Sida-Amhara Rural Development Programme SARDP III Programme Document.pdf · The Swedish...

Programme Document - SARDP III

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Sida-Amhara Rural Development Programme SARDP

Programme Document SARDP Phase III

July 2004 - June 2008 Revised in August 2005

Woreda Development Support in East Gojjam and South Wollo Zones

Amhara National Regional State

SARDP/PCU P.O.Box 134

E-mail [email protected] Bahir Dar, Ethiopía


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EXECUTIVE SUMMARY This Programme Document outlines the overall framework for the recently revised, third phase of the Sida-Amhara Rural Development Programme, SARDP, set to operate from July 2004 to June 2008. The Programme Document has been revised based on Article 3b of the bilateral agreement signed between the governments of Sweden and Ethiopia in September 2004. SARDP is a participatory rural development programme funded by the Swedish International Development Cooperation Agency, Sida since 1997. SARDP III will eventually be implemented in a total of 30 rural woredas in the East Gojjam and South Wollo Zones of the Amhara National Regional State, ANRS starting from July 2004. A Programme Document for the SARDP III was submitted to Sida for consideration in April 2004. However, not all components proposed and elaborated upon were then approved. An Inception Period was therefore introduced, during which activities within the technical components “Agriculture and Natural Resources Management” and “Infrastructure” could be carried out as initially planned, while revised sets of activities were to be developed during an inception period of one year, on the basis of additional studies within the component of “Economic Diversification” and "Good Governance (population, gender issues and HIV/Aids).” The overall objective of SARDP III is to contribute to poverty reduction of the Amhara Region by improving the food security conditions of the rural population in the targeted woredas of East Gojjam and South Wollo zones. The total budget for the full programme period is 300 million SEK, of which 70% is allocated directly to the woredas. The focus of SARDP III is to support community development at the woreda level, where the capacity for development planning, implementation and delivery of services to the communities will be strengthened, in order to reduce poverty and improve rural livelihoods. The Programme as a whole will put the woreda in the very centre. The support to the woredas will have four major programme components;

• Agriculture and Natural Resource Management; • Economic Diversification; • Infrastructure Development and Social Services; and • Decentralisation;

All cross-cutting issues such as population, environment, gender and HIV/Aids will be mainstreamed throughout the major four components and support will be provided to the responsible bodies to effectively coordinate and mainstream these cross-cutting issues. The Programme goal, purposes, outputs and activities have all been defined in a logical framework exercise, together with principles of implementation and organisation of the Programme. SARDP III activities will be planned, implemented and monitored by the benefiting communities and institutions, all using participatory approaches. A Programme Coordination Committee, PCC, consisting of seven members from key government bureaus in the region, shall guide the Programme on policy and implementation issues, ensure political commitment, formulate strategies and facilitate resource allocations. Independent evaluations to assess programme progress and impact will be carried out periodically.


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A Programme Coordination Unit, PCU, both at the regional and zonal levels, will continue to be in place to coordinate activities and inputs at the different levels, and to monitor progress. Focal persons from the Woreda finance and plan offices will be assigned as responsible organs of the programme at woredas level. A Programme Director will have the authority and responsibility of managing the programme. To assist the PCU, an international management consultancy company, with technical advisors of different disciplines, will be selected and contracted by the ANRS. This Programme Document will serve as the guiding tool for the implementation of SARDP III. Activities and budget figures indicated in this document for the four year Programme period are indicative only. Activity planning and budgeting will be made on an annual basis, in a fully participatory manner, with resource allocations being subject to approval by the competent authorities, i.e. Sida and the regional PCC.


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LIST OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................................................................ I INTRODUCTION ..............................................................................................................................................................1 1. THE NATIONAL AND REGIONAL CONTEXT.................................................................................................3

1.1 NATIONAL DEVELOPMENT POLICIES AND STRATEGIES ......................................................................................3 1.2 OVERVIEW OF THE REGIONAL CONTEXT............................................................................................................4

2. SOCIO-ECONOMIC SITUATION ........................................................................................................................8 2.1 DEMOGRAPHY AND SOCIAL SERVICE INDICATORS.............................................................................................8 2.2 LAND AND ITS USE..........................................................................................................................................10 2.3 THE LOCAL ECONOMY .....................................................................................................................................11 2.4 INFRASTRUCTURE AND SOCIAL SERVICES ........................................................................................................12 2.5 LOCAL GOVERNANCE ......................................................................................................................................13 2.6 POVERTY SITUATION ........................................................................................................................................14

3. THE PROGRAMME FRAMEWORK .................................................................................................................17 3.1 PROGRAMME PRINCIPLES .................................................................................................................................17 3.2 ORGANIZATIONAL STRUCTURE ........................................................................................................................19 3.3 THE PROGRAMME BUDGET ALLOCATION ........................................................................................................20 3.4 THE BACKSTOPPING SUPPORT .........................................................................................................................20

4. PROGRAMME GOAL, OBJECTIVES AND STRATEGIES ...........................................................................22 4.1 PROGRAMME GOAL..........................................................................................................................................22 4.2 PROGRAMME PURPOSES ...................................................................................................................................22 4.3 STRATEGIES .....................................................................................................................................................22 4.4 EFFECTIVE MANAGEMENT OF SARDP.............................................................................................................23 4.5 PROGRAMME LOGICAL FRAMEWORK...............................................................................................................24

SUMMARIZED LOGICAL FRAMEWORK FOR WOREDA DEVELOPMENT SUPPORT - SARDP III .........24 5. MAJOR INTERVENTIONS .................................................................................................................................37

5.1 AGRICULTURE AND NATURAL RESOURCES MANAGEMENT .............................................................................37 5.2 ECONOMIC DIVERSIFICATION...........................................................................................................................43 5.3 INFRASTRUCTURE AND SOCIAL SERVICES ........................................................................................................53 5.4 DECENTRALIZATION ........................................................................................................................................54 5.5 MAINSTREAMING CROSS-CUTTING ISSUES.......................................................................................................58

6. PROGRAMME MANAGEMENT........................................................................................................................62 6.1 MANAGEMENT STRUCTURE .............................................................................................................................62 6.2 DONOR LINKAGES............................................................................................................................................63 6.3 TECHNICAL ASSISTANCE..................................................................................................................................65 6.4 MONITORING AND EVALUATION ......................................................................................................................67

7. PROGRAMME BUDGET .....................................................................................................................................69


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ABBREVIATIONS AND DEFINITIONS ACSI Amhara Credit and Savings Institution ADLI Agricultural Development Led Industrialization AIDS Acquired Immune Deficiency Syndrome AMMA Amhara Mass Media Agency AMSEIDB Amhara Micro and Small Enterprise and Industry Development Bureau ANRS Amhara National Regional State APAP Action Professionals Association for the People ARARI Amhara Regional Agricultural Research Institute ARRA Amhara Rural Roads Authority Birr National currency of Ethiopia BoARD Bureau of Agriculture and Rural Development BoCB Bureau of Capacity Building BoFED Bureau of Finance and Economic Development BoTIUD Bureau of Trade, Industry and Urban Development BoWRD Bureau of Water Resources Development BoWUD Bureau of Works and Urban Development CDF Community Development Fund CPB Cooperatives Promotion Bureau EPLAUA Environmental Protection, Land Administration and Use Authority EGZ East Gojjam Zone EIA Environmental Impact Assessment FDRE Federal Democratic Republic of Ethiopia FSP Food Security Programme GDP Gross Domestic Product Got Local entity similar to village HAPCO HIV/AIDS prevention and Control Office HH Households HIV Human Immune Deficiency Virus IEC Information, Education, Communication IPIS Integrated Planning and Information System Kebele Fourth Administrative level LFA Logical Framework Approach M&E Monitoring & Evaluation NGO Non Governmental Organisation OFR On Farm Research PCC Programme Coordinating Committee PCU Programme Coordinating Unit PIP Public Investment Programme Region Highest administrative level of the country ReMSEDA Regional Micro and Small Enterprise Development Agency RIA Regional Income Accounting SARDP Sida Amhara Rural Development Programme SEK Swedish Kroner SWZ South Wollo Zone USD United States Dollar WAO Women’s Affaires Office


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INTRODUCTION The Swedish International Development Cooperation Agency (Sida) has provided support to rural development in the Amhara National Regional State (ANRS) since 1993, starting with assistance to road construction, enhancement of planning capacity, and natural resources management. The ANRS Programme, now known as the Sida Amhara Rural Development Programme (SARDP), was initially planned in 1995-1996. The full implementation of SARDP started in June 1997. Coverage of the SARDP has gradually grown since its establishment when it operated in two woredas in each of the zones. In 1998, it grew to cover five more woredas and in 1999 it added another seven. The woredas are to use their Woreda Development Funds according to a plan prepared by the woredas. In each woreda, the activities paid from the Fund should be designed and combined in such as way that the best possible contribution to poverty alleviation and food security is achieved. In addition to the receipt of Woreda Development Funds, the woredas receive technical support, “backstopping”, from a number of regional units, such as Regional Bureaus and Authorities. These units receive funds enabling them to provide services to the woredas in their respective technical field and also some funds for their own development. SARDP is therefore an example of an area development programme. Phase II started in January 2002 and its overall objective was to improve the living conditions of the rural population by assisting the poor and marginalized groups to increase their agricultural production and better manage local natural resources, diversify the local economy, and promote good governance. It has included woreda capacity building, reproductive health, HIV/AIDS and support to the judiciary in addition to area development Programmes similar to what was done in Phase I. SARDP II operated in two zones, East Gojjam and South Wollo, and covered 16 woredas. While its overall objective was consistent with the national and regional government policies of keeping a focus on small-holder agriculture and promotes equity, it was criticized for not being in tune with the policy in terms of allocation of Programme resources between woredas and the regional level. Further, the Programme did not adequately address the needs of the poor and the marginalized. In order to make the Programme reflect recent policy developments, to further enhance community and woreda participation, strengthen and ensure community ownership of the Programme, and to make it more responsive to the needs of poor and marginalized groups, four-year woreda plans have been prepared for each of the 25 programme woredas included in SARDP III. Communities have identified the development problems and how best to tackle them. In 2004 an impact assessment was made in three sample kebeles with different levels of intervention from the Programme in each of the then 16 woredas participating in the second phase of SARDP. This impact assessment has provided valuable guidance for the elaboration of SARDP III. Experiences gained and lessons learnt during phase two were basis for the preparation of SARDP III programme document. The Programme Document, consolidated from the sixteen woreda-based participatory planning documents, was submitted to Sida for consideration in April 2004. After thorough discussions and negotiations an Agreement was signed between the Ethiopian and Swedish Governments in September 2004. As per the agreement, activities within the technical components “Agriculture and Natural Resources Management” and “Infrastructure” could be carried out as initially planned, while


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revised sets of activities were to be developed for “Economic Diversification” and “Good Governance (population, gender issues and HIV/ AIDS)” during an inception period of one year. On the basis of additional studies conducted by international and national consultants for the two non-approved components, new and additional sets of outputs and activities have been identified and included in this document. During this process, the cross-cutting issues have been mainstreamed under each component and the former component named good governance has been divided between cross-cutting issues and decentralisation. During the third phase of the Programme, its coverage will increase further, so that by the end of the phase, all 30 rural woredas will have participated. As some woredas will leave the Programme before it is terminated, however, the maximum number participating at any one time in the program period is 25 woredas.


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1. THE NATIONAL AND REGIONAL CONTEXT The population of Ethiopia is at present estimated to be over 70 million of which more than 85 percent are dependent on agriculture. With an estimated GNP per capita of 100 USD in 2002, Ethiopia is one of the poorest countries in the world. It also lies within a food insecure region of the world and has a large part of its population living at subsistence level. Food grain production is low and also fluctuates from year to year depending on rainfall. The productivity of land and labour remain low due to recurring drought, insecure land tenure, land degradation, use of unproductive farming practices, and insufficient extension services, especially for smallholders. While productivity in agriculture has been rising steadily over the last decade, this is more than offseted by the higher population growth rate. About 38 million persons, 54% of the total population, live below the minimum food requirement, which is 2,200 calories per adult per day. Half of those are extremely poor, consuming less than 1,650 calories per adult per day. Poverty in rural areas, where the overwhelming proportion of the Ethiopian population lives, is far greater than in the urban areas. The level of poverty the Amhara Region is the highest in Country, where 57 percent of the population is food insecure. Poverty reduction is the primary goal of the Ethiopian Government. Tackling food insecurity at the household level is the most direct way of poverty reduction. Towards this end, various programmes like SARDP were designed and being implemented.

1.1 National Development Policies and Strategies There have been major macroeconomic and sectoral policy developments in the last decade, all aiming at laying a solid foundation for sustained development. The central development objective of the Government is to build a market-led economic system which will

• enable the economy to develop rapidly, • allow the country to extricate itself from dependency on food aid, and • ensure that the distribution of the benefits of development is fair.

Recent policy reforms have paid particular attention to agriculture, which holds a dominant position, engaging 85% of the total population, contributing about 55% of the GDP and 85% of the total export earnings (60% of which comes from a single crop, coffee). The Government has adopted a strategy of Agricultural Development Led Industrialization (ADLI), which combines productivity gains in smallholder agriculture with promotion of labour-intensive industrialization. Agriculture is expected to play the leading role in the development of the economy. For this to happen, farming must be intensified, be more commercially oriented, increasingly producing for the market, and with a correspondingly lower share of the production for home consumption. To this end, farmers’ training, technical vocational education training (TVET), research and extension will have to be enhanced; the rapidly expanding primary education in rural areas will produce qualified students for such education. Besides, application of inputs will be promoted, new products will be introduced, irrigation will be expanded, and service co-operatives will also be encouraged. Contractual production, trading by farmers need to be fostered, production of tools and equipment for agricultural use will be promoted, and rural roads need to be constructed. At the same time commercial farming will receive more emphasis and support.


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Industrialization, particularly by the private sector is stressed. The current low share of the industry (about 10% nationally and 20% in ANRS) in the GDP is to be increased significantly. Private investment in industry is expected to increase, supported by three types of measures: making the existing policies work better; removing regulatory impediments and improving the implementation capacity of the government bureaucracy. The Government and its development partners have launched the Sustainable Development and Poverty Reduction Programme (SDPRP), which incorporates the following four building blocks:

• a strategy for economic growth based on agricultural development leading to industrialization, while first addressing the key challenges to food insecurity and recurring humanitarian emergencies,

• judiciary and civil service reform • decentralization and empowerment • capacity building.

The National Policy on Ethiopian Women (1993) addresses the prevailing discrimination of women and promotes women’s rights and participation in the democratisation and development processes of the country. It advocates women’s participation in the political, social and economic life of the country, confirms their right to own property, and demands that they be given equal access to basic social services and to ways and means of easing their workload and, finally, that all prejudices against women be removed. The major objective of the National Population Policy (1993) is harmonization of the rate of population growth with the capacity of the country to develop and utilize its natural resources. Ethiopia is one of the Sub-Saharan African countries where the spread of HIV/AIDS is increasing. HIV/AIDS will be a challenge to the country for the years to come. Therefore, in August 1998 the national policy on HIV/AIDS was amended with the general objective “ to provide an enabling environment for the prevention and control of HIV/AIDS in Ethiopia”, a recognition that the response to HIV/AIDS needs to be widespread and multi-sectoral. The Environment policy of Ethiopia which was extracted from the Conservation Strategy of Ethiopia (CSE), was approved on April 2, 1997.The policy states: “The overall goal is to improve & enhance quality of life of all Ethiopians… through the sound management and use of natural and cultural resources and the environment as a whole so as to meet the needs of the present generation without compromising the ability of future generation to meet their needs.”

1.2 Overview of the Regional Context Amhara National Regional State covers a total area of 162,000 km2 of which 53% is covered by cultivation, grazing and woody vegetation. Its population is now estimated at over 18 million and is growing at average rate of 3% and 4.5% in rural and urban areas respectively. Regional Characteristics In the following, some important characteristics of ANRS that need to be considered when formulating SARDP III have been highlighted.


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Agriculture is the main stay of the regional economy, which is characterized by subsistence crop production. Crop production is mainly dependent on rainfall, which is erratic in nature and dominantly traditional farming system, which resulted in low crop yields. Next to farming, animal husbandry is the most important activity in most agro-ecological zones of the region. There are breeds endemic to the region such as the Fogera cattle and the North Shoa sheep that are known to possess potential for high production. Limited vegetation cover and severe land degradation has caused the depletion of both surface and ground water sources. This problem also resulted in workload on women and girls in fetching water and collecting fuelwood from long distances, a chore that adds to their already heavy workload. In the region, industry is still poorly developed, producing only little and generating few jobs. The share of industry in GDP in the region is estimated at 20% and it is estimated to employ 5% of the workforce. In this situation, economic diversification and the possibilities of finding new job opportunities outside of the traditional agriculture sector is important. The establishment and support to Micro and Small Businesses (MSE) and establishment of Business Development Services (BDS) in ANRS is now an urgent priority. However, such development is hindered by lack of credit facilities, vocational skills, business training, market information, entrepreneurial skills, aged and old fashioned working tools and implements, and insufficient availability of good working and marketing premises. Cooperatives, of which there is a fair number in the region, could be an avenue for economic diversification. Most of the service cooperatives and urban saving and credit cooperatives were organized 25 years ago and efforts are currently being made to restructure them. Provision of credit and mobilization of savings are another precondition for economic diversification. Yet, micro-finance services in the region are still unable to meet the demand, even by the poor. It is estimated that the combined coverage by ACSI, by far the largest micro-finance institution (MFI) in the region, and other licensed MFIs is only 10-12% of the demand. Like most of Ethiopia, the Amhara Region has an extremely broken terrain, with deep, steep-walled valleys dissecting plateaus, thus making the construction of roads difficult and costly. In spite of major road building programmes in the past, the existing road network is still far from meeting the transport needs of the population. Local traditions are very strong, but there are some instances of violence against women and other harmful traditional practices like early marriage, circumcision, etc. Lack of physical infrastructure like telecommunications, roads and other means of transportation are serious constraints to communication between citizens, organizations, local and central administrations, market centres etc. There is a high illiteracy rate. The estimated literacy rate for ANRS is only 18%, with the urban population having better literacy rates than rural dwellers and males having about twice the literacy rates of females. Rural-urban migration is high due to harsh living conditions in the rural areas and expectations of better opportunities in the urban areas.


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The Organizational Environment Major institutional and organizational changes have taken place in the country in recent years, resulting in a more transparent and accountable system of governance. Much attention has been paid to the decentralization of decision making and planning to the woreda and kebele levels. It is expected that the continuing devolution of power, authority and resources to lower levels of the hierarchy will create favourable conditions for participation and people-centred development and ultimately for improved livelihoods. The administrative structure of a region is made up of regional bureaus, zonal departments, woreda offices and kebele administrations. The recent government restructuring gives the woreda offices more responsibilities and authority, and presumably budgetary and logistics provisions commensurate with the expanded responsibility and authority. The zones have an administrative set-up that links the regional and woreda institutions. The Woreda Administrations now have the overall responsibility for social and economic development. Their specific duties are as follows;

• plan, implement and monitor all development activities • protect and manage natural resources • levy and collect land and agricultural income taxes • construct and maintain small-scale rural roads • construct and maintain rural water supplies and small irrigation schemes • administer elementary schools • administer small scale health posts and clinics

The woreda administration now manages local development, including activities funded by SARDP as a woreda support. Traditional community organisations based at the kebele, sub-kebele or got (village) level exist for a variety of purposes, ranging from joint farm work and resource pooling (including money saving) to mutual assistance concerned with burials and other forms of social obligations. Regional Policy environment and strategies The Regional Development Policy emphasises increased agricultural productivity with maintained levels of equity. Along the same lines, the Amhara National Regional State Development Policy has been formulated and the Amhara Regional Conservation Strategy and a Forestry Action Plan have been drawn up. These policy documents give emphasis to security of tenure for farmers and the need to stabilize the ecological balance of the rural environment. The policy in all sectors--agriculture, environment, tourism, transportation, health, and education--favour participatory planning or community-based approaches to development, where priority is given to the needs and desires of local communities without compromising the environmental integrity of their surroundings. The Regional Food Security Strategy and Programme recognizes the need to utilise animal resources in order to achieve food security. The Strategy identifies lack of animal feed and inadequate provision of animal health services as the main causes of low livestock productivity, especially of dairy cows. Traditional animal feed sources such as crop residues, grazing areas and poorly protected hillsides yield only little feed, so protection of common grazing areas in villages


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and planting of fodder seedlings and grasses are needed in addition to improved animal feed management. The lack of trained personnel in animal health is another major problem. The region’s agricultural development strategies consist of:

• In surplus areas: Follow agricultural development led industrialization, achieving increased production in areas with sufficient rainfall through broadened use of productivity increasing inputs, improved access to credit and expanded agricultural extension services, and supplementary irrigation.

• In drought-prone areas: Production and income is to increase through promotion of water

harvesting and irrigation, natural resources conservation, improvement of rural infrastructure (roads, water supply and sanitation, etc.), marketing of agricultural produce, promotion of micro and small- scale enterprises, human resource development, and empowerment of local organisations.

Employment Generation Schemes (EGS) is also an important food security strategy in the region. It provides food as payment to families with food shortage for work in areas such as road construction, soil and water conservation, water harvesting, and tree planting. The current growth rate of human and livestock populations in the project area is beyond the present speed of increase in productivity of the land. As stated above, the natural resource base is being degraded at an alarming rate, and the soils are becoming less and less productive with the passage of time. Drought is persistently affecting the population. In recent years, food shortages have affected larger and larger areas and more and more people. Therefore, the regional government has adopted the National Population Policy (1993) as its major policy instrument leading towards reduced rates of population growth. Gender mainstreaming in all sectors, rather than separate women’s components in projects and programmes is a key strategy. Participation of women in the political, social and economic life of the country is also emphasised in the policy. The region’s gender strategy centres on the following issues: economic problems of special relevance for women, education for women and girls, and health and social issues of special concern to women and girls.


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2. SOCIO-ECONOMIC SITUATION This section presents an overview of the programme zones (East Gojjam and South Wollo), focusing on their socio-economic conditions.

2.1 Demography and Social Service Indicators There are marked differences between the two zones in terms population, literacy, social services status, etc. have been depicted in table 1. Table 1: Demographic and social status East Gojjam and South Wollo Zones Descriptions East Gojjam South Wollo

Area in km2 14 700 19 150 Population in 2002 1 950 000 2 400 000 Population projected for 2015 3 130 000 3 700 000 Population in % rural 89 88 2002 population per km2 147 141 Literacy rate in total in % 19 24 Males in % 27 30 Females in % 11 18

Share of boys in %

56 54 Enrolment in primary schools

Share of girls in %

44 46

Pupil to teacher ratio 73 65 Pupil to school ratio 667 706 Population to health posts 57 900 47 100 Population to health centres 357 000 288 000 Population to doctor ration 97 000 70 000 Population to nurse ration 13 500 12 800

Source: BoFED 2001/2002 Annual Statistical Bulletin November 2003. There are 18 Woredas in South Wollo. All woredas except Dessie and Kombolcha, which are urban ones, are supported by SARDP. Population data, area and population density in the programme woredas are presented in table 2. Dessie Zuria with about 252 000 inhabitants has the largest number of inhabitant while Albuko with about 100 000 inhabitants has the smallest. The table also shows that most woredas (10 out of 16) have a population density between 100 people and 200 people per km2. In only one woreda, there are more than 200 people per km2 , but in four there are less than 100 per km2.


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Table 2: Population of SARDP Supported Woredas of South Wollo Woreda Population Number

of kebeles

Area km2 Population density per km2

Kelala 136 389 36 1756 78 Wegdie 125 462 34 1450 87 Mekdela 139 886 29 1564 89 Sayint 210 485 42 2190 96 Jama 120 628 21 1161 104 Worebabo 106 681 22 996 107 Tenta 171 790 31 1437 120 Wereillu 148 533 30 1161 128 Ambassel 130 769 23 969 135 Dessie Zuria 251 805 31 1658 152 Debre Sina 158 160 34 1021 155 Kalu 188 156 39 1195 157 Legambo 162 669 34 1018 160 Kutaber 111 140 22 603 184 Tehuledere 142 237 23 524 271 Albuko 100 554 13 450 232 Total 2 405 344 464 19 153 Avr.: 140

Source: BoFED 2001/2002 Annual Statistical Bulletin November2003 There are 15 Woredas in East Gojjam. All woredas except Debre Markos, which is urban, are supported by SARDP. Population data, area and population density in the programme woredas of East Gojjam are presented in table 3 below. Table 3: Population Data of SARDP Supported Woredas in East Gojjam Woreda Population Number

of kebeles

Area km2 Population density per km2

Machakel 144 365 24 2 251 64 Baso Liben 142 317 25 1 488 96 Shebel Berenta 96 664 18 981 99 Enebse Sar Mider 137 449 32 1 065 129 Bibugne 104 823 19 808 130 Gozamin 243 636 42 1 642 148 Awabel 181 391 43 1 211 150 GonchaSiso Enesse 144 656 36 928 156 Enarji Enawga 158 924 28 960 166 Dejen 111 849 21 635 176 Hulet Eju Enesse 255 265 47 1 364 187 Debay Tilatgn 122 231 21 608 201 Enemay 155 798 24 763 208 Debre Elias 94 959 15 n/a n/a Total 1 949 671 395

Source: BoFED 2001/2002 Annual Statistical Bulletin November 2003.


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Hulet Eju Enesse, with about 255 000 inhabitants, has the largest population and Deber Elias with about 95 000 inhabitants the smallest one. The table also shows that most woredas (8 out of 14) have a population density between 100 people and 200 people per km2. Two woredas have a population density of more than 200 people per km2 while three woredas have less than 100 people per km2 .

2.2 Land and Its Use The Region is large with a most diverse and varying agro-ecological setting, from arid lowlands to productive valleys and high mountains. Land is a critical resource for all inhabitants of the region and thus for the overall socio-economic development of the Region. To have secure tenure to land is a prerequisite for farmers to undertake long-term improvements on their land. The registration of land holdings is now ongoing in the Region. A Land Administration System has been developed based on two pilot areas established in East Gojjam and in South Wollo. Land Administration Committees are formed at the kebele and sub-kebele levels. The registration of holding rights is ongoing and Books of Land Holdings being issued, confirming the legal rights of farmers to occupy the land allocated to them. Land degradation in the East Gojjam zone is not as bad as in South Wollo, but soil erosion is still serious. Farmers and government staff have noted that many areas in both zones have already lost their productive potential due to erosion. Farmers in all agro-ecologic zones need increasing amounts of fertilizers in order to obtain reasonable yields of grain. Although the zones have a number of perennial rivers, streams and springs, the water resources are not widely used for agricultural production; less than five percent of the cultivated land is irrigated in the region as a whole. Farmers are well aware that soil fertility can be increased through use of manure and other organic matters, but stagnant or declining levels of livestock result in reduced manure production, which is almost totally used as cooking fuel. Agriculture and agriculture-based economic activities dominate the livelihoods of both zones. Table 2 shows a few indicators related to farming in the two zones. Crop production is the dominant source of livelihood in both zones. Crop productivity is slightly lower in South Wollo than in East Gojjam but is in both zones better than the national average of 9.6 qt/ha. Table 4: Agriculture in East Gojjam and South Wollo Descriptions East Gojjam South Wollo National

averages Average land holding, ha 1.3 0.9 0.75 Annual rainfall, mm 1 500 900-1100 Crop productivity, qt/ha 12 11 9.6 Share of teff in grain production 40 36 16.4 Share of wheat in % 12 18 14.5 Share of pulses in % 7 19 10.3 Source: BoFED 2001/2002 Annual Statistical Bulletin, November 2003.


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East Gojjam, a potential surplus crop producing area, is still characterized by small land holdings, land degradation, and a high number of landless households. Share-cropping is common and accounts for about 13% of cultivated land in East Gojjam. Through the process of land reform, many households are now effectively landowners and compete for land. South Wollo Zone suffers from chronic food insecurity. Over 60% of the population live below the officially recognized poverty line. In a normal agricultural production year only 10 - 15% of the rural households produce enough to feed their families. The remaining 85% experience 1-9 months of serious to severe food shortage. The local farmers have repeatedly mentioned falling terms of trade in agriculture, i.e., falling price of crops compared to high prices of fertilizers and improved seeds, compounded by crop pests and diseases are the major problems in their efforts to secure adequate food and cash income. Production losses due to crop pests and diseases and poor post harvest handling, as estimated by the woreda agriculture offices, can amount to 20-30%. Livestock plays an important role in the farming system. Cattle are often kept in the field with open grazing system. The preferred investment is in oxen followed by milk cows. Farmers say that having land without oxen is nearly as bad as being landless. Animal diseases are rife and the coverage of veterinary services is low. While productivity of local livestock breeds are very low, efforts to introduce improved livestock breeds have failed to make much of an impact. Animals provide traction power, transportation, as well as manure used both as fuel and fertilizers, mainly in backyard farming. Its ancillary products in the form of milk, meat, egg, and honey supplement household food security. Average livestock ownership in the zone is low, less than the national average, which is in the range of 3.5 to 4.5 TLU (tropical livestock units) per hectare. Over the years, the indigenous tree cover has been removed to open up land to agriculture and grazing. Instead, impressive numbers of eucalypts have been planted, mainly close to farmsteads. Fuel wood is however still in short supply. It is still the most common source of energy in rural areas. About 93% of the households use an open fire (three stone) stove for cooking, which is very inefficient in energy terms. Only some 3% of the rural households use modern enclosed stoves.

2.3 The Local Economy For the rural population in both programme zones, but particularly in South Wollo, it has become increasingly difficult to rely on agriculture as the major source of livelihood. The prevailing subsistence agricultural economy, characterized by small land holdings, large family sizes (6 persons per family), increasing number of landless young people, and unfavourable prices for crops, etc., force many people to leave rural areas and seek opportunities elsewhere. The proportion of the population in the Amhara Region that lives in urban areas is approximately 11 percent, while the corresponding figure for the nation as a whole is 16 percent. As a result of migration from the rural areas, the region is witnessing a fast growth of its urban population. Urban centres need agricultural products and often use the services of rural people; indeed, the urban areas are unable to survive on their own, dependent as they are upon the rural population for food, firewood, some home utensils, building material and labour. There is a large unmet demand for micro-financial services, both credit and savings. At the regional level, some 84% of the credit services have been provided by ACSI through its network of branches


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(170) in the rural areas. Its average loan is only 1000 birr, at an interest rate of 18%. 80% of the loans given are for the agriculture sector, while 20% is for trade. There are some 1300 rural and urban cooperatives in the region; East Gojjam has 172 and South Wollo 197. Most of them are multipurpose ones but several concentrate on a single purpose, such as dairy producton, saving and credit, irrigation, housing, or incense production.

2.4 Infrastructure and Social Services Roads Rural roads are essential for development of the local economy and necessary in order to bring social services to the rural people. The low road density affects market development and contributes to the subsistence nature of agricultural economy in the two programme zones but is an especially serious constraint in the mountainous woredas of South Wollo. In East Gojjam, only 14% of the rural communities have access to roads, and farmers on average have to walk for three hours to reach the main road. In South Wollo, farmers walk for three to four hours to reach markets and service centres. SARDP has so far supported the construction of 250 kms of rural roads and 672 kms of village roads in South Wollo and 87 kms of rural roads and 238 kms of village roads in East Gojjam. This means that today virtually all Woreda capital towns can be reached by bus, a major improvement over the last few years. Much of the construction has been based on labour intensive technology and a system of road caretakers (i.e. a group of community members trained by the Programme to maintain specific stretches of the road) is in place to ensure proper maintenance. Schools With only 571 primary schools and 10 secondary schools for over two million people in East Gojjam, access to education is low. Nearly half of the school age children do not attend school, and the coverage for girls is even less. Further, the quality of education is low, due to shortage of qualified teachers, books and also other educational materials. The student to teacher ratio is on average around 70:1, allowing only minimum teaching to students. In some cases a textbook is shared by up to eight students. The educational situation in South Wollo is similar to that in East Gojjam, with about 59% attendance in primary schools 10 % in secondary ones1. Shortage of teachers, lack of books and other educational materials, shortage of school-rooms and seats, low enrolment among girls, and poor capacity among the staff characterize the education services. The number of school dropouts is showing a rising trend across woredas in the two zones. Many students have to travel long distances to attend school; some simply live too far away and are unable to attend for that reason. Moreover, the existing schools are not always well maintained.

1 Social Development Plan Department, Bureau of Finance and Economy Development – Amhara Regional State, October 2002.


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School attendance for girls is especially low, and this is worrying from a development point of view as it will mean that most of tomorrow’s mothers, the role models for young girls, will still be illiterate. For the girls themselves, however, the lack of education is but one of a number of traditional discriminatory practices they have to suffer. When schools are far away, poor households are reluctant to let the child study, thus foregoing its contribution in farming and other home duties. Health Health services is inaccessible to most households in both South Wollo and East Gojjam. Few households practice family planning. Common diseases include malaria, lung diseases and HIV/AIDS. Malaria epidemics, normally a problem only in lowland areas, have now occurred in midland parts of East Gojjam. As only two household out of ten has access to clean water in the two programme zones, incidences of water born diseases are high both in rural and urban kebeles.

2.5 Local Governance Decentralisation The decentralisation process continues and increasing amounts of funds are channelled to the woredas, so their staff is faced with increasing responsibilities while their skills for the new tasks may be limited. The present capacity in the woredas to manage funds for local development in a responsible and transparent way may be questioned. One of the major challenges for the administration at all levels is to be more accountable to the general public. And, traditionally, poor communities feel they do not have the authority to demand services from the government. Mass media It is believed that about 18 % of the rural households possess radio receivers. It is mainly through radio that one can reach the majority of the rural people. The Programme has over the years provided much support to improve the coverage and quality of the radio transmissions in the ANRS, including the installation of a major radio transmitter just outside of Bahr Dar. Gender The disparity between men and women are persisting despite the fact that several measures have been taken at all levels. The land reallocation policy of the region is one of the critical measures, which has given the majority of the poor women the possibility to gain secure tenure to this fundamental resource. The national policy on women, which was adopted in 1993, has also contributed to create better conditions for women. However, the gap in equality still remains wide. Access to basic facilities and amenities, poor as they are in general, is still men-biased. This includes services such as health and education, degree of participation and the exercising of basic rights. A disproportional share of the heavy physical work falls on women, for example fetching water, grinding grain, and collecting firewood. Many boys but many more girls have to participate in such duties, and this severely restricts their opportunities to attend school.


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Further, a number of traditional practices are still affecting girls and women, such as early marriage of girls, violence against women, rape, and, perhaps worst of all, the persisting practice of genital mutilation, even though it is officially prohibited. HIV/AIDS There is little data on the prevalence of HIV/AIDS in rural areas at the moment, and issues related to the pandemic are not openly talked about. Discussions with local communities and indirect indicators such as high incidence of venereal diseases and high mortality rate of the migratory population indicate that the incidence of the fatal disease is high and that it spreads at alarming speed. The problem of HIV/AIDS has already emerged as a serious threat to human life and economic development as it is increasingly affecting sections of the population who are economically active. HIV/AIDS is therefore no longer only a health problem. Although the problem is currently more serious in towns than in rural areas, it is obvious that HIV/AIDS is penetrating quickly into rural areas. Incidence of HIV/AIDS and losses in human life has been reported from all woredas in the two programme zones.

2.6 Poverty situation a) South Wollo According to community members interviewed in a study carried out by SARDP in several kebeles in South Wollo, well-being is to have access to means of subsistence. The area of land owned by a household and its number of oxen, the two most important means of production, are thus seen as key indicators of wealth. In the study, households were classified into three categories; poor, middle, and better-off, described as follows.

•• PPoooorr hhoouusseehhoollddss:: TThheessee hhoouusseehhoollddss ccaann ccoovveerr tthheeiirr ffoooodd nneeeedd ffoorr lleessss tthhaann ffoouurr mmoonntthhss aa yyeeaarr.. DDuurriinngg tthhee rreesstt ooff tthhee yyeeaarr,, tthheeyy ddeeppeenndd oonn ffoooodd aaiidd aanndd iinnccoommeess ffrroomm llaabboouurr iinn tthhee rruurraall vviillllaaggeess oorr iinn nneeaarrbbyy ttoowwnnss.. TThheessee hhoouusseehhoollddss ddoo nnoott hhaavvee ooxxeenn oorr ootthheerr ffaarrmm aanniimmaallss.. AAbboouutt 6600%% ooff tthhee hhoouusseehhoollddss bbeelloonngg iinn tthhiiss ccaatteeggoorryy..

•• MMiiddddllee lleevveell hhoouusseehhoollddss:: TThheessee hhoouusseehhoollddss ccaann ccoovveerr tthheeiirr ffoooodd nneeeeddss ffoorr uupp ttoo eeiigghhtt mmoonntthhss aa yyeeaarr ffrroomm tthheeiirr oowwnn ccrroopp pprroodduuccttiioonn.. TThhee ffoooodd nneeeedd ffoorr tthhee rreesstt ooff tthhee yyeeaarr iiss llaarrggeellyy ccoovveerreedd bbyy ssaallee ooff ssmmaallll ffaarrmm aanniimmaallss.. HHoouusseehhoollddss iinn tthhiiss ggrroouupp oowwnn aa ssiinnggllee ooxx aanndd aa ffeeww sshheeeepp aanndd hhaavvee ffaarrmm pplloottss ooff tthhee aavveerraaggee ssiizzee,, aabboouutt 11 hhaa.. AAbboouutt 3300%% ooff tthhee hhoouusseehhoollddss bbeelloonngg iinn tthhiiss ccaatteeggoorryy..

•• BBeetttteerr--ooffff hhoouusseehhoollddss:: IInn ggoooodd yyeeaarrss,, tthheessee hhoouusseehhoollddss aarree aabbllee ttoo ccoovveerr tthheeiirr ffoooodd nneeeeddss aallll tthhrroouugghh tthhee yyeeaarr.. TThheeyy oowwnn aatt lleeaasstt aa ppaaiirr ooff pplloouugghh ooxxeenn,, ssoommee mmiillkk ccoowwss,, ccaallvveess aanndd sshheeeepp aanndd hhaavvee ffaarrmm pplloottss ooff wweellll aabboovvee tthhee aavveerraaggee ssiizzee.. AAbboouutt 1100%% ooff tthhee hhoouusseehhoollddss bbeelloonngg iinn tthhiiss ccaatteeggoorryy..

RReessppoonnsseess ffrroomm ccoommmmuunniittyy mmeemmbbeerrss iinnddiiccaattee tthhaatt tthheerree hhaavvee bbeeeenn vviirrttuuaallllyy nnoo iimmpprroovveemmeennttss iinn tthhee wweeaalltthh ssttaattuuss oovveerr tthhee llaasstt 2200--3300 yyeeaarrss.. RRaatthheerr,, ppoovveerrttyy hhaass iinntteennssiiffiieedd yyeeaarr bbyy yyeeaarr dduuee ttoo tthhee ddeeccrreeaassee iinn pprroodduuccttiioonn ooff ffaarrmm oouuttppuuttss,, tthhee eevveerr iinnccrreeaassiinngg ccoosstt ooff bbaassiicc ccoonnssuummppttiioonn iitteemmss,, aanndd llaacckk ooff aalltteerrnnaattiivvee ssoouurrcceess ooff iinnccoommee..


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TThhee sshhaarree ooff hhoouusseehhoollddss ffaalllliinngg iinn tthhee tthhrreeee ppoovveerrttyy ccaatteeggoorriieess iinn tthhee sseelleecctteedd wwoorreeddaass ooff SSoouutthh WWoolllloo aarree iinnddiiccaatteedd iinn TTaabblleess 55 aanndd 66.. IItt wwiillll bbee nnootteedd tthhaatt tthhee ddiiffffeerreenncceess bbeettwweeeenn tthhee wwoorreeddaass aarree vveerryy ssmmaallll.. b) East Gojjam The communities in East Gojjam define quality of life in a way quite similar to those in South Wollo. In the poverty study in East Gojjam, the households were classified in poverty categories, just like in South Wollo. However, the study also attempted to indicate the general capacity of the members in the communities and tried to quantify the impact of development projects on the wealth of the communities. On average, the shares for better off, medium, and poor households were 11, 30 and 59 %, respectively. While these figures are quite similar to those for South Wollo, it should be noted that the criteria for the classification were different; the average poor household in South Wollo is, for example, significantly worse off than the average poor one in East Gojjam. The criteria for the classification in East Gojjam are given below.

• Poor households: Plot size farmed is less than 0.5 ha, ploughing is done by hoe, the household has no more than one cow and seldom an ox. Livelihoods depend on daily labour, leasing of land, fuel wood collection for sale, charcoal production, even begging. Households are often in debt and virtually never visit health centres. Children are used to generate income. Households eat only one meal per day. Houses have roofs covered with grass or 20-30 sheets of CIS. AAbboouutt 5599%% ooff tthhee hhoouusseehhoollddss bbeelloonngg iinn tthhiiss ccaatteeggoorryy..

• Middle level households: Size of plots farmed is between 0,75 and 2 ha. The household may have 1-4 oxen, 1-5 cows, 1-2 heifers, 1 donkey, 1 horse, 2-10 goats, 2 beehives and perhaps a few dozen coffee plants. They use improved inputs in farming and reach a production of up to 15 qts per annum. They are able to repay debts ands to send one or two children to school. The roofs are covered by 30-70 CIS. AAbboouutt 3300%% ooff tthhee hhoouusseehhoollddss bbeelloonngg iinn tthhiiss ccaatteeggoorryy..

• Better off households: Size of plots farmed is 1-3 ha. The households own 2-8 oxen, 2-10 cows, 3-12 heifers, 1-4 donkeys, 1-4 horses, 2-10 goats, 2-10 beehives and perhaps 50-120 coffee plants. They have no need to borrow for farm inputs. They use improved inputs and produce up to 30 qts per annum. The households can save money in the bank and send one or two children to school. Roofs are covered by 70 to 100 CIS. Family members dress well and eat three meals per day. AAbboouutt 1111%% ooff tthhee hhoouusseehhoollddss bbeelloonngg iinn tthhiiss ccaatteeggoorryy..

The farmers interviewed defined vulnerability as being unable to deal with natural and man-made problems, such as conflicts, market shocks, natural disasters, violence and crime. The extent of economic vulnerability has increased over the years for reasons such as population pressure, frequent drought, depleted household assets, lack of savings and too many religious holidays and costly social festivals such as marriage and burials. The increasing number of rural landless and of female-headed households were mentioned as particularly worrying. Drought has often been a trigger of famine in Ethiopia. This happens because of problems like population pressure, natural resources degradation, crop pests and human and livestock disease. Reduction in the number of livestock, together with increased use of animal dung and crop residue as household fuel means that it is difficult to increase the use of organic fertilizers for soil improvement. The Federal Government has established a Food Security Programme (FSP) with several components to find a long-term solution to meet the primary consumption needs of people short of


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food. Food, but also sometimes cash, is used as payment for work done by individuals or communities, for example in labour-intensive public works. Cash payments can be used to enable families to send children to school or to pay for health care. TTaabbllee 55:: PPoovveerrttyy ccaatteeggoorriieess iinn ffoouurr wwoorreeddaass iinn SSoouutthh WWoolllloo

PPoovveerrttyy ssttaattuuss

DDeebbrree SSiinnaa DDeessssiiee ZZuurriiaa WWoorreeiilllluu JJaammmmaa AAvveerraaggee

PPoooorr 6600%% 6622%% 6600%% 5588%% 6600%% MMiiddddllee 3300%% 2266%% 3300%% 3311%% 2299%% BBeetttteerr ooffff 1100%% 1122%% 1100%% 1111%% 1111%%

TTaabbllee 66:: PPoovveerrttyy ccaatteeggoorriieess iinn ffoouurr wwoorreeddaass iinn EEaasstt GGoojjjjaamm

PPoovveerrttyy ssttaattuuss AAwwaabbeell DDeejjeenn EEnneemmaayy EEnnaarrjjeennaawwggaa AAvveerraaggee PPoooorr 4488%% 7700%% 5599%% 5588%% 5599%% MMiiddddllee 3377%% 2200%% 3300%% 3311%% 3300%% BBeetttteerr ooffff 1155%% 77%% 1111%% 1111%% 1111%%

AAss ccaann bbee sseeeenn ffrroomm ttaabblleess 55 aanndd 66,, tthheerree iiss lliittttllee ddiiffffeerreennccee bbeettwweeeenn tthhee iinnddiivviidduuaall wwoorreeddaass iinn SSoouutthh WWoolllloo aass ttoo ppoovveerrttyy lleevveellss,, wwhhiillee tthhee ddiiffffeerreennccee iinn EEaasstt GGoojjjjaamm iiss ssttrriikkiinnggllyy hhiigghheerr..


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3. THE PROGRAMME FRAMEWORK

3.1 Programme Principles Rural poverty has economic and social dimensions and is a result of lack of opportunities, security and power. Lack of opportunities is linked to limited assets, such as labour, land, livestock, equipment, capital, and the limitations due to poor education, lack of skills, poor health, difficult family situation, gender and cultural barriers etc. The intended beneficiaries of SARDP are the rural poor in South Wollo and East Gojjam including those who live in absolute poverty. Towards this end SARDP-III has the following principles. a) Poverty focus As stated in the poverty situation of the programme zones the majority of the rural population (about 60%) are below the poverty line, which the programme will focus. Increased diversification of income among the poor will indirectly improve their food security by offering opportunities to earn cash both from farming and non-farming activities. The programme will support small farmers and landless, mainly with training in relevant techniques, in fields such as production, processing and distribution,; rehabilitation of degraded land, and establishment of seed and grain banks. Support to these activities might be channelled through cooperatives. Provision of micro-credits to small producers, especially women, may be another way to improve the food security and nutritional status of the rural poor. Establishment of medium and larger enterprises through BDS and the BIF (Economic Diversification Component) will create job opportunities, also for the poor. b) Land security Improved access and entitlement to land will be a main focus of the programme. Farmers depend on the land for their livelihood and secure tenure is a condition for their interest in the long-term productivity and sustainability of the land and their willingness to make the needed investments for that purpose. Without tenure security to land, farmers will not be interested in rehabilitating degraded lands, even though such land can yield significant benefits after a few years. Similarly, investments in land like irrigation will be made only by farmers who know they will be able to enjoy the fruit of their labour for a relatively longer period. c) Empowerment SARDP III will contribute to empowerment in three ways:

• Engaging the poor in development planning, monitoring and evaluation, but also giving the poor access to opportunities, i.e. assets and capabilities.

• Decentralization has been adopted as an empowerment tool in ANRS, but, owing to the historical traditions in Ethiopia, the process may take time. Further, decentralisation of decision-making has to be matched by financial decentralisation.


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• Participation by all sections of society in terms of wealth, social strata, gender and age groups, as it is only when people participate directly in planning and implementation of projects and share the benefits created that they become masters of their own development.

• Genuine involvement of local communities in establishing priorities, planning and implementing activities demands a new approach from all staff concerned, possibly requiring substantial investments in training. The creation of capacities at the woreda, kebele, and sub-kebele levels is critical for the success of SARDP III. The primary focus of the Programme will therefore be to institutionalise and further strengthen the capacity among woredas as well as communities and their institutions through training, technical support, provision of facilities, and creation of access to financial resources.

• The woreda administration may also need support to improve communication mechanisms between the local government bodies and the kebeles, thus enabling increased accountability, not least in the management of programme funds.

d) Differentiation The different geographic and socio-cultural conditions in the woredas of East Gojjam and South Wollo imply that different activities will have to be undertaken in the two zones. It is essential that a needs based approach is adopted that is responsive to the local economic and environmental conditions. e) Good governance Promotion of good governance is needed, mainly through strengthening of local communities, CBOs and government units at the kebele level. Good governance is linked to the provision of security in a society where law and order is to be upheld and where the freedom of speech is respected. Good governance can be achieved when a permanent dialogue between the centre and the periphery is established and appropriate mechanisms for conflict resolution are in place. The legal and judicial systems are a fundamental part of good governance. In order to combat corruption and crime and secure human and constitutional rights, it is necessary for SARDP to support the judicial system in the Programme zones. Independent mass media has an important role to fulfil in this respect. f) Gender equality Women in East Gojjam and South Wollo do not have equitable access to assets like land, livestock and cash. However, the land redistribution carried out in May 1996 gave almost 136 000 female headed households in ANRS access to land. In addition, women have poor access to education and health services, employment opportunities, and their participation in development and political activities is low. This situation is exacerbated by the gender-based division of labour. Therefore, capacity building to promote gender equality should be carried out at woreda, zonal and regional level. Within each programme component gender issues should be specifically addressed and methods to promote equality instituted. This component will target women and will exploit different approaches in programme design and delivery in order to promote gender equality.


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g) Sustainability The sustainability of SARDP is largely dependent on commitment from the Amhara National Regional State to continue the promotion of policies conducive to rural development and on the institutional and individual capacities to implement development. The SARDP capacity building activities are in this context of vital importance. The woredas should be able to plan and implement development projects in an economically viable way. Training of staff to improve work quality and to develop self-confidence will be crucial. Training will be necessary in a wide range of technical subjects and in planning and administration, including accounting and financial management. Capacity building at zone and regional level will also be necessary to support woredas in planning and in specialised fields. SARDP will operate with grant funds, which in accordance with the Ethiopian budgetary system will not be additional resources for the two zones. The economic sustainability of programme interventions can therefore be ensured only if the benefits generated outweigh the costs and contributes to increased revenue collection at woreda level. It is therefore important to analyse each intervention in terms of cost-effectiveness. The principle of cost sharing should also be considered.

3.2 Organizational Structure SARDP III will operate in accordance with the government system. Operating below the federal level, the Programme will channels its support through regional, zonal, and woreda levels down to the beneficiaries at community levels, following the operational system of the regional administration. SARDP is “housed” with BoFED and can be seen as having operational units “added on” to those of BoFED, at the various levels. The Programme has a number of “units”, from where one or a set of activities are directed. They are the following: 1. Regional level, programme coordination units

• Regional Programme Coordinating Committee (Regional PCC) • Regional Programme Coordination Unit (Regional PCU) • Regional level, Backstopping Support units consisting of regional institutions

2. Zone level, programme coordination units

• Zone Programme Coordinating Committee (Zone PCC) • Sub Programme Coordinating Unit (Sub PCU) • Zone level, support units within the Finance & Plan Branch Offices

In East Gojjam Zone, Debre Markos and South Wollo Zone, Dessie 3. Woreda level, programme coordination units

• Woreda Programme Coordinating Committee (Woreda PCC) • Woreda Programme Focal Persons


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4. Woreda level, project management units, in the following woredas: • East Gojjam; Awabel, Baso Liben, Debay Tilatgn, Dejen, Enarji Enawga, Enemay,

Gozamin, Hulet Eju Enesse, Machakel, Shebel Berenta, Goncha Siso Enesse, Debre Elias.

• South Wollo;Albuko, Debre Sina, Dessie Zuria, Jama, Kalu, Kelala, Kutaber, Legambo, Mekdela, Sayint, Tehuledere, Wegdie, Wereillu.

5. Technical Advisory Service

3.3 The Programme Budget Allocation The programme budget is allocated for Woreda Development Support and Regional Support. The Woreda support is by far the largest budget item of SARDP-III which is more than 70%.The budget is allocated to each Woreda on the basis of the following criteria applied by the Regional Government:

• Population • Degree of marginalization • Capacity to generate own funds

It should in this context be mentioned that there is a second kind of locally managed fund, the Community Development Fund (CDF), intended for use by kebeles or CBOs within kebeles. That Fund will be fully managed by the community (kebele or sub-kebele levels). The Community Development Fund is at present being tested on a pilot basis but may later be expanded to all woredas. The contributions to the CDF constitute a part of the Woreda Development Support allocated to each programme woreda.

3.4 The Backstopping Support At the regional level, several bureaus and authorities are involved in the provision of technical backstopping support to the woredas in very specific programme related fields. As it is, SARDP III will not provide support for any capacity building at the regional level unless this in turn is clearly related to increased capacity building at the woreda level and below. At the same time, it is obvious that the regional level need to have technical capacity in many important fields to provide the woredas with new information and technical guidance. Below is a short overview of the organisations at regional level that will receive resources from SARDP III in meeting demands at the woreda level for their backstopping support.

• BoFED, the Bureau of Finance and Economic Development, is housing SARDP and as such is responsible for the flow of funds throughout the regional structure. BoFED also has a population office and maintains statistic on development issues.

• ACSI, the Amhara Credit and Savings Institute, has an impressive outreach as it operates in all woredas of the ANRS and covers about 70% of the kebeles. Still, ACSI can not meet all the demand.

• EPLAUA, the Environmental Protection, Land Administration and Use Authority, is newly established and has established and introduced a standardized system for land administration


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as well as for environmental protection, to be applied throughout the Region. These activities are expanding quickly and in need of resources for expansion and scaling up.

• BoARD, the Bureau of Agriculture and Rural Development, has an important role in backstopping the woredas with seeds, fertilizers etc. in addition to having a large network of extension workers throughout the region.

• ARARI, the Amhara Regional Agricultural Research Institute, is responsible for research in the agriculture sector and has research stations throughout the ANRS.

• Amhara Rural Roads Authority (ARRA) is responsible for the construction and maintenance of the major trunk roads in the Region, and for technical backstopping to the operation of village roads.

• Amhara Micro and Small Enterprise and Industry Development Bureau (AMSEIDB) will be a key partner for SARDP within economic diversification.

• Rural Energy Office is a new office responsible for energy issues, which to a large extent involves firewood supplies and fuel saving devices in rural areas

• Water Development Bureau has an important role in coordinating the establishment and management of new water points for potable water and upgrading of traditional irrigation schemes

• Women’s Affairs office (WAO) has the mandate to coordinate, facilitate and monitor implementation of the National Policy for Women.

• HAPCO, the HIV/AIDS Prevention and Control Office, has been set up to coordinate and facilitate the multi-sectoral response to HIV/Aids in Ethiopia


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4. PROGRAMME GOAL, OBJECTIVES AND STRATEGIES SARDP is a rural development programme focusing on food security and local capacity building. It is composed of a major part providing direct support to the woredas in the programme area, and a minor one, containing technical support to the woredas from various units in the region, including technical bureaus. In addition, there is a structure for management of the entire programme, including a component of technical assistance.

4.1 Programme Goal The Programme Goal is to contribute to poverty reduction in the Amhara Region by improving the food security conditions of the rural population in 30 Woredas of East Gojjam and South Wollo Zones.

4.2 Programme Purposes The Programme shall contribute to the achievement of the Programme Goal through the fulfilment of the following purposes:

1. Agricultural production and productivity increased, marketing of agricultural products and management of natural resources improved

2. Income generating opportunities diversified and household income increased 3. Infrastructure and delivery of social services improved 4. Capacity of local communities and local administration at Woreda and kebele level

increased 5. Effective management of the programme in operation

The Programme purpose is to be achieved by proving a number of outputs. The outputs have been grouped into the following four pillars or major components:

• Agriculture and Natural Resources Management • Economic Diversification • Infrastructure and Social Services • Decentralisation

In order to attain the outputs indicatedf in each pillar, a number of activities have been identified, each of them directly linked to one of the outputs, as presented in the logframe matrix. It should be noted that the cross-cutting issues (population, environment, gender and HIV/AIDS) are being streamlined into the four Programme components or pillars.

4.3 Strategies The Amhara National Regional State faces a number of challenges in the ongoing transition to environmentally sustainable rural development and to follow guidelines regarding environmental sustainability given in the constitution and the national economic policies. The two most important challenges are:

• Achievement of food security through sustainable agricultural intensification, involving provision of secure rights to land and practicing of environmentally sound methods.


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• Reduction in the rate of population growth, thereby easing the pressure on the environment and allowing living standards and education levels to improve.

To date, only little progress has been made in translating these policies into practice, often due to low capacity among the responsible government units, lack of understanding of the policies at lower levels, and inadequate coordination among the actors. Current government policies at both federal and regional levels for rural development favour a comprehensive approach to food security and poverty reduction, targeting vulnerable areas and vulnerable groups. In addition, the responsibility for both development and disaster prevention activities is being decentralised, giving increasing emphasis on community participation and on improved food security through increased production and economic diversification. One of the major reasons for the inadequate service to the poor is also poor governance without clear accountability mechanisms especially at lower levels. Poor communities do not feel confident to demand services from the government. In the previous phases efforts have been made to improved governance and considerable achievements gained. This will be further strengthened in the programme woredas so that they can address the needs of the poor and marginalized, especially women. Particular emphasis needs to be given to participatory planning approaches responsive to the needs of the poor. Hence, the overall strategies of the programme will constitute the following: Introduction of Alternative Approaches: The programme will demonstrate alternative approaches, methods and practices for improving food security and reduce poverty, using experiences from previous phases of SARDP and resources experiences available at the local, regional, national and international levels. The programme will also promote and facilitate the integration of successful participatory planning approaches and methodologies into the government system. Capacity building: The capacity of individuals, communities, and government institutions will be improved through transfer of skills and provision of technical, material, logistic and financial support, so that they can respond to the priority needs of the farmers. Moreover, institutions will gradually takeover the responsibility for the sustainable management and coordination of development interventions in the Woredas. Disseminating project experiences and scaling up: Successful approaches will be scaled up in programme woredas and applied in other Woredas of the Region as the programme expands. Information will be disseminated through publications and networking with agencies involved in similar work.

4.4 Effective Management of SARDP The whole modus operandi of the Programme is based on local capacity and thus it contains central elements of capacity building at woreda and kebele level. For training, and for the whole Program as such, to have any lasting effect, any impact, it requires a close cooperation between the Programme Management at all levels and officials and experts at woreda level. An implication of this is that woreda employed experts would be expected to remain in their positions for the whole or the major part of the lifetime of the Programme. Major and quick turn over of staff is considered to be highly detrimental to the sustainability of activities. Staff reshuffling is also considered to seriously hamper


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sound and regular monitoring and reporting. Secondly, it is assumed that the focal person will be strengthened as a heavy turn over rate of these key persons leads to loss of institutional memory. The Programme management is making efforts to install certain staff retaining incentives in the woredas and plan to deepen this effort over the programme period. Secondly, the focal person institution will be more clearly defined in terms of responsibilities and non-financial remuneration will be considered. It must be realized that long-term sustainability of the Programme can only be achieved by the full involvement of regional and woreda authorities, local communities and households and individuals. Among other things, this calls for qualified and committed professionals at all levels, who also need to remain at their duty-stations.

4.5 Programme Logical Framework Through a series of participatory workshops and technical discussions, a Logical Framework has been formulated for SARDP III, where the Programme Goal, Purposes, Outputs and major Activities have been identified.


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Summarized Logical Framework for Woreda Development Support - SARDP III

Intervention Logic Objectively Verifiable Indicators (by mid 2008)

Means of Verification

Assumptions

Programme Goal To contribute to the poverty reduction of the Amhara Region by improving the food security conditions of the population in 30 weredas of E.Gojjam &S.Wollo

The poverty status of each strata in the programme woredas improved by 10%.

Poverty impact assessments Household surveys

Program Purposes 1. Agricultural production and productivity increased,

marketing of agricultural products and management of natural resources improved

2. Income generating opportunities diversified and household

incomes increased 3. Infrastructure and social services improved 4. Capacity of local communities and local administrations to

plan and manage sustainable and equitable development at woreda and kebele levels increased.

5. Effective management of the programme in operation

1.1 Productivity of agriculture in the programme woredas (targeted

areas) increased by 10% (average for all crops, to be calculated on existing baseline data in individual woredas).

1.2 Soil fertility status improved by 10%. 1.3 Better access for agricultural products in place. 2.1 Household incomes for targeted groups increased by 50% 2.2 An increasing number of households show an improvement in household consumption. 3.1 Education coverage increased from 63% to 80% and from 3,5% to 15% for formal and non-formal schools respectively. 3.2 Transport costs decreased 3.3 Coverage of pure water supply increased from 22,3% to 40%. 3.4 Water borne diseases reduced by 50%. 3.5 Coverage of health services increased from 39,2% to 55% . 4.1 Planning and reporting quality improved. 4.2 80% of allocated budget utilized 4.3 Completed projects are effectively managed by the community.& and dev’t-oriented civil societies 5.1 Programme interventions implemented as planned 5.2 Effective M&E system in place 5.2 Program Management ensures that cross-cutting issues are mainstreamed in each pillar.

Impact assessments. Monitoring and evaluation reports. Midterm- and Final evaluation reports. Annual progress reports. Amhara Rural Household Survey.

Peace and stability maintained. Existing favourable development policies promoted. The Federal Government endorses the law on land administration The beneficiary community is capable to manage and use the results sustainabily.


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Intervention Logic Objectively Verifiable Indicators

(by mid 2008) Means of Verification Assumptions

Output 1: Agriculture and Natural Resources Management 1.1 Improved land administration, and land use

planning. 1.2 Increased crop production. 1.3 Increased livestock production. 1.4 Improved management of natural resources. 1.5 Improved energy situation of rural households. 1.6 Improved research and extension services. 1.7 Increased market-oriented production. 1.8 Improved situation for women in farming. 1.9 Improved situation for vulnerable groups

(PLWHAs) in farming 1.10 Improved management of the Environmental

1.1.1 Primary land use certificate issued and handed over to 80% of the rural land holders in the SARDP supported woredas. 1.1.2 Appropriate participatory land use plans prepared in 60% of the kebeles and at least 8 kebeles in each woreda have implemented the plan. 1.1.3 Trained DAs assigned and land management manuals issued, introduced and distributed to all of them. 1.2.1 Efficient seed supply systems for both local and improved varieties in place. 1.2.2 Different crop types, varieties and other technologies

introduced, tested and adopted by farmers. 1.2.3 Use of small-scale irrigation for crop production increased from 5,5% to 10%. 1.3.1 Improved livestock technologies introduced, tested and adopted

by 25% for SARDP targeted households. 1.3.2 Controlled grazing and improved pasture introduced and

adopted by farmers 1.4.1 Integrated watershed management and land rehabilitation undertaken and increased from 5% to 50% in the local Communities. 1.5.1 Households having established individual woodlots increased from 5% to 40%. 1.5.2 Adoption of fuel wood saving stoves increased from 3.2% to

10%. 1.6.1 Access to effective extension services increased from 30% to 60%. 1.6.2 Better Farmer-Research-Extension linkage in place 1.6.3 Manuals containing suitable agricultural technologies for

vulnerable households developed and used. 1.7.1 Marketing centres created (linked with the EDC component) 1.7.2 Specialised agriculture-based cooperatives established, at least one in each woreda. (linked with the EDC component) 1.8.1 Womens saving and credit cooperatives established in at least 40 kebeles. 1.8.2 No. of women involved in agricultural income generating activities increased by 30%. 1.8.3 Enhanced capacity and skill of women to manage cooperatives,

projects and enterprises

Progress reports of SARDP Mid-term and final evaluation reports. Annual crop and livestock assessments produced by BoA/CSA Field observations on market situations and new businesses created. Private business records. Socio economic baseline data Records of different institutions.

Federal authorities committed to new land administration policies. National and regional policies on private sector promotion remain stable. The beneficiary communities are receptive to the accessed out put in order to attain the desired objectives.


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Means of Verification Assumptions

1.8.4 ARARI has identified and tested 5 sets of women- friendly prototypes of agricultural technologies/instruments. 1.8.5 40% of the farmers receiving effective extension are women. 1.9.1 At least 4 HIV/AIDS infected and affected groups participate

in agriculture-based income generating schemes. 1.9.2 ARARI developed suitable Agricultural technologies for vulnerable households. 1.10.1 Woreda and kebele staff are trained in environmental awareness and in environmental tools and approaches. 1.10.2 Communities are aware of sound environment policies and

guidelines. 1.10.3 There will be At least 1 environmental club per kebele


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Assumptions

Output 2: Economic Diversification Component 2.1 Demand driven Business Development Services (BDS) established and existing ones strengthened. 2.2 Business Investment Fund (BIF) established and

Operational 2.3 LFIs established and strengthened

2.4 Organisational development and networking improved. 2.5 Rural-urban linkages established and strengthened. 2.6 Womens capacity to generate income increased. 2.7 Vulnerable households (e.g. AIDS infected and affected households) benefit from increased opportunities for income generation diversification. 2.8 Environmental assessments are conducted on routine basis.

2.1.1 50% of the woreda registred business operators linked to BDS providers. 2.1.2 An inventory of business support needs carried out in 30 woredas. 2.1.3 Basic business training provided to 50% of the operators on the basis of the identified needs and demand. 2.1.4 A market Intelligence Unit is established linked to the woreda market centres. 2.2.1 3000 micro enterprises financed through BIF. 2.2.2 30 organised business groups with at least 30 members benefit from BIF facilitated financial service. 2.2.3 20 CPB-originated cooperatives financed through BIF. 2.2.4 Businesses plans for 50 growth potential medium level enterprises supported and financed and able to purchase farmers products. 2.2.5 5 viable investment enterprises financed and operational 2.3.1 LFI Mechanisms and loan types available for disadvantaged people. 2.3.2 30 farmers saving & credit cooperatives established to

assist poor farmers 2.4.1 Facilitation of business contacts operating in 30 woredas. 2.4.2 PSD institutions advocacy and networking forums created. 2.4.3 AMSEIB and MSE desks active in 30 woredas doing BDS facilitation. .2.5.1 30 woreda market centres upgraded. 2.5.2 2 kebele market centres per woreda developed. 2.6.1 25% of existing and new women IGA operators receive BDS support. 2.6.2 At least 25% of the MSE promoters per woreda are women. 2.7.1 At least 2 vulnerable groups (PLWHA) per woreda

benefit from BDS and BIF & LFIs supported interventions.

2.8.1 All enterprises consider EIA as required

CSA annual abstracts of different types Mid term and final evaluation report of SARDP Progress reports of SARDP Reports from financial institutions

Suitable BDS providers are identified and are responding positively. BDS clients willing to pay for services. Financial institutions positive towards cooperation with the Business Investment Fund. The Fund align its operations according to other ongoing financial credit initiatives at regional and national level. Suitable international and national entrepreneurs responding to local entrepreneurs’ initiative.


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Assumptions

Output 3: Infrastructure Component 3.1 Increased road density. 3.2 Wide coverage of water supply and sanitation. 3.3 Traditional and modern small scale irrigation

development schemes increased. 3.4 Formal and non-formal schools facilities constructed and rehabilitated. 3.5 Quality and service rendering capabilities of the health facilities improved in particular for family planning and HIV/AIDS control. 3.6 Improved facilities for HIV/AIDS infected and affected households. 3.7 It is ensured that all infrastructure construction staff carrying out work for SARDP have been sensitized on HIV/AIDS. 3.8 Women giving birth outside the formal health system benefit from better trained and equipped TBAs. 3.9 Environmental Assessments are established as a routine activity

3.1.1 Road density increased from 0,085 to 0,120 km/km2. 3.2.1 Access to pure water supply schemes increased 25 % 3.2.2 An increased number of water points protected and

managed. 3.3.1 Area under small scale irrigation increased by 100%.. 3.4.1 Access to primary education increased by 30%. 3.5.1 Access to primary health facilities improved by 30%. 3.5.2 Family Planning and HIV control awareness consultation available in 50% of all kebeles of the intervention woredas. Health workers in all SARDP supported health posts have undergone short term training in the issues. 3.6.1 HIV/Aids counselling, testing and treatment available in accordance with demand in 50% of all intervention woredas. 3.6.2 Measures adopted for exemption of vulnerable households from labour and capital contributions to community work related to infrastructure development carried out with SARDP support. 3.7.1 Construction staff has undergone short HIV awareness

training. 3.8.1 5 Traditional Birth Attendants trained in each kebele in safe delivery and provided with safe delivery kits. 3.9.1 Woreda and kebele staff are trained in environmental awareness and in environmental tools and approaches.

Mid-term and Final evaluation reports. Progress reports of SARDP Socio economic baseline data. Records of different institutions.

Technical competence available. Ownership established over community facilities. 1.

2. Communities are receptive to new ideas on family planning and HIV control.

Communities accept special considerations for the accessed out puts


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Means of Verification Assumptions

Output 4: Decentralisation

4.1 Management and financial capacity of the woreda and kebele administrations increased. 4.2 Community empowerment promoted. 4.3 Local justice and traditional conflict management systems strengthened. 4.4 Information and documentation system at woreda level established. 4.5 Population issues addressed and data management

improved. 4.6 Participation of women in woreda and Kebele decision making bodies increased. 4.7 HIV/AIDS prevention improved. 4.8 More effective environmental considerations taken.

4.1.1 An average of 10 persons trained in short courses in different disciplines (planning, monitoring and evaluation, financial management, computer skills, etc. ) per woreda. 4.1.2 Four persons per woreda academically upgraded. 4.1.3 Manuals & systems for improved general management in the woredas introduced, tested & properly implemented. 4.1.4 Facilities for better management provided. 4.1.5 Quality plans and reports delivered on time. 4.1.6 At least 80% of the Woreda Development Fund utilised. 4.1.7 Woreda administrations capable of producing and giving

proper information about the connection between population growth and food security as well as information about contraceptive methods. 4.2.1 Pilot community empowerment through CDF replicated in

at least 5 kebeles per woreda. 4.2.2 All programme activities implemented in woredas managed by community members. 4.2.3 All completed projects managed by cost-sharing mechanisms at community level and communities contribute at least 25% of the costs for local projects. 4.2.4 FiveCBOs per woreda enabled to engage in development activities. 4.3.1 Traditional judges (Shimageles) from ten kebeles per woreda trained. 4.3.2 Five kebele social courts per woreda strengthened. 4.3.3 Training of Shimageles and social court officials include awareness raising of Violence Against Women (VAW)and Traditional Harmful Practices (THP) 4.3.1 Full set of currently valid documents and manuals for SARDP and other institutions available at woreda offices. 4.4.2 Effective channels for information about important local events established in all programme woredas constituting an important service to citizens. 4.4.3 Information centres established in all pilot kebeles of all programme weredas linked to Marketing Intelligence

Unit.

Mid term and final evaluation Progress reports of SARDP Socio economic data

Target beneficiaries are receptive to the accessed out puts The administrative connection between SARDP management organs and woreda and kebele administrations is strengthened


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4.5.1 Responsible institutions enabled to mainstream cross cutting issues. 4.5.2 Awareness and commitment of the responsible institutions increased. 4.5.3 An office responsible for managing population data established. 4.5.4 Woreda staff trained to do surveys and to develop Community statistics. 4.5.5 Annual statistics on CPR, CYP, infant and child mortality levels, etc. in existence. 4.6.1 Women’s participation in planning and decision making bodies of the Kebele and Woreda increased from 21% to 35% and from 14 to 25% respectively. 4.6.1 Gender and HIV TAs have been employed in addition to existing TAs. Two experts within each field ,one in each zone. 4.7.1 Responsible institutions enabled to mainstream

HIV/AIDS 4.7.2 Awareness and commitment of the responsible institutions increased. 4.8.1 Local environmental committees strengthened 4.8.2 Responsible institutions enabled to mainstream

environment 4.8.2 Awareness and commitment of the responsible institutions increased.


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Assumptions

Output 5: Programme Management Component

5.1 Effective and efficient overall management and

advisory services provided to the target woredas. 5.2 An effective and efficient financial management and

reporting system in place. 5.3 Effective M&E system in place. 5.4 SARDP has a staff HIV policy.

5.2.1 The management and advisory services provided valued by

the receiving woredas. 5.2.1 Requested funds released on time and financial reporting

accurate and timely. 5.3.1 M&E system in use. 5.3.2 All implemented activities properly recorded and reported and supported by complete documentation system. 5.4.1 SARDP HIV policy in place and enforced.

Mid-term and final programme reports. Progress reports.

The participatory monitoring & evaluation system internalized by the program beneficiaries


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ACTIVITIES

BUDGET

ASSUMPTIONS Some of the major activities for the Agriculture and Natural Resource Management Component • Train technicians at the various levels, provide survey, mapping, office and field equipment; issue maps and books of holdings; establish and maintain land registry. • Train landholders and DAs on approaches to participatory land use planning and provide field facilitation. • Collect, test and multiply at least 5 land races of major field crops; provide seeds of 8 major field crops, potato tubers, horticulture seeds and forage and tree seeds, establish 30 training centres and provide training to staff and farmers; establish brooder houses, distribute young chickens, establish 2 forage nurseries per woreda and construct 30 fish ponds. • Conduct studies on potential irrigation schemes, develop springs for irrigation and provide training to DAs and farmers. • Make improved breeds available, provide training on zero-grazing, introduce rotational grazing and

support 30 private veterinary clinics. • Train farmer groups, farmer sub-groups and research extension groups. Verify 90 agricultural technologies and diagnose FS of 8 woredas; procure and distribute land management manuals. • Train farmers, DAs, SMS, FAs, and researchers on integrated land management. • Treat watersheds, identify and use treated watersheds for demonstrations; train experts in natural resource management and soil and water conservation techniques. • Establish tree centres; train producers and women in ‘Mirt’ stove technology; promote rural energy technologies to the rural community. • Organise one women’s savings and credit cooperative in 40 kebeles and conduct related training in management and enterprise feasibility assessment. • Commission ARARI to identify female friendly agricultural production tools and put into production. • Determine vulnerability towards food insecurity and reduced livelihood of HIV infected and affected households. • Commission ARARI to identify a menu of technologies suitable for vulnerable households. Develop a training manual for DAs describing the identified technologies and their adaptability to such households and supervise extension staff and DAs in the application of the manual.

22% of 300 Mill. SEK = 66 Mill. SEK


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Some of the major activities for the Economic Diversification Component • Defining operational modalities of the Fund. • Identify financial intermediaries. • MU Establishes the BIF and support the establishment of the MIU in the Chamber of Commerce. • Identify and screen viable investment projects. • Support to Chamber of Commerce to establish its credit organisation. • Monitoring performance of investment projects. • Identify alternative MFI/s. • Facilitate access to financial services to organized groups. • Awarness and facilitation for business development. • Identification private BDS providers. • Facilitate the establishment of business clusters and incubation centers. • Facilitate the estashment of MIU. • Identify key advocacy and network PSD institutions. • Identify capacity gaps of networking institutions. • Identify and upgrade woreda market centers. • Identify and upgrade kebele market centers. • Provide BDS to female enterpreunres based on demand and needs. • Identify and train female BDS providers and facilitators. • Create awareness and provide training so that BDS and financial service providers comply with

program conditions and visions with regard to vulnerable households.



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Some of the major activities for the Rural Infrastructure Component • Construct and maintain 1000 km. of village roads and 76 km. of RR30 roads; hand over two road projects to private contractors and develop a system for contracting and tendering, develop training materials and train 20 private contractors on the system. • Construct and maintain 960 water points; introduce and promote different water conservation and harvesting technologies; train 30 officials from woreda water desks, 1.280 water artisans as well as care takers and members of water committees; construct shallow wells and provide tridle pumps; provide 35 PV electric system to schools and health posts. • Install sanitary facilities. • Establish and maintain traditional and modern irrigation schemes. • Rehabilitate and maintain formal and non-formal school facilities. • Rehabilitate and maintain rural health posts and clinics. • Train health staff in Family Planning as well as in HIV control and prevention tools and approaches, incl. counselling. • Support rural communities in adopting measures for exemption of Vulnerable households from labour and capital contribution to community work carried out with SARDP support. • Conduct short HIV/Aids awareness training for construction advisors and staff. • Support women through the training of Traditional Birth Assistants in safe delivery and in HIV control measures. Provide them with safe delivery kits. • Train staff in environmental awareness and practical environmental tools and approaches.



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Some of the major activities for the Decentralisation Component • Provide Training Of Trainers course for woreda experts in participatory management and monitoring approaches and tools. • Provide Training Of Trainers course for woreda experts and accountants in budgetary planning and financial management. • Provide training for selected woreda experts in management and scope of the CDF. • Woreda and kebele staff facilitate CBO and CSO participation in SARDP projects and their involvement in planning and implementation processes. • Awareness raising about numerous subjects ranging from the importance of inclusion of resource poor households in decision making processes as part of a democratisation to information about family planning. • Train traditional judges (Shimageles) and social court officials as part of the strengthening of the local court system. Training should include subjects related to VAW and THPs. Trainees continue legal literacy with schools, PTAs and communities. • Mainstream population and family planning. Establish statistical service at woreda level. • Train woreda agriculture, education, administration staff and DAs in population/family planning issues. • Support the Womens’ Association to establish a womens’ polical forum in each kebele. • Conduct longer term training for women members of Woreda and Kebele Councils in both zones in legal matters and leadership and gender issues. • Conduct one community discussion per kebele regarding womens legal and political rights. • Conduct one VAW and HTP study of SARDP intervention areas and arrange one regional workshop to disseminate findings. • Give training on advocacy and negotiation skills to PLWHA support groups and individuals affected and concerned about HIV/AIDS. • Carry out sensitization with chairpersons and secretaries of governmentcommittees that allow popular participation on ways to include PLWHA representatives. • Support Anti-AIDS Clubs in stimulating behavioural change among teachers, students and the surrounding communities. • Sensitize and develop Terms of Reference for the Woreda HIV/Aids Committees to effectively coordinate and direct activities on HIV/Aids in the woredas. • Sensitize members of the Woreda/Community Development Funds on how it can effectively support the response to HIV/Aids and ensure representation of PLWHA support groups in WDF/CDF. • Strengthen HIV/Aids committees. • Train counsellors for VCT services at woreda level and health extension workers at kebele level in HIV/AIDS prevention and control. • Strengthen the Focal Person institution. • Employ two HIV/Aids, two gender TAs and two population TAs, one in each zone.



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Some of the major activities for the Programme Management Component • Train staff at various levels on project planning, management, record keeping, procurements and follow-up; conduct training of key staff on participatory approaches; provide office equipment and transport facilities, prepare management guidelines. • Fine tune the existing system for requesting, disbursing and accounting for funds and provide training on the system, prepare manuals on financial and general management and do testing and training on these manuals and evaluation of training. • Evaluations should be conducted of any larger training programmes. • Put the identified Monitoring & Evaluation system to use and make necessary adjustments and improvements, especially at output and impact level. • Develop appropriate management systems and implement, and produce timely plans, reports using computer facilities. • Develop an HIV/Aids staff policy for all SARDP employed staff.



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5. MAJOR INTERVENTIONS In response to the situation in the two programme zones, a number of interventions for the identified outputs have been proposed for SARDP III (for details, see the LFA). In addition, cross-cutting issues (population, environment, gender and HIV/ AIDS) are dealt with in all four components. The interventions presented in this chapter take place exclusively in the woredas of the programme area. Those interventions are all defined by their technical character, irrespective of who carries them out. Technical backstopping to many interventions in the woredas is coming from backstopping units at the regional level and the Technical Advisory Service.

5.1 Agriculture and Natural Resources Management Within the field of agriculture and natural resources, SARDP III will support the farmers in many fields, from land administration and land use planning, to all aspects of farming and natural resources management, including research, extension and rural energy. The aim is to present the farmers with a broad choice of land management alternatives from which he or she can select the most suitable ones in any given situation. This will enable farmers to increase their production substantially which will improve rural incomes. Land Administration and Land Use Planning Without secured long-term tenure, farmers are hesitant to make the investments necessary for sustained productivity of the land. The Programme will support farming communities with land security by registering holdings at the kebele level. Subsequently, the Programme will assist in introducing participatory land use planning, also at the kebele level. The responsibility for these activities falls on the regional Environmental Protection, Land Administration and Use Authority, EPLAUA, in cooperation with the woreda authorities. The responsibility for the subsequent use of the land in accordance with the plans made falls, on the other hand, directly on the farmers. In land administration, there is a conflict between speed and accuracy. The region is so vast that it is not possible to make cadastral surveys of all the Kebeles in a short time, providing secure tenure to all farmers. The Programme intends to approach this conflict by creating two levels of land licensing in the region. First, the boundaries of all kebeles and sub-kebeles will be demarcated in a participatory process and Temporary Books of Holdings will be issued. In the second phase, all plot boundaries will be marked, followed by the issuing of Books of Holdings to the farmers. The registration of land holdings at the kebele level will be done in register books, but in the woredas it will be computerized. As the entire system for land allocation is new, there is, first, a need to disseminate information to all concerned, primarily the farmers. There is also a need for training in all


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aspects of its implementation, above all for staff in the woreda offices. After the land has been registered, it is possible to discuss its use with the farmers. Suitable procedures for such planning are under active development. The process must obviously be done with the close participation of the farmers themselves, so that the resulting plan is realistic and implement able. A lot of efforts have been devoted to legal issues over the life span of the Programme. Two consultancy studies have been completed only recently, over 4 and 2 months respectively, one on the Further Framework of Land Related Laws and one on Valuation Practices. The first one is very wide, containing a lot of detailed information and considerations on the legal framework, the other one is dealing with valuation issues which surface when compensation has to be given for land being developed by road projects etc.

EPLAUA has drafted the text for a new regional land law long ago. It has been screened and approved by the Regional Council. The Region has been waiting for the Federal Government to issue the National Proclamation on Rural Land Administration and Use, a proclamation (No. 456/2005) that finally was issue on July 15, 2005. Now that this proclamation is out, the Region might have to do some minor adjustments in its regional text, before this can be finalized and become law. In the meantime, EPLAUA has been polishing the regulations that should come with the law, i.e. the practical implications. The delays here have been at the federal level, beyond the control of the Programme or the Region.

Crop Production In order to increase crop productivity, SARDP is following several strategies:

• Introducing, demonstrating and promoting high yielding crop varieties • Enhancing small-scale irrigation and promoting high value crops • Promoting informal seed system • Promoting links to flour mill factories and breweries especially for bread wheat

and malting barley • Comprehensive training of farmers in improved technologies and practices, and • Promoting sustainable crop production systems such as composting and IPM

where farmers in the end will reduce cost of purchase of inorganic fertilizers and pesticides

Variety adaptation trials are being done on-farm, closely linked to the existing extension system, in partnership with three key stakeholders; farmers, researchers and BoARD experts. Once a particular variety is selected and accepted by farmers, the variety will be included in the informal seed system multiplication and distribution scheme. Extension has designed an action plan to promote these accepted varieties for wider use.


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The establishment of woreda-based sustainable seed multiplication and dissemination system is one of the strategic objectives of SARDP. To ensure that this is implemented, woredas have now established seed growers groups (SGG) that are empowered to grow basic seeds and distribute that to fellow farmers either on sale or through exchange with other commodities. There are many examples of farmers who have increased the outputs with up to 100%, for wheat for instance. Just by putting on compost or fertilizers or using improved seeds, production will easily increase by 10% or more.

In particular, support from the Programme will aim at maximising crop yield through participatory OFR, integrated pest management system (IPM) and introduction and implementation of improved farm implements and technologies. Participatory on-farm trials are one way for SARDP-III to support the needed diversification in crops grown, where farmers test technologies and crop varieties under their own conditions. Increased use of organic fertilisers is critical given their long-term beneficial effects on soil fertility and the high price of chemical fertilisers. In order to free animal dung for use as fertiliser (composting), however, their role as cooking fuel will have to be reduced through the promotion of improved stoves and woodlots. One important reason behind the sensitivity of agriculture in Ethiopia to drought, often resulting in hunger or even famine, is its dependency on rainfall for food production. There is a growing understanding that the irrigated area must be significantly expanded in order to increase food security. Therefore, the Programme focuses on promoting irrigation agriculture through river diversion, spring development, rainwater harvesting, and construction of hand dug wells as well as upgrading existing irrigation structures. ARARI and BoARD will provide technical backstopping and train members of agricultural cooperatives, private companies, and farmers in production, extension, processing and storage of crops, seeds and in quality control techniques including market access to products of individual farmers Livestock production The proposed activities by the Programme in livestock development include improvement in livestock breeds, improvement of veterinary services, and production of forage. Simple systems for management of grazing lands will be introduced. Poultry farming and cattle fattening will be supported. Poor households will have access to credits for purchase of small ruminants (goats and sheep). Improved livestock breeds will be available for purchase by farmers, again on credit. Support will also be provided to the establishment of bull stations and to insemination services. In order to produce sufficient fodder for the animals, new as well as old ones, and increased production of forage is essential. Farmers will be trained and provided with seeds and seedlings of grasses and fodder trees for planting along farm boundaries and on conservation structures. Controlled grazing and pasture schemes should also be encouraged and promoted both on private and communal grazing lands.


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Moreover, interventions in beekeeping and fishery will be supported, further strengthened and promoted which will be linked with credit. Management of natural resources Better management of natural resources will serve to reduce the extent of land degradation. The “Participatory Integrated Watershed Management Approach” will be a major approach in this area, recognising people's needs for productive land both in the short and long term. Communities and support agencies will work in partnership to carry out analyses of the present state of the land and generate ideas on what can be done to improve the condition of the watersheds, so that they can continue to improve soil fertility, water availability and biodiversity. People living in the watershed will formulate their own rules and regulations for the work and also establish watershed committees. The watershed approach will require technical training for Development Agents and woreda level technical staff as well as farmers. Through SARDP many model integrated watershed-based management approaches have been implemented and degraded lands have been made productive again. Activities in the model watersheds include construction and maintenance of soil and water conservation structures (soil and stone bund terraces, artificial water ways, cut off drains, check dams), nursery strengthening and establishment (support to model, individual and communal/group nurseries), promotion of agro-forestry, gully treatments, plantations, area closure, development of water points, empowerment of communities etc. However, the replication of the watershed approach has been limited. Although the technique and knowledge is there, farmers are often reluctant to go ahead, largely because of unclear land tenure conditions, in combination with the labour input that is required. Still, with encouragement and support, this can be overcome, as can be witnessed in many places. As this is part of an integrated approach to participatory land use planning at the village level, the Programme is looking into the issue. One are of concern is free grazing which is still a major constraint in almost all watersheds. Considering this problem, communities are currently practicing to organize themselves in watershed groups, develop bylaws and link that to their "kire" and the social and Woreda courts (although not at a wider scale), promote zero-grazing and make monthly contribution to strengthen ownership of the developed watersheds. This community initiative will be further promoted by the programme. Based on the experiences so far, the whole watershed approach will be reviewed and appropriate interventions will be developed and implemented. Rural energy In ANRS, biomass accounts for about 95% of the total energy consumed, out of which some 80% consists of wood. The households account for more than 90% of the total consumption, in the form of wood, dung and agricultural wastes. Removal and burning of


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the biomass constitutes a direct threat to the remaining forests and bush land and also leads to declining fertility of the soil and to increasing rates of erosion. Further, and perhaps most importantly for the present generation, the collection of scarce biomass fuels, often from long away, is a heavy duty, mainly falling on women and children. In rural areas, almost all cooking stoves are traditional and less efficient in energy saving. The Programme will promote fuel wood saving devices and use of other energy sources than biomass using organized business groups and commercial agents, which will be linked to the economic diversification component. This will be operational during the annual plan of operation preparation under the economic diversification component. Moreover, the promotion of woodlots will be one of the focus areas. Research and extension services Introduction and promotion of improved technologies and practices by SARDP will lead to increased productivity of crops and livestock and better management of natural resources in an integrated manner. As farmers’ circumstances are diverse, the varieties and technologies will have to be tested in different environments, with direct participation of farmers. The current extension system is still influenced by the traditional training and visit system (T&V), which is strongly crop-oriented. A further draw-back is that the system yields very little learning through farmer-to-farmer and farmer-to-extension worker interaction. Further, only little technical backstopping is being provided to the Development Agents engaged by the regional Bureau of Agriculture (i.e. extension workers). However, recently emerging policies strongly advocate participatory approaches, including the multidisciplinary extension system and the Participatory Demonstration Extension and Training System (PADETES). In that system, the Development Agents are to cover crop production, livestock production and management of natural resources. PADETES has teams based at the kebeles, working with local farmer groups representing 30-50 households. BoARD is increasing its number of Development Agents from the present level of 4,000 DAs working in the 3,500 kebeles in the Amhara Region. The current target is to post three specialized DAs in each kebele, one for each of the key disciplines as stated above (crops, livestock, and natural resource management). This represents a major increase not only in quantity but also in quality. SARDP will assist the extension system in a number of ways, for example by making inputs available through credit schemes and through training and demonstration. The capacity of the farmers and extension workers will also be enhanced through transfer of technology and skills.


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Market-orientated Production In using the land for agriculture, farmers will benefit from using links with markets, interact with cooperatives, and use credit institutions to the extent that it benefits her or him. The policy of the regional Bureau of Agriculture is to promote diversification into high value agricultural products produced for the market (cotton, sesame, wheat, barley, teff, maize, and sorghum, horticulture, spices, dairy production, bee keeping and honey production, livestock fattening, sheep and goat production, fisheries, forest products). This policy is expected to lead to higher prices for the products sold by the farmers and also reduce the sensitivity of the farming system to adverse climatic conditions. Activities for the promotion of marketing infrastructure and systems will be linked to the economic diversification component. Support women in farming Women shall be supported in forming saving and credit and/or product cooperatives and shall receive training in cooperative management and micro and small enterprise management. SARDP must ensure that women benefit equally from extension services through awareness creation of extension officers. Efforts shall be made to encourage education of female extension officers. Women shall also benefit from improved technologies to be developed by Research Institutions. Support Vulnerable Groups in agricultural production (PLWHAs) Suitable agricultural technologies and income generating activities will be identified for vulnerable households, including PLWHA, so that these groups better can handle and improve their livelihood situation. Environmental Protection There are indications of situations in ANRS where development interventions (village and rural roads, construction of irrigation and water supply schemes etc.) are having negative environmental impact and consequences. Manuals and guidelines will be established by EPLAUA and implemented by the Woredas so that assessments are made on a regular basis before and after any such schemes are started and implemented. Further, awareness on environment will be created through the support and promotion of kebele and weredas level environmental clubs and mainly schools clubs established in primary and secondary schools in rural areas.


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5.2 Economic Diversification Economic diversification and the creation of job opportunities outside of the traditional agricultural sector are of crucial importance for increasing the limited incomes of the poor in ANRS. Economic growth is a precondition for long-term sustainable reduction of rural poverty. The rationale of the economic diversification component within the SARDP Programme is that it has become increasingly difficult for the farmers to rely on agriculture as the major source of livelihood. Helping to remove the factors that create or perpetuate poverty is necessary in order to promote economic growth. The provision of land ownership and security of tenure is one example of efforts being done to promote economic growth. Special attention will therefore be given to markets in which the poor are directly involved, primarily agriculture and the informal economy. It has been found that rural poor often participate extensively in markets without significant increases in their incomes. Therefore, the challenge is just as much to improve the terms on which the poor engage in markets as it is to increase their participation. The opportunities for participation in product and service markets outside agriculture therefore have to be expanded and become more remunerative. To enable the rural poor to improve their income by a much more gainful participation in the market, SARDP will build competence through targeted training of entrepreneurs and technical staff, male and female. Market based Business Development Services will be developed to focus on certain businesses and to promote specific income generating activities. Such an improved economic environment will enable farmers, business operators, cooperatives and other business groups to actively participate in the market place as opportunities are being created. Moreover, the strengthening of commercial service providers, institutions and organizations will enable the private sector to play its anticipated role in the development of economic opportunities in the rural areas. A component for the promotion and sales of selected products will attract investments, achieve economic growth in the short-term perspective and demonstrate opportunities to inspire future potential entrepreneurs and investors. By promoting small-scale pilot operations, valuable experiences will be gained. The close monitoring of such activities will document experiences made and provide a direct input into the other interventions within the Economic Diversification Component. 5.2.1 Business Development Services (BDS) Business Development Services refers to the development of a range of services used by entrepreneurs to help them operate efficiently and develop their businesses. The purpose of developing BDS and concurrently increasing the demand for these services will be to contribute to economic growth, employment generation, and poverty reduction. A


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baseline survey at woreda level will be conducted to identify existing and potential entrepreneurs. Public institutions, NGOs and non-profit institutions should not deliver services that are provided by commercial providers. Until recently BDS were delivered to micro and small enterprises by government agencies, donors and NGOs at subsidized rates and sometimes free of charge. Since this contributes to crowding out private business operators that have no access to subsidized/free services, the market for BDS provision would be distorted. To avoid such distortions a range of activities are proposed and described below.

In ANRS, the AMSEIDB and its MSE desks have been the sole provider of limited BDS in the area of business counselling, record keeping and business managerial skills training. Apart from the desk’s limited capacity and free of charge service delivery, the service needs to be provided on a more competitive basis. The ECD will facilitate the establishment of private BDS providers, while the AMSEIDB and its woreda desks should create conducive environment BDS. Training opportunities will be offered to entrepreneurs in various forms, to include study tours, exchange programmes etc.

Establish Marketing Intelligence Unit (MIU) The main function of the MIU is to support business development through the production of accurate market information, recommendations on market trends and tendencies as well as through the facilitation of business linkages. A central responsibility for the MIU will be the collection and dissemination of market information with relevance for the local, regional, national and international markets as well as the provision of updates on products that may have a potential for export. The collected information will be processed, entered in an easily accessible and periodically updated database and made available to beneficiaries. The information will be developed bearing in mind that women and men may have different information needs. At the start and until experiences are gained, the unit needs tight management and close follow up with high level expertise attached to it. Once the modus-operandi is worked out and the Regional chamber is established, the gradual handover to the regional chambers will be done. Until the regional chambers becomes an established institution, experts from the existing chambers in Bahir Dar, Dessie and Debre Markos need to be identified to serve as counterparts for the MIU expert. In the beginning, EDC management establishes a sub-unit for MIU. The immediate tasks of the sub-unit will be to explore linkages with existing government initiatives by the Capacity Building Bureau. Currently, the bureau’s ‘woredsa-net’ program is covering all woredas in the region. The functions of the woreda-net information system aims at delivering video conference training and education activities, internet services and information flow on health and education. The bureau is planning to extend the system to ‘Kebele-net’ activities. Provided that telephone services are extended to Kebeles, the MIU can use the established system by developing tailored economic and market information software.


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Through the activities of the MIU, the Chamber of Commerce will strengthen its capacity and diversify the range of services that it can offer to its members. The Chamber of Commerce will thus be made more attractive to its members. MIU and the PCU should also facilitate the dissemination of market information that is found relevant to non-members at woreda and kebele levels. At woreda level, the woeredas finance and planning offices serve as MIU data centers with one assigned staff to manage the data base. Available market information will be posted at kebele and market centers using information notice boards. There will be a-two-way market and BDS information exchange system that flows from the Woredas to the Chambers and from the Chambers to the Woredas. The Chamber of Commerce will have the database and relevant information can be referred to the Woreda information centers. A database of BDS providers should be developed at the Chamber of Commerce. Individual users, farmers and cooperatives, who are non-members of the Chambers, can directly obtain information through the Woreda information centers. The service for promoting the BDS should be free of charge. The operational modalities of the MIU will be further developed with the involvement of key stakeholders. Facilitate the Establishing/Strengthening of private sector BDS delivery at woreda level In the case of Amhara Region, the BDS sector is today virtually non-existent, particularly at woreda level. The government is therefore, in a transitional phase, facilitating the establishment of private BDS providers. It is therefore proposed that the EDC should also support the process of strengthening private BDS provision in the region through the Amhara Micro and Small Industries Development Bureau (AMSEIDB). Nevertheless, there must be a clear strategy on how to gradually outsource the training on BDS provision on a strictly commercial basis to the private consultancy companies that are being established or to other BDS providers. Promotional activities should be put in place to attract private BDS providers from the urban to the rural areas. It is therefore suggested that a study funded through the EDC to identify existing private BDS providers in urban and rural areas must be initiated at a very early stage. An international BDS expert will be attached to AMSEIDB to assist in the development of BDS service in the woredas. The identified BDS providers will be registered in a database at the Chamber of Commerce and will be made available to operators, if necessary with the assistance of AMSEIDB. The main activity areas are

i) Awareness creation and facilitation for business development ii) Facilitate access to BDS by female and male entrepreneurs iii) Facilitate the establishment of business clusters and business incubation

centers It is envisaged that an inventory of available BDS providers at Zonal, Regional and National levels needs to be carried out and a data base of their profiles documented. At


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target woreda level, TVET graduates and individuals with relevant education background will be invited and screened to receive TOT courses by experienced providers. Here, the selection criteria should be free from nepotism giving equal opportunities to both male and female BDS facilitators based on pure talent, interest and screening test. The Program’s technical advisers will assist in the selection process. The question that remains outstanding is who pays for the BDS services? As the component should strictly follow demand-driven approaches, elements of cost sharing and subsidy will be used to promote the services. Once, the demand for BDS is created and the private BDS providers are competing to provide services, the issue of subsidy will phase out.

The other aspect of the BDS is to support the establishment of business incubation centers. The AMSEIDB is responsible to design and secure the centres and the woreda MSE desks will be responsible to manage the centres. In the long-run, and once the viability of the centres is ensured, the ASMEIDB will promote the centres to be run by private entrepreneurs. The program will identify suitable sites from the existing Community Skill Training Centers in the woredas. Two pilot centers, one each from E/Gojjam and S/Wollo, will be established to serve as business incubation centers in selected crafts and products. An exchange visit will also be organized to BDS providers during the initial stage. Support to cooperatives In some woredas, cooperatives are found to be strong economic actors. The cooperatives are to be viewed as any other business entity without receiving any special treatment. The The cooperatives need to be linked structurally to EDC interventions through the cooperatives promotion bureau in the same manner as the MSEs are backed by the AMSEIDB provided that they come up with eligible proposals. As there are active cooperatives in the programme Woredas like Dejen, the Dejen Cooperative Desk will be supported for the production of a “guide of best-practices in the establishment, management and operations of producer-based Savings- and Credit Cooperatives” in collaboration with and based on the operations of the best such SCC’s in the Woreda. The Regional Cooperative Promotion Bureau will be supported for the printing and distribution of this guide to all kebeles in the Sida-supported woredas. Finally, solid international experience and expertise regarding the causes for successes and failures in cooperative development elsewhere is needed within the Cooperative Promotion Bureau. The EDC will therefore make a cooperative expert available on part-time basis. 5.2.2 Business Investment Fund (BIF) The Business Investment Fund (BIF) will be registered in Ethiopia with capital of SEK20 million, provided this will not hinder the flexible operation of the fund; otherwise the fund will be deposited as cash in a normal bank account.


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The BIF funds will be deposited in the Ethiopian banks cooperating with the project2, in interest-bearing accounts. Some funds will be used as seed capital in the form of grant for the Regional Chamber of Commerce to establish its own credit institution; but otherwise the fund will underwrite lending from cooperating Ethiopian banks to credit and other financial organizations, when they will not undertake the risk on their own, particularly when no collateral is available. It is expected that the banks will be prepared to take responsibility for performing assets over time. During the EDC Program, BIF will expect to underwrite loans, from Ethiopian banks to credit organizations, to finance at least 3,000 micro-enterprises, 50 BDS-originated medium-sized businesses, 20 Co-operative Promotion Bureau-originated cooperative developments and five substantial MU-originated businesses, including private BDS providers.

i) Prerequisites As one of the preparatory activities, the program needs to commission consultants to assess the niches of the fund. The fund is found to be strategically important and hence the program needs to develop the management and the operational details of the fund. Experiences can be found from the EC, World Bank Enterprise Development and Safety Net Funds, IFAD/RUFIP Financial Intermediation Fund and VOCA-Ethiopia’s Cooperatives Marketing Fund. The development of the operational manual of the fund includes, but not limited to, the following: loan projection, interest rate setting, loan terms and products, incentive packages, capital lease and warehouse certificate arrangements. Ample experiences along these lines can be shared from ACSI.

ii) Management

The Business Investment Fund will be administered by the EDC Management Unit (MU), which will also have discretionary authority for the disbursement of funds. The fund will be managed by competitive commercial banks or MFIs. In order to ensure transparency and maximize its efficient utilization, there will be a Technical Committee within the PCU. The committee members will be drawn from private sector associations (Chamber of Commerce and Women Entrepreneurs), Regional Investment Office, AMSEIDB, ACSI and Finance and Economic Development Bureau. The Technical Committee will screen and appraise the business plans of potential projects on the basis of comparative advantages of the intended project area and will refer the projects to be reassessed by the bank based on the banks’ eligibility criteria. This screening will be based on a checklist of appraisal. Finally, the MU will issue underwriting support for viable projects to the bank.

2 Since this also substantially increases the funds available for non-project loans from those banks, which strengthens the banking system and the economy more generally, non-cooperating banks should not be included.


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Business Plan preparation services can be obtained in two ways. One way of getting the service is to use qualified private BDS providers. The other way is to train experts from among the stakeholders.

Some 12.5% of the fund will be set aside to be used as grants, as for example, if the Regional Chamber of Commerce comes with a justified need to establish its own micro finance institution. It is true that the initiation of such a credit organization will be seen from a competitive perspective. The existing countrywide practice is that the donors or the government are giving direct assistance for the establishment of MFIs targeting the poor and the poorest households. As a result, what practitioners call ‘the missing middle’ is created. In other words, due to stringent collateral requirements small and medium enterprises that cannot qualify for loans from commercial banks remain un-served. The establishment of such a credit organization by chamber would, therefore, boost the growth of such enterprises.

While the volume of the fund will be aligned to demand projection, the release of the fund should be in trenches with the aim of testing its results in pilot projects. It will start small, at first working in three selected woredas per zone, then gradually expand as experiences are gained. Accordingly, the amount of non-performing loans is expected to be low. Besides, the fund is going to be managed by a competitive commercial bank where the National Bank of Ethiopia’s Directives on minimum liquidity requirement (20%) and minimum capital ratio (12%) guidelines will be applied. The fund will promote its existence through, and by promoting, MSE offices, BDS providers, the Cooperative Promotion Bureau and the Chamber of Commerce through the MIU and organizing workshops to potential users. Increase farmers wealth through sales of selected products This output directly relates to BIF. Selected products with comparative advantages are identified. The feasibility of such products has been identified by consultants and it may require further study. These are abattoirs for cattle and sheep, dairy products, fast food outlets and others (see full EDC Annex). Amhara Region has 10.5 million cattle and 5.3 million sheep. It is clear that local demand cannot consume a sensible cull rate, so potential supply exceeds local demand. The livestock holdings in these areas constitute substantial wealth, but the challenge is realizing it. One important means to do so is to exploit the opportunity to export the products. Firstly, the component should focus on developing businesses to exploit the region’s most obvious potential export resource, livestock, for meat and hides. Explicitly, in South Wollo and East Gojjam, these businesses are:

• Beef and hide production in Awabel, Woreilu and Dejen;


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• Sheep, hide and wool production in Legambo and WoreiIlu. Secondly, the component should focus on increasing local demand and finding export markets for:

• Dairy products from WoreiIlu, Dejen/Awabel and Tehuledere; • Broiler production from Tehuledere and WoreiIlu; • Honey and beeswax production from Dejen and Shebel Berenta.

Promising examples exist, like the system where some food processing plants link with local farmers who actually cultivate the desired crops or products under a joint supply agreement. Moreover, the Regional Investment Office is currently undertaking an extensive region-wide study along the same line. The outcome of this study will be used to screen and select viable projects for support.

In addition, the emerging agro-businesses in the Region (flour mill & dairy products) in S/Wollo and food processing agro-businesses in E/Gojjam – Dejen can be good examples to increase farmers’ sales by creating linkages with those enterprises. Finally, the component should proactively identify and develop other micro, small and medium-sized businesses, both through its own initiative and through external proposals. Micro and small enterprises will be promoted and developed through Output 1 (Business Development Services). Medium-sized, small and micro businesses will be developed through Output 2 (Business Investment Fund). 5.2.3 Local-Finance Intermediaries (LFIs) It is of course difficult for people to borrow money unless they can produce some sort of security, or collateral. Although farmers are able to produce collateral, this collateral often does not have legal title, meaning that these farmers are not credit worthy. ACSI has therefore developed a group guarantee lending model, which has proved to be an opportunity for many to get access to investment capital. One problem in this area is that ACSI, together with the other but smaller MFIs in the region, only can manage to satisfy around 10-12% of the demand. Still, there are options that need to be considered by SARDP in this area so that capacity can be built. Accordingly, the programme will support and promote the strengthening of LFIs in each Woreda (which include Idirs, Iqqubs and cooperatives). This might require underwriting by up to 50%. Another possibility might be to introduce so called proxy collateral systems. 5.2.4 Organizational development and networking Institutions and organizations that have a role to play in the development of the private sector, such as BDS providers, entrepreneurial associations and chambers of commerce, need to strengthen their organizations to effectively assume their roles as dynamic private


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sector actors. The main focus of the interventions will be on capacity building, including training and institutional strengthening of private institutions. Furthermore, support will be provided through the EDC to enable private organizations and businesses to establish forums and networks for exchange of information and good practices as well as to enable MSEs to pursue joint activities in favour of market and enterprise development. As an example, the sectoral associations and cooperatives currently established in the Amhara Region through the Chamber of Commerce with the assistance of AMSEIDB and cooperatives promotion bureau respectively would need such support to establish linkages between the different associations. This kind of network would have the potential to grow organically and independently from the government structure.

The activities planned for this output are: (i) supporting private sector organizations and AMSEIDB to organize trade fairs and bazaars that gives opportunities to producers, consumers and distributors to interact and follow suit to market trends; (ii) support exchange visits and information exchange forums among the private sector actors so that product development and production for the market will be enhanced. 5.2.5 Rural-urban linkages The rural markets are commonly held in open areas with little infrastructure provision and inadequate road access from the production areas to the urban areas. Good accessibility is a key characteristic of an effective marketing system. However, most farmers live in areas remote from all-season roads on which agricultural produce can be transported to market places. It is therefore important to link up rural areas with urban areas so that the rural population can benefit from the opportunities and buying power that exist in urban areas. Market infrastructure and facility improvement is needed to overcome several problems affecting smallholder farmers and producers. The primary markets require reconfiguration to make them acquire the critical infrastructures and facility to exchange and transact agricultural produces including grain, livestock, horticulture and dairy products. A similar approach is followed to set the targets for secondary or town markets. These markets are multi-functional and trade a wide range of produce, including grains, vegetables, livestock and dairy products. SARDP-III will support the development of the local market infrastructure to encourage the marketing efforts of farmers and primary cooperatives. The development of rural towns and larger villages can be influenced proactively in order to increase the pace at which market actors extend their outreach and penetrate areas with poor market access. Such efforts will counteract the concentration of market actors to centres in the most developed parts of the Region, and to the larger of the largest urban centres. Such investments in infrastructure and services will contribute to the establishment of a critical mass of mutually supporting actors with synergy effects for the development process. Non-agricultural activities typically tend to be located and expand


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in such centres. These and other economic activities will provide opportunities for increased market participation by the rural poor. More specifically woreda and kebele market centers will be developed/upgraded, e.g. preparing the ground, providing suitable market sheds, securing appropriate information channels and establish easy access to and from the market. Market plans as well as their implementation will be done in close cooperation with local councils and with the assistance of woreda level technicians.The other activity is to put information notice boards in selected market centers and rural kebeles. The source of market information will be the MIU. 5.2.6 Safety Nets While Sida supports the extensive safety net program at the federal level, SARDP will complement these efforts in the programme woredas. SARDP is a participatory program under which rural communities participate with free labour as well as with certain materials, to enable investments in road building as well as water supply schemes, which is not the case under the safety net program, which provides cash for work and/or food for work. It will therefore be necessary to work out a complementary approach, which would identify the poorest members of the society who will benefit directly from the safety nets, and from there work out a modality that can prevent conflicts from occurring. 5.2.7 Support to Women In line with the overall policy of SARDP, considerations within this component are given to gender issues so that women can better opportunities to generate income. When establishing a network for an effective flow of information, the MIU will link up with women business associations such as the Amhara Women Entrepreneurs Association (AWEA). When doing promotional activities, e.g. trade fairs, AWEA will also be a close partner. AMSEIDB has previously supported AWEA for the implementation of such activities. Credit needs of women will be positively considered when assessing applications for credit. Special efforts will be made to train women entrepreneurs as well as female BDS service providers. Women will further receive training in establishment and management of cooperatives. 5.2.8 Support to Vulnerable households When conducting training for entrepreneurs and BDS providers, it shall be ensured that HIV/AIDS affected and infected people are not excluded from participating in such processes. HIV infected and affected households must have equal access to credit and BDS services.


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Through awareness raising and training it shall be ensured that BDS and financial service providers will give due consideration and focus to enabling vulnerable groups and households to benefit from the various interventions of EDC. 5.2.9 Environmental assessments conducted Some of the interventions in this component could have positive or negative impact on the environment. Hence, environmental assessments shall be made on a regular basis before and after such schemes are implemented. 5.2.10 Management modality of the Economic Diversification Component Following the recommendations of the consultant’s study, the Economic Diversification Component (EDC) of SARDP III has agreed to adopt a new approach and interventions. This as such will require a new management modality. For this purpose EDC Management Unit (EDC-MU) will be established to be accountable to the PCU. The focus of the EDC-MU is on promoting business development at micro- and small enterprise level, cooperative development, organizational development of private sector organizations and development of a few medium sized businesses by facilitating short and medium term credit. The major tasks of the MU are:

• Develop a management modality of BIF and administer it accordingly; • To support BDS providers and CPB; • Underwriting Ethiopian banks to encourage lending to credit organisations,

cooperatives and medium sized businesses; • To support the Chamber of Commerce institutionally, including the set-up of the

Marketing Intelligence Unit and to help the Chamber set up a non-government credit organisation if necessary;

• At the early stages of implementation, initiating feasibility studies for medium sized businesses;

• Monitor the disbursement of loans to credit organisations, cooperatives and medium sized businesses;

• Monitoring the disbursement of loans by credit organisations and cooperatives; • Ensuring correct legal procedure in all its dealings.

Other interventions of the EDC are implemented by AMSEIDB, BoWUD, ACSI, CPB and the Chamber of Commerce. The MU will prepare Annual Plans and coordinate the budgets for EDC activities with these bureaus and organizations. It is envisaged to employ three staff: one long-term international Regional Advisor to the Amhara Micro and Small Enterprise and Industrial Development Bureau (AMSEIDB) and EDC-MU under PCU, plus two long-term national advisors to be placed in the two zonal capitals; Debre Markos and Dessie.


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5.3 Infrastructure and Social Services Rural roads Rural roads and bridges are of key importance for local development and also for improved service from State agencies to the rural population. Labour based construction of access roads by the community will continue to be a focal area of the Programme. In addition, outsourcing and equipment rental construction system under the auspice of RRA will be practiced by the weredas budget. To ensure proper maintenance of existing and new roads, a system of road care takers drawn from the rural communities and trained by the Programme will be in place. Equal opportunities will be given to women when it comes to employment. Water supply and sanitation The aim is to improve the supply of clean water to the rural population through construction of a number of water points, either by digging of shallow wells or through development and capping of springs. The programme will support upgrading of local skills and equipment such as hand pumps, pipes and fittings. The communities will contribute to the construction through inputs of labour and provision of local materials. The hand-dug wells, spring and ponds are owned by the rural communities. Management is arranged through water committees, with trained care takers doing the required maintenance from regular financial contribution of the community. As shallow wells and spring water points usually are common resources, these water committees are formed, to formulate regulations for how the water resource is to be managed. Due attention is given to the environment surrounding all water points. Small scale irrigation schemes Construction of new small-scale irrigation structures in the programme zones as well as rehabilitation of existing structures are important, especially in view of the excessively high reliance on erratic rainfall for crop production. Also here, there are aspects of environmental soundness to be considered including the common with downstream users. Management of schemes will be taken care of by the beneficiary community through Water Users Associations. Education The Programme is to support education through construction or upgrading of primary schools, maintenance of existing schools, construction of additional classrooms, and supply of school furniture, books and other educational materials. Particular emphasis will be placed on promoting and assisting the spread of non-formal education for dropouts, especially girls. Training will be given to facilitators who will teach at the non-formal education centers. Support will be given to encourage school income (from their compound) and community contributions so that the school facilities will be of a better


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quality and accessible to most students mainly girls. Due attention will also be given to human resource assignment and other recurrent costs to run the facilities as the Regional Sector Development Program. Health Iinterventions in the health sector will primarily focus on improved access to basic health services by construction of health posts, so that their coverage increases significantly. The program will also support preventive health care, including vaccination and training in environmental and personal sanitation. Further, access to family planning will be improved through training and awareness creation. TBAs will be trained and handle deliveries especially at remote areas where are no health facilities. Voluntary Counselling and Testing (VCT) will be established and strengthened in the woredas, which will be attached to the health facilities. Similarly, the human resource assignment and recurrent costs will be the responsibility of the government as per the Regional Sector Development Program. Behavioral Change Communication on HIV/AIDS The spread of HIV/AIDS should not be regarded as only a health problem, as it has a devastating effect on the society as a whole. The strategy to be adopted is to promote mass education and minimize infection rates. The campaigns must be spread everywhere, including areas of difficult access and small towns, areas so far neglected. SARDP will provide support to community-based organizations and promote positive cultural norms and practices in the localities that have the potential to control the spread of the epidemic. It is important that HIV/AIDS infected and affected households can be exempted from community work and contributions and still receives the benefits from community activities. Apart from the issues mentioned under health above, it is crucial that staff participating in SARDP supported infrastructural work receives information about HIV control measures. Environmental impact assessments conducted Roads, water supply and irrigation schemes, school and health facilities are designed and constructed with concern for the environment. In particular when access rainwater has to be lead away through culverts care will be taken not to cause erosion. Rather it is intended to design a collection chamber around or near by the culvert so that to benefit from the water that passes through. Accordingly, assessments are made on a regular basis before and after any such schemes are implemented.

5.4 Decentralization


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Looking back, SARDP has indeed contributed significantly to the promotion of decentralized government in the Amhara Region and today stands as an example to other regions. Previously this component was known as Good Governance. The concept of good governance is normally seen to comprise a broad spectrum of interlinked elements such as free and fair elections, a free press, the adherence to the respect of human rights, the right to organize and an independent judicial system, and the devolvement of decision making powers to lower administrative levels. The Good Governance component is now changed into decentralization for two main reasons; first, that good governance component was limited in scope, covering only population, gender and HIV/AIDS issues, and secondly, increased efforts are now needed to support the ongoing process of decentralization to enable woredas and kebele administrations to better manage the Programme. Therefore, given the obvious cross-cutting nature of HIV/AIDS, population and gender, the expected outputs and activities in these areas will be achieved by addressing those issues in a mainstreaming manner, component by component, and sector by sector. In addition, environmental issues are also considered cross-cutting and to be addressed in a similar manner. This is fully in line with national policies emphasizing that problems and challenges pertaining to the four areas should be mainstreamed into various sector ministries, bureaus and woreda offices. SARDP will continue to concentrate on decentralization aspects as a part of the overall national efforts to install good governance on a country wide scale. Thus, SARDP will support the already on-going efforts to build up the capacity of woreda and kebele administrations to better serve the citizens. Decentralization process is now taking place in Ethiopia with the devolution of power to the regional governments and lower administrative units. This process is presently being reinforced further by support to the strengthening of institutions and councils at woreda and kebele levels followed by a gradual fiscal decentralization. SARDP decentralizing the actual formulation of activities as well as implementation is meant to create room to manoeuvre at the local level, making SARDP activities demand driven and creating local ownership. Presently, SARDP program woredas are in a position to plan prioritize, implement and manage development programs in participatory manner. From this it is understood that SARDP further aims at enabling the local communities to benefit from this decentralization process through capacity building, making the woredas and kebeles better equipped to handle new planning and management responsibilities and opportunities. SARDP will strive on empowering the community through the allocation of community development fund which will enhance further fiscal decentralization to the grass root level. This will be further supported through conscientization on basic human rights,


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creating well structured and transparent M&E system starting from the community up to the regional level that can contribute to insuring accountability at all levels. Management and financial capacity of local administrations The decentralization process is hampered by lack of local capacity, physical infrastructures, equipment, etc. SARDP III is already supporting and will continue to support the construction of local administrative buildings through its infrastructure component, and supply vehicles and office equipment. The Decentralization component will focus mainly on strengthening local planning and management capacity. The Programme is initiating the elaboration of a management package (planning, financial and general management and M&E manuals) to ensure that Programme funds can be efficiently utilized; activities can be more efficiently implemented, monitored and evaluated. Community empowerment In the SARDP intervention area one can identify various interest groups, such as landless young farmers, better off farmers, men, women, big traders, small traders, etc. The challenge for the SARDP program in general will be to address different groups with different instruments. The challenge for the decentralization component is to train and create awareness among decision makers that different groups have different needs. Another instrument for this component will be to form links with NGOs and CBOs in the areas that may have special knowledge and experience in promoting the interests of the most disadvantaged groups and tap this knowledge in order for SARDP to support poor groups (e.g. women’s associations, savings cooperatives, etc). The programme will also support the training of local government officials for enhancing the community empowerment process. In addition, SARDP has put up the facility for the Community Development Fund. This Fund is meant to support innovative initiatives coming from the communities themselves, initiatives in which community members can demonstrate new ways of promoting their interests and further strengthen the decentralisation process through local decision making. Local justice and traditional conflict management systems In previous phases SARDP has supported the construction of local court buildings and trained court officials. SARDP-III wants to continue these activities and to some extent intensify the training and awareness raising of court officials to equip them to be better at handling local conflicts. SARDP III is targeting conflict management in general, but wants to stress that certain areas need attention, which includes kebele social courts, traditional conflict handling committees, “shimagles”, etc.


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At federal level a major Justice Sector Reform Programme is being implemented, with the support of many donors, looking into many critical issues, including the courts, prisons management, the police force etc. As SARDP will not benefit from this programme in the short term and as there is an identified need of improving the way the legal system operates at the local level, the Programme will offer training at the woreda and kebele levels& equip pilot kebele courts. This will complement the federal efforts at the lower levels. Information and documentation system at woreda level As a result of the high staff turnover the woredas suffer from a very high degree of loss of knowledge. When staff leaves the handover of knowledge acquired by the individual is seldom transferred to the replacement and sometimes staff members even carry with them some belongings to the woreda. SARDP will support the development of computer based filing systems in the woredas to improve data handling and management. This will mean training as well as provision of equipment will be supported on pilot basis. A second area would be to strengthen access to information exchange in the woredas. SARDP will support the development of more transparent and efficient ways of communicating the information to the citizens of the weredas like the annual budget by sector, planed activities, budget utilization, new developments in the wereda etc… Thirdly, SARDP will support the woreda administrations in establishing market information centers, which are to be linked to the Marketing Intelligence Unit envisioned to be established as part of the Chamber of Commerce in Bahar Dar. The exact modalities on how this will work will be elaborated as the sub-components unfold. Population SARDP will support the woreda councils and kebele committees in giving sound information on population issues to the citizens within a range of areas. The woreda and kebele administrations must be equipped to produce information material, arrange and conduct popular meetings and discussions, etc. on the links between population growth and food security problems, availability of land, etc. Another crucial area would be to increase the awareness of family planning methods. It will be necessary for all members of the society to better understand the direct but also complicated connections between family size, population growth, food security and quality of life. SARDP will also support the woreda administrations in establishing pilot statistical units/offices for population data management in order for the woredas to increase their ability to monitor the local population development. Participation of women in decision making Experience shows that the attitudes towards the rights of women may be more conservative at local level than at central. Therefore, SARDP has supported the study on


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GENDER MAINSTREAMING STRATEGY of the region and also will support steps and activities to raise the awareness of the rights of women and girls in the two zones. Further, the Programme aims to support the Womens Association to establish a women’s forum in each kebele. The Programme will support longer term training for women candidates and members of woreda and kebele councils in both zones to strengthen the negotiation skills and their knowledge of legal matters, leadership and gender issues. SARDP will seriously encourage and push for each kebele to initiate community discussions on women’s legal and political rights, not least the rights of girls to avoid the harmful traditional practices like mutilation of circumcision and the harmful effects of that practice. Support for HIV/AIDS prevention and PLWHA The HIV/AIDS situation in the Amhara Region is definitely on the rise. SARDP will support both control measures and raised awareness of the conditions and rights of those already affected through different components of the Programme. The Decentralization Component will especially focus on the sensitization of woreda council and kebele committee members on the rights of PLWHA to participate in decision making processes. The programme will build the capacity of concerned institutions for effective coordination and mainstreaming of HIV/AIDS.

5.5 Mainstreaming Cross-cutting Issues This section is NOT a description of another Programme component, but an overview of how the cross-cutting issues of population, environment, gender balance and HIV/AIDS prevention will be streamlined within the four specific Programme components. Population, environment, gender and HIV/AIDS are all highly relevant in the context of SARDP and to the general development efforts in ANRS. SARDP III will ensure that these cross-cutting issues are fully integrated and streamlined into all programme activities. A comprehensive response has been formulated to the challenges to social and economic development posed by the imbalances related to population, environment, gender and HIV/AIDS. The strategy pursued for establishing this comprehensive response builds on a few basic assumptions:

• Effectively integrating cross-cutting issues requires a two-fold strategy. On one hand, the implementation of a selected number of targeted interventions with a high potential impact, and on the other hand, a general strengthening of the capacity of implementing institutions and stakeholders to take the cross-cutting issues into account when planning and implementing their activities.

• Therefore, cross-cutting issues are to be taken into account not only by specialists on these issues, but by all implementing agencies and stakeholders. At the same


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time each individual in all the sectors and stakeholders should also be responsible for contributing to the integration of the cross-cutting issues in his/her own areas of competence.

The strategy pursued has thus been to integrate the cross-cutting issues of population, gender and HIV/AIDS in all sector plans, focusing on the comparative advantages of each sector to address these cross-cutting issues, without compromising the capacity to implement the overall plans of each sector. Activities have been identified to improve the conditions of the vulnerable groups and also to build capacity of all stakeholders to deal with the cross-cutting issues during their respective work. This will require technical support from specialists experienced in addressing the cross-cutting issues in question. A short background over each of the four cross-cutting areas i.e., population, environment, gender and HIV/AIDS is provided below: POPULATION: to establish harmony between population growth and development and enhance motivation and innovation at local level. Both in South Wollo and East Gojjam, population pressure seriously affect rural livelihoods by inducing land fragmentation, decline of yield, accentuating deforestation and underemployment of the rural labour force. Many young people are landless, because their parents can no longer provide them with land for cultivation. As a direct consequence, the out migration of rural youth, both male and female, to urban areas in search of job is high. This situation in turn aggravates the poverty situation in urban areas for no job opportunity to be provided. Rural communities in general see population pressure as a continuous and increasing threat to community wellbeing; large family size is now felt to be more of a liability than an asset, and both men and women are prepared to limit the number of children per family. However, there is lack of proper access to family planning and reproductive health services. The general knowledge of family planning methods is quite low. Due to lack of information and unfortunate cases of misapplication of the available methods, many misconceptions prevail in the rural communities about side effects and ineffectiveness of different methods. Awareness rising on population pressure and family planning is needed in the health, educational and rural development sectors. Staff in these sectors has some knowledge of population and family planning issues and in some cases awareness raising activities are included in the programs of agricultural development agents, health agents’ traditional leaders and teachers. But the activities remain isolated, and collaboration between agents of different sectors on these issues is limited. To become effective, the Programme will go beyond the creation of awareness by providing also the necessary inputs, in a demand driven approach.


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GENDER: to increase women’s participation in decision making and benefits from development interventions of SARDP. Women in Ethiopia are among the poorest of the society. In the rural setting, women are mainly engaged in service provision while men engage in wage employment Women’s work load is very heavy and time and energy consuming. They are the household’s multi-purpose haulers, working on the farm and bringing in water and firewood. Very little has been done to reduce their work load aside from the classic installation of water points and growing of firewood. Women are therefore left with hardly any time to diversify into micro-enterprises. Women need access to credit but the present credit facilities available to them charge high interest rates and collateral requirements found to be a disincentive for those without assets. Violence against women takes many forms and is reported to be very high in the Amhara region. Much of the caseload of the woreda and social courts is women-related, probably next to land related issues. Most of these cases deal with violence against women and harmful traditional practices (HTP) which might cause anther problem to the community. Still, the representation of women in all planning and decision-making bodies/institutions remains negligible. Considering that women’s involvement in power negotiations is traditionally absent or negligible, minority representation in present government planning and decision-making is intimidating. This affects women’s self-confidence and gives the male majority the impression that the women representatives lack ‘capabilities’ to participate fully in development and other activities. To change this attitude at local level the gender balance is mainstreamed in all the four components of the program. The Programme will prepare a mainstreaming strategy and produce a manual in order to be able to determine whether the gender issues have been internalised or not under the various interventions. HIV/AIDS: to mitigate the negative impact of HIV/AIDS on the Programme’s contribution to poverty reduction of the rural population in the intervention area.

Ethiopia is one of the countries in Africa, where the spread of HIV/AIDS is escalating, currently estimated at 4.4% of the adult population. HIV/AIDS will change communities and families in the country for decades to come. There are many contributory factors underlying the increase of the HIV epidemic in Ethiopia. Poverty, unemployment, illiteracy, gender inequality, cultural barriers that promote denial, stigma and discrimination, etc, all contribute. Women are disproportionately affected in all these areas. On top of the higher biological susceptibility of women to HIV infection, there are a number of cultural practices like early marriage, abduction, polygamy, wife inherence, female genital mutilation, etc, that expose young girls and women more to infection


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Knowledge on HIV is generally high in that people are aware that HIV/AIDS exists, although more detailed knowledge of prevention and control is lacking, and many misconceptions prevails on how the virus is spread and how it is not spread. The HIV/AIDS epidemic poses a particularly serious developmental challenge for Ethiopia. The link between poverty and HIV/AIDS is well established, they reinforce each other through direct and indirect routes. To date little attention has been given by the authorities to the links between food insecurity and vulnerability to HIV/AIDS infection and development programs have not adequately responded to this increased threat. The support to people living with HIV/AIDS (PLWHA), to orphans and to vulnerable children is thus still very scanty and dependent of the goodwill of individuals and the proximate community. Very little has been done to establish mechanisms to help and support those possibly infected. Based on this rational that considering the issue is of multi-sectoral nature it is mainstreamed in all the four components of the program. In the fight against HIV/AIDS, SARDP will work closely with all concerned organisations, particularly the HAPCOs and international and local NGOs. ENVIRONMENT: to strengthen and enhance on-going environment related efforts, create and assist grassroots initiatives and integrate measures under implementation The sustainable use of natural resources and protection of the environment is decisive for sustainable production, food security and overall development. Priority areas of concern, therefore, are strengthening on-going efforts to address the problem of land degradation, deforestation, overgrazing, and soil erosion. Strengthen regulatory and institutional capacity at grassroots level is another area of concern for the program support. An environmental impact assessment (EIA) shall be carried out during the planning and survey during the implementation of projects mainly; village roads, irrigation schemes, school and health post construction.


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6. PROGRAMME MANAGEMENT SARDP III is a multifaceted development programme planned and implemented by ANRS and assisted by Sida. Sida and ANRS have an open dialogue about development policies, as well as about financing, planning and follow-up of programme activities. The Programme involves a number of actors at various levels (community, institutions at kebele, woreda, zonal and regional levels). The activities will be planned and budgeted on an annual basis and will be implemented and monitored by the communities and institutions at the kebele, woreda, zonal and regional levels.

6.1 Management Structure The programme management consists of the various organs as depicted in the organogram, which include extended programme coordination committee, programme coordination committees at regional, zonal and woreda levels, programme coordination unit at regional and zonal levels, Focal Persons at weredas level, beneficiary community, Sida and Consulting firm. The Programme Coordinating Committee (PCC) provides guidance on main policy and implementation issues (for example regarding political commitments, formulation of development strategies, allocation of resources, and recommendations for major changes in the programme) of the overall program development. A Programme Coordination Unit, PCU, has been set up to coordinate activities at the different levels. The PCC constitutes the following regional institutions:

• BoFED, the Bureau of Finance and Economic Development • BoARD, the Bureau of Agriculture and Rural Development • BoCB, the Bureau of Capacity Building • BoTIUD, the Bureau of Trade and Industry Development • WAO, the Women’s Affairs Office • BoPPO, the Bureau of People’s Participation Organization • PCU, the Programme Coordination Unit.

The chairperson of the PCC is the person to whom the Project Director reports, i.e. the Head of BoFED. The PCU serves as secretary of the PCC. The extended PCC, which will meet twice a year, includes Woreda Administrators, Zonal PCC Chairpersons and Heads of Regional Bureaus as well as representatives of Sida. The zonal and woreda PCC and the Community Development Fund Committee (CDFC) guide the programme at the local level. They work with the direct beneficiaries of the programme, i.e. traditional and formal institutions, interest groups, and individuals participating in the Programme.


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The Woreda Finance and plan office is formally responsible for coordination of the programme in the program woredas. However, this is problematic due to capacity constraint. In order to resolve that problem, a competent and committed professional staff member has to be attached to the Woreda Finance and Plan Offices to serve as responsible and accountable SARDP Focal Person and secretary of the Woreda PCC.

6.2 Donor Linkages

In the ANRS, SARDP is by far the largest donor intervention, covering 25 woredas. BoFED has recently compiled an overview of the donors being active in the Region, in the form of a Donor Profile, with the intention of conducting better donor coordination. SARDP has made efforts not to overlap with other donors in the programme woredas. The sharing of experiences with other actors is taking place.


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Organizational Structure of SARDP-PCU

EPCC RPCC

ZoFED ZPCC

Sub-PCU

ZOSC

WPCC WoFED

FP

Community

OSC

Sida

PCU

BoFED


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6.3 Technical Assistance As secretary of the PCC, the Programme Director leads the SARDP Programme Coordination Unit (PCU). Technical advisors assigned by a selected consulting firm and technical and support staff employed by the Programme assist the unit. The staff shall include one international Programme Management Advisor also leading the team of consultants. The zonal PCU coordinators in South Wollo and East Gojjam shall be assisted by one Woreda Programme Management Advisor each and with team of advisors of different discipline recruited by the consultancy company and be stationed in the two zones. This group of experts will work together with the zonal PCU and support the Woredas. An international management consultancy company is to be contracted to provide assistance to SARDP. The main role of the company will be to act as an advisor and facilitator, working in the woredas and kebeles of the two zones. The work of the company should be based on dialogue and creation of partnerships, where a basic understanding of local conditions and good interpersonal and intercultural skills are fundamental. Human resource development is a vital component of the program and is, in consequence, an area where technical assistance can make a lasting contribution to pro-poor growth and strengthening of grassroots democracy. In recruiting the consultancy company, its ability to provide competent and experienced individual consultants is the main selection criterion. Areas where the services of experienced international and national consultants are needed include: • Overall planning and coordination of the Programme; • General capacity building; identification of training needs, delivery and

evaluation of training results; • General capacity building in further development of the programme monitoring

and evaluation system and improving its overall reporting system. • Specific capacity building in participatory planning including cross-cutting

isssues (poverty focus, gender mainstreaming, fight against HIV/AIDS and environmental impact assessments);

• Specific capacity building in the area of land security (land administration and the formulation of land laws)

• Specific capacity building regarding decentralization of government functions • Specific capacity building in economic diversification; • Specific capacity building &direct assistance of overseas training and foreign

procurement;


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Summary of TA Requirement for SARDP III

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6.4 Monitoring and Evaluation SARDP will be monitored and evaluated in such a way that it can be verified whether its goal and purposes are being met or not. This follow-up of the progress will enable corrective action and facilitate learning on the basis of experiences. The implementing partners will be accountable for what they do. A participatory monitoring and evaluation system has been designed and is practiced with the involvement of community and grass-roots institutions, kebele and woreda institutions, and concerned women and men in the localities. The implementing institutions and the local population continuously monitor the activities. An independent monitoring team is about to be assigned by both parties. Implementing institutions will submit quarterly and annual progress reports containing information on inputs, implementation status of the activities, outputs, indicators, financial status, contributions by partners, problems encountered and measures taken. The PCU will coordinate and follow up these reports, both at the regional and zonal levels. In addition, field visits will be conducted together with the concerned partners. Reporting and accountability Concerned implementing agencies at various levels are required to prepare and submit periodic reports, which will be consolidated at woreda, zonal and regional levels. Periodically, the regional PCU will submit standard monitoring reports to BOFED, PCC, and SIDA based on the agreed date and formats. Evaluations The programme will be evaluated at mid-term and towards the end by independent reviewers. On the basis of such evaluations, adjustments will be made to the programme. Final auditing will be carried out as required by the government and the donors. The responsible institutions and beneficiaries will be accountable for the final evaluation. Most of the approaches and tools mentioned above pertain to getting a basic input-output system in place. SARDP has assigned a Monitoring and Evaluation Specialist who is assisting with making such a system fully operational. In addition, this specialist together with PCU appointed counterpart is also developing suitable and participatory methods of outcome and impact monitoring. Separate impact evaluations might also be conducted to determine positive changes in the livelihoods of the population in the programme area as a result of interventions by SARDP. It will integrate quantitative, qualitative and participatory methods, using both primary and secondary sources.


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Exit-Entry Strategy The programme is operating with the intention that all 30 woredas in the two zones will have been covered at the end of the programme period. This will require that some woredas are being phased out while others are phased in, over time. A mechanism for this must be in place, in the form of an Exit Strategy, in combination with an Entry Strategy. A comprehensive Exit Strategy has already been prepared, in consultation with the woredas, other experts and concerned stakeholders. However, it has been found that this strategy becomes quite complicated in practise, as it requires detailed performance assessments. In consequence, the Programme will reconsider this strategy and possibly work out a simpler system of withdrawal, based on a gradually diminishing funding level for the woredas, or a combination of performance assessments and decreasing funding.


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7. PROGRAMME BUDGET The overall programme budget agreed and approved for the period July 2004 through June 2008 is proposed to be 300 Million SEK. As the major focus of the programme is "Woreda Development Support," more than 70% of the budget shall be allotted to the woredas. The woreda share of the budget will be directly allocated to each participating woreda based on the regional resource allocation criteria. Some 10% of the budget will be allocated to technical support to be provided by regional Bureaus and other organisations to woredas, and distributed to the individual Bureaus based on their approved proposals. The major criteria for the approval of the funds will be the direct linkage of activities between bureaus and woredas, alternatively based on the extent to which a Bureau is planning to give support to the programme woredas. The remaining 10% will be divided between EPLAUA, ACSI, assuming that these two institutions will provide services with the main focus on the programme woredas but not excluding the non-programme woredas in the region. The balance 10% approximately constitutes the program management cost including planning reserve and payment to the consultancy service. In addition, the beneficiary communities are expected to contribute the equivalent of at least 25% through the delivery of cash, local materials and unskilled labour. In total, the budget for the programme for the planned period can therefore be estimated at some more than 350 million SEK.


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SARDP Phase III, Budget break down by component and Beneficiaries For the period from July 2004-June 2008 000 SEK

Budget Break down

S.N Program components Budget Allocated % share Woredas( 72.4%)

Bureaus ( 12.6 %)

Program Management(15 % ) Remark

1 Agriculture & Natural Resource 66,000 22

* Agricultural extension 4,000 6 4,000 Back stopping support

* On Farm Research 2,000 3 2,000 Back stopping support

* Land Adminstration & Use 15,000 23 15,000 Back stopping support

* Rural Energey 1,000 2 1,000 Back stopping support

* Woreda Development 44,000 66 44,000 Direct implementation 2 Infrastructure Development 99,000 33

* Rural Roads 2,000 2 2,000 Back stopping support

* Water Development 1,000 1 1,000 Back stopping support

* Woreda Development 96,000 97 96,000 Direct implementation

3 Economic Diversification 60,000 20

* Rural credit 8,000 13 8,000 Back stopping support

* Business Investment Fund 20,000 33 20,000 Direct implementation

*Enterprise development 25,000 42 23,000 2,000 Both BSS & DI

* Rural Urban Linkage 7,000 12 6,000 1,000 Both BSS & DI 4 Decentralization 30,000 10

*Community empowerment 15,200 56 15,200 Direct implementation

* Strengthening local institutions 5,000 17 5,000 Direct implementation

* Local Justice 3,000 10 3,000 Direct implementation

* Information & Documentation 5,000 17 5,000 Direct implementation

* Gender equality 600 600 For facilitation

* HIV/AIDS prevention & control 600 600 For facilitation

* Population 600 600 For facilitation

5 Program Management 45,000 15

* Program coordination 15,000 33 15,000

* Consultancy Service 25,000 56 25,000

* Planning Reserve 5,000 11 5,000 Total 300,000 100 217,200 37,800 45,000


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Sida-Amhara Rural Development Programme SARDP III Programme Document.pdf · The Swedish...

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Transcript of Sida-Amhara Rural Development Programme SARDP III Programme Document.pdf · The Swedish...