasinEthiopia’sfourmainregions,interviewing215individualsfrom66organizationsthatincludedtheMinistryofAgriculture(MoA)—atfederalandlocallevel—localgovernment,industryassociations,privatesectorbusinesses,FarmersCooperativeUnions(FCUs),PrimaryCooperatives(PCs),smallholderfarmers—menandwomen—andAMDestaff.

TheAMDeisfundedthroughUSAIDEthiopia’sFeedtheFuture(FTF)programwithabudgetofUSD50million.1LaunchedinJune2011,theAMDeisfundedforfiveyears,withanenddateofMay2016.ThereviewfindingscovertheperiodfromthelaunchtoDecember31,2014,orthreeandahalfyears.ItisplannedthattheAMDewillreachonemillionsmallholderfarmers.ThisMTEwasdelayedpastthemid‐point,withtheresultthattheAMDehas15monthsofimplementationleftfollowingthesubmissionofthefirstdraftreportinMarch2015.Thisisunfortunate,astheperiodinwhichadjustmentscanbemadeisrathershort.Forthisreason,therecommendationssectionincludesasub‐sectionofrecommendationsforafollow‐onproject.TheAMDeisalignedwiththeMoA’s,AgriculturalGrowthProgram(AGP),2fundedbytheGovernmentofEthiopia(GoE)togetherwiththeWorldBank,Canada,Netherlands,Spain,andtheFoodandAgricultureOrganizationoftheUnitedNations(FAO)3andsupportedtechnicallybytheAgriculturalTransformationAgency(ATA).4TheAMDeimplementsAGP’sComponent1,sub‐component1.3:MarketandAgribusinessDevelopment.KeyfindingsTheMTEreviewfindingsaregenericandspecific.Atthegenericlevel,theEvaluationTeamwelcomesUSAID’sengagementinEthiopia’shigh‐potentialagricultureareas,includingthatthissupportisalignedwiththeMoA’sAGP.Inthisway,USAIDissupportinggovernmenteffortstobalancedevelopmentinvestmentacrossEthiopia’sthreemainagro‐ecologicalareas:highrainfallareas,lowrainfallareas,andthepastorallowlands.TheAGPisimplementedinEthiopia’shighrainfallareas,whicharedependentonmono‐modalkiremtrains5andasinglemehergrowingseason.

Ethiopiahasmadesubstantialprogressinrecentyears,withpercapitaincomerisingtoUSD570,6and2.5millionpeoplehavebeenliftedoutofpoverty(usingapovertythresholdofUSD1.25perday).Whilethesegainsareimpressive,Ethiopiaremainsoneofthepoorestcountriesintheworld,andpercapitaincomesremainroughlyhalfoftheregionalaverageUSD1,257.Nationalpercapitaincomesarethereforeinthetenlowestglobally.Also,becauseofEthiopia’shighpopulationgrowth,theabsolutenumberofpoorremainsunchangedoverthepast15yearsataround25million.7

                                                            1USAIDEthiopia’sFTFportfolioisvaluedataroundUSD270millionoverfiveyears.Itisimplementedin154ZoneofInfluenceworedasthatarehometoanestimated17millionpeople.2TheAGPisimplementedin96woredas(AGP2willbeimplementedin157woredas)andstructured:Component1—Agricultureproductionandcommercialization,withsub‐componentsoninstitutionalstrengtheninganddevelopment,scaling‐upgoodpractice,andmarketandagribusinessdevelopmentComponent2—RuralInfrastructureDevelopmentandManagement,withsub‐componentsonsmall‐scaleagriculturewatermanagementandmarketinfrastructuredevelopment.TheprojectisledbyaCoordinationUnitatfederalandregionallevelsandisguidedbySteeringandTechnicalCommittees.3TheAGPisestimatedtocostaboutUSD265million,ofwhichUSAIDprovides19percentthroughAMDeandLivestockMarketingDevelopment(LMD)projects.4TheATA—AgriculturalTransformationAgency,www.ata.gov.et.5ThesinglekiremtrainsofJunetoSeptemberandtheassociatedmehergrowingseason.6InternationalMonetaryFund2014.7PovertyandGrowthinEthiopia(1995–2011),MinistryofFinanceandEconomicDevelopment,2013.

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TheagriculturesectorplaysacentralroleintheEthiopianeconomy—45percentoftotaloutputand80percentofallexports—andthelivesandlivelihoodsofanestimated13millionsmallholderfarmerandpastoralhouseholds,ornearly80percentofthenationalworkforce.Agriculturegrowthratesoveradecadehavebeenimpressive,8andtheresultismorelandbeingfarmedandincreasesinproductivityperfarmedarea.Productivityincreasesaretheresultofpublicinvestment9—inputs,roads,agricultureextension—andpublicpolicyreformrelatedtolandtenure.Despitetheprogressmade,morewillneedtobedonetostrengthenthecapacityofEthiopia’sextensionservices,buildstrongerlinksbetweenresearchinstitutionsandfarmers,andimproveaccesstoinputs—seeds,fertilizersandagro‐chemicalsforplantprotection.Therearealsobothinfrastructureandpolicy‐relatedchallengesinagriculturemarketing.Finally,despitetheincreaseintheamountoflandundersomeformofirrigation,10Ethiopianagricultureisprimarilyrain‐fedandthereforesubjecttothevagariesoftheweather.

TheAMDewaslaunchedinJune2011andbecamefullyoperationalin2012.TheAMDehasthereforebeenoperationalforthe2012,2013,and2014meherseasons.Withinthesethreeseasonsandthereforelearningcycles,theEvaluationTeamfindstheAMDehasperformedexceptionallywellinsomeareas,lesswellinothers,andhasyettoaddresssomeissuesthatareofimportance.ProgressineachoftheseareasispresentedinthisMid‐TermEvaluation.Overall,theEvaluationTeamfindstheAMDehasperformedwellandhasthepotentialtoachieve“highperformance”overtime.Thisisimpressive,withintherelativelyshortperiodofimplementationandEthiopia’sdiverseandcomplexagro‐ecology,farmingsystems,andagriculturesectorinstitutionalandpolicyenvironment.TheEvaluationTeamfindsitofstrategicimportanceforUSAIDtofundafollow‐onphase.

Toacceleratelearning,analysis,anddocumentationandidentifyevidence‐basedgoodpracticethatcanbetakentoscale,theEvaluationTeamfindsthattheFTFZoIshouldbesmallerandmorefocusedandthatAMDeinterventionsshouldbebettersupportedbyotherUSAIDprograms—socialprotection,WASH,nutrition,health,andeducation.Implementedasitis,theEvaluationTeamfindsitunlikelytheAMDewillmakeasignificantcontributiontoFTF’spovertyandstuntingreductionobjectives.TheEvaluationTeamalsofindstheAMDecoulddomuchmoretotargetsmallholderfarmerswithholdingsofonehectareorlessandwomeninagriculture—bothwomen‐headedhouseholdsandwomeninmale‐headedhouseholds—andinthiswaymakeanincreasedcontributiontomeetingFTFoutcomes.

Finally,inthisoverviewsection,theEvaluationTeamfindsthatUSAIDcouldhaveexercisedstrongerleadershiptocontextualizeFTFindicatorstoEthiopia’sagriculturesectorandagro‐ecology.Thiswasnotdone,withtheresultthatAMDestaffhaswastedconsiderabletimeandresourcesmonitoringandreportingonrathermeaninglessindicators,e.g.,grossmarginsperhectare,valueofincrementalsales,andnumberofhectaresunderimprovedmanagement.Importantlyalso,FTFdoesnotrequirethemonitoringofacontrolgroup,withtheresultthatattributionisunclear.11

Movingtothespecific,theEvaluationTeampresentsitsfindingsunderthequestionsintheSoW.KeyQuestion1:TowhatextentistheAMDeProjectprogressingagainstplannedobjectivesasoutlinedinitsperformancemanagementplanandworkplan?Asmentioned,theEvaluationTeamfindssomeoftheFTFindicatorsrathermeaningless.Forthisreason,progressreportedinthissectionshouldnotbeinterpretedasastatementofAMDe'soverallperformancebutratherprogressagainstthecurrentindicators.

                                                            8Officialfiguresrecordagriculturegrowthratesofaround8percent.9Ethiopiaisinvestinganestimated16percentofitsnationalbudgetinagricultureandhasthereforeexceededtheCAADPinvestmenttargetof10percent.AconsiderableproportionofthisinvestmentisthroughtheProductiveSafetyNetProgramme.10EstimatedbytheMoAtobearoundtwomillionhectares,or16percentoftotalcultivatedlandalthoughaconsiderableproportionisallocatedtosugar.11USAIDconfirmsthatanend‐of‐projectevaluationisplanned.Whilethisiswelcomed,theEvaluationTeamconsidersstatisticallysignificantimpactsunlikelyintherelativelymodestperiodofAMDeimplementation.

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Result1:ImprovedCompetitivenessoftheValueChainsForResult1,theAMDetracks13indicatorswithprogressrecordedbyvaluechain.TheEvaluationTeamfindsthat21percentofthevaluechain‐relatedtargetshavebeenfullyachieved,20percentareverylikelytobeachieved,14percentarelikelytobeachievedwithfocusedadditionalsupport,and45percentarethoughtunlikelytobeachieved.Forexample: Thenumberofhectaresundernewtechnology(indicator#1)againstLOPtargetsacross

allcrop‐basedvaluechainsislow.Thissaid,LOPtargetsaremodest,e.g.,thetargetforwheatis12,000ha,andtheseLOPtargetsmaywellbeachievedthroughthecumulativeeffectofAMDefundinginseed,fertilizer,andequipment.

Thenumbersoffarmersbenefitingfromaccesstonewtechnology—seed,fertilizer,andtraining—(indicator#3)againstLOPtargetsarevariable.Forexample,thenumberofbeneficiaryfarmersinthecoffeeandsesamevaluechainshasbeenachieved;thenumberoffarmersinthemaizevaluechainsis57percentoftheLOPtargetandmaybeachieved;butitisunlikelythenumberoffarmersforthewheat,chickpeas,andhoneyvaluechainswillbemet.

Theincreasedvalueofimprovedproductivityandproduction(indicator#4)appearstobeprogressingwell,butcontrastswithprogressreportedunderindicator#1.Asthetwoindicatorsarelinked—thenumberofhectaresunderimprovedmanagementcontributestoincreasedproductivity—theprogressreportedwillneedtobereviewed.

Thevalueofincrementalsales(indicator#6)is96percentoftheLOPtargetandislikelytobeexceeded.

Thevalueofexports(indicator#10)is62percentoftheLOPtargetandmaybemet.Result2:ImprovedAccesstoFinanceandInvestmentSpecifically: Thevalueofagriculturalandruralloanstarget(indicator#14)hasbeenexceeded. Thenumberofclientsbenefittingfromfinancialservices(indicator#18)is60percentof

theLOPtargetandmaybemet.Result3:ImprovedEnablingEnvironmentForexample: Thesevenpolicies/regulations/administrativeprocedurestargetsareprogressing:Stage1:Analyzed(seventargetsmet)Stage2:Draftedandpresentedforpublic/stakeholderconsultation(fourtargetsmet)Stage3:Presentedforlegislation/decree(twotargetsmet)Stage4:Passed/approved(twotargetsmet)Stage5:Passedforwhichimplementationhasstarted(zerotargetsmet)

TheEvaluationTeamfindstheprocessassociatedwiththeselectionofthesevenpolicyissuestoberobust,includingtheengagementofmulti‐sectoralplatforms.However,theEvaluationTeamisconcernedthatsomeoftheselectedpolicytargetsappeartoduplicatepolicychangetowhichtheMoAisalreadycommittedthroughtheAgricultureSectorPolicyInvestmentFramework(2010–2020),whileothersappearoverlyoptimistic.TheEvaluationTeamalsofindsthatFTFpolicyworkcouldhavebeenbettercoordinated.Result4:StimulateInnovationandInvestmentForexample:

TheAMDehasdisbursedUSD11.6oftheplannedLOPtargetofUSD14.2million(indicator#22)andisthereforewellontracktomeettheLOPtarget.

KeyQuestion2:Towhatextenthasthisprojectcontributedtogenderequityintermsofaccesstocredit,capacity‐buildingsupport,improvedinputsandtechnologiesresultinginanincreaseinsalesofagriculturalcommodities?Arethereevidencessupportingpositivechangesintheaforementionedareas?

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TheAMDelaunchedtheWomeninAgribusinessLeadershipNetwork(WALN)12in2014andinthesameyearlaunchedawomenmembershipdrivewiththeFCAresultinginanadditional78,000members(notallnew).AsrecommendedbytheAMDebehaviorchangeimplementingpartner,themembershipdrivewassupportedbysmallincentives.Whilerespectingthevalueofthisapproach,theEvaluationTeamfindsthecontinueduseofincentivestobeunsustainable.TheEvaluationTeamhoweverfindsbothoftheseinterventionstobeverypositive.

TheEvaluationTeamfindsthatUSAIDgaveinadequateattentiontogenderintheAMDedesignphase,asfouroftheoriginalfivevaluechains13haveastrongexportfocus.Whiletheimportanceofincreasingagricultureexportsisrecognizedasanationalpriority,theEvaluationTeamisremindedthatFTFfundinghasclearpovertyandunder‐nutritionreductiondevelopmentobjectivesandthereforethatFTFimplementingpartnersarerequiredtoaddresspovertyreduction,includingthroughgenderequityandwomenempowermentapproaches.TheEvaluationTeamfindsthatUSAIDmighthavegivenmoreconsiderationtothefactthattheagricultureexportsectorisdominatedbymenandthatincreasedemphasiscouldthereforehavebeengiventovaluechaindevelopmentfordomesticmarketsandthustowomensmallholders,traders,andagro‐processors.USAIDalsodidnotdesignatespecificfundstosupportastronggenderequitycomponent.KeyQuestion3:WhathasbeenAMDe’scontributiontotheimprovementofnutritionalstatusofwomenandchildren?Whatistheevidence?StuntinglevelsinEthiopia,includinginAGPworedas,areamongthehighestintheworldand,asmentioned,acceleratedstuntingreductionisoneoftwoFTFdevelopmentobjectives.Thissaid,nutritionwasnotpartoftheoriginaldesignandnutritiontargetswere“bolted‐on”duringAMDe’sfirstyearofimplementation.Itisperhapsnotsurprisingthatprogressonnutritionismixed:ontheonehand,AMDehascontributedtoimprovednutritionoutcomesthroughthechickpeavaluechaindevelopmentandlaunchofthreechickpeashiro(alocalsauce)products;14ontheotherhand,thenutritioncascadetraining15appearstohaveachievedlittlethatwillbesustainedafterthelifeoftheproject.

Therefore,theEvaluationTeamfindsthatagribusinessandmarketdevelopmentprojectsofferfewrealopportunitiestocontributetoimprovednutritionoutcomes,asopportunitiesfornutrition‐sensitiveagricultureareminimalunlesstheyareanintegralpartofthedesignphaseandlinkedtoawell‐fundedandsupportedagriculturesectorproductionandproductivitycomponent.KeyQuestion4:Whatistheimpactoftheresourcesspent(financialandhuman)andperformancepervaluechain?Whatistherelativevaluegeneratedintermsofproductivityandincomeincrease,employmentgenerationpervaluechaintoresourcesspent?Whichvaluechainshavethehighestreturnsperdollarspent?TheAMDemonitoringappearsweakandattimesprogressreportslackconsistencyandrigor.AssomeofthedatasetslackedconsistencyandUSAIDhadconducteditsown“CostBenefitAnalysis”studyacrossFTFvaluechainsin2014thatprovidedaperformanceranking,theEvaluationTeamdidnotaddressthisquestionindetail.16Inordertoaddressthisquestionfully,theAMDewillneedtocompleteadatacleaningandverificationexercise.

                                                            12ThenetworkhasreceivednationalrecognitionthroughtheJanuary2015NationalConferencethatwasattendedbymorethan100womenentrepreneurs.13USAIDaddedthechickpeavaluechaininthefirstyearofimplementation.14ThroughGUTSAgro‐Industry.15Thecascadetrainingwassupportedwithnutritiontrainingposters,trainingmanuals,acookbook,andothermaterials,whichhavebeenusedbyotherprojects.16ItmaybethatUSAID’sDataQualityAssessment(DQA)teamcouldhelpaddresstheissueofdataconsistency.However,toaddresstheissueofrigorandimpact,mentionhasbeenmadeoftheneedtoundertakemoredetailedstudiesthatincludecontrolgroups.

KeyQuestion5:WhichamongthefollowingAMDe’spartnershipshavebeenthemosteffectiveintermsoftheircollaborationandcoordinationtoimplementAGP‐AMDe?Whichoneshavebeentheleasteffective?Inbothcases,whatiscontributingtothesepartnerships’successandchallenges?TheAMDeworkswithanimpressiverangeofstakeholders:MoA/regionalBureausofAgriculture,MinistryofTrade(MoT),ATA,FederalandRegionalCooperativeAgencies(FCA/RCA),EthiopianInstituteofAgricultureResearch(EIAR)andIndustryAssociations.17TheAMDealsoworkseffectivelywithprivatesectororganizations,internationalandlocalNGOs,andotherFTFimplementingpartners.

TheEvaluationTeamfindsthattheAMDe’sstrongestpartnershipsarewiththeMoA/regionalBureauofAgriculutreBoAAGP,ATA,FCA/RCA,andMoTExportPromotionDirectoratewithwhichitsharesacommonvisionforagribusinessdevelopmentandtheassociatedgrowthofcooperatives.Atanoperationallevel,theAMDeannualworkplansarereviewedandendorsedbyregionalandfederalAGPTechnicalCommittees.Inaddition,USAID,ATA,andAMDehaveforgedatripartitecoordinationplanwithassignedactivityfocalpoints.AlthoughAMDeisdevelopingeffectivepartnerships,theEvaluationTeamfindsthatitwilltaketimebeforeUSAIDandAMDeplayafullandcentralroleinAGPdecision‐making.Inpart,thiscanbeattributedtoorganizationaldifferences—donor‐government,culture,andsalaryandrelatedincentivestructures.TheEvaluationTeamalsorecognizeschallengesassociatedwithUSAID’sparallelfundingarrangementtothepooledAGPfund.Whilerecognizingthechallenges,theEvaluationTeamalsofindsthatparallelfundingoffersopportunitiesforinnovationandtheidentificationofemerginggoodpracticethatcaninformAGPplanningandoperations.ThishasalreadyhappenedwithinthecontextofAMDeandotherFTFprojects.18

Ethiopia’scooperativemovementaggregatesandmarketslessthan10percentofEthiopia’scereals,19withsmall‐scaleprivatesectortradersplayingthemajorroleincerealaggregation,transport,marketing,andprocessing.WhiletheAMDeworkswellwithindustryassociationsandsome500privatesectoractors,commercialfarmers,serviceproviders,traders,andprocessors,theEvaluationTeamfindsthat,inordertoaddresslong‐termissuesofsustainability,theAMDewillneedtoachieveabetterbalanceofsupportbetweencooperativesandprivatesectoractors,withaparticularemphasisonsmall‐andmedium‐sizedbusinesses.20

TheEvaluationTeamfindstheAMDeworkswellwithotherFTFimplementingpartnersatfederalandregionallevels,butastheAMDedeploysfewfieldstaffatworedalevel,thequalityofpartnershipinevitablytailsoffatworedaandcommunitylevel.TheEvaluationTeamhoweverfindsthatUSAIDcouldhavedonemoretoforgeacoordinatedandbetter‐integratedFTFportfolio,includingthatwherepossibleUSAIDimplementingpartnerssupportthesamecommunities,andtheopportunityforsynergyismaximized.KeyQuestion6:Whichofthecomponentsand/orprojectactivitiescaneasilybescaledupinthefuturebasedonmeasurable,practical,andsustainableresults?TheAMDeiswellestablishedinthefourAGPregionsandacrossthesixvaluechains.InviewoftheAMDe’sstrongmarketingfocus,theEvaluationTeamalsofindsthattheprojectisdoingimportantandstrategicworktoaddressproductivityissuesthroughitsimprovedseeds,blendedfertilizers,andcropprotectionworkthatissupportiveofotherAGPsub‐components.

TheEvaluationTeamfindsAMDe'strainingandcapacity‐buildingworkonpost‐harvestmanagement(threshing,winnowing,cleaning,storage,andpestcontrol),aggregation,andthemarketingofagriculturalsurplusestobeofprimaryimportance,inparticularwherethe

                                                            17EthiopiaApicultureBoard,EthiopiaHoneyandBeeswaxProducersandExportersAssociation,EthiopiaPulsesOilSeedsandSpicesProcessersandExportersAssociation,andtheEthiopiaCoffeeExportersAssociation.18Engine—mainstreamingapproachesinnutritionandGRAD—mainstreamingvillagesavingsandloansapproaches.19Cerealsaccountformorethan60percentofallarablecroppinginEthiopia.20TheAMDepointsoutthatcooperativemembershipcanhelpsmallholderswithaccesstoinputs,information,training,andfinanceandthatthegovernmentiscommittedtoincreasetheeffectivenessandmarketingandcapacityofcooperatives.TheAMDealsonotesitsM4CapacityAssessmentcarriedoutinsummer2014documentedincreasedcapacityinhalfthecooperativeunions.

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beneficiariesarepoorersmallholderfarmers—withlessthanoneha—andthereforeplannedFTFbeneficiaries.TheEvaluationTeamisalsoinformedbylessonslearnedbytheAGPthatone‐off,short‐termtraininghaslimitedimpact.21Learningfromthis,theAMDeshouldreviewitstrainingandcapacity‐buildingworkandchannelresourcestofewerPCs,FCUs,22andprivatesectorpartnersinorderthatalltrainingscanbesupportedbyfollow‐upvisits,impactassessments,and,asappropriate,refreshertraining.

TheEvaluationTeamlearnedthatcereal,honey,andsomepulsepricesaretypicallyhigherinEthiopiathanontheinternationalmarkets.23Whilerecognizingthatincreasingagricultureexportsisanationalpriority,theEvaluationTeamisconcernedthatAMDe’sfocusonexportsmaywellultimatelybenefitlargercommercialfarmersmorethanthesmallerandpoorerfarmerswhoareFTFprimaryplannedbeneficiaries.TheEvaluationTeamthereforefindsthatadditionalconsiderationcouldbegiventodevelopingvaluechainsfordomesticmarkets,whicharemoreaccessibletopoorersmallholdersandPCUs,astheyobviatetheneedforachievingexportstandardproduction,aggregation,cleaning,andmarketing.

TheEvaluationTeamfindsthatAMDebusinessmanagementtrainingsupportforcooperativestobeeffective,inparticularwhereitisintegratedintobroadercapacity‐buildingwork.TheEvaluationTeamalsofindsthisworkcouldbemainstreamedthroughtheArdaitaCooperativeATVET,24OromiaRegion,whichprovidessimilartrainingandcapacity‐buildingsupporttoPCsandFCUsinthatpartofOromia.BypartneringwithArdaita—includingasappropriatetheAMDeinvestingfurtherincapacitybuildingofArdaitaitself—theAMDecanminimizeduplicationandaddresssustainabilityissues.25

TheEvaluationTeamfindsthatAMDe’sgrantworkiswidelyappreciated.GrantshavehassupportedtheconstructionofEthiopia’sfirstblendedfertilizerplant,warehouses,andimprovedinputsupply.TheEvaluationTeamfindsthatthegrantworkshouldbecontinued,withanincreasedfocusonsmall‐andmedium‐sizedbusinesses.TheEvaluationTeamhaslearnedthattheAMDesupporttoFCUsforwarehouseconstructionhasbeenreplicatedandthatitisproposedthattheAGP2willconstruct135additionalwarehouses,storage,andgradingfacilities.26TheEvaluationTeamfindsthattheAMDeshouldcompleteitsexistingcommitmentsandthereafterdisengagefromfundingwarehouseconstruction.

TheEvaluationTeamrecognizestheAMDe’ssupporttocooperativestoimprovecreditratingsandsecureloansfrombanksandRuralSavingsandCreditCooperatives(RuSACCOs).TheAMDeissupportingWorldFoodProgramme’s(WFP)P4Pinitiativethroughthedeliveryof32,898mtofmaizefrom13FCUs.TheEvaluationTeamfindsthisapositiveintervention,asmaizefarmgatepricesarevolatile.Toaddresstheissuesofvolatilitysustainably,however,theEvaluationTeamfindsthatAMDe'smaizemarketingsupportforsmall‐andmedium‐sizedprivatesectortradersshouldbecontinued.KeyQuestion7:Giventhefindingsabove,doestheProjecthavetherightbalanceofstaffandfunding?Isthereanappropriatebalancebetweentheresources(staffandbudget),theirmanagement,andtheactivitiestheprojectintendstoaccomplish?TheAMDeemploys81full‐timestaffand19part‐timeorpooledstaff(64menand36women).ThepooledstaffincludestheDeputyChiefofPartyOperationsandseniorfinance,HR,administration,andsupportstaffwhoaresharedwithotherACDI/VOCAprojects(AMDefunds70percentofthesestaffsalaries).TheEvaluationTeamfindstherelationshipbetweenAMDeandsomeofthepooledstaffisunclearandwouldbenefitfromclarification.

                                                            21WorldBank,2015.22Perhapsasfewas50FCUs.23Thepriceofwheat,forexample,inEthiopiaatthetimeoftheMTEwasnearlytwiceworldprices.Thedomesticpriceofhoneywasalsoconsiderablyhigherthanthepriceontheworldmarket.24TheCooperativeSectorDevelopmentStrategy(FCA,2012),developedwiththesupportofATA,identifiesArdaitaasapotential“centerofexcellence”forcooperativedevelopment.Whilenotcentrallylocated,itisplannedthatthecenterwillestablishbranchesinotherregionsandoperateasa“collegewithoutwalls.”25DuringtheEvaluationTeam’svisittoArdaita,itwaslearnedthattheAMDehadvisitedoncebutwithoutfollow‐up.26WorldBank,2015.

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AlmosthalfoftheAMDe'sstaffisbasedinAddisAbaba.27Inordertoconsolidateprogressandensuresustainability,increasedattentionneedstobegiventostaffAMDe'sworkintheregions.RecommendationsRecommendationforResult1#1:TheAMDecontinuestoworkonthesixvaluechainsinordernottodisruptprojectimplementationduringtheremainderoftheproject,butgivesincreasedfocustoincompleteResults: Wheat—productivityandvalueadditionthroughprocessing Maize—productivity,includingopenpollinatedvarieties,improvedpost‐harvesthandling,cleaning,storage,anddiversifyingdomesticmarketoutlets

Coffee—post‐harvestlossreductionandqualitystandards Sesame—post‐harvestlossreductionandprocessing Chickpeas—domesticandnichemarkets(Sudan,forexample)forthecurrentlyusedvarieties

Honey—productionandproductivitythroughthedistributionofimprovedequipment,includingmodernbeehivesandtrainingandequippingofbeekeepersandnewbeekeepers

RecommendationforResult2#2:ContinueandstrengthenAMDe'sengagementinagriculturesectorfinance,inparticularcapacitybuildingforcooperativesandsmall‐scaleprivatebusinessestodevelopbusinessplans,28negotiatewithbanks,andimproveaccountingandauditingsystems,butwithafocusonfewerpartners.RecommendationforResult3#3:RecognizetheneedtoworkmorecloselywithotherFTFimplementingpartnersincludingtheAKLDP.29WithFTFpartners,forgeacommon,integrated,andcoordinatedapproachtoagriculturesectorpolicywork.RecommendationforResult4#4:Reducethefocusongrantsfornewpartnersandconsolidatethecapacityofexistingpartnerstoimproveimpactandsustainability.Recommendationsforgenderequity#5:Continuetosupportwomenempowerment,includingwomenmembershipofcooperatives—thoughdiscontinuetheuseofincentives—andWALN,withincreasedemphasisonwomen‐ledfamilyagribusinessesintheregions.Setasidefundingforgenderequitywork.#6:DocumentAMDe’sworkwithwomeninTigrayandSNNPRegionsandsharewithFTFprojectswithinandbeyondEthiopia.Recommendationfornutrition#7:HandoverthenutritionworktoENGINE.Recommendationsforimprovedcollaboration#8:Continuetostrengthenpartnershipswithkeystakeholders,inparticularregionalBoAAGPteams,ATAAgricultureCommercializationClusters,andRegionalCooperativeandIndustryAssociationOfficestoacceleratetrainingandcapacitybuildingofregional,zonal,andworeda                                                            27ThisfigureincludesAMDe’sOromiaRegionstaffwhoarebasedinAddis,astheirregionalcounterpartsintheOromiaBureauofAgriculturearebasedinAddis.28ThebusinessplanspreparedjointlybyFCUsandAMDeareofahighquality.Forexample,theSidamaEltoFCUbusinessplansecuredloansofEthBirr7.6millionin2013,EthBirr14.4millionin2014,andEthBirr6.35millionin2015.29TheAKLDPprojectprovidesagricultureknowledge,learning,andpolicysupporttoUSAID’sFTFportfolio.

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staffinagriculturemarketingthatincludescomponentsontheprivatesectoranditspotentialroleintransformingEthiopianagriculture.Ensurethatalltrainingandcapacitybuildingisfocusedandanintegralpartofaholisticcapacity‐buildingapproach.#9:CollaboratewithATAandFederalCooperativeAgency(FCA)todevelopasinglePC/FCUCertificationsystemthatintegratesandharmonizesaccreditationcriteria.Recommendationsforscalingup#10:SupporttheMoAandATAtoimproveproductivitythroughtheimproveddistributionofcertifiedseeds(withaminimum60percentopenpollinatedvarieties),blendedfertilizer,credit,andextensionsupport.#11:ContinuetosupporttheWFP‐P4Pinitiativebutcontinuetostrengthenanddeveloplinksbetweensmallholderfarmergroupsandresponsibleprivatesectortraders.Recommendationsformanagement#12:RecruitanorganizationalchangeexperttoreorientateAMDestaffing,specificallyincreasedsupportfor:farmerlevelproductionandproductivity;30domesticmarketdevelopment;andgender.ClarifytheresponsibilitiesoftheAMDeandACDI/VOCApooledstaffandasappropriatemovestafftotheregions.#13:RecruitanM&EspecialisttoimproveAMDeM&Ecapacity.Ensureallprojectdataarecleanedandthatincreasedconsiderationisgiventoprojectoutcomesandattribution,aheadofthefinalevaluation.#14:StrengthenAMDe’scapacitydevelopmentworkto15percentoftheYear5projectbudgettobuildthecapacityofpriorityPCsandFCUsandbetterequipthemtocontinueworkstartedwithAMDe.Tosupportthisreorientation,completeallwarehouseconstruction‐relatedcommitmentsandsubsequentlydisengagefromwarehouseconstruction.#15:IncluderepresentativesfromtheMoAandpossiblytheMoTandMoIinthefinalevaluation.Generalrecommendationsforafollow‐onprojectTheEvaluationTeamrecommendsthatUSAIDprovidefollow‐onfundingforaminimumofanotherfiveyearsandthereforewelcomesUSAID’scommitmenttofundAGPComponent4:AgricultureMarketingandValueChains,sub‐componentd—strengtheningofselectedlivestockandcropvaluechains.Whilewelcomingthiscommitment,theEvaluationTeamrecommendsthatUSAIDsupportforAGPbemorefocusedtoachieveFTFdevelopmentobjectives;specificallythatafollow‐onprogramoperateinasmallerZoIandwithfewerpartners.WithintheseZoI,itisrecommendedthat,inadditiontocontinuingtosupportagriculturemarketing,significantincreasedemphasisisgivento:smallholderswithholdingsoflessthanonehectare—perhaps70percentofplannedprojectbeneficiaries;sustainableagricultureproductionandproductivity,includingsoilhealth,landmanagement,andlandtenure;womeninagriculture—women‐headedandwomeninmale‐headedhouseholds;andtheprivatesector,inparticularsmall‐andmedium‐sizedbusinesses.Inaddition,theEvaluationTeamrecommendsthatUSAIDprovidebetterlayeredandsequencedsupportwithinitsZoI,includingsocialprotection,WASH,nutrition,health,andeducation,andthat,throughthisintegratedandcoordinatedapproach,USAIDplayaleadroleinpovertyandstuntingreductionthatwillbereplicatedbyothers.

TheEvaluationTeamfindsthatUSAIDshouldexerciseincreasedleadershiptocontextualizeglobalFTFindicatorsandguideFTFimplementingpartnerstokeyindicatorsthatwilltrackprogresstoaddressEthiopia’spovertyandstuntingchallenges.Specificrecommendationsforafollow‐onprojectinclude:#16:Re‐orientatethevaluechains:handoffcoffeeandwheattotheindustryassociationsandotherdevelopmentpartners,includingasappropriatetheEU,aUSAID‐fundedinnovationlab

                                                            30TheEvaluationTeamiskeentoseethattheUSAIDEthiopiaMissionstrengthensitssupportofproductionandproductivityandthereforeachievesamorebalancedagriculturesectorportfolio.TheEvaluationTeamisoftheviewthattheMissionisatpresenttoomarket‐focused.

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projectholder,andATA;buildamoreintegratedapproachtocerealvaluechainsthatincludesmaize,31maltbarley,andsorghum—grownbylargenumbersofpoorersmallholders;expandthehoneyvaluechain—assistinglargernumbersofpoorwomenwithlittleornoland;andintegratechickpeasintoalegumes/pulsesvaluechainfordomesticmarkets—legumesofferimportantsoilhealthandnutritionoutcomes.USAIDcouldthereforesupportthefollowingvaluechains: Cereals—maize,maltbarley,andsorghum Honey—fordomesticmarkets(withanemphasisonwomen) Legumes—fordomesticmarkets

#17:Ensurethatcapacitybuilding,institutionaldevelopment,andgenderarekeycomponentsofafollow‐onproject,areappropriatelyfunded,andaredeliveredwithinaholisticcapacity‐buildingapproach.#18:Reducemanagerialcomplexity—sub‐contracttheproductivity,valuechaindevelopment,aggregation,anddomesticmarketdevelopmentcomponentstospecialistNGOswithaproventrackrecordinEthiopia.Theprojectholdercanthenbetterfocusonmanagement,coordination,monitoring(datacollection,collation,analysis,documentation),learningandchampioningevidence‐basedgoodpractice,includingwithAGP2.Thefollow‐onprojectwouldbeexpectedtoleaveEthiopianinstitutes,organizations,andbusinessesbetterequippedtoleadthetransformationprocessofEthiopianagriculture.

                                                            31Withafocusonopenpollinatedvarieties.

1. Introduction1.1 Ethiopia’sagriculturesectorEthiopiahasmadesubstantialprogressinrecentyears,withpercapitaincomerisingtoUSD570.1Twoandahalfmillionpeoplehavebeenliftedoutofpoverty(usingapovertylineofUSD1.25perday).Whilethisprogressisimpressive,Ethiopiaremainsoneofthepoorestcountriesinworld;percapitaincomesareroughlyhalftheregionalaverageofUSD1,257andamongstthetenlowestinternationally.AsaresultofEthiopia’shighpopulationgrowth,theabsolutenumberofpoorremainsunchangedoverthepast15yearsatabout25million2despiteconcertedeffortstoreducethisnumber.

TheagriculturesectorcontinuestoplayacentralroleintheEthiopianeconomy—45percentoftotaloutputand80percentofallexports3—andthelivesandlivelihoodsofanestimated13millionsmallholderfarmerandpastoralhouseholds,whichisnearly80percentofallemployment.4Ethiopianagriculturecanbecharacterizedunderthreebroadrainfallregimes:highrainfall,moderaterainfall,andthepastorallowlands.TheAGPworedasareconcentratedinthehighrainfallbeltofwesternEthiopiaandareprimarilydependentonthekiremtrainsofJunetoSeptemberandtheassociatedsinglemehergrowingseason.Theprincipalcropsinclude:cereals,pulses,oilseeds,coffee,roots,andtubers—potatoes,sweetpotatoes,cassava,othervegetables,andsugarcane.Growthratesofallcropshavebeenimpressiveoverthelastdecade,duetoacombinationofmorelandbeingfarmed5andincreasesinproductivityperfarmedarea.Productivityincreasesareprimarilytheresultofpublicinvestment,whichis16percentofthenationalbudgetandconsiderablymorethantheCAADP‐recommended10percentbench‐mark.6Investmenthasresultedinimprovedaccesstoinputs,ruralroads,expandedagricultureextensionservices,andpolicyreform,includingcertificationoflandholdings.

Despitetheimpressivelevelofinvestment,moreneedstobedonetoincreasethecapacityoftheextensionservices,includingtoworkacrossdifferentagro‐ecologicalzonesandtostrengthenthelinkbetweenresearchinstitutionsandfarmers.7Progressalsoneedstobemadetowardsimprovingsmallholderfarmeraccesstoinputs—seeds,8fertilizers,andagro‐chemicalsforplantprotection—includingopeningupnewdistributionnetworksthroughsmallagribusinessdealersthatwilladdressthecurrentover‐dependenceoncooperatives.Itisalsowidelyrecognizedthattherearechallengestomarketingthatrelatetopoormarketinfrastructure—aggregationandstorageandmarketcenters—andtradepolicyissuesrelatedtobothdomesticandexportmarkets.Finallyinthissection,despitetheincreaseintheamountoflandundersomeformofirrigation,9Ethiopianagricultureisprimarilyrain‐fedandthereforesubjecttothevagariesoftheweather.1.2 FeedtheFutureandAMDeinContextInformedbytheGrowthandTransformationPlan,2010–2015(GTP),10theMoAlaunchedthePolicyandInvestmentFramework(PIF)2010–2020.11TheAgricultureGrowthProgram(AGP)waslaunchedasa“flagship”projectin2010toincreaseagriculturalproductivityandmarketperformanceofselectedcropandlivestockvaluechainsin96high‐growthworedasinAmhara,

                                                            1InternationalMonetaryFund2014.2PovertyandGrowthinEthiopia(1995–2011),MinistryofFinanceandEconomicDevelopment,2013.3Agricultureexportsincludecoffee,oilseeds,somepulses,andlivestock.4AGPProjectAppraisalDocument,September2010,WorldBank.5Largeareasofcommunalgrazinghavebeenputtotheploughinrecentyears.6ThePSNPis,however,thelargest‐fundedgovernmentprogram,andmostoftheinvestmentisintheformoffoodandcashpayments.7SomeuniversitiesnowrequireMScstudentstoundertakeactionresearchwithsmallholdersinthevicinity.8Inparticular,certifiedseedofthecropsandvarietiesthattheypreferandareappropriatefortheirholdingsandfarmingsystems.9EstimatedbytheMinistryofAgriculturetobearoundtwomillionhectaresor16percentoftotalcultivatedland(althoughaconsiderableproportionisallocatedtosugar).10GrowthandTransformationPlan,2010/11–2014/15,FederalDemocraticRepublicofEthiopia.11AgricultureSectorPolicyInvestmentFramework,2010–2020,MinistryofAgriculture.

Oromia,SNNP,andTigrayRegions.TheAGPisfundedbytheGoE,WorldBank,andbilateraldevelopmentpartners—Canada,Netherlands,Spain,andFAO.TheAGPisalsotechnicallysupportedbytheATA.

TheUSGovernment’sFTFprograminEthiopiaisvaluedatUSD270million.12FTF’sdevelopmentobjectiveistoincreaseeconomicgrowthwithresiliencyinruralareas,specificallytoreducesustainablypoverty13andhunger14throughimprovementsinfoodavailability,access,andutilization.AFTFimplementingpartner,theAMDeisalignedwiththeAGPandsupportstheimplementationofAGPsub‐component1.3:MarketandAgribusinessDevelopment.TheAMDewasfundedinJune2011foraperiodoffiveyearstoJuly2016,withabudgetofUSD50million.ItwasplannedthattheAMDebenefitatotalofonemillionfarmers.

TheAMDedevelopmentgoalis:sustainablyreducepovertyandhungerbyimprovingtheproductivityandcompetivenessofagriculturalvaluechainsthatofferjobsandincomeactivitiesforruralhouseholds.15AMDe'sworkisstructuredaroundimprovingthecompetitivenessofsixvaluechains:maize,wheat,sesame,coffee,honey,andchickpeas16throughtechnicalandmanagerialassistance,increasedaccesstofinance,andprivatesectorinvestment.AMDepartnerswith2,554PCsand251FCUs,withatotalmembershipof1.9million.

Theprojectdesignincludeda12‐monthInceptionPhaseduringwhichtimeACDI/VOCA17hiredstaff,establishedofficesineachoftheAGPregions,refinedtheimplementationstrategy,anddevelopeddetailedworkplans.TheAMDesubmitteditsfirstannualworkplaninNovember2011.Theresultofaniterativeprocess,thefirstworkplanwasapprovedbyUSAIDinMay2012.Follow‐onplansweresubmittedandacceptedwithoutrevisioninOctober2012,July2013,andJuly2014.TheAMDehasthereforebeenoperationalforthreeagriculturecyclesandisabouttoenterthefourth.1.3 TheMid‐TermEvaluationThisMid‐TermEvaluation(MTE)isdelayedwellpastthemid‐termpoint.ThedraftreportwassubmittedinMarch2015atatimewhentheAMDehad15monthsofimplementationremaining.18WhilethereforetheprimarypurposeofthisMTEistoassessprojectperformanceandrecommendadjustmentsduringthelifeoftheproject,theSoW(seeAnnex1)alsorequirestheEvaluationTeamtoofferrecommendationstoinformthedesignofafollow‐onproject.Thefulllistofquestionsincludesthefollowing:

1. TowhatextentistheAMDeprojectprogressingagainstplannedobjectivesasoutlinedinitsperformancemanagementplan(PMP)andworkplan?

2. Towhatextenthasthisprojectcontributedtogenderequityintermsofaccesstocredit,capacity‐buildingsupport,improvedinputs,andtechnologies,resultinginanincreaseinsalesofagriculturalcommodities?Arethereevidencessupportingpositivechangesintheseareas?

3. WhathasbeenAMDe’scontributiontotheimprovementofnutritionalstatusofwomenandchildren?

4. Whatistheimpactoftheresourcesspentandperformancepervaluechain?Whatistherelativevaluegeneratedintermsofproductivityandincomeincrease,employmentgenerationpervaluechaintoresourcesspent?Whichvaluechainshavethehighestreturnsperdollarspent?

5. WhichamongtheAMDe’spartnershipshavebeenthemosteffectiveintermsoftheircollaborationandcoordinationtoimplementAGP‐AMDe?Whichhavebeentheleast

                                                            12Eighty‐fivepercentoftheinvestmentis,however,infivemainprojects:twoimplementedinAGPworedas,oneinpastoralareas,oneinPSNPworedas,andoneaspecialistnutritionproject.13Toreducehouseholdpovertyby30percentintheZoneofInfluencewithinfiveyears.14Toreducestuntingby20percentintheZoneofInfluencewithinfiveyears.15TaskOrderAID663TO11‐00003.16ThiswasaddedinYearOneofimplementationbyUSAIDasPepsiCoexpressedinterestinpurchasingchickpeasfromEthiopia.Thisinfactdidnothappen.17ThePRIMEimplementingagency.18TheprojectwillcloseoutinMay2016.

effective?Inbothcases,whatiscontributingtothesepartnerships’successandchallenges?

6. Whichofthecomponentsand/orprojectactivitiescaneasilybescaledupinthefuturebasedonmeasurable,practical,andsustainableresults?

7. Giventhefindingstothesequestions,doestheProjecthavetherightbalanceofstaffandfunding?Isthereanappropriatebalancebetweenstaffandbudget,theirmanagement,andtheactivitiestheprojectintendstoaccomplish?

1.4 MethodologyTheEvaluationTeamcomprisedaTeamLeaderandthreelocalconsultants19(seeAnnex2—TeamCVs)andcarriedouttheMTEintwophases,mid‐Novembertomid‐December2014andJanuary2015.TheteamwasbriefedbytheAKLDPteamandUSAIDinthefirstweekofthemission.TheEvaluationTeam’sworkplan,alsopresentedfordiscussioninthesemeetings,wasapprovedbyUSAID(seeAnnex4).TheEvaluationTeamreviewedkeydocuments,includingtheprojectproposalandmonitoringandothermajorreports(seeAnnex5–Bibliography).TheEvaluationTeamalsovisited26woredasinAGPregions,interviewed215informantsfrom66organizationsincludingfarmerorganizations,primarycooperatives,farmercooperativeunions,partnerorganizations,industryassociations,andtheprivatesector(seeAnnex6).InterviewswerestructuredusingaguidelinedevelopedbytheEvaluationTeam(seeAnnex7).LimitationsDespiteitsefforts—thereviewofalargeamountofprojectinformationandinterviewingmorethan200informants—theEvaluationTeamrecognizesitslimitations.Forexample,timedidnotallowforadetailedcomparativestudybetweenbeneficiaryandnon‐beneficiaryhouseholds,andthereforeissuesofimpactandattributionhavenotbeenadequatelyaddressed.Timeconstraintsalsoresultedinbiastostakeholdersandactivitiesthatwereaccessiblebyall‐weatherroads.Theshortcomingsaside,theEvaluationTeamisconfidentthatthefindingsandrecommendationareusefulbothintheshorttermandthedesignofafollow‐onproject.2. EvaluationFindingsTheMTEreviewfindingsaregenericandspecific.Atthegenericlevel,theEvaluationTeamwelcomesUSAID’sengagementinEthiopia’shighpotentialagricultureareas,includingthatthissupportisalignedwiththeMoA’sAGP.Inthisway,USAIDissupportinggovernmenteffortstobalancedevelopmentinvestmentacrossEthiopia’sthreemainagro‐ecologicalareas:highrainfallareas,lowrainfallareas,andthepastorallowlands.TheAGPisimplementedinEthiopia’shighrainfallareas,whicharedependentonmono‐modalkiremtrains20andasinglemehergrowingseason.

TheAMDewaslaunchedinJune2011andbecamefullyoperationalin2012.TheAMDehasthereforebeenoperationalforthe2012,2013,and2014meherseasons.Withinthesethreeseasonsandthereforelearningcycles,theEvaluationTeamfindstheAMDehasperformedexceptionallywellinsomeareas,lesswellinothers,andhasyettoaddresssomeissuesthatareofimportance.ProgressineachoftheseareasispresentedinthisMid‐TermEvaluation.Overall,theEvaluationTeamfindstheAMDehasperformedwellandhasthepotentialtoachieve“highperformance”overtime.Thisisimpressive,withintherelativelyshortperiodofimplementationandEthiopia’sdiverseandcomplexagro‐ecology,farmingsystems,andagriculturesectorinstitutionalandpolicyenvironment.TheEvaluationTeamfindsitofstrategicimportanceforUSAIDtofundafollow‐onphase.

Toacceleratelearning,analysis,anddocumentationandidentifyevidence‐basedgoodpracticethatcanbetakentoscale,theEvaluationTeamfindsthattheFTFZoIshouldbesmallerandmorefocusedandthatAMDeinterventionsshouldbebettersupportedbyotherUSAIDprograms—socialprotection,WASH,nutrition,health,andeducation.Implementedasitis,the

                                                            19JohnFox,togetherwithDr.NigussieAlemayehu,Dr.AmareGhizaw,andDr.AmdissaTeshome.20ThesinglekiremtrainsofJunetoSeptemberandtheassociatedmehergrowingseason.

EvaluationTeamfindsitunlikelytheAMDewillmakeasignificantcontributiontoFTF’spovertyandstuntingreductionobjectives.TheEvaluationTeamalsofindstheAMDecoulddomuchmoretotargetsmallholderfarmerswithholdingsofonehectareorlessandwomeninagriculture—bothwomen‐headedhouseholdsandwomeninmale‐headedhouseholds—andinthiswaymakeanincreasedcontributiontomeetingFTFoutcomes.

Finally,inthisoverviewsection,theEvaluationTeamfindstheUSAIDcouldhaveexercisedstrongerleadershiptocontextualizeFTFindicatorstoEthiopia’sagriculturesectorandagro‐ecology.Thiswasnotdone,withtheresultthatAMDestaffhaswastedconsiderabletimeandresourcesmonitoringandreportingonrathermeaninglessindicators,e.g.,grossmarginsperhectare,valueofincrementalsales,andnumberofhectaresunderimprovedmanagement.Importantlyalso,FTFdoesnotrequirethemonitoringofacontrolgroup,withtheresultthatattributionisunclear.21

Movingtothespecific,theEvaluationTeampresentsitsfindingsunderthequestionsintheSoW.2.1ProgressmadeundereachofthefourmajorresultsQuestion1:TowhatextentistheAMDeprojectprogressingagainstplannedobjectivesasoutlinedinitsperformancemanagementplan(PMP)andworkplan?Attimes,theEvaluationTeamfounditdifficulttoconfirmprogressasthequalityoftheprojectdataappearstobeinconsistent.TheEvaluationTeamthereforepresents“bestestimates.”Result1:ImprovedCompetitivenessoftheValueChainsForResult1,progressissummarizedinTable3:ProgressagainstindicatorsandLOPtargetsforResult1.Progressiscolorcodedasfollows: Blue—fullyachievedor100percentoftheLOPtarget Green—verylikelytobeachievedor80–100%percentoftheLOPtarget Yellow—likelytobeachievedbutrequiringadditionalfocusor60–79percentoftheLOP

target Red—unlikelytobeachievedor<60percentoftheLOPtarget Uncolored—notassessed

UnderResult1,theAMDetracks13indicatorsandassociatedvaluechaintargets.TheEvaluationTeamfindsthatAMDehasfullyachieved21percent,anadditional20percentareverylikelytobeachieved,14percentarelikelytobeachievedwithfocusedadditionalsupport,andthatitisthoughtthat45percentareunlikelytobeachieved.Ashasbeenmentioned,however,theEvaluationTeamfindssomeoftheFTFindicatorsrathermeaningless,andthereforethissectionofthereportshouldnotbeinterpretedasastatementofAMDeperformance.Indicator#1:NumberofhectaresunderimprovedtechnologiesormanagementpracticesasaresultofUSGassistanceAttheendofthe2014growingseason,progressagainstLOPtargetsislowacrossallvaluechains:7percentofthe12,000hatargetforwheat,1percentofthe15,670haformaize,and11,20,and36percentforcoffee,sesame,andchickpeasrespectively.AMDestaff,however,suggeststheyareconfidentofmeeting,andinsomecasesexceeding,theLOPtargets,asthetargetsaremodestandAMDesystems—accesstoseeds(maize—BH66122andsesame—Humera‐1andSetit‐1),fertilizer,andequipment—areinplaceasaresultofitsgrantsfacilityandAMDe’s

                                                            21USAIDconfirmsthatanend‐of‐projectevaluationisplanned.Whilethisiswelcomed,theEvaluationTeamconsidersstatisticallysignificantimpactsunlikelyintherelativelymodestperiodofAMDeimplementation.22ThemaizeBH661hybridisbeingpopularizedthroughtheAdvanceMaizeSeedAdoptionProgram(AMSAP)partnershipofwhichAMDeisamember.Whilerecognizingthevalueofincreasingyields,theEvaluationTeamisconcernedtheAMDeisbeingunwittinglypulledintoanarrowfocusonyieldsthatispotentiallyunsustainable,asopenpollinatedvarietiesareoftenbettersuitedtotheneedsofpoorersmallholderfarmersinthemoremarginalareasoftheAGP’sfourmainregions. 

supporttofarmertraining,fielddemonstrations,farmer‐to‐farmerexperiencesharingforums,andexchangevisits.AMDeisconfidentthatthiswillresultinarapidscaling‐upofprogressinthecurrentgrowingseason. TheEvaluationTeam,however,wishestodrawattentiontothecharacterofEthiopianagriculture:13millionsmallholderfarmingfamilies,eachwithtwo,three,ormorescatteredplotsthattypicallytotallessthanahectare.Smallholdersalsoprizecroppingdiversitytomeethouseholdfoodsecurityneedsand(understandablyperhaps)manyareresistanttostandardizedextensionpackagesthatareinvariablydesignedformodelfarmerswithlargerholdingsandforhigherrainfallareas.TheEvaluationTeamthereforefindsthatthisindicatorandassociatedLOPtargetsshouldbebettercontextualized.Indicator#3:NumberofbeneficiariessupportedbyAMDe‐assistedvaluechainsTheLOPtargetsforsesameandcoffeehavebeensurpassed:thetargetof74,980beneficiariesforsesamewasexceededby47,752or164percentandthetargetof110,515beneficiariesforcoffeeexceededby17,963or116percent.Progressacrossothervaluechainshasbeenslower,anditmaybethattheLOPtargetswillbeachieved:23,130oftheplanned286,951beneficiariesforwheator8percent;167,290oftheplanned295,404beneficiariesformaizeor57percent;30,704oftheplanned143,974beneficiariesforchickpeasor21percent;andfinally19,755oftheplanned88,282beneficiariesforhoneyor22percent.23AMDestaffsuggestthetargetsareachievableforreasonsalreadyoutlined.Indicator#4:Averageyieldperhectare/hive(kg)TheLOPtargetsforincreasedyieldsperhectareforwheatandcoffeehavebeenachievedat110and104percentrespectively,andtheLOPtargetsformaize,sesame,andhoneyarelikelytobeachievedwithprogressat95,84,and80percentofLOPtargetsrespectively.TheLOPtargetforchickpeasisunlikelytobeachieved,asprogressis44percentoftheLOPtarget.Again,theAMDestaffisconfidenttargetswillbereachedandsurpassedforthereasonsoutlined.Table1:AverageyieldincreasestoDecember2014Valuechain LOPyieldtargets

(kg/ha)Achievedincreasedyields(kg/ha)

Achievedincreasedyields(%)

Wheat 2,969 3,266 110Maize 3,703 3,517 95Coffee 976 1,015 104Sesame 800 672 84Chickpeas 3,305 1,454 44Honey 15 12 80Source:AbstractedfromprojectPMPreportsWhilerecognizingtheprogressmade,theEvaluationTeamisconcernedthataverageyieldincreasespresentedinTable1areatvariancewiththenumberofhectaresunderimprovedmanagement(Indicator#1).Forexample,thereportedprogressforwheatunderimprovedmanagementis7percentofthe12,000haLOPtarget,yetdespitethisandtheknownimpactofwheatrustin2014,theAMDereportsa110percentincreaseinyield.Inparenthesis,suchanomaliesarefoundacrossAMDe’sprogressreports.Indicator#5:Grossmarginperunitofland/hive(USD)ThetargetLOPgrossmarginsforwheatandsesamehavebeenachievedat101and186percentrespectively,andprogressagainstLOPtargetsformaizeandchickpeasarecurrently86and85percentrespectively.Grossmarginprogressforcoffeeismoremodestat66percentoftheLOPtargetdespitetheprogressmadetoaddressproductionconstraints.TheEvaluationTeam,

                                                            23Thereareanestimated1.5millionhouseholdskeepingbeesinEthiopia.

however,findstheAMDereportingongrossmarginsmisleading,asthereportsdonotaddressattribution.24ItisthereforenotcleartowhatextentAMDeplayedacentralroleinimprovinggrossmarginsortowhatextenttheimprovementsweretheresultofotherprojectsorsimplytheresultofgoodrainfallorEthiopia’sexpandingroadnetworkorimprovementsininputsupply. Toillustratetheproblemofmeasuringgrossmargins,theEvaluationTeamlearnedtheGozamenFCU,Debre‐Markosisholdingseveralthousandsofquintalsofmaizethatwerepurchasedatpricescalculatedonthebasisofproduction.Pricesarenowwellbelowthecostofproduction,andtheFCUisunderstandablyreluctanttopurchasemoremaize.Asaresult,cooperativememberswereforcedtosellmaizetotradersatthecostsofproductionorevenataloss.Accordingtowhenthegrossmarginindicatorismeasured,specificallybeforeorafterpricecollapses,theFTFimplementingpartnercanbeseentobeeitherperformingwellormuchlesswell.Ataminimum,theEvaluationTeamfindsthatgrossmarginsperformancedatashouldbeupdatedmonthlyinordertomoreaccuratelyreflectthecomplexityofthecommoditymarkets.25Indicator#6:Valueofincrementalsalesatfarm‐levelattributedtoFTFimplementationCoffeesaleshavereachedUSD32millionor127percentofplannedLOPtarget.TheLOPtargetsforincrementalsalesofmaizeandsesameappearachievable,asprogressisrespectively87and80percent.Incontrast,thetargetsforwheatandchickpeasareunlikelytobeachieved,asprogressagainsttheLOPtargetsisrespectively20and19percent.SeeTable2below.Hereagain,theEvaluationTeamfindsthisindicatorinadequate,asthevalueofincrementalsalesisprimarilyinformedbyfluctuatingcommodityprices.Accordingly,thetimingofthedatacollectioncanplayasignificantroleinshowingprogressagainstthisindicatorinapositiveornegativelight.Thevalueofincrementalsalesthereforeappearstobeanotherrelativelymeaninglessindicator.Table2:ValueofincrementalsalesattributedtoFTFinterventionsValuechain LOPtargets—

increasedsales(USD)

Actualincreasedsales(USD)

Actualincreasedsales(%ofLOPtarget)

Wheat 9,120,344 1,824,068 20Maize 12,449,951 10,831,457 87Coffee 25,274,365 32,098,443 127Sesame 37,544,955 30,035,964 80Chickpeas 8,403,233 1,596,614 19Honey 1,904,833 1,276,238 67Total 94,697,681 77,662,784 82Indicator#10:ValueofexportsoftargetedagriculturalcommoditiesasaresultofUSGassistanceTheLOPtargetforcoffeehasbeensurpassedat120percentofthetargetorvalueofexportsworthUSD120million.TheLOPexporttargetforsesamewasUSD74million,andexportstodateareUSD46millionor63percent.Thetargetmightthereforebeachieved.Incontrast,itwouldseemtheLOPtargetsforchickpeas26andhoney27willnotbemet.Despitethelimitedprogressmadeunderthisindicatorinthehoneyvaluechain,theEthiopiaBeekeepersAssociationhas,withthesupportofitsdonors,includingAMDe,assistedEthiopiainsecuringInternationalOrganizationforStandardizationaccreditationtoexporthoneytonichemarkets

                                                            24Ingeneral,theEvaluationTeamfindsthattheAMDefailstogiveadequateattentiontoattribution.25Coffeefarmgatepriceshave,forexample,fluctuatedbyasmuchas50percentinjusttwoyears.AtthetimeoftheMTE,domesticwheatpriceswereroughlytwiceinternationalprices.26Ethiopiadoesnotyetproduceexport‐qualitychickpeasforexporttotheMiddleEast.27Thedomesticpriceforhoneyishigherthanexportprices.  

inEurope,includingtheFairTradeoutlets.FormoreinformationonAMDesupporttoTradeAssociations,seeTextBox1.TheLOPtargetsforthisindicatorareinformedbyanexportmarketassessmentcarriedoutbyUSAIDandtheATA.Itwouldappeartheassessmentdidnotadequatelyaddressdomesticandinternationalqualityandpriceissuesthatinevitablyimpactonperformance.BearinginmindthefocusofFTFdevelopmentobjectives,theEvaluationTeamfindsthattheAMDemighthaveperformedbetterifithadbeentaskedtodevelopvaluechainsfordomesticmarketsthatnotonlyaremorecompatiblewithapro‐poorfocus,butarealsolessrisky.Indicator#12:Volumeofprocessedproducts(mt)ProgressagainstplannedLOPtargetsforthevolumeofprocessedproductsisasfollows:honey—79percentoftheplanned1,916mt;coffee—57percentoftheplanned29,627mt;andmaize—52percentoftheplanned19,265mt.Progressforwheatandsesameare20percentoftheirrespectivetargetsandchickpeasonly3percent.ItislikelytheLOPtargetforhoney,coffee,andmaizewillbemet,asgoodprogresswasmadeinYear3whenannualtargetswereexceededby287,224,and121percentrespectively.TheLOPtargetsforwheat,sesame,andchickpeasareunlikelytobemet.Indicator#13:Percentagedecreaseofpost‐harvestlossesasaresultofAMDeinterventionTheplannedreductionsinpost‐harvestlosses:14to9percentforwheat;23to7percentformaize;25to10percentforcoffee;10to5percentforsesame;andfinally20to3percentforchickpeas.Todate,reportedprogressisimpressive:wheatlossesto8percent,maizelossesto11percentandchickpeaslossesto6percent.Incontrast,progressinsesameandcoffeearemoremodest,lossesdownbyonly20and7percentofplannedtargets.TheEvaluationTeam,however,learnedfromleadresearchersthatpost‐harvestlossdatainEthiopiaisprobablyoverstatedandthatlossesaremoremodest.Iflossesareinfactmoremodest,itwillbenecessarytorevisittheAMDebaselineinorderfortheprogressreportedbyAMDetobeverified.

TextBox1:SupporttotradeassociationsAMDeisprovidingsupporttoanumberofindustryassociations:CoffeeExportersAssociation;CoffeeProducersandExportersAssociation;BeekeepersAssociation;HoneyandBeeswaxProducersandExportersAssociation;EthiopiaApicultureBoard;andEthiopianPulses,OilseedsandSpicesProcessersandExportersAssociation.AMDe'sprimarysupportiscapacitybuildingandtechnicalsupport.AMDealsosupportsitspartnerstoattendinternationaltradefairs.AMDe,togetherwithOxfam,SNV,andSOSSahelassistedtheEthiopiaApicultureBoard(EAB)inhostingtheThirdApi‐AfricaInternationalConferencethatwasattendedbyinternationalexpertsandbeekeepersfromalloverAfrica,includingEthiopia.AMDealsoassistedtheEthiopiaBeekeepersAssociation(EBA)tosecureEUaccreditationtoexporthoneytoEurope,asitappearsthatthereisanexpandingmarketforEthiopianhoneyinEurope.

Table3:ProgressagainstindicatorsandLOPtargetsforResult1

IndicatorValuechain

LOPtarget

Cumulative(Years1–3)Year4target

%AchievableTarget Result %

Result%LOP

IR1:ImprovedcompetitivenessofselectedVCs1 Numberofhectaresunder

improvedtechnologiesormanagementpracticesasaresultofUSGassistance

Wheat 12,000 6,017 846 14 7% 7,501 70%Maize 15,670 8,527 106 1 1% 9,984 64%Coffee 3,200 900 362 40 11% 1,380 54%Sesame 3,788 2,252 762.5 34 20% 2,075 75%Chickpeas 21,000 15,822 7,554 48 36% 15,600 110%

3 NumberofbeneficiariessupportedbyAGP‐AMDe‐assistedvaluechains

Wheat 286,951 173,968 23,130 13 8% 72,995 33%Maize 295,440 176,948 167,290 95 57% 74,995 82%Coffee 110,515 70,529 128,478 182 116% 19,994 134%Sesame 74,980 57,984 122,732 212 164% 9,997 177%Chickpeas 143,974 53,997 30,704 57 21% 44,989 53%Honey 88,282 37,292 19,755 53 22% 29,994 56%

4 Averageyieldperhectare/hive(kg)

Wheat 2,969 3,276 110% 2,801 94%Maize 3,703 3,517 95% 3,300 89%Coffee 976 1,012 104% 976 100%Sesame 800 674 84% 775 97%Chickpeas 3,305 1,470 44% 2,754 83%Honey 15 12 80% 15 100%

5 Grossmarginperunitofland/hiveofselectedcrops(USD)

Wheat 822 833 101% 748 192%Maize 648 558 86% 589 177%Coffee 2,453 1,630 66% 2,336 162%Sesame 581 1,079 186% 571 284%Chickpeas 750 636 85% 736 183%

Table3(continued)

Indicator

Valuechain

LOPtarget

Cumulative(Years1‐3)Year4target

%AchievableTarget Result %

Result%LOP

6 Valueofincrementalsales(collectedatfarmlevel)attributedtoFTFimplementation(USD)

Wheat 9,120,344 17,127,039 1,830,662 11 20% 3,500,000 58%Maize 12,449,951 7,665,348 10,817,419 141 87% 2,046,875 103%Coffee 25,274,365 8,074,365 32,129,763 398 127% 5,000,000 147%Sesame 37,544,955 22,236,251 29,951,240 135 80% 9,221,550 104%Chickpeas 8,403,233 1,508,233 1,599,002 106 19% 2,016,000 43%Honey 1,940,883 1,750,079 1,292,527 74 67% 85,684 71%

10 ValueofexportsoftargetedagriculturalcommoditiesasaresultofUSGassistance(USD)

Coffee 63,998,000 37,837,000 76,732,508 203 120% 20,000,000 151%Sesame 74,644,250 38,398,000 46,859,399 122 63% 20,475,000 90%Chickpeas 6,073,807 4,390,337 ‐ ‐Honey 3,520,000 1,373,600 907,211 66 26% 1,000,000 54%

12 Volumeofprocessedproducts(mt)

Wheat 132,582 79,095 25,867 33 20% 37,541 48%Maize 19,265 8,317 10,071 121 52% 3,918 73%Coffee 29,627 7,565 16,944 224 57% 15,617 110%Sesame 171,927 93,335 34,503 37 20% 46,850 47%Chickpeas 36,019 25,107 915 4 3% 8,999 28%Honey 1,916 530 1,519 287 79% 574 109%

13 Percentagedecreaseofpost‐harvestlossesasaresultofAMDeintervention

Wheat 9(14) 8 6 120% 1 200%Maize 7(23) 4 12 75% 3 100%Coffee 10(25) 7 1 7% 3 27%Sesame 5(10) 4 1 20% 1 40%Chickpeas 3(20) 12 14 82% 3 100%

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TextBox2:AMDesupporttoFCUstobuildwarehousesforthesesamevaluechainBasedonarequestfromtheGovernment,USAIDrequestedAMDetoprovidesupporttoFCUsinnorthernEthiopiatosupporttheaggregation,cleaning,andexportofsesame.

TheinitialrecommendedstandardAMDe50percentgrantwasrejectedbytheMoAinfavorofa70percentgrant.Eachofthe4warehousescostsaroundEthBirr9millionorUSD450,000.ThebalanceoftheconstructioncostwassecuredbyloanfromtheEthiopiaCommercialBank,usingthelandcertificateascollateral.Theloansincludedaoneandahalfyearconstruction“graceperiod”andthenrepaymentoverbetweenfiveandeightyears.Todate,repaymentsareontrackandtotal23percent.

Thewarehouseseachhaveacapacityof5,000mt,andAMDehasalsosuppliedsesamecleaningequipmentunderthesamegrantfacility.

Result2:ImprovedAccesstoFinanceandInvestmentOriginally,thisresultwastitledImprovedAccesstoFinance.However,followingthesub‐contractingofRenewStrategies(aprivateequityfirm),theresultwasrenamed,asisindicatedinthesub‐title.Indicator#14:ValueofagriculturalandruralloansThemainactivitiescarriedoutunderthisindicatoraretwofold:tobuildthecapacityandunderstandingofbanksandagriculturesectorstakeholders,resultinginincreasedtrustandinvestment;andtoattractequityinvestorstoinvestinEthiopia’sagriculturesector.ToDecember2014,thisresultedinUSD63million59ofnewinvestment,ormorethan150percenttheLOPtargetofUSD40million.Ananalysisoftheloansconfirmsthat69percentweremadebytheCommercialBankofEthiopia,while16,7,and5percentweremadebytheCooperativeBankofOromia,AwashInternationalBank,andWogagenBankrespectively.Theloansweremadeto76majorrecipientsthatindirectlybenefitedanestimated2,300otherfirmsorPCs.TheEvaluationTeamfindsthisworkofstrategicimportanceinasectorthathashistoricallystruggledtoattractinvestmentfrombanks60andfinancialinstitutionsinEthiopia,withtheresultthatsmallholderfarmers,PCs,andFCUs61havebeenslowtotakeupnewtechnologies.

SomeofthemostsuccessfulinvestmentshavebeentheresultofacombinationofloansandAMDegrants(seeResult4).Forexample,theAMDeprovided70percentgrantstoFCUsfortheconstructionofwarehousesandcleaningequipmentforsesamethatwillincreaseexports.TheAMDestaffalsoworkedwithFCUstodevelopbusinessplansandtheEthiopiaCommercialBank(ECB)thatresultedinthebalanceofthe30percentconstructioncostsbeingcoveredbytheECBasarepayableloan.

Basedonthesuccessofthismodel(seeTextBox2and3),theAMDehasreceivedgrantapplicationsforanadditionalninewarehousesfromFCUsfortheaggregation,cleaning,andstorageofmaize.ThequalityofthenewwarehouseswillenabletheFCUstocompeteforWFPP4Pcontracts.ItisalsoreportedthattheWorldBankissupportingtheconstructionof40morewarehousesacrossthefourAGPregions.

Underthesecondactivity,RenewStrategieshassecuredUSD250,000ofprivateequityfundingforMETADPLC(alocalcoffeevaluechainactor)thathasalsobenefitedfromanAMDegrantofUSD172,000forimprovedstorage,awashingstation,andcleaningequipment.TheAMDeinvestmentteamalsoreportedthatRenewStrategieshasanadditionalUSD2.5millioninthepipeline,withoptionsofanadditionalUSD6million.Whileveryencouraging,itremainstobeseenifthislevelofinvestmentwillberealized.62Indicator#18:Numberofclients(householdsand/ormicroenterprises)benefittingfromfinancialservicesprovidedthroughUSG‐assistedfinancialintermediaries,includingnon‐financialinstitutionsoractors

                                                            59Atthetimeofthefinalizationofthereview,theleveloffacilitatedinvestmenthadincreasedtomorethanUSD80million.60TheEvaluationTeamlearnedthatonly6percentofEthiopiaCommercialBankloansaremadetotheagriculturesector.61ItshouldbenotedthatcooperativesinEthiopiahavehistoricallystruggledtosecurebankloansasaresultofpoorcreditratings.62InvestorscontinuetobediscouragedbythecostofdoingbusinessinEthiopia.

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TheplannednumberofLOPclientsbenefitingfromfinancialservicesis64,520,ofwhich29,080or45percenthasbeenachieved(seeFigure1).ThenumberofplannedbeneficiariesforYear5is17,720,and,providedthisnumberisachieved,theendoftheprojecttotalwillbe46,800,or72.54percentoftheLOPtarget,whichissatisfactory.

TheEvaluationTeamfindsthisindicatorofcentralimportance,asitreflectsthenumberofpeoplebenefitingfromUSGassistanceandisthereforeaproxyforemployment.Inacountrywhereunemploymentisestimatedtobeover17percent63(CentralStatisticsAgency,2014)—andhigherintheagegroup18to25—increasingthenumberofclientsandthereforesupportingthecreationofseasonalandfull‐timejobsisofprimaryimportance.Tofurtherincreasethenumberofclientsandsupportincreasedemploymentopportunities,supportwouldneedtobefocusedonPCsandsmall‐andmedium‐sizedbusinesses.Inordertoensurethisreorientation,theAMDewouldneedtodisengagefromfurthersupportforlargeinfrastructureprojectssuchaswarehouseconstructionafterithasmetitscurrentobligations.Asaresultofincreasinginterestfromotherdevelopmentpartners,includingasproposedthroughtheAGP2,itwouldseemthatFCUsareincreasinglyabletoattractinvestmentforwarehouseconstructionfromothersources.Figure1:Numberofclientsbenefitingfromfinancialservices

Result3:ImprovedEnablingEnvironmentIndicator#21:Numbersofpolicies/regulations/administrativeproceduresimprovedasaresultofUSGassistanceTheAMDecontractedateamofinternationalandlocalconsultantstoundertakea“BusinessEnablingEnvironmentAssessment”thatisinformedbytheWorldBank’s“DoingBusiness”assessmenttools.Inaddition,theseedandfertilizerpolicytargetswereinformedbythePIF.TheAssessmentwascarriedoutin2012andthefindingspresentedtokeystakeholdersinavalidationworkshop.Asaresult,theAMDeidentifiedsevenpolicyprocessesthatitplannedtoinform,withaviewtocreatingamorefavorableenvironmentforagribusiness.TheEvaluationTeamlearnedthatprogressacrossthesevenpolicyprocessesismixed,withgoodprogressmadeinsomeareaswhileslowerprogresshasbeenachievedinotherareas.Thisisperhapsnotsurprising,astheagriculturepolicyenvironmentinEthiopiaisamongstthemostchallenginginsub‐SaharaAfrica.DetailedprogressispresentedintheTable4below.Usingthe

                                                            63Ethiopiameasuresunemploymentasthenumberofpeopleactivelylookingforajobasapercentageofthelaborforcehttp://ieconomics.com/ethiopia‐unemployment‐rate.

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TextBox3:EmbabaHayaRuSACCO,TigrayTheEmbabaHayaRuSACCOwasestablishedinDecember2002with51members(43menand8women),withsavingsofEthBirr1,020.Themembershipincreasedsteadilyto1,109(515menand594women)in2012.WiththesupportofAMDe,membershiphasincreasedfurtherto1,332(620menand712women)in2013,and1,479(690menand789women)in2014.SavingsarenowvaluedatEthBirr5,196,000.

SupportprovidedbyAMDesinceMarch2013includestrainingon: savingsmethodsandmembershipmobilization financialmanagement riskanalysisinsavingmobilization basiccomputing—PeachtreeAccountingSoftware leadership

WiththissupportandAMDe’ssupportforofficeequipment—desktopcomputers,laptop,photocopier,printer,LCDprojector,Sonycamera,chairs,tables,filingcabinet,andfaxmachine—theEmbabaHayahasgraduatedfromaRuSACCOtoaruralbank.

FTFenablingenvironmenttrackingsystem,fourpolicyprocesseshavebeenprogressedtoStage2,onetoStage3,andtwotoStage4.TheEvaluationTeamrecognizesthegoodworkdonetocreateamorefavorableenvironmentforagribusinessbutnotesthattheMoAhadalreadyidentifiedtheneedforseedandfertilizerpolicyreformandthatthesewereprogressingasplanned.Incontrast,AMDeengagementinthewheatsubsidyandmaizeexportbanspolicyprocessesappearoverlyoptimisticinviewofthecomplexityofthepolicyprocesses,thenumberofdifferentgovernmentinstitutionsinvolved,andtheimportancetonationalfoodsecurity.IrrespectiveoftheengagementofJohnMellorAssociatestoleadthewheatsubsidypolicyprocesses,theEvaluationTeamfindsitunlikelythatthesepolicyprocesseswillbeeasilyinformedbytheAMDe,orindeedthatitcouldplayanythingotherthanaminorrole.Rather,theEvaluationTeamfindsthatAMDe’spolicyworkcouldhavebeenbetterinformedbyandcoordinatedwithotherFTFpartners,withthesupportofUSAID.Table4:Policies,regulations,administrativeproceduresbytheirstagesofdevelopmentSpecificpolicytargets Developmentstage* Remark/noteSeedsystemthatsupportsthedevelopmentofaprivateseedindustry

Stage3:Presentedforlegislation/decree

NationalSeedRegulationshavebeensubmittedbyMoAtothePrimeMinister’sOfficeforpassagebyCouncilofMinisters.

Liftrestrictionsforprivatesectorengagementinfertilizerproductionandmarketing

Stage2:Draftedandpresentedforpublicconsultation

TheMoApresentedarevisedpolicyproposalforthere‐launchoftheNationalFertilizerIndustryAgency—dissolvedin2006.

Regulatoryframeworkforthirdpartywarehouseandgrading

Stage4:Passed/approved

APublicEnterpriseWarehouseregulationwaspassedbytheCouncilofMinistersandimplementationwillbeginoncetheRegulationisgazetted.TheregulationwillseparatethecurrentECXtradingandwarehousingsystem.Thiswillbeanimportantfirststeptothirdpartyorprivatesectorwarehousing.

Removalofwheatimportsubsidiesandmaizeexportbans

Stage4:Passed/approved

TheMoTissuedalettertoMoAonNovember22,2014toremovetheexportbanonmaizeforcommercialfarmersandtheEGTE.

ProvisionofaNationalAgriculturalFinancesystemtomeettheneedsofsmallcommercialfarmers

Stage2:Draftedandpresentedforpublicconsultation

Developaninstitutionalstructureforcoffeemarketing

Stage2:Draftedandpresentedforpublicconsultation

Developastrategyfortheimprovedtransportandhandlingofcommoditiestoimprovecompetitiveness

Stage2:Draftedandpresentedforpublicconsultation

Astrategyfortheimprovedtransportandmanagementoffertilizerimportshasbeenpresentedtokeystockholders.Domestictransportcostanalysisisunderway.

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*ThevariousFTFpolicyenablingstagesare:Stage1—Analyzed,Stage2—Draftedandpresentedforpublic/stakeholderconsultation,Stage3—Presentedforlegislation/decree,Stage4—Passed/approved,andStage5—Passedforwhichimplementationhasbegun.Result4:StimulateInnovationandInvestmentThisresultspeaksspecificallytoAMDe'sgrantsupport.ThegrantfundwasestablishedatUSD14.2millionandtoDecember31,2014haddisbursedatotalofUSD11.6millionto240grantees.Grantsaretypicallyaccessedbyeitheracompetitivesolicitationprocessorspecificrequestsfrommulti‐stakeholdervaluechainplatformswithwhichtheAMDeisinvolved.Ashashoweverbeennoted,attimesAMDerespondstorequestsfromtheMoAroutedthroughUSAID.

AMDegrantsarefundedunderacostsharearrangement,withAMDecontributingbetween30and50percent.IndividualgrantsvaryconsiderablyfromaslittleasUSD817totheWirtuKachamaSeedMultiplicationCooperativeSocietyforaSellMoreforMoreTraining—Phase1,tograntsofUSD1.8milliontotheYidnekachewDabessaCoffeePlantationandUSD1.3milliontotheEthiopiaCommodityExchangeforaDigitalTraceabilitySystem.OtherlargegrantsincludeUSD970,000fortheBechoWolisoFCU—forEthiopia’sfirstblendedfertilizerplant—andfivegrantsofUSD198,000forthefivemanagementcontractsoftheblendedfertilizerplants.64Ofthe240grantscompletedorunderprocessofpaymenttoDecember31,only22areaboveUSD100,000,withthevastmajorityaroundUSD50,000.Grantshavebeenawardedtoindustryassociations,cooperatives,RuSACCOs,privatesector,publicresearchinstitutions,andtheEthiopiaCommodityExchange.

Themajorityofgrantswereawardedin2014andbyyearend,9percenthadbeenfullycompleted,61percentwerepartiallycompleted,and2percentwereatthesignaturestage.In‐kindgrantsofequipmentandmachineryaccountedfor28percentofgrants,andallwereunderprocurement.AdditionalanalysisbyregionandvaluechainisprovidedinTables5and6below.Ascanbeseen,Oromiabenefitedfrom88grantstotalingUSD4.7millionor40percentofallgrants,withroughlyhalfthisamountawardedtotheotherthreeregions.GrantstothedifferentvaluechainsvariedfromUSD783,837,or6percent,forhoneyto21percentforsesametosupportalmostanythingfromwarehouseconstructiontoaggregate,clean,andstoresesameforexport,throughtoirrigationequipment,tractors,andseedcleanersforEIARcenterstoincreasethesupplyofbasicseedandwashingstationsforcoffeeexporters.Similarly,PCsandFCUshavebenefitedfrommachinery—seedandgraincleaners,tractors,planters,honeyhomogenizers—andwashingstationsandhaveasaresultbeenabletoexpandtherangeofservicestheyprovidetheirmembers.Grantshavealsobeenusedtosupportcommoninterestgroups—women’scooperativesandwomenentrepreneurs—includingthepurchaseanddistributionofcoffeeseedlings,modernbeehives,andprocessorsforchickpeamilling.Table5:InnovationgrantsawardedbyregionRegion #ofgrants

awardedto‐date

Amountawarded,to‐date(USD)

#ofgrantsawarded2014

Amountawarded,thisyear(USD)

Amhara 47 2,207,141 43 1,406,613Tigray 42 2,044,182 40 1,313,117SNNPR 52 2,196,241 49 2,137,844Oromia 88 4,751,127 81 4,410,354Addis 11 416,506 7 237,719Total 240 11,615,197 220 $9,505,648

                                                            64TheWorldBankfundedtheotherfourblendedfertilizerplants. 

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Table6:InnovationgrantsawardedbyvaluechainValuechain #ofgrants

awardedto‐date

Amountawarded,to‐date(USD)

#ofgrantsawarded2014

Amountawarded,thisyear(USD)

Sesame 36 2,536,228 31 1,030,329Coffee 40 2,178,866 32 1,999,084Chickpeas 32 1,328,039 26 1,079,539Maize 40 1,047,778 40 1,047,778Wheat 58 1,189,210 58 1,189,210Honey 26 783,837 25 608,467Finance 3 461,905 3 461,905Inputs(FertilizerBlending)

5 2,089,335 5 2,089,335

Total 240 11,615,197 220 $9,505,648Intheremaininglifeoftheproject,theEvaluationTeamfindthatitwouldbebeneficialforAMDetocontinuetofocusitsmajoritygrantsupporttoPCsandFCUsontheonehandandfamilybusinessesontheother,withgrantsofbelowUSD50,000andthatreachdownthevaluechaintowardsproductivityandfirst‐levelaggregationorfirst‐levelprocessinginsmallermarkettowns.2.2 ImprovementsingenderequityQuestion2:Towhatextenthasthisprojectcontributedtogenderequityintermsofaccesstocredit,capacity‐buildingsupport,improvedinputsandtechnologiesresultinginanincreaseinsalesofagriculturalcommodities?Arethereevidencessupportingpositivechangesintheaforementionedareas?InaccordancewithGoEpolicytargetsforwomen’sparticipationinEthiopia’seconomic,political,andsocialdevelopment,theAMDeset30percentwomen’sparticipationasaquotaforallAMDe‐supportedtraining,exchangevisits,andinvestmentsupport.65Althoughthefundingwasdelayed,theEvaluationTeamhasidentifiedAMDe’ssupporttothelaunchingoftheWomeninAgribusinessLeadershipNetwork(WALN)inthefourAGPregionsasoneoftheproject’smaingenderequitysuccesses.TheNetworkoffersbusinessdevelopmenttraining—negotiation,marketing,networking,financialplanning,andcommunicationskills—leadershiptraining,mentoringandcoachingsupport,andnetworkingopportunitiesforwomenleadersoperatinginEthiopia’sagribusinesssub‐sector.66TheprimarypurposeofAMDe’ssupportistoincreasetheprofitabilityofwomen‐ledbusinessesandtopromotewomenassectorleaders.67Whilerecognizingthegoodworkdone,theEvaluationTeamisconcernedthat,withinayearofthelaunch,theAMDechanneledgrantsofUSD1.5millionforonly450womenmembers.

TheAMDehasalsosupportedamembershipdrivetoincreasethenumberofwomenmembersandthenumberofwomeninleadershippositionsinPCsandFCUs.Withthesupportofabehaviorchangeorganization,theAMDeusedanincentive‐basedmodelthatofferedsmall

                                                            65Women‐headedhouseholdsaccountfor28percentofhouseholdsinAGPworedas,andwomeninmale‐headedhouseholdstypicallyconstitute50percentoffamilylabor.The30percentfigurethereforeunder‐representswomeninagriculture.66WALNcurrentlysupports100womeninitstrainingprogram.TheAMDehasinvestedUSD1.5millioninsupportoftheNetworkto‐date.67ThenetworkhasreceivednationalrecognitionthroughtheJanuary2015NationalConferencethatwasattendedbymorethan100womenentrepreneurs.

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giftstoindividualwomenwhojoinedcooperativesandtravelgrantstothecooperativeleaderswhoattractedthemostwomen.Asaresultoftheinitiative,anadditional78,000womenjoinedcooperativesinthenine‐monthperiodfromMarchtoDecember2014(seeTable7below).Table7:Incentive‐basedwomenmembershipdriveRegion Number

ofFCUsNumberofPCs

Womenregistering

Numberregisteringforthefirsttime

%registeringforthefirsttime

Oromia 14 761 14,161 2,781 19.6

Amhara 10 548 30,573 10,009 32.7SNNPRs 9 237 19,227 13,066 68.0Tigray 9 129 14,408 10,744 74.6Total 42 1,675 78,369 36,600 46.7Whilerecognizingtheimpressivegainsmadetoaddressthegenderimbalanceincooperatives,theEvaluationTeamisconcernedAMDe’sbehaviorchangeadvisoryorganizationrecommendedtheuseofincentives,aswhenthesearediscontinuedfuturewomenmembershipdrivesmayprovelesssuccessful.Whatisreallyrequiredisthatcooperativesaregivensupporttotakeonnewwaysofworkingthataremoresupportiveofwomenmembershipandparticipationindecision‐making.Forthisreason,theEvaluationTeamfindsthattheuseofincentivesshouldbeimmediatelydiscontinuedsothatfutureincreasesinwomenmembershipareattributablestrictlytowomen’sperceptionsofmembership‐relatedbenefits.

TheEvaluationTeamfindsthatUSAIDgaveinadequateattentiontogenderintheAMDedesignphase,asfouroftheoriginalfivevaluechains68haveastrongexportfocus.WhilealigningwiththeAGPisimportant,USAIDmighthavegivenincreasedconsiderationtothefactthatwithsomenotableexceptions,agriculturesectorexportsaregenerallydominatedbymen.Theselectionofotherandcomplementaryvaluechainsfocusingondomesticmarketsmightthereforehaveaffordedincreasedopportunitiesforwomensmallholders,traders,andagro‐processors.USAIDalsodidnotdesignatespecificfundstosupportAMDe’sgenderequitywork.2.3 ImprovementsinnutritionaloutcomesKeyquestion3:TowhatextenthasAMDecontributedtotheimprovednutritionalstatusofwomenandchildren?TheoriginalAMDedesigndidnotincludeimprovednutritionoutcomesforwomenandchildren,andnutritiontargetswereaddedlaterattherequestofUSAID. Inthefirstyearofimplementation,theAMDecommissionedaCostofNutritiousDietBaselineStudyagainstwhichitisplannedthatnutrition‐relatedprogresscanbemeasuredattheendofthelifeoftheproject.ThefindingsofthestudyalsoinformAMDe’scascadenutritiontrainingthroughcooperatives.

WhiletheEvaluationTeamrecognizestheimportanceofimprovingnutritionoutcomesinEthiopia69andthatnutritionisadevelopmentobjectiveofFTF,theEvaluationTeamisconcernedthattheAMDe’sagribusinessandmarketdevelopmentfocusdoesnotnaturallylenditselftoimprovednutritionoutcomes.Specifically,therearerelativelyfewopportunitiestodevelop                                                            68USAIDaddedthechickpeavaluechaininthefirstyearofimplementation.69Stuntingratesareabove40percentinAGPworedasandamongstthehighestintheworld.

TextBox4:ProcessedchickpeasforimprovednutritionoutcomesTogetherwithGutsAgroIndustry(GUTS),theAMDehassupportedthelaunchofthreechickpea‐basedshiroproductsandroastedchickpeasnacks.

ThesenewandnutritiouschickpeaproductsareprocessedfromchickpeaspurchasedthroughFCUsthathaveaMemorandumofUnderstanding(MoU)withGUTSfor4,000metrictonnesofchickpeas.

ItisestimatedthattheMoUbenefits52,000smallholderfarmers.

Source:AGP‐AMDeAnnualReport(2014)

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andpromotenutrition‐sensitiveagriculturewithinthecurrentscopeoftheproject. TheEvaluationTeamisthereforenotsurprisedtolearnthatnutrition‐relatedprogressismixed.Ontheonehand,theAMDehascontributedtoimprovednutritionoutcomesthroughthechickpeavaluechaindevelopmentandthelaunchofthreechickpeashiroproducts(seeTextBox4).Ontheotherhand,theEvaluationTeamcanfindlittleevidencetosupportthecontinuationofthecascade‐basednutritiontraining,asitappearsinsomecasestobelittlemorethananAMDerequirementforcooperativestosecuregrants.ItisalsonotcleartotheEvaluationTeamhowsuccessfulthetrainingisinchangingattitudesandbehaviororhowgainswillbesustainedbeyondthelifeoftheproject.TheEvaluationTeamfindsthatthenutritioncomponentmightbebetterimplementedthroughFTF’sENGINEproject.702.4 EffectiveresourceuseQuestion4:Whatistheimpactoftheresourcesspentandperformancepervaluechain?Whatistherelativevaluegeneratedintermsofproductivityandincomeincrease,employmentgenerationpervaluechaintoresourcesspent?Whichhavethehighestreturnsperdollarspent?Inordertoaddressthisquestion,itwouldbenecessarytohavefullandreliabledatasetsonthefollowing:increasesinlandareaundernewtechnologies;whatthetechnologieswereandwhateachcontributedtoyieldimprovements;ananalysisofanyincreasedcostsassociatedwiththesechanges;thevalueofincrementalsales,withpricesreportedregularlythroughoutthemarketingseason;andthenumberofjobs,bothseasonalandyear‐round,thathavebeengenerated.Thiswasnotpossible,astheAMDemonitoringlacksconsistencyandrigor.Forthisreason,thisquestionwasnotaddressed.

ThedecisionnottoaddressthisquestionwasalsoinformedbyUSAID’sown“CostBenefitAnalysis”studyof2014thathasprovidedavaluechainperformanceranking.71Inordertoaddressthisquestionfully,theAMDewillneedtocompleteathoroughdatacleaningandverificationexercise.

TheEvaluationTeamhas,however,learnedthattheAMDehascreatedanestimated4,231jobs(seeTable8).Whileitisclearfromthefieldworkthatnotallthesejobsarefull‐time/permanent,inacountrywhereunemploymentissohigh,theEvaluationTeamfindsthatemploymentcreationshouldbeapriorityforFTFandthatimplementingpartnersshouldtrackandreportindetailonemploymentcreation,includingbothseasonalandfull‐time/permanentemployment,andideallyofferUSAIDgender‐andage‐disaggregateddatathatcanbesharedwithregionalandfederalgovernment.Table8:NumberofjobscreatedIndicator Valuechain LOPtarget Total#ofjobs

created(Years1‐3)

%LOP

NumberofjobsattributedtoFTFimplementation

Wheat 2,268 143 6Maize 2,060 2,690 130Coffee 2,533 575 23Sesame 1,556 538 34.5Chickpeas 1,238 3 ‐Honey 1,100 282 25.6

Total 10,755 4,231 39.3Source:AbstractedfromAMDePMPreports

                                                            70EmpoweringNewGenerationsinImprovedNutritionandEconomicOpportunitiesimplementedbySavetheChildrenInternational.71ItmaybethatUSAID’sDataQualityAssessment(DQA)teamcouldhelpaddresstheissueofdataconsistency.However,toaddresstheissueofrigorandimpact,mentionhasbeenmadeoftheneedtoundertakemoredetailedstudiesthatincludecontrolgroups.  

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Whiletheinformationinthesetablesoffersusefulperformancedataacrossthesixvaluechains,theEvaluationTeamfindsthereismoreworktobedonetore‐checkandverifysomeofthedata—andinparticulartoconfirmattribution,i.e.,thattheprogressmadecanbeattributedtothesupportprovidedbytheAMDe.Unabletoconfirmthenecessaryinformationduringtheperiodofthereview,theEvaluationTeamdidnotfullyanswerthisquestion.Intheremaininglifeoftheproject,therefore,itisimportanttheAMDemonitoringstaffplaysanactiveroleinverifyingallprogressdata,includingaddressingpotentiallychallengingissuessuchastheimpactofdisease—rustinwheatandmaizelethalnecrosis—fluctuatingfarmgateprices,andtheseasonalityofsomejobs.Unlessthisisdoneinthenextfewmonths,theEvaluationTeamfindstheAMDewillnotbeappropriatelypreparedforarigorousend‐of‐projectevaluation,whichwouldbeunfortunate,astheAMDehasclearlyachievedagreatdeal.

Whileunabletoaddressthisquestionfully,theEvaluationTeamwishestohighlighttheimpactofUSAID’sdecisiontosupportaMoArequestforwarehousing,storage,andcleaningequipmentforsesametoincreaseexports.AspresentedinFigure2,investmentacrosssixvaluechainsacrossfouryearsvariesbetween1and7percent.TheexceptionissupporttothesesamevaluechainsinYear2,when35percentoftheAMDeannualbudgetwasinvested.Whilerecognizingthestrategicimportanceofthisinvestment,theEvaluationTeamfindsthisskewingofinvestmenthadadeleteriouseffectonthedevelopmentoftheothervaluechains.Figure2:Budgetusebyvaluechain

Furtheranalysisofbudgetusealsorevealsthat“pass‐throughgrants”topartnerorganizationsandvaluechainactorsaccountfor45percentoftheprojectbudgetandaremanagedbyACDI‐VOCAheadquartersinWashington.Whilethisgrantmanagementmechanismmayreducedemandsonlocalstaff,theEvaluationTeamfindsmanyadvantagesinlocalgrantmanagement,aslocalstaffbetterunderstandsthecontextinwhichtheprojectisworking,andareinabetterpositiontoprovidetechnicalandmanagerialmentoringsupport.Finallyinthissection,theEvaluationTeamlearnedthattheAMDeinvestsonly3percentofprojectcostsintrainingandcapacitydevelopment.TheEvaluationTeamfindsthatthislevelofinvestmentisinadequatetoconsolidateandmainstreamgainsmadebyAMDe.

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2.5 ProjectdesignandmanagementQuestion5:AmongAMDe'spartnerships,whicharebeingmosteffectiveintermsoftheircollaborationandcoordination?Asmentioned,theAMDesupportstheMoAAGPtodeliveritsComponent1,sub‐component1.3:MarketandAgribusinessDevelopment.72Inordertodothis,theAMDeworksmostcloselywiththeMoA,ATA,73andtheFCAatfederalandregionallevels,withwhichitsharesacommonvisionofthecommercializationofagricultureandgrowthofcooperatives.Atanoperationallevel,theAMDeannualworkplansareendorsedbyregionalAGPTechnicalCommitteesbeforetheyarepresentedatthefederalAGPTechnicalCommittee.

Inaddition,theAMDehasalsoforgedarangeofpartnerships,asampleofwhichincludesthefollowing: CapacityBuildingforScaling‐UpofEvidence‐basedBestPracticeinAgriculturalProduction

inEthiopia(CASCAPE):TheCASCAPEprojectisajointinitiativebetweenEthiopiaandtheNetherlandstoimproveagriculturalproductivity.TheAMDepartnersCASCAPEonsoiltestingandimprovedseeds.

CapacitytoImproveAgricultureandFoodSecurity(CIAFS):TheAMDeisworkingwithCIAFSonfertilizerpolicy,honeyandcoffeevaluechains,capacitybuildingforcooperatives,andacoordinatedinitiativetopromoteprivatesector‐ledseedmultiplicationandcertification.

EthiopiaCommodityExchange(ECX):TheAMDeisworkingwiththeECXtotrainECXstaff,warehouseoperators,andmanagementfirmsongradingandcoffeecertification.Inaddition,theAMDeisworkingwiththeECXtorevisecoffeestandards,includingtheplannedlaunchofatraceabilitysystem.Finally,theAMDeissupportingcooperativestobecomepermanentmembersoftheECX.

EthiopiaInstituteofAgricultureResearch(EIAR):TheAMDecarriedoutaseedproductionandsupplysurvey74withtheEIARthatresultedinAMDegrantsforirrigationequipment,tractors,andseedcleaningequipmentbeingawardedto11researchcenterstoincreasethesupplyofcertifiedseedofvarietiesthatwillhelpincreasesmallholderfarmerproductivity.

Industryassociations:TheAMDeisworkingcloselywithanumberofindustryassociations,includingtheEthiopiaApicultureBoard(EPA),EthiopiaHoneyandBeeswaxProducersandExportersAssociation(EHBPEA),theEthiopiaPulses,OilseedsandSpicesProcessersandExportersAssociation(EPOSSPEA)andtheEthiopiaCoffeeExportersAssociation(ECEA).

MinistryofTrade:TheAgriculturalMarketingDirectorateofMoTismandatedtobuildcapacityinthesupply,distribution,andmarketingofagriculturalinputs.AMDeiscollaboratingwiththeMoTtoassessregionalandinternationalmarketingopportunitiesandwarehouseregulations.

PrivateSector:TheAMDeisworkingwithseveralhundredprivatesectororganizations,includingWALN.TheEvaluationTeamlearnedfromotherFTFimplementingpartnersthatattimestheAMDe

leadershipplaysaleadandcatalyticroleamongstFTFimplementingpartnersinEthiopia,inparticularindevelopingvaluechainthinkingandpromotingmarketsolutions.Thissaid,inameetingofFTFimplementingpartnersthattheEvaluationTeamfacilitatedonDecember16,2014,75itbecameclearthatmuchmorecouldbedonetostrengthenlevelsofcoordinationandintegration,including:

                                                            72Through the delivery of the MoA’s Agriculture Sector Policy Investment Framework, 2010–2020 (PIF), the MoA has sought to reorientate donor funding from funding emergency food security projects to social protection (PSNP) and longer‐term development (AGP and SLMP). USAID’s funding for AMDe is welcomed by the MoA as part of this commitment.  73 USAID, ATA, and AMDe have forged a tripartite coordination plan with focal points assigned for each joint activity. 74 Strengthening Source Seed Production and Supply System of the National Agriculture Research System in Ethiopia.  75 The meeting was attended by three Chiefs of Party (COPs), four DCOP (Deputy COPs) and four other senior staff representing the AMDe, ENGINE, GRAD, LMD, and PRIME projects.    

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CoordinateactivitiesinAGPworedasinordertoreduceduplicationwhereprojectsareworkinginthesamevaluechain,e.g.,LMDandGRAD—sheepandgoatfatteningandAMDeandGRAD—honey.

Sharesocialbehaviorchangecommunicationmaterialsonnutritionandcoordinateinterventions.

Sharelessonsingendermainstreaming. Collaborateintheorganization/participationinlocalandinternationaltradefairs.WaysinwhichtheFTFmightbettercollaboratearepresenteddiagrammaticallybelowinFigure3.Figure3:IllustrationofthecollaborativemechanismsbetweenFTFpartners

Key: Collaborationbasedongeographicoverlap Collaborationbasedvaluechainorsharedobjectives

AlthoughtheAMDehasbuilteffectivepartnerships,theEvaluationTeamfindsthatUSAIDandAMDeplaycomplementaryasopposedtocentralrolesinAGPdecision‐making.Inpart,theEvaluationTeamattributesthistopartnerdifferences—organizationalculture,timingofplanningcycles,incentivestructures—butthisisalsotheresultofUSAID’ssupportforAMDeandLMDasopposedtoitssupportforAGPpooledfunding.WhilethereareinevitableconstraintsassociatedwithUSAID’sfundingarrangements,sotootheEvaluationTeamfindsstrengthsandopportunities,includingincreasedopportunitiesforinnovation,piloting,anddemonstrationthatovertimecanbedocumentedandinformevidence‐basedgoodpractice.

TheEvaluationTeamlearnedthatEthiopia’scooperativemovementaggregatesandmarketslessthan10percentofEthiopia’scereals,76and,incontrast,small‐scaleprivatesectortradersplaythemajorroleincerealaggregation,transport,marketing,andprocessing.WhilerecognizingtheAMDeworkswellwithindustryassociationsandsome500commercialfarmers,serviceproviders,traders,andprocessors,theEvaluationTeamfindsthatissuesofsustainabilitywillbebetteraddressedbyachievingabetterbalanceofsupportbetweencooperativesandprivatesectoractors.

TheEvaluationTeamfindstheAMDeworkswellwithotherFTFimplementingpartnersatfederalandregionallevelsbutthatthequalityofpartnershipappearstotailoffatworedalevel.Theprobablereasonsareoutlinedaboveanddonotneedrepeating.TheEvaluationTeam,however,findsthatUSAIDcouldhavedonemoretoforgeacoordinated,integrated,andharmonizedFTFportfolioandthatthecurrentre‐designoftheMoA’sPSNP4andAGP2potentiallyoffersUSAIDandleadFTFimplementingpartners77newandpotentiallyexcitingopportunitiesforimprovedalignment,integration,andcoordination.2.6 Sustainability

                                                            76Cerealsaccountformorethan60percentofallarablecroppinginEthiopia.77TheleadFTFimplementingprojectsareAMDe,LMD,GRAD,andPRIME.  

GRADENGINE  AMDe 

LMD 

AGP woreda Non‐AGP woreda

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Question6:Whichofthecomponentsand/orprojectactivitiescanbescaledupinthefuturebasedonmeasurable,practical,andsustainableresults?Asexpectedatthisstageoftheprojectcycle,theAMDeiswellestablishedineachofthefourAGPregionsandacrossthesixvaluechains.Inordertoaddresstheissueofsustainabilityandspecificallywhichprojectactivitiesinwhichregionscanbescaledup,theEvaluationTeamhasstructureditsfindingsaroundthefollowingfourthemesasrequiredbytheSoW: Enhancingagriculturalproductivity Accesstofinanceand Accesstomarkets Cross‐cutting

Enhancingagricultureproductivity:TheEvaluationTeamrecognizesthegoodworkdonebyAMDetoincreasesmallholderfarmerproductivity,including:inputsupply—improvedseeds,blendedfertilizers,cropprotection—andpost‐harvesthandlingpractices.TheEvaluationTeamfindsthatthisworkshouldbecontinuedandexpanded.

UndertheG8NewAllianceforFoodSecurityandNutrition,78theAMDeissupportingtheMoA,ATA,andDuPontPioneer79inathree‐yearpartnershipundertheAdvancedMaizeSeedAdoptionProgram(AMSAP),whichseekstotransitionsmallholdersfromopenpollinatedtohybridmaizevarietiestoincreaseyields.Sincethelaunchwith320modelfarmersin2013,theprogramhasexpandedto3,200smallholderfarmersin2014.TheAMDealsosupportstheBH‐661Programthatwaslaunchedwith100modelfarmersin16woredasinAmharaandOromiaandhasbeensubsequentlyexpandedintoSNNPRegion.

Whilerecognizingtheimportanceofimprovingaccesstoqualityseeds,theEvaluationTeamisconcernedtheAMDeisnarrowingitsfocusonhybridmaize.Certainly,hybridmaizeout‐yieldsopenpollinatedvarieties,buttheappropriateness,affordability,andsustainabilityofthehybridmaizecanbequestioned.TheEvaluationTeamfindstheAMDeshouldprovidemorebalancedsupporttomaizegrowers,includingopenpollinatedvarietiesandsupportforfarmer‐to‐farmerexchangesandcommunityseedfairs.Accesstofinance:ItiswidelyrecognizedthatinordertoincreaseandsustainEthiopia’simpressiveagriculturesectorgrowthrates,additionalinvestmentisneeded.TheEvaluationTeamfindsthatAMDe’sworkinthisareaisofcriticalimportanceandshouldbeapriorityduringtheremaininglifeofproject.Specifically,however,theEvaluationTeamfindstheAMDeshouldfocusonsupporttobusinessplandevelopment,negotiationswithbanks,andimprovedfinancialmanagement,accounting,andauditing.TheEvaluationTeamalsofindsthattheAMDeshouldincreaseitslevelofsupporttosmall‐andmedium‐sizedbusinesses.Accesstomarkets:TheEvaluationTeamfindsthat,whilecontinuingtocompleteexistingcommitments,theAMDeshouldfocusitsremainingworktostrengthenvaluechainsfordomesticmarkets,asthesehavethepotentialtobenefitpoorersmallholderfarmers,inparticularwomen,whoareFTF’sprimarybeneficiaries.Aspartofthisreorientation,theEvaluationTeamfindanimportantroleforAMDetocontinuetostrengthenthetechnical,managerial,andadministrativeskillsandcapacitiesofPCsandFCUstosecurefinance,investininfrastructureandequipment,andthereforemoreeffectivelyaggregate,grade,cleanproduce,andsupplytraders.

                                                            78LaunchedinEthiopiaintheautumnof2012.79DuPontPioneerisinvestingUSD2.3milliontoprovidehybridmaize.AMDeissupportingthisinvestmentwithUSD1milliontosupporttraining,fielddemonstrations,directretaildistributionnetworks,commercialcreditschemes,post‐harveststorage,soilsamplingatdemonstrationsites,logistics,andmarketaccessanddevelopment.   

TextBox5:AMDesupporttoSidamaEltoFCUSidamaEltoFCUwasestablishedin2004with1,000members(only22women).Ithasgrownto15,000members(1,400women),whileitscapitalhasincreasedfromEthBirr6,100to15million.AMDefacilitatedlinkstoWFPP4Pin2010.Initially,itwasnoteasytomeetqualitystandards.TheFCUis,however,nowabletosupplymaizetoWFP,theresultofAMDesupport—improvedstorage(includingmoisturetesting),shellers,cleaning,andfumigationsheets.

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Specifictothemaizevaluechain,theEvaluationTeamfindsthat,whilecontinuingtofacilitatelinksbetweenFCUsandWorldFoodProgramme’s(WFP)P4Pinitiative(seeTextBox5),theAMDealsoidentifyalternativemarketsthatlinkFCUstoprivatetradersandinthiswayspreadriskandbuildmoresustainablemarketoptions.Cross‐cutting:TheEvaluationTeamfindstheAMDecascade‐styletrainingmodules—SellMoreforMore(SM4M)—thatAMDehaspioneeredcanbescaledupandmainstreamed.OnewaytodothisistopartnerwiththeArdaitaCooperativeATVET,80OromiaRegion,asitprovidessimilartrainingandcapacity‐buildingsupporttoPCsandFCUsinthatpartofOromia.Throughsuchapartnershiparrangement,theAMDecouldnotonlybuildthecapacityofArdaita,butalsoaddressissuesofsustainability.81Inaddition,theEvaluationTeamfindsthatalltrainingshouldbepartofanintegratedandholisticcapacity‐buildinginitiativethatprovidesongoingsupporttoamorefocusednumberoforganizationsandindividuals,asonlyinthiswaywillrealimpactbeensured.2.7 ManagementQuestion7:Doestheprojecthavetherightbalanceofstaffandfundinggivenactivitypriorities?TheAMDeemploysateamof81full‐timestaffand19part‐timestaff(64menand36women)asfollows: Seniormanagers—10percent Administration,finance,andsupport—11,10,and27percentrespectively Component1:Accesstomarketsandimprovedcompetitiveness—25percent Component2:Accesstoloans—5percent Component3:Enablingenvironment—asinglestaffmember Component4:Innovationandcapitalgrants—2percent Crosscutting—10percent

TheEvaluationTeamlearnedthatalmosthalfofAMDestaffisbasedinAddisAbaba.82Inordertoconsolidatethegainsmadeduringthelifeoftheproject,theEvaluationTeamfindsthatAMDewillneedtoinvestmoreresourcesincapacitybuildingandinstitutionalsupportintheregions.Tosupportthisreorientation,theAMDemightbenefitfromthesupportofanorganizationalchangeexpertwhocanalsoaddressothertasks,includingthereviewandharmonizationofjobtitlesandclarificationofrolesandresponsibilitiesamongstpooledworkers.

TheEvaluationTeamalsorecommendstheAMDestrengthenitsM&Ecapacity,withaviewtoimprovingthequalityofitsreportingandensuringalldataarecleanedaheadofthefinalevaluation.3. RecommendationsRecommendationforResult1#1:TheAMDecontinuetoworkonthesixvaluechainsinordernottodisruptprojectimplementationduringtheremainderoftheproject,butgiveincreasedfocustoincompleteResults: Wheat—productivityandvalueadditionthroughprocessing Maize—productivity,includingopenpollinatedvarieties,improvedpost‐harvesthandling,cleaning,storage,anddiversifyingdomesticmarketoutlets

                                                            80TheCooperativeSectorDevelopmentStrategy(FCA,2012),developedwiththesupportofATA,identifiesArdaitaasapotential“centerofexcellence”forcooperativedevelopment.Whilenotcentrallylocated,itisplannedthecenterwillestablishbranchesinotherregionsandoperateasa“collegewithoutwalls.”81DuringtheEvaluationTeam’svisittoArdaita,itwaslearnedthattheAMDehadvisitedoncebutwithoutfollow‐up.82ThisfigureincludestheAMDeOromiaRegionstaffbasedwiththenationalteam,whichisnotunusualastheBureauofAgriculture,OromiaRegionissimilarlybasedinAddisAbaba. 

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Coffee—post‐harvestlossreductionandqualitystandards Sesame—post‐harvestlossreductionandprocessing Chickpeas—domesticandnichemarkets(Sudan,forexample)forthecurrentlyusedvarieties

Honey—productionandproductivitythroughthedistributionofimprovedequipment,includingmodernbeehivesandtrainingandequippingofbeekeepersandnewbeekeepers

RecommendationforResult2#2:ContinueandstrengthenAMDe'sengagementinagriculturesectorfinance,inparticularcapacitybuildingforcooperativesandsmall‐scaleprivatebusinessestodevelopbusinessplans,83negotiatewithbanks,andimproveaccountingandauditingsystems.RecommendationforResult3#3:RecognizetheneedtoworkmorecloselywithotherFTFimplementingpartners,includingtheAKLDP.84WithFTFpartners,forgeacommon,integrated,andcoordinatedapproachtoagriculturesectorpolicywork.RecommendationforResult4#4:Reducethefocusongrantsfornewpartnersandconsolidatethecapacityofexistingpartnerstoimproveimpactandsustainability.Recommendationsforgenderequity#5:Continuetosupportwomenempowerment,includingwomenmembershipofcooperatives—thoughdiscontinuetheuseofincentives—andWALN,withincreasedemphasisonwomen‐ledsmall‐andmedium‐sizedagribusinessesintheregions.Setasidefundingforgenderequitywork.#6:DocumentAMDe’sworkwithwomeninTigrayandSNNPRegionsandsharewithFTFprojectswithinandbeyondEthiopia.Recommendationfornutrition#7:HandoverthenutritionworktoENGINE.Recommendationsforimprovedcollaboration#8:Continuetostrengthenpartnershipswithkeystakeholders,inparticularregionalBoAAGPteams,ATAAgricultureCommercializationClusters,andRegionalCooperativeandIndustryAssociationOfficestoacceleratetrainingandcapacitybuildingofregional,zonal,andworedastaffinagriculturemarketingthatincludescomponentsontheprivatesectoranditspotentialroleintransformingEthiopianagriculture.Ensurethatalltrainingandcapacitybuildingisfocusedandanintegralpartofaholisticcapacity‐buildingapproach.#9:CollaboratewithATAandFederalCooperativeAgency(FCA)todevelopasinglePC/FCUCertificationsystemthatintegratesandharmonizesaccreditationcriteria.Recommendationsforscaling‐up#10:SupporttheMoAandATAtoimproveproductivitythroughtheimproveddistributionofcertifiedseeds(withaminimum60percentopenpollinatedvarieties),blendedfertilizer,credit,andextensionsupport.#11:ContinuetosupporttheWFP‐P4Pinitiativebutcontinuetostrengthenanddeveloplinksbetweensmallholderfarmergroupsandresponsibleprivatesectortraders.Recommendationsformanagement

                                                            83ThebusinessplanspreparedjointlybyFCUsandAMDeareofahighquality.Forexample,theSidamaEltoFCUbusinessplansecuredloansofEthBirr7.6millionin2013,EthBirr14.4millionin2014,andEthBirr6.35millionin2015.84TheAKLDPprojectprovidesagricultureknowledge,learning,andpolicysupporttoUSAID’sFTFportfolio.

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#12:RecruitanorganizationalchangeexperttoreorientateAMDestaffing,specificallyincreasedsupportfor:farmerlevelproductionandproductivity;85domesticmarketdevelopment;andgender.ClarifytheresponsibilitiesoftheAMDeandACDI/VOCApooledstaffandasappropriatemovestafftotheregions.#13:RecruitanM&EspecialisttoimproveAMDeM&Ecapacity.Ensureallprojectdataarecleanedandthatincreasedconsiderationisgiventoprojectoutcomesandattribution,aheadofthefinalevaluation.#14:StrengthenAMDe’scapacitydevelopmentworkto15percentoftheYear5projectbudgettobuildthecapacityofpriorityPCsandFCUsandbetterequipthemtocontinueworkstartedwithAMDe.Tosupportthisreorientation,completeallwarehouseconstruction‐relatedcommitmentsandsubsequentlydisengagefromwarehouseconstruction.#15:IncluderepresentativesfromtheMoA,andpossiblytheMoTandMoI,inthefinalevaluation.Generalrecommendationsforafollow‐onprojectTheEvaluationTeamrecommendsthatUSAIDprovidefollow‐onfundingforaminimumofanotherfiveyearsandthereforewelcomesUSAID’scommitmenttofundAGPComponent4:AgricultureMarketingandValueChains,sub‐componentd—strengtheningofselectedlivestockandcropvaluechains.Whilewelcomingthiscommitment,theEvaluationTeamrecommendsthatUSAIDsupportforAGPbemorefocusedtoachieveFTFdevelopmentobjectives,specificallythatafollow‐onprogramoperateinasmallerZoIandwithfewerpartners.WithintheseZoI,itisrecommendedthat,inadditiontocontinuingtosupportagriculturemarketing,significantincreasedemphasisisgivento:smallholderswithholdingsoflessthanonehectare—perhaps70percentofplannedprojectbeneficiaries;sustainableagricultureproductionandproductivity,includingsoilhealth,landmanagement,andlandtenure;womeninagriculture—women‐headedandwomeninmale‐headedhouseholds;andtheprivatesector,inparticularsmall‐andmedium‐sizedbusinesses.Inaddition,theEvaluationTeamrecommendsthatUSAIDprovidesbetterlayeredandsequencedsupportwithinitsZoIthatincludessocialprotection,WASH,nutrition,health,andeducationandthat,throughthisintegratedandcoordinatedapproach,USAIDplayaleadroleinpovertyandstuntingreductionthatwillbereplicatedbyothers.TheEvaluationTeamfindsthatUSAIDshouldexerciseincreasedleadershiptocontextualizeglobalFTFindicatorsandguideFTFimplementingpartnerstokeyindicatorsthatwilltrackprogresstoaddressEthiopia’spovertyandstuntingchallenges.Specificrecommendationsforafollow‐onprojectinclude:#16:Reorientatethevaluechains:handoffcoffeeandwheattotheindustryassociationsandotherdevelopmentpartners,including,asappropriate,theEU,aUSAID‐fundedinnovationlabprojectholder,andATA;buildamoreintegratedapproachtocerealvaluechainsthatincludesmaize,86maltbarley,andsorghum—grownbylargenumbersofpoorersmallholders;expandthehoneyvaluechain—assistinglargernumbersofpoorwomenwithlittleornoland;andintegratechickpeasintoalegumes/pulsesvaluechainfordomesticmarkets—legumesofferimportantsoilhealthandnutritionoutcomes.USAIDcouldthereforesupportthefollowingvaluechains: Cereals—maize,maltbarley,andsorghum Honey—fordomesticmarkets(withanemphasisonwomen) Legumes—fordomesticmarkets

#17:Ensurethatcapacitybuilding,institutionaldevelopment,andgenderarekeycomponentsofafollow‐onproject,areappropriatelyfundedanddeliveredwithinaholisticcapacity‐buildingapproach.

                                                            85TheEvaluationTeamiskeentoseethattheUSAIDEthiopiaMissionstrengthensitssupportofproductionandproductivityandthereforeachievesamorebalancedagriculturesectorportfolio.TheEvaluationTeamisoftheviewthattheMissionisatpresenttoomarket‐focused.86Withafocusonopenpollinatedvarieties. 

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#18:Reducemanagerialcomplexity—sub‐contracttheproductivity,valuechaindevelopment,aggregation,anddomesticmarketdevelopmentcomponentstospecialistNGOswithaproventrackrecordinEthiopia.Theprojectholdercanthenbetterfocusonmanagement,coordination,monitoring—datacollection,collation,analysis,documentation—learning,andchampioningevidence‐basedgoodpractice,includingwithAGP2.Thefollow‐onprojectwouldbeexpectedtoleaveEthiopianinstitutes,organizations,andbusinessesbetterequippedtoleadthetransformationprocessofEthiopianagriculture.