annual report 2010 efy (july 2017-june 2018 gc) · programme for agro-business induced growth in...

Programme for Agro-Business Induced Growth in the Amhara National Regional State

Second Phase 2017-2021

Annual Report 2010 EFY (July 2017-June 2018 GC) AgroBIG PSU August 20, 2018 Bahir Dar

AMHARA REGIONAL

STATE

i AgroBIG II Annual Report 2010 (2017/2018 GC)

Table of contents

Summary ....................................................................................................................................................................... iv 1. Background and situation ...................................................................................................................................... 1

1.1. Project summary ............................................................................................................................... 1 2. Progress towards the achievement of the expected results ............................................................................... 4

2.1. Output I. Value chain actors’ access to finance and financial services is improved and sustainability of their enterprises and business initiatives is strengthened .............................................. 4 2.2. Output II: Capacities of value chain actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way ....................................................................... 11 2.3. Programme Management, M&E and Communication .................................................................... 20

Programme coordination .......................................................................................................... 20 Work planning, monitoring and evaluation ............................................................................... 22 Communication ........................................................................................................................ 23

2.4. Analysis of successes and constraints encountered ...................................................................... 24 3. Resources and Budget ......................................................................................................................................... 26

3.1. Fund transferred from MFA to BOFEC ........................................................................................... 26 3.2. Budget utilization ............................................................................................................................. 28

Implementation Budget Plan Vs Utilization during the reporting year ...................................... 28 Government of Ethiopia Contribution ....................................................................................... 28

3.3. TA Budget Plan and Utilization of during 2017/2018 ...................................................................... 28 4. Assumptions and risks ......................................................................................................................................... 30

4.1. Analysis of realized and new/emerging risks and proposed risk responses ................................... 31 5. Sustainability ......................................................................................................................................................... 31 6. Lessons learnt, conclusions ................................................................................................................................ 31 Annexes: ...................................................................................................................................................................... 32

Annex 1: Revised AgroBIG Results Framework (update August 2018) Annex 2: Summary of disbursement of Women and Youth loan funds by SACCOs. Annex 3: Summary of overall AgroBIG Phase II budget for 2017-2021 (update July 2018) Annex 4: Implementation budget plan for 2017/2018 vs fund utilization.

Annex 5. Summary of overall AgroBIG II MFA fund utilization during 2010 EFY (2017/2018 G.C.)

ii AgroBIG II Annual Report 2010 (2017/2018 GC)

List of Figures: Figure 1: Geographic map of AgroBIG target area ........................................................................................ 1 Figure 2. AgroBIG II results chain. ................................................................................................................. 2 Figure 3: Value of women and youth loan distribution and name of SACCOs .............................................. 9 Figure 4: Layout of AgroBIG Social media platforms ................................................................................... 23 List of Tables: Table 1: Value and numbers of submitted concept notes in each target woredas. ...................................... 6 Table 2: Projects approved for funding under the value chain facility and funds released during the year . 6 Table 3: Union and Woreda coverage, number of SACCOs and Multipurpose Cooperatives in AgroBIG

target Kebeles ................................................................................................................................. 7 Table 4: Distribution of the Women and Youth Loan fund by COSACUs (in ETB) ....................................... 8 Table 5. Breakdown of the intended purposes for which WYLF was acquired in the 13 SACCOs. ............. 8 Table 6: Disbursement of Cooperative Loan Fund in May 2018. ................................................................. 9 Table 7. Number of business entities, farmers, CIGs and other stakeholders reached through capacity

building during 2017/2018. ........................................................................................................... 12 Table 8: Members of AgroBIG Phase II SVB during 2017/2018. ............................................................... 20 Table 9: Opening balance, fund transfers and closing balance of BoFEC channel AgroBIG funds during

2017/2018. .................................................................................................................................... 26 Table 10. Summary of partners own contribution for AgroBIG Programme ................................................ 26 Table 11. Summary of AgroBIG BoFEC channel funds transferred and utilised during 2010 EFY

(2017/2018). ................................................................................................................................. 27 Table 12. Summary of AgroBIG Technical Assistance days during Sept 2017 – June 2018 ...................... 28 Table 13:Summary of overall AgroBIG TA channel budget, allocations for Sept 2017–June 2018,

respective expenses and overall balance (EUR). ........................................................................ 29 Table 14: Summary of overall AgroBIG TA channel budget for Sept 2017–June 2018, and quarterly

expenditure during the reporting period. ....................................................................................... 29

iii AgroBIG II Annual Report 2010 (2017/2018 GC)

List of abbreviations

ACSI Amhara Credit and Saving Institution ACCSA Amhara Chamber of Commerce and Sector Association AgroBIG Agro-Business Induced Growth ARARI Amhara Regional Agriculture Research Institute ANRS Amhara National Regional State BoA Bureau of Agriculture BoEPLAU Bureau of Environment and Climate Change BoFEC Bureau of Finance and Economic Cooperation BoLSA Bureau of Labour and Social Affairs BoT Bureau of Trade BoTVED Bureau of Technical and Vocational and Enterprise Development BoWC Bureau of Women and Children Affairs BoYS Bureau of Youth and Sports CIG Common Interest Group COSACU Cooperatives’ Savings and Credit Union CPA Cooperative Promotion Agency ETB EUR

Ethiopian Birr Euro

FTC Farmer Training Centre GAP GoE

Good Agronomic Practice Government of Ethiopia

GoF Government of Finland GTP Growth and Transformation Plan IP Implementing Partner IT Information Technology KIP Koga Irrigation Project LRDPA Livestock Resource Development Promotion Agency (of Amhara) M & E Monitoring and Evaluation MFA Ministry for Foreign Affairs of Finland MoU Memorandum of Understanding PSU Programme Support Unit PWD People with Disability RTC (AgroBIG) Regional Technical Committee SACCO Savings and Credit Cooperative SNV Stichting Nederlandse Vrijwilligers, Netherlands Development Organisation SVB (AgroBIG) Supervisory Board TA Technical Assistance TC (Woreda) Technical Committee ToR ToT

Terms of Reference Training of Trainees

TVET Technical and Vocational Education Training VC Value Chain WSC (Woreda) Steering Committee WTC (Woreda) Technical Committee

iv AgroBIG II Annual Report 2010 (2017/2018 GC)

Summary

The reported year consists of AgroBIG phase II inception phase, which ended in February 2018, and four months of implementation period ending on June 30th 2018. In spite of the short implementation time, progress was made in all areas. The first loan disbursements were done, call for grant proposals was published, and market linkage events and capacity building programmes were initiated.

The key deliverables completed by the end of EFY 2010 (2017/’18 G.C.), and results achieved are summarized below.

Achievements under Output 1:

1. Selection of financial institutions to manage the loan funds allocated for cooperatives, women and youth has been done. Memorandum of understanding has been signed between CPA, BoFEC and three Cooperatives’ Savings Unions (COSACUs), and the first batches of loan funds have been disbursed to Tana, Rib and Adera Densa COSACUs.

2. Guidelines for medium- and small-size grants were completed. Technical committee members of the targeted woredas have been trained in how to manage grant applications, carry out appraisals etc.

3. First call for proposals for medium-size grants was announced in May 2018. A total of 85 concept notes were submitted to the eight woredas. The most potential applicants will be requested to submit their full proposals for final appraisals and eventual approvals.

4. ETB 11.8 mill of loan fund was in May disbursed to three CoSACUs, to facilitate issuing loans through SACCOs to women and youth for their individual and group initiatives, and to cooperatives for their working capital. In total 484 loan takers benefitted of Women and Youth loan fund totalling ETB 5.9 million. Cooperative loans were issued to 13 coops (ETB 5.9 mill in total).

5. VC Facility fund guidelines have been updated. The PSU is facilitating applications for the VC Facility Fund from relevant institutions and entities. Of the seven applications submitted, five have been funded this financial year.

6. On-going activities and pilot initiatives from Phase I of the Programme have been assessed, gaps identified and action plans and budget prepared. For instance, Bikolo Abay horticulture nursery and training centre construction has been completed and handed over to Bureau of Agriculture (BoA). Curriculum development is on-going.

Achievements under Output 2: 7. As one key result, a total of 208 business entities, including entrepreneurs, companies,

cooperatives and CIGs, were during the year supported by capacity building on marketing, quality standards, business management and accounting. Input suppliers, cooperative board members and employees, traders, processors and retailers have benefitted.

8. In addition, 1,915 farmers (44% of them female) were engaged in trainings on good agronomic practices, entrepreneurship and awareness of environmental sustainability. The total of participants engaged in trainings and other capacity building activities supported by AgroBIG during the year reached 4,082 (1,400 female). The topics addressed include value chain development, loan and grant management, post-harvest management, business ethics, sorting and grading of crops, entrepreneurship, home economics and gender mainstreaming, just to mention a few. One of the key goals has been to create improved common understanding on value chain development approach and to enhance public service delivery.

9. A pilot scheme on onion and potato demonstration plots was established in selected sites at Koga/North Mecha, displaying the use of improved seed and appropriate use of fertilizers. Farmers field day events conducted; and lead farmers shared their experience to other neighbouring farmers to help them improve their productivity.

10. 81 Women and youth groups having a total of 335 members (190F) have been organized and trainings provided to facilitate linkages with SACCOs to access revolving funds to initiate businesses.

v AgroBIG II Annual Report 2010 (2017/2018 GC)

11. Three Market linkage forums (2 regional and 1 local levels) were facilitated, organizing a Cooperatives’ bazaar in Bahir Dar was supported and market linkages between cooperatives/Unions and buyers were promoted for different agricultural commodities. Visibility of coops and their annual sales increased.

12. Two cluster platforms conducted and a total of 134 (24 F) participated. 13. Candidate VCs have been selected, and analysis of selected VCs (tomato and livestock) is on-

going. Also, update of onion and potato value chains is on-going. 14. The capacity needs and key constraints of value chain actors and service providers have been

identified and the required budget needs estimated. 15. Capacity building for COSACUs has been designed and delivered. AgroBIG has been working

with Adera Densa, Rib and Tana unions in implementing the two loan funds. 16. AgroBIG has been supporting emerging innovations/ new approaches to be piloted such as air

tight bags (PICS) for maize storage.

Programme management: 1. The programme governance and management set up has been established (cluster platforms,

woreda and regional technical committees and Supervisory Board (SVB); 2. Programme Support Unit (PSU) staff is fully mobilized and operational; various guidelines

prepared and in use. As a result, the programme is now in its full swing and implementation has commenced.

3. Collaboration and coordination mechanisms with Partner projects and programmes supporting agribusiness and agricultural value chains around Lake Tana sub-basin have been designed

4. AgroBIG Inclusion Strategy has been prepared and is operational. 5. The Programme Document has been reviewed and revised. 6. Work plan and budget for EFY 2010 (2017/2018 G.C.) and EFY 2011 (2018/2019 G.C.) prepared.

Monitoring and Evaluation, Communication:

7. AgroBIG beneficiary groups have been defined and quantified. 8. Results Framework indicators defined and elaborated. 9. M&E Framework prepared and in place. 10. Baseline survey among farmer households, cooperative leaders, entrepreneurs and youth is

finalised. The final survey report is expected in mid-August 2018. 11. Monthly and quarterly reports have been compiled and submitted. Regular technical support has

been provided to the Programme’s implementing partners. 12. AgroBIG Communication Strategy and tools developed and are in use.

AgroBIG II Annual Report 2010 EFY (2017/2018 GC) 1 (42)

1. Background and situation 1.1. Project summary

Programme for Agro-Business Induced Growth in Amhara regional state (AgroBIG) is a bilateral agribusiness development programme financed by the Ethiopian and Finnish governments. The Bureau of Finance and Economic Cooperation (BoFEC) of Amhara region is the responsible government coordinating agency of the Programme.

The first phase of AgroBIG (2013–2017) was implemented in Fogera and Mecha woredas in the Amhara region. Phase I aimed at organizational development and partnership building and to enhance productivity, agribusiness development, marketing, processing and value addition along the selected agricultural and horticulture value chains. This was done through supporting capacity building of value chain actors, and by facilitating access to finance and financial services to farmers, traders, processors, other entrepreneurs and cooperatives engaged in production, agro-processing, service provision (public and private) and commodity trade.

The second phase of AgroBIG runs for 4.5 years (2017–2021 GC). It is designed to sustain the gains and achievements of Phase I, and further strengthen agribusiness development within the Tana sub-basin.

The overall budget of the on-going Phase II is EUR 10.3 million, of which EUR 9.4 million consists of Finnish and EUR 0.94 of Ethiopian contribution.

The geographical focus of the second phase of AgroBIG is 89 kebeles in eight woredas: North Achefer, South Achefer, North Mecha, South Mecha, Bahir Dar Zuria, Dera, Fogera and Liboemkem, falling under the Koga-Gilgel Abay, Gumara and Rib catchments.

The Programme targets a total of approximately 300,000 direct beneficiaries classified into three main groups: (1) Individual farmers and farming household members; (2) Agricultural cooperatives and associations; and (3) Other private sector value chain actors such as input suppliers, traders, processers and service providers.

Expected impact, outcome and outputs of the Programme Impact: AgroBIG II is to contribute to development that enables agriculture to provide decent sustainable livelihood to people in rural Amhara regional state.

The expected outcome is defined as follows: Value is added at various levels of selected agricultural value chains to increase incomes and create jobs for farming households and other VC actors, with a particular emphasis on women and youth.

AgroBIG has two output objectives which are inter-linked, contributing to the attainment of the intended outcome:

• Output 1: Value chain actors’ access to finance and financial services is improved and sustainability of their enterprises and business initiatives is strengthened.

• Output 2: Capacities of value chain actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way.

AgroBIG II is targeting a total of 89 kebeles in eight woredas: in North Achefer, South Achefer, North Mecha, South Mecha, Bahir Dar Zuria, Dera, Fogera and Libokemkem.

Figure 1: Geographic map of AgroBIG target area


In the initial Programme document (2017) the results framework contained three separate outputs. As two of them were addressing access to finance, they were proposed by the PSU to be combined to reduce key result indicators. The Supervisory Board (SVB) in its 9th meeting authorised the PSU to move ahead with combining the two outputs. The Programme Document has been updated respectively and will be presented for approval in the 10th SVB meeting in the end of August 2018.

Moreover, the programme addresses three cross-cutting objectives: environmental sustainability, gender equality and reduction of inequalities through inclusion of vulnerable groups (women, landless youths and People With Disabilities (PWD).

Programme approach and key interventions AgroBIG applies value chain approach, addressing the bottlenecks that hamper the value chain actors get the best from their efforts. The programme supports input suppliers, farmers, brokers, processors, wholesalers, retailers and producer and consumer cooperatives and service providers, with increasing attention to the downstream of the value chains, to add value to the produce they deal with, to find and familiarize with profitable markets and new market segments for their produce, and thereby improve competitiveness and profitability of their business initiatives.

Provision of matching grants to entrepreneurs, farmers and other value chain actors, and provision of loans to cooperatives, to women, youth and women and youth group members are the main means of AgroBIG support. In addition, the Programme facilitates capacity building for chain actors and enablers, including development and research institutions and local authorities that provide extension and other services. Facilitation of market linkages, enabling the targeted actors identify the specific market demands and respective supply potential, and to get acquainted with each other and thereby build mutual trust, is an essential part of the capacity building component.

KEY ACTIVITIES OUTPUTS OUTCOME IMPACT Provide grants for VC actors through the grant fund. Support learning and new approaches. Provide loans to agricultural cooperatives through the loan fund. Provide loans to women and youth groups through SACCOs.

VC actors’ access to finance and financial services is improved and sustainability of their enterprises and business initiatives is strengthened. Assumptions: VC actors have necessary minimum resources, including self-financing, to develop viable business entities. Cooperatives and enterprises have sound management practices and apply the principles of an appropriate loan culture.

Value is added at various levels of selected agricultural VCs to increase incomes and create jobs for farming households and other VC actors, with a particular focus on women and youth. Assumptions: Commercialization of agriculture continues and strengthens agribusiness and increases employment. VC actors seize business opportunities. Women and youth groups set up enterprises.

Agriculture provides decent livelihood to people in rural Amhara regional state. Assumptions: Enabling factors support socioeconomic development: policy, stability, regulatory framework, infrastructure

Facilitate business and market linkages, investment and public-private dialogue Improve business and farm management skills and service delivery for VC development Form, train and mentor women/youth groups in agriculture-related income generating opportunities Provide technical support to cooperatives to improve member services, bargaining power and business management

Capacities of VC actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way Assumptions: Most important capacity constraints are identified, and VC actors are motivated in removing them.

Figure 2. AgroBIG II results chain.


AgroBIG II Theory of Change “Food production in high potential agricultural areas enables diversified production abounding both in quantity and quality. This creates possibilities to add value at all stages of agricultural value chains and strengthen food security.

Targeted support in stages where the value adding potential is biggest will enhance the profitability and viability of respective actors. This will help the production to meet the market and increase the income levels of value chain actors. It will strengthen the availability, accessibility, and affordability of food to the consumers.

Economically viable and profitable enterprises in value chains will be able to create job opportunities. By supporting and setting targets for vulnerable women and youth, both men and women, these groups can seize job opportunities and through them, improve their livelihoods and status in a sustainable manner. Their food security will be improved.”

Value Chains in focus AgroBIG will continue to support four value chains that were attended to during the first phase of the Programme during 2013-2017: onion, potato, rice and maize. Additional value chains will be included during Phase II, the most potential of those are tomato, dairy milk, goat and sheep fattening and production of eggs and poultry meat.

Programme management AgroBIG Supervisory Board (SVB) has the highest decision-making power in the Programme, chaired by BoFEC and MFA representatives. Members include three Amhara regional bureaus (Agriculture, Women and Children Affairs, and Trade, Industry and Market Development), Cooperative Promotion Agency and Chamber of Commerce. The Board meets twice a year.

AgroBIG Regional Technical Committee (RTC) includes representatives from regional bureaus, ARARI, Agricultural Transformation Agency (ATA) and ACSI. RTC is to provide advisory support to the Programme implementation.

The Programme Support Unit (PSU) consists of Programme Director and three administrative staff employed by BoFEC, and Technical assistant (TA) team that includes three international and five national experts, one administrative staff, one support staff and seven drivers, all employed by NIRAS.

Policy frame and key assumptions The Ethiopian Growth and Transformation Plan II (GTP II) aims, among other things, at increased productivity in agriculture and production of high-value crops suitable for export. A major transformation from oxen-driven subsistence farming towards mechanized, market driven approach is required to gain the needed competitiveness. Construction of massive agro-industrial parks is one of the key strategies of the government to attract investors into the sector and advance local processing and increased export of agricultural commodities. Adequate and competitive supply of raw materials will be paramount for these entities in the future. Enhancing the transformation of private sector to become a capable development force, and inclusion of women and youth in economic activities are also targeted in the GTP II.

The goals of AgroBIG to enhance agricultural productivity, quality of produce, effective logistical chains, local processing, sustainable market linkages and institutional capacity building are thus in line with the national development objectives.

The approach of AgroBIG relies on expectations that social stability in the country sustains, the positive economic growth experienced in the past decade continues, the government carries on paying efforts to develop infrastructure and regulatory frameworks that enable conducive operational environment for private sector actors in particular, and thereby interest and trust in entrepreneur initiatives increases.

In the absence of strong private sector and their associations and having limited commercial service provision and equally limited genuine buying potential, regional and woreda level authorities hold a central role in facilitating various services to farmers, entrepreneurs and cooperatives. The performance of AgroBIG to large extent depends on the professional expertise and commitment, as well as quality of human and material resource management within these entities. Also, availability of working tools and logistics for those who are expected to coordinate and carry out the planned activities matters. Limitations are many, especially now that the Programme is targeting eight woredas instead of two as was the situation during the first phase. It has become clear that expectations for material support to the engaged woredas exceed the capacity of the Programme to assist.


2. Progress towards the achievement of the expected results

The reported period consists of AgroBIG Phase II Inception phase (from July 2017 to February 2018), and of four months of actual programme implementation only.

Specific efforts were during the year devoted in creating awareness and ownership of the programme among the targeted beneficiaries and implementers especially in the five new woredas, in forming decision making and management structures and planning and reporting mechanisms, ensuring adequate human resources in programme coordination and technical support, and establishing partnerships and cooperation mechanisms that enhance effective implementation of the programme. Baseline information was collected and is further enriched with household survey in July 2018. Activities pending from phase 1 were followed up and supported. Work plans were prepared for the implementation period and for the next fiscal year 2018/2019, and implementation in the woredas and at regional level was started.

The key deliverables produced during the Inception phase are reviewed in more detail the AgroBIG II Inception report, which was discussed and approved by the Supervisory Board in March 2018. This report will thus focus more on reviewing achievements made during the latter part of the reported year and reflect their contributions towards the expected programme outcome. Due to the short implementation period no outcome level assessment is done in this report.

2.1. Output I. Value chain actors’ access to finance and financial services is improved and sustainability of their enterprises and business initiatives is strengthened

Value chain actors are provided access to grants and loans to enable them to engage in business initiatives, and improve their competitiveness and sustainability, and create job opportunities. Small-scale entrepreneurs, traders, farmers, women and youths are introduced to formal financial services through ACSI and SACCOs.

Output I focuses entirely on access to finance and financial services. This includes: a) Two Matching Grant Funds:

• Medium Size Investment Grant Fund; with 50% matching fund. Evaluated by the Woreda Technical Committee (WTC), awardings recommended to PSU by Woreda Steering Committee (WSC). Decided by BoFEC.

• Micro and Small Size Investment Grant Fund; with 15% matching fund. Evaluated by the WTC and WSC recommended to PSU. Decided by BoFEC.

b) Value Chain Facility Fund: this fund is to support initiatives related to targeted value chains by providing financial support for innovative ideas to agri-businesses, farmers’ groups, cooperatives and public institutions. The specific purposes are to support investments in and adoption of new technologies, value added processing, post-harvest technologies, storage, packaging, branding and marketing etc. Proposals are evaluated by PSU and a final decision is done by BoFEC.

c) Provisions of loans that enhance the growth and competitiveness of the targeted value chain actors: • Women and Youth loan fund: The purpose of the Women and Youth Loan Fund (revolving fund)

is to stimulate access to loans for working capital and investments in productive assets in farming and agribusiness that enable creation of decent jobs and improved sustainability and competitiveness.

• Cooperatives Loan Fund: The Cooperative Loan Fund is a revolving fund to provide working capital to to primary cooperative societies and unions for trading, processing, production, packaging, storage, transport and distribution capacity, and to embark on contract farming schemes.


Through the access to fresh capital, COSACUs and SACCOs are able to attract and serve more members, and with increased clientship they can also employ more permanent staff and improve their services. Output 1 results will, as per the programme results framework, be monitored using the following key indicators:

• Number of business entities in total supported by AgroBIG grants or loans • Number of grants issued (medium-size, micro and small-size, value chain facility) • Number of members in women and youth groups supported by grants or loans • % of the supported entities operational over two years after receiving grants or loans • Change in the value of the annual purchases by supported cooperatives • Change in the amount of own capital of the supported cooperative unions and cooperatives.

As the implementation of the programme was just started towards the end of the reporting period, there are few key results to report, such as number of value chain facility grants issued (5), and total of 484 loan takers benefitting from Women and Youth Loan fund (378F / 106M).

Main achievements under Output I during 2017/2018 The following are the main results targeted and achieved under Output I during the inception phase and the short implementation period:

1. Development of modalities for awarding AgroBIG grants and selection of the implementing partner (ACSI) completed

2. Value Chain Facility funding provided for five potential initiatives. 3. First call for proposals for the Medium-size Grant Fund announced in May 2018; 85 concept notes

(applications) received and are currently under review. 4. Development of modalities for awarding AgroBIG loans completed. 5. Close to EUR 400,000 worth of loans issued under the two loan funds through three COSACUs. 6. Phase I commitments completed and monitored such as Bikolo Abay horticulture training centre handed

over to BoA and operational. The following section gives further details of the activities and results achieved during the reporting period. Result area 1.1: Provide grants to the VC actors through the Grant Funds Amhara Credit and Saving Institution (ACSI) is the implementing partner for the two matching grant funds. Currently, the MOU is under review by ACSI to sign and start the administration of the grant funds. The comparative advantages of working with ACSI are a comprehensive network of and experience during AgroBIG phase I.

The first call for medium-size investment grants was published in May 2018; deadline for submission of concept notes was 12th June. At the time of reporting the WTCs are evaluating and reviewing these concept notes based on list of agreed criteria in the guideline. It is notable that out of the total of 85 concept notes received, 26 were submitted by individual women. Table 1 below shows the number of concept notes received in the respective woredas and the amount of requested grants. Applicants with the most potential concept notes will be requested to submit their full proposals for final appraisal.

The full project proposals will be scored by the same technical staff (WTCs) who appraised the initial concept notes. Following the review and evaluations of the concept note, orientation training is planned to be delivered for the prospective grantees and business service providers. In this call, it is likely to have 12-15 project proposals approved for grant funding.

PSU will organize a training workshop for grantees just after they sign the grant contracts

AgroBIG Grant funds will be disbursed based on the value of promising project proposals. The number of calls will be determined based on interest and availability of funds. A grant promotion campaign will be carried out in connection with the call for proposals utilizing AgroBIG web site, posters and adverts published in local newspapers.


Table 1: Value and numbers of submitted concept notes in each target woredas.

No. Name of Woreda # of concept notes Requested grant (ETB)

1 North Achefer 32 11,930,000 2 South Achefer 2 1,100,000 3 North Mecha 11 7,880,000 4 South Mecha 0 0 5 Bahir Dar Zuria 19 20,405,000 6 Dera 6 6,019,500 7 Fogera 5 1,400,000 8 Libo Kemkem 10 2,857,500 Total 85 51,592,000

Result area 1.2: Support learning and new approaches (Value Chain Facility) During this reporting year, ten Value Chain Facility fund applications were submitted to PSU. Out of them, five projects have been awarded grant funding. Close monitoring and capacity building for grantees is provided by PSU.

Table 2: Projects approved for funding under the value chain facility and funds released during the year

Organisation Title of Project Approved Amount ETB

Disbursed ETB

Science, Technology and Information Communication Commission

Post Harvesting Handling Technology 2,200,000 1,100,000

Koga Irrigation Project Linking smallholder farmers with export market 660,000 660,000

Amhara Regional Agriculture Research Institute

Demonstration of Improved Potato Seed Multiplication of on Farm 3G Seed

159,489 159,489

Plant Seed and other Agriculture Inputs Quality Control and Quarantine Authority

Awareness creation to legal officers 165,000 165,000

Amhara Region Technical Vocational & Enterprise Development Bureau

Job creation by establishing and strengthening existing small agricultural enterprises by giving nine governmental supporting packages;

275,000 275,000

Total Approved / Disbursed Grants 3,459,489 2,359,489

Early results from the value chain facility funds:

• Post Harvesting Handling Technology – Amhara Science, Technology and Information Communication Commission is closely working with Metal and industry engineering manufacturing mostly harvesting machines. Currently, the industry has started to assemble self-propelled rice harvester, maize harvester and also small rice thresher in its Kombolcha branch.

• Linking smallholder farmers with export market – Koga irrigation Development project (KIP) has taken responsibly for the constructions of two sanitary blocks in Chihona and Tekledib blocks with the purpose to ensure acquiring the eligibility minimum criteria of Global GAP standard for farmers producing vegetable to the European market. The sanitary blocks will be managed and used by 43 (3 female) farmers partnering with Koga Veg Agricultural plc, a private owned company operating since 2014 in the Koga irrigation sites. The company is exporting various vegetable products to EU market. The farmers group will have contractual agreements with Koga veg and a capacity building training will be also managed by the company. Koga Veg is expected to export KIP’s produce by the next irrigation calendar.

• Demonstration of Improved Potato Seed Multiplication of on Farm G3 Seed – One of the main constraints in potato value chain is limited supply of improved potato seeds to farmers. Farmers are relying much on local varieties sourced through informal means which leads to spreading out diseases (e.g. potato bacterial wilt) in Koga irrigation command. To mitigate such constraint and enable supply of disease free improved potato varieties to programme woredas, Adet research centre initiated the multiplication of G3 potato seeds in partnership with four selected farmers at 0.8 ha land in two sites. The centre has supplied the required inputs and technically assisted farmers (trainings provided in land preparation, planting,


fertilizer application and other management practices). A total of 250 qt of potato seed potato tuber is expected to be supplied for small holder farmers to improve productivity of potato. The next step is that the center in consultation with programme woredas will decide on the distribution of improved seeds.

• Awareness creation to legal officers – ANRS Plant Seed and Other Agri Inputs Quality Control and Quarantine Authority identified that the underline challenges for the productions of quality seeds is poor awareness of actors and loose legal frameworks in the seed multiplication and marketing efforts. In this regard, the authority has trained 67 (15F) seed actors including from seed producers/farmers, woreda experts, seed retailers, seed quality inspectors, managers and directors involved in the seed sector. Main themes of the training were awareness on seed proclamation 782/2013 (crimes and punishment), quality declared seed directives, standards of onion, potato and rice crop seed (field and laboratory), quality seed production methodologies and challenges and opportunities of vegetable seed production. The training was helpful to bring actors together and trigger discussions for mutual actions. A way forward action points such as regulating illegal seed producers and dealers, coordinating with key stakeholders like BoA and justice office, and creating continuous awareness raising sessions have been identified to rectify challenges relating to seeds. This will further enhance the seed qualities of AgroBIG commodities.

• Job creation by establishing and strengthening existing small agricultural enterprises by giving nine governmental supporting packages – managed and implemented by ANRS Technical, Vocational and Enterprise Development Bureau. The main purpose of this request was to create jobs through establishing new agro-processing micro and small enterprises and strengthening existing one. Preparing the training materials is undergoing by the Bureau.

Result area 1.3: Provide funds to women and youths and groups of women and youths through SACCOs The Women and Youths Loan Fund as well as the Cooperative Loan Fund are managed by the three Cooperatives’ Savings and Credit Unions (COSACUs), Adera Densa Union, Rib Union and Tana Union. Their area coverage is shown in the table below. Table 3: Union and Woreda coverage, number of SACCOs and Multipurpose Cooperatives in AgroBIG target Kebeles

Name of Woreda COSACU SACCOs Multipurpose Coops North Achefer

Tana COSACU

11 8 South Achefer 11 7 North Mecha 8 7 South Mecha 6 5 Bahir Dar Zuria 12 10 Dera Adera Densa COSACU 10 6 Fogera Rib COSACU 8 12 ײ Libo Kemkem 11 8 Total 81 59

In the AgroBIG II project document it was assumed that Tana and Rib COSACUs covered the eight target Woredas of AgroBIG II. During the inception phase it was learnt that Dera Woreda was not covered by either of the two COSACUs. Dera Woreda is covered by a third COSACU, Adera Densa. The planned financial support and capacity building activities for two COSACUs will now be shared between three COSACUs.

A comprehensive capacity assessment was carried out regarding the three COSACUs. For the purpose an external consultancy company was recruited. The conclusion was that the COSACUs have the capacities to manage the AgroBIG loan funds although there are capacity building needs, both human and material needs. The study also gave detailed proposals on capacity building requirements and activities. This will be used by AgroBIG and CPA in their capacity building work.

Agreements detailing the administration and management of the two loan funds have been prepared in cooperation with the three COSACUs and CPA. Three-partite agreements were signed by BoFEC, CPA and respective COSACU in April 2018.

The initial disbursement of women and youth loan fund amounted to 5,900,000 ETB. The amount of fund released from BOFEC to credit union, disbursement to the SACCOs by the credit unions and volume of funds goes to women member of the SACCOs are presented below. Some SACCOs in Rib COSACU area topped up the AgroBIG loan fund amount from their own savings to better satisfy the requested needs by their clients.


The purpose of loan taken by SACCO clients is mostly for agricultural inputs (seed, fertilizer and herbicide), fattening, and petty trading like onion, tomato and potato.

Future disbursements to the COSACUs will depend on their performance.

Table 4: Distribution of the Women and Youth Loan fund by COSACUs (in ETB)

Name of Union Released from BOFEC, ETB

Disbursed to SACCOs, ETB

Lending from SACCOs, ETB

% of loans to women

1 Adera Densa COSACU 1,300,000 1,300,000 1,300,000 90% 2 Ribb COSACU 2,000,000 2,000,000 2,404,990 80% 3 Tana COSACU 2,600,000 2,600,000 2,600,000 72.2%

Table 5. Breakdown of the intended purposes for which WYLF was acquired in the 13 SACCOs.

Purpose of the loan No of loans taken ETB total Livestock related

Animal rearing 54 864,035 Goat 12 59,344 Sheep 32 142,596 Sheep and goat 3 55,000 Milk cow 12 160,170 Fattening 65 569,758

Fruit and Vegetable Gardening 18 370,175 Onion 3 14,500 Onion and potato 1 12,500 Onion and maize 1 10,000 Potato 2 20,000 Rice and potato 1 50,000 Fruit 51 577,840

Crop production and trading Crop production 26 242,800 Crop production and trading 73 1,300,000 Maize 2 14,000 Rice 49 451,481

Petty trading related Mini marketing 38 314,800 Trade 38 571,716 Transport 3 120,000

Total 484 5,920,715 According to the credit unions, the demand for loan from SACCOs is very high. However, out of 81 SACCOs in all AgroBIG intervention woredas, only 13 got access to loan this round, and the amounts they received is not comparable to what they had requested from COSACU. COSACUs have issued the funds based on specific criteria to give priority to the best performing SACCOs. Orientation training has been facilitated by the CPA to the management of COSACU mainly focused on the guidelines of loan fund. The performance of the SACCO to make loans available for women is promising: 13 SACCOs disbursed loan for a total of 484 borrowers, out of them 378 (78%) are women members of SACCOs. The following chart shows the value of Women and Youth Loan distribution per SACCOs. SACCOs are very content with the AgroBIG loan fund, particularly due to the reasonable interest rate (5%) they pay to COSACUs. This further motivated SACCOs to hire paid staff. As a result, 13 SACCOs who accessed loan fund, have each recruited a minimum of two staff (accountants and cashiers). They are also expected to build their internal capacity as result of better income. The new staffs of SACCOs have some critical capacity challenges particularly to understand the concept of loan management, promotions to increase their membership, record keeping, reporting, etc.

At this early stage of the program, SACCOs felt that the maximum loan size of birr 50,000 is very small. Demands from most members are above the maximum size. This poses challenges for the management of SACCOs to meet expectations and demands of their members.


Result area 1.4: Provide funds to cooperatives through COSACUs, cooperative loan fund The cooperative loan fund is managed through the three COSACUs as described above.

The initial disbursement of cooperative loan fund amounted to 5,900,000 ETB. The distribution between the Unions is described below. Future disbursements to the COSACUs will depend on their performance.

Table 6: Disbursement of Cooperative Loan Fund in May 2018.

Name of COSACU

Received from BOFEC (ETB)

Disbursement to cooperatives Purpose of the loan Name of cooperative Amount (ETB)

Rib 2,000,000 Atsede Mariam 147,550.00 Rice and fattening Yifag 700,000.00 Rice trading Tibber le edget 82,350.00 Rice and fattening Angut 80,000.00 Rice and fattening Yabibal shina 160,000.00 Rice trading Eratinesh 200,000.00 Fattening Addis betekristain 180,000.00 Rice trading Weje 100,000.00 Nuge trading Quahir 150,000.00 Rice trading Aworanba 200,000.00 Nuge tradig

Total 2,000,000.00 1,999,900.00 Closing balance 100.00

Adera Densa 1,300,000.00 Emashenkoro 300,000.00 Fattening Debremihret zara 1,000,000.00 Fattening

Total 1,300,000.00 1,300,000.00 Closing balance 0

Tana 2,600,000.00 Kelitafa 1,500,000.00 Maize and Nug trading Total 2,600,000.00 1,500,000.00

Closing balance 1,100,000.00

Result area 1.5: Grant and loan fund management Development of modalities for awarding AgroBIG grants and selection of the implementing partner (ACSI) were completed during the reported period, facilitating the implementation of interventions related to grants explained above.

• Guidelines for the three grant instruments were prepared (in Amharic and English) and made available to targeted stakeholders. Promotion materials of the grant facilities were prepared and distributed to woredas and other stakeholders.

• Woreda officers that will be engaged in the grant application evaluations are capacitated to handle the appraisal and awarding processes, and to support the grantees in managing the project monitoring and reporting.

Moreover, the development of modalities for awarding AgroBIG loans was completed. • Guidelines were revised and made available to targeted stakeholders.

20,000.00 120,000.00 220,000.00 320,000.00 420,000.00 520,000.00 620,000.00

Women and Youth loan

Male Female

Figure 3: Value of women and youth loan distribution and name of SACCOs


• Agreements with BoFEC, CPA and three COSACUs for the facilitation of loans were signed. • COSACU and SACCO staff/leaders who will be engaged in the grant application evaluations were capacitated to manage

the appraisal, disbursement, administration and reporting.

Orientation workshop on AgroBIG grants and loan funds

• In April 2018, a workshop was held in Bahir Dar with stakeholders involved in the management, administration and execution of the loan and grant funds. Participants (84 (13F)) were from Woreda administrations, COSACUs, ACSI, CPA, Chambers of commerce etc. The purpose of the workshop was to give participants good understanding of the opportunities, objectives and procedures of the AgroBIG loan and grant funds.

Result area 1.6: Operationalize Phase I commitments Bikolo Abay horticulture training centre completed and handed over

Agro BIG has been supporting upgrading Bikolo Abay horticulture training center during phase 1. Some completion construction activities have been carried over to phase 2 due to unforeseen reasons (importing fiber glass tanker from abroad by the contractor took unexpectedly long time and additional work orders). During the plan period some budget earmarked to complete the construction work and facilitate handing over, procurement of mattress, and curriculum development. The following tasks accomplished:

• The construction work has been completed and handed over to the client. Final payment effected and outstanding balance settled;

• 170 bed mattresses (150 for trainees and 20 for trainers) supplied to the centre with the purpose to serve for accommodation.

• MoU singed between BoA and ARARI to prepare curriculum and preparation is well underway. • Though the center is not yet providing formal training, the bureau has provided short term skill training in the center on

horticulture crops husbandry and management for 102 (26F) youth group members and nursery technicians for ten days and the cost fully covered by the bureau. The center has been visited by several officials and has attracted some interest by partners. As currently the construction work is completed and handed over, the bureau is expected to assign staff, install furniture and equipment, and validate the curriculum which is currently well underway.

Market information system enhanced

Agro BIG phase 1supported the establishment of IT based market information system in the region owned by BoT. In order to make the system fully functional, some budget was requested to procure critical IT equipment to be procured and installed. Though the procurement process has taken longer time than expected, the required equipment has been partly purchased and installed to maximize the number of IVR users from 8 to 60 at a time while the procurement of remaining equipment is on process.

The Bureau has made some budget reallocation for the procurement of the required gadgets suggested by Ethiotelecom. The remaining budget is thus proposed to be re-planned. What is next is to make continuous promotion for the general public to familiarize with the system on how to use and access market information. Thus, it is expected that the number of clients using the system at a time will increase and service delivery be efficient.

Bahir Dar Agricultural Produce Terminal Market Centre operationalizing on process

Agro BIG had earmarked 70,000 ETB for the preparation of operation and management modality for the Bahir Dar Agricultural Terminal Market Centre. However, the Bureau has secured alternative source of budget from Feed the Future Value chain activities for Amhara project which has also facilitated the procurement of the consultant. A short-term consultant had been hired and the document prepared and validated. The bureau has also made some construction works in the center to pave access road and fencing. There is in general some progress made and the consultant is expected to finalize the modality and be endorsed by the regional cabinet. It is expected the center to start operation in the coming production season. Wholesale traders, cooperative Unions and companies are supposed to rent space in the center. So far, 16 blocks are completed and expected to be in operation. There is however more budget requirement by the Bureau for installing cooling facilities and related. However, it is suggested that the private sector including traders and coop unions should prepare concept notes and apply for grants or borrow form financial institutions.


2.2. Output II: Capacities of value chain actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way

The main focus of Output II interventions is to facilitate capacity development of value chain actors in order to assist them better seize the market opportunities for their produce and services. Public sector actors, as value chain enablers, are also addressed and benefit from the activities.

Output II is composed of four result areas as follows: • 2.1. Create market linkages and promote public-private dialogue; • 2.2. Improve business and farm management skills for VC actors and service providers; • 2.3. Establish and support Common Interest Groups (CIGs) to initiate businesses; • 2.4. Provision of technical support to coops to imporve their agribusinesses and management.

The outputs will be monitored using the following key result indicators:

• Number of business entities supported by capacity building • Number of lead farmers capacitated in selected value chains • Adoption rate of new/improved practices by direct beneficiaries • Direct beneficiaries’ satisfaction with the extension, financial and business development services • Change in awareness level of beneficiaries towards environmental sustainability.

The main achievements under Output 2 In total, 208 business entities, including CIGs were during the reported period supported by capacity building on marketing, quality standards, business management and accounting. Other key result indicators are at this point not yet applicable.

As of other capacity buildings, a total of 1,915 farmers (44% of them female were during the reported period engaged in trainings addressing good agronomic practices, environmental issues, entrepreneurship, marketing, business management and home economics. In addition, woreda officers have been provided

Output II focuses on building the needed capacities and strengthening the existing competences among the targeted value chain actors and enablers to help them tap the market opportunities. Output II entails a package of interventions including skill trainings, exchange visits on good practices, enhancing market linkages and demonstration of technologies to improve the production, post-harvest handling and marketing practices, and promotion of value additions for the selected value chains.

• For value chain operators the capacity development includes technical, entrepreneurship and marketing skills, capacities for collective action (horizontal cooperation); for the management of business linkages (vertical cooperation); and continous innovation as well as capacities for accessing and using services as well as for advocacy and lobbying;

• For service providers, the capacity developement involves the human resources and institutional capacities with the aim to enable private and public service providers to offer competent client-oriented services to support the operators along the value chain;

• For enablers, capacity developement involves human resources and institutional capacities, with the aim to enable policy decision makers and subordinate public entities to manage change and establish enabling framework conditions.


numerous training of trainers in value chain development, good agronomic practices and business development to enable cascading respective capacity building to kebele experts, farmers and other programme stakeholders.

Progress in testing new affordable technologies for vegetable storage is underway, BoA being in charge of constructing a store utilizing charcoal for cooling.

Support to market linkage creation was continued by assisting organising regional and local level market linkage forums and bazaars with the purpose to enable direct contacts between suppliers and buyers.

More details of the implemented activities and anticipated results are discussed below.

Market linkage forums and business information dissemination

AgroBIG is supporting regional and woreda level events with the aim to enable producers and their cooperatives, brokers, traders, processors, wholesalers and retailers meet and share information on market demand and respective supply potential, negotiate trade deals and strengthen their mutual business linkages. Bazaars are used for produce promotion and attracting consumers. These events are mostly organized by CPA, BoT and respective woreda offices. The volume of trade deals made varies depending on the character of the event, participants and organizational setting.

Business forums also offer a good opportunity to share experiences of successful market linkages. One of these is contract-based supply arrangement between Yifat coop Union and Debre-Birhan University, which enables individual smallholders benefit from the cooperative’s collective marketing. This example proves that conventional supply mechanisms can be changed when there is genuine will to do so. Big buyers, such as universities, mostly rely on wholesalers claiming that individual cooperatives or unions are not able to supply adequate volumes year round.

The preparation of a business directory was initiated by BoTMED. In this respect, commodity specific contact addresses have been compiled from 10 consumer coops located in Addis Abeba, 33 cooperative Unions, and 189 wholesale traders located in major towns in the region. The publication is not yet published though. Hence, AgroBIG has been insisting BoTMED to speed up the process to publish and disseminate the directory to end user before the information become out-dated.

Table 7. Number of business entities, CIGs and other stakeholders reached through capacity building during 2017/2018.

Trainigs for business entities during 2010 EFY (2017/2018 G.C.)S/n Type # Main content of training

1 Input suppliers 8 Training- marketing, quality, standard, post harvest handling2 Seed coops 5 Training-Quality, standards and regulatory 3 Private seed retailers 5 Training- Quality, standards and regulatory 4 Etfruit 1 Market linkage forum5 Traders 56 Traiing - marketing, quality, standard, post harvest6 Processers (rice) 14 Bazaar, training- marketing, quality, standard, post harvest7 Irrigation Coop Union 1 Bazaar, training- mgt, accounting, book keeping8 Irrigation coops 15 Training - regulatory requirements, etc9 Consumer coops 5 Market linkage10 Dairy coops 2 Bazar and trade failr11 MP coops 12 Training-marekting, linkages, accounting, etc12 CoSACCUs 3 Training & coaching on grant administration13 CIGs 81 Entrepreneurship, marketing, business mngmt

Total entities 208


Table 8. Participants in AgroBIG supported trainings and other capacity building events.

Examples of market linkage forums and bazaars supported by AgroBIG during the reported period are reviewed below.

Result area 2.1: Facilitate business and market linkages, investment and public-private dialogue

• The 6th regional agricultural and agro industry outputs market linkage forum organized by CPA at Debre Markos on 15-16 January, 2018. It was attended by 159 market actors and stakeholders (20% female) drawn from within the region and outside, representing coop unions (27 multipurpose, 3 seed, 5 dairy, 10 consumers, of which 5 were from Addis), and 10 CoSACUs. Besides, food catering service providers, mainly, universities, hospitals and prisons in addition to development projects and quality and standard agencies attended. As a result, market deas were created for 264,180 qts of different crops, including maize, rice, onion and potato. Moreover, financial market linkages (in the form of savings) worth 41.5 million birr were created between SACCOs and coops engaged in output marketing, though a lot remains to be done in this respect. A regional market linkage forum facilitated by BoT on 24th April, 2018 in Woreta town was conducted with the purpose to review the performance of the past off-season production and marketing practices, assess the performance of the market linage taskforce, linking producers with buyers, both with local and distant markets, and create direct deals between producers and buyers. The forum was attended by 114 participants (8 females). Potential buyers were invited from as far as Addis Ababa and regional towns (Desse, Gondar, Bahir Dar, Debre Markos, and Woreta). During the forum, an overview of the vegetable production potential of the region, importance of contract marketing, problems encountered and proposed solutions highlighted and discussed, followed by field visit to witness the quality of onion production in Fogera. Having visited a model farmers’ plot (Negus Ale), buyers from Addis Ababa were excited and expressed their interest to buy and order directly in bulk. The forum facilitated linkages with suppliers and buyers (wholesalers, Etfruit and consumer coops)

Male Female % F Total

2.1 Facilitate business and market linkages, investment and public-private dialogueConsumer coops, ETFruit 7 0 0.0% 7Coop union leaders, staff 26 15 36.6% 41Coop & producer group leaders and members 184 37 16.7% 221Processors 10 4 28.6% 14Input suppliers, trades, retailers 125 28 18.3% 153Quarantine agency staff 9 4 30.8% 13Woreda& kebele experts 227 65 22.3% 292Various /unspecified 186 55 22.8% 241

2.2 Improve business and farm management skills and service delivery for VC developmentFarmers 1,071 482 31.0% 1,553Kebele &woreda experts, focal person, sector head 352 85 19.5% 437

2.3 Form, train and mentor women and youth groups in agriculture related income generating activities CIG members, yoiuth (including 7 PWD) 153 202 56.9% 355Women farmers 0 350 100.0% 350Kebele and woreda experts 97 35 26.5% 132

2.4 Provide technical support to cooperatives to improve member servicesCoSACU managers, credit officers, sector heads 76 9 10.6% 85

Planning events, orientation, admin and management Cooperative representatives 10 2 16.7% 12Farmers 4 8 66.7% 12Traders 9 3 25.0% 12Cluster forum participants 43 6 12.2% 49Partners 10 0 0.0% 10Woreda management & admin 83 10 10.8% 93

TOTAL participants in AgroBIG supported trainings and market linkage events 2,682 1,400 34.3% 4,082


on 177,781 qt of vegetables (onion, potato and tomato). The event was documented and broadcasted by the Amhara Mass Media Agency.

• Local level market linkage forum was organized by North Mecha Trade office on 29th January, 2018 with the objective to define the roles and responsibilities of key stakeholders (KIP, WoA, woreda coop promotion office, Woreda Trade and others, Kebele administration and police) for coordinated effort and facilitate contract agreements between producers and buyers. Participants (64, of them 6 female) were mainly from primary coops, Koga Union board members, wholesale traders from Merawi, Durbete, Dangila and Debre Markos towns and local officials and sector heads including mayor of Merawi. . Support has been provided to selected primary cooperatives, traders and processors to take part in cooperatives trade fair and bazaar organized by CPA in Bahir Dar from 30th May-5th June 2018. In total 46 participants were supported by AgroBIG to attend the event (13 traders, 1 processor, 12 consumer coop leaders and 20 facilitators). The coop leaders have appreciated the opportunity to attend, as it has been an eye openerThe main purpose of participation was to enable direct contacts with potential buyers and demonstrate the produce that the coops can offer.

• Feed-back from the participants suggested that the trade fair bazar should have been organized earlier, during peak harvest season, the price of vegetables should not be fixed rather be flexible depending on daily supplies and demand (this was probably the case with Koga Union as they were told to do so by the organizers with the intention to stabilize price); the trade fair and bazar should have been better coordinated with partners including AgroBIG, the products of each coop shall be promoted in the event via mass media promotional means.

Cluster platforms established and functional

As part of the programme institutional set up and to enhance public-private dialogue, multi stakeholder platforms have been established in both AgroBIG clusters, Rib-Gumara and Gilgel Abay.

• The first cluster platform meetings were convened primarilyto reflect the needs and aspirations of value chain actors in relation to the programme implementation, set priorities, review results and provide directions for better outcomes. Participants were identified and assigned from the public and private sectors including partner projects, research and Universities. These included Zonal and woreda chief administrators, woreda sector offices (agriculture, Koga irrigation office, cooperative, trade, women and children, TVED, communication affairs and mayors) while from the private sector farmers, private companies, Etfruit, traders, processers, input suppliers, cooperatives and Union (Koga irrigation, Tana, Adera Densa and Ribb CoSACUs) have participated. A total of 134 (24F) participants have attended the meetings, though the majority were from public sector. Sessions were chaired by zonal chief administrator (GA cluster) and Zonal Trade department head (Ribb Gumara cluster).

• The main achievements were increased awareness on the programme approaches and strategies, and participants’ inputs for the annual work plan preparation. The participants further proposed that phase I strengths and weaknesses should have been reflected to share the experience for new woredas. Overall, there are high expectations especially by new woredas to build their institutional capacity. The size of the platform participants should be manageable and there should not be overlapping role with that of market linkage forum.

Market price information board on selected market sites being established Based on rapid assessment and desk review with the concerned stakeholders (CPA, Trade and agriculture offices) the program learnt that majority farmers have no means of tracking market information in their locality.

Onion production by model farmers has shown some quality improvements owing to employing improved hybrid onion varieties (e.g. Russet), manual tube well and good agronomic practices. In Fogera, the demand for constructing manual tube well for irrigation purpose has been expanding (e.g. 500 manual tube wells have been constructed in Fogera).

Some concerns however remain to be addressed. These include lack of improved seed supply, year-round supply, cluster-based production, organizing market groups, quality-based pricing, limited enforcement by the inspection core process owner under BoT (e.g. inspecting malpractices in the use of weighing scales in spot markets), competitiveness with supplies form other regions, lack of concerted effort to attract buyers form distant markets (e.g. Addis Abeba and Debre Birhan). Other issues are replacing X-Jigna by new rice varieties, lack of maintenance and spare parts service provision for rice machines, lack of market linkage for tomato, delay in the procurement of rice machines supported through AB matching grant fund from phase I, and persistent prevalence of illegal trader/brokers that has been disturbing the horticulture business environment.


For this reason, AgroBIG promoted localized market information board to help the farmers get informed about over changing market information (demand, supply, and price) . Accordingly, 1 board in Dera and 1 in Libo have already been procured and the installation is on-going by the trade and industry development offices. The respective sector should regularly track and update the price information for selected commodities.

Result area 2.2: Business and farm management skills and service delivery improved Value chain development and market linkage facilitation skills enhanced

Agro BIG has expanded in new woredas, and new value chains have been included in the programme agenda. Thus, improving the skills and understanding of programme focal persons in woredas on value chain development concepts is timely and crucial for the proper management and market linkage facilitation.

• In total of 117 woreda officers (17 female) were trained by TA team advisors in a three-day programme on VC selection, analysis and mapping, gender sensitive VCD, AgroBIG inclusion strategy, VCs financing, monitoring and evaluation. In addition, a half day joint session was facilitated for the WTC and WSC members with the objective to orient them on how to prepare annual work plans and budgetOverall, the VCD concept was well captured, and expected to be further enhanced through practice.

Good agronomic practices, facilitation & communication skills enhanced Poor quality of the agricultural produce across all AgroBIG target woredas is the underlying problem prohibiting farmers to attract buyers. Systematic efforts are thus needed to improve kebele experts’ and farmers’ agronomic skills on all selected value chains. During the reported year, a total of 123 kebele experts (32 female) were provided with Training of Trainers (ToT) on rice, onion, tomato and potato. By the end of the year, 175 lead farmers (56 female) were engaged in respective trainings addressing the bottlenecks in cropping practices affecting the quality of harvest.

This effort will be continued in a very organized manner through farm trial and FFS approach with the collaboration of government stakeholders and other implementing partners starting from this year.

On-farm demonstrations on onion and potato GAP initiated in the Koga Irrigation command area

Onion and potato production in Koga irrigation command area in North Mecha is increasing. However small holder farmers are relying much on local varieties that have low production potential and are sensitive to diseases. The use of fertilizers is often excessive, increasing production costs and posing undesired pressure on environment. To test and verify the impact of appropriate soil application (lime, proper fertilizing) and the use of improved varieties on potato, selected lead farmers in Koga area were assisted to establish on-farm trials (9 potato 7 onion). Koga Irrigation project (KIP) office coordinated the scheme implementation, 22 office and block agronomists were trained for the task. Field days were organized to enable sharing the experience. A total of 72 farmers (all male) and 42 (2F) other stakeholders (woreda and KIP officers, researchers, other projects) attended witnessing vigorous vegetative growth in the trial plots, both potato and onion, compared to plots where conventional farming practices were applied. Regarding productivity, the improved potato varieties gave higher yields with good crop quality. As for onion, the use of lime was found to increase yields. The final data of harvested yields and respectvie gross margins are yet to be submitted by KIP.

Awareness on post-harvest handling, quality and standards and inspection created

To improve awareness and understanding on post-harvest handling, importance of quality standards and market inspections among traders and processors who commonly lack such knowledge, senior experts of BoT and Standards Authority provided training for 72 participants (21 female), of which 26 (3 F) were traders, 13 (5 F) processers, 9 (2F) input suppliers and 24 (11 F) facilitators. The training was welcomed and age a new opportunity to share experiences, discuss about business related issues and know each other. This skills training would enhance the capacity of the traders to strengthen their enterprises and to build a genuine business relationship with the farmers for mutual growth.

Post-harvest handling and storage technology promoted

One of the constraints encountered by irrigation coops is lack of proper storage facility for perishable produces. Often, small holder farmers have been compelled to sell their vegetables at farm level and they are price takers.


It is not rare to see in many places that farmers are desperately damping their unsold vegetables on road sides, farm fields and local markets (a case in point is Gumara and Rib spot markets).

To mitigate such problem, BoA has initiated to promote a simple storage technology adapted from Kenya for vegetable crops to pilot test in Dera woreda. The objective is to demonstrate a charcoal evaporative cooler to keep perishables fresh for some time until reliable buyers are secured and price increases. The implementation of the project, however, has been delayed, and the initial budget had to be adjusted due to inflated material prices.. The project is expected to be completed next quarter. Once the construction is completed the facility is expected to serve for the upcoming off season production and the Jigna irrigation cooperative members, also the road side retailers are expected to benefit from the initiative. If the pilot is successful, it is hoped that BoA will replicate it in other irrigated areas.

Moreover, lack of proper storage facility for maize harvest has been a critical constraint in programme woredas. To mitigate such a problem, the North Mecha woreda cooperative promotion office initiated demonstration of PICS bags for 10 multipurpose coops. In each cooperative 4 lead farmers were selected and 5 PICS supplied for demonstration. Over all 2000 PICS were supplied on cost sharing basis and demonstrated. Farmers showed much interest and found the bags useful, keeping maize produce in good condition for longer time than it used to be with no damage, which leads to better price. In addition, the use of PIC bags reduces the use of pesticides, and also helps to reduce the workload of women.

Seed quality control and marketing enhanced

Availability of quality seeds, especially for vegetable production such as onion, tomato, potato, and even rice, is a critical bottleneck in intervention woredas. Farmers often access poor quality (in terms of germination, purity and moisture content) vegetable seeds from private dealers and seed production and marketing coops. Awareness on the part of seed producers and marketing coops and private dealers is low, not to mention illegal seed dealers

In order to mitigate bad practices in the seed business, capacity building for key actors have been provided. Expected results include increased awareness on seed legal frameworks (QDS directives, seed proclamation, regulations and standards) and linkages between seed retailers and seed producers. Challenges of seed quality control process as well as illegal seed production and marketing ways were identified, and collaboration and actions to minimize illegal seed multiplication and marketing practices were identified and action plans endorsed.

• The regional plant seeds and other agricultural inputs quarantine and control authority is mandated to make sure that all seed suppliers comply with the existing seed regulatory requirements for seeds they supplied to the market.. The authority delivered a two-day evaluative training to selected seed producer and marketing coop members, private seed dealers and seed inspectors. The topics covered in the training include seed proclamation, quality declared seed directives, standard of onion, potato and rice seeds (both field and lab) and quality production methods. A total of 67 participants (22%F) attended (29 seed producers, 16 experts, 5 seed retailers, 13 seed quality inspectors and 4 directors). Main action points agreed are fostering collaborative efforts in vegetable seed supply and control; taking prompt legal measures against illegal seed dealers; follow up and monitor seed producers and seed retailers in targeted woredas; provide similar training for seed quality control experts, seed producers, seed retailers and woreda inspectors; and also facilitate high level discussion for stakeholders.

Awareness on environmental issues, including removing exotic weeds and facilitation of EIA created for farmers and stakeholders One of the key cross-cutting objectives of AgroBIG is to ensure environmental sustainability. To this end it has been closely working with the respective stakeholders and the woreda land admin & environmental protection offices expected to coordinate efforts. There are environmental concerns in intervention woredas related to pesticide applications, expansion of exotic weeds and project related impacts. There are clear gaps in the awareness level of the community and stakeholders on various emerging environmental issues. To mitigate such concerns, environmental awareness creation tasks are planned in each cluster.

• In Rib Gumara cluster, 214 (94 female) stakeholders have participated in awareness creation sessions; of which 184 (89 female) are farmers while the remaining are experts from woreda and Keble agriculture and environmental protection experts. Similarly, in Gilgel-Abay cluster, a total of 1307 (336 female or 26%) participants have attended the awareness creation sessions of which 1173 (90%) participants are farmers. The anticipated result is that beneficiaries will be environmentally sensitive and apply mitigation and adaptation measures in their locality. Thus, regular follow up and monitoring are required to document the actual changes and practices in the targeted Kebeles.


Farm households witness advantages of PICS bags in storing maize in North Mecha Maize production in North Mecha is dominant as a major source of livelihood for small holder farmers. Finger millet, wheat and teff are also produced. Eucalyptus is widely spreading occupying arable lands since recent years as a major source of cash next to maize. Farmers are utilizing maize grains to prepare injera, local beverages (arake and tella) and bread. Traditional arake distillation by women is common, the product is supplied to local and distant markets. Straws and remains of local beverages are used as feed for cattle and sheep, and the grain for poultry. Maize cobs after threshing are used as fuel wood for cooking. The major constraint in maize production relates to post-harvest handling. Maize is quite sensitive to pests, mainly by weevil that damages the grain in the traditional storage known as gotera (made locally from mud and straw). To protect grains from weevil, farmers apply agro-chemicals. In order to mitigate health risks related to the use of chemicals and maintain the quality of the grain, AgroBIG has introduced three-layer PICS bags to encourage farmers to safely store their produce, which helps them benefit from price and quality advantages. 2000 PICS bags were provided to selected farmers in 10 cooperatives on cost sharing arrangement (50% by farmers). The price per piece was 43 birr, and each farmer received 5 bags.

Ato Bishaw Berehe living in Rim kebele (59 yrs) with 7 family members and 1.2 ha landholding, stores on average 30-40 qt of maize each year. For threshing maize cobs, he relies on service providers organized by AgroBIG. This has saved labor expenses and time, not to mention the quality advantage. Ato Bishaw recalls that maize grain gets severely damaged by weevil in the traditional store and ordinary bags within six months, especially during August to September, unless fumigated using chemicals. He comments that when using PICS bags, he does not need to purchase chemical, and the grain can be directly consumed (otherwise it requires cleaning and washing to use it for bread and roasted kollo). Crop can be stored for long time, it thus serves as food security for the household in case there is natural disaster that might affect the next harvest. PIC bag storage also enables selling when market price is attractive. According to Ato Bishaw demand for PIC bags is picking up and some farmers have sourced bags from suppliers in Merawi, though the price is in their view a bit expensive. Farmers would like their coop distribute PICS bags at a reasonable price during peak harvest season. When properly handled the bags can be reused for next season.

Ato Tafer Baze, a landless youth who has been producing maize through share cropping, stored his grain in his residence house using both PICS and ordinary bags and is currently making some comparisons. He has witnessed that the grain in PICS bags lasts for long (at least 2 years) while the grain in the ordinary bags is being damaged by weevil.

W/o Yamirot Alemu on her part concurred that PICS bags have several advantages: her family is relieved from contracting TV due to harmful chemicals, there is no damage by weevil, and she can fetch the grain easily with no hardship for home consumption. Her only concern is that the bags need proper care, storing with wooden pallets to avoid moisture and direct contact with the ground and require enough space to keep it away from rodents.

All interviewed farmers are members of Rim multipurpose cooperative with a total of 3928 member households (233 female). The coop accessed AgroBIG matching grant fund in phase I to construct a modern warehouse. Currently the coop has stored maize and niger seeds in the warehouse, which is clean and safe. The coop has been engaged in the distribution of agricultural inputs, supply of consumer goods and output marketing. Currently, it has 4 main and 2 satellite storages, but the one financed by AgroBIG is with better standard and capacity. Unpredictable market price for maize causes worry (8 birr/kg last year, currently 6.5 birr/kg).


Result area 2.3: Form, train and mentor women/youth groups in agriculture-related income generating opportunities Common interest groups (CIGs) organized, registered and trained to initiate and sustain businesses

Unemployment is a major challenge in the region and programme woredas in particular. Currently there are about 70000 registered job seekers in all intervention woredas (report by woreda TVED offices). A key result area for Agro BIG is also creation of decent jobs in rural areas, for both female and male beneficiaries, including landless youth and PwDs (about 5000 jobs expected during the entire project life).

During the reporting period, effort has been made by the respective implementing partners to identify, organize, register and provide entrepreneurship and related skill trainings for CIG members who can potentially own businesses relevant to selected VCs.

• 10 CIGs in the Ribb Gumara cluster and 71 CIGs in GA cluster were identified, organized and training on business management and entrepreneurship provided for group members (50 (32F) in Rib Gumara cluster and 285 (158F) CIG members in GA cluster). Screening of group members and trainings have been coordinated by the respective woreda TVED offices and the selection and organization has been handled in line with the government guidelines and each group embraces on average 5 members. The training topics mainly focused on improved agronomy practices, animal feed preparation, marketing, entrepreneurship and business skills. Following trainings, the group members expected loans to be accessed form SACCOs to initiate and/or expand their businesses. The respective woreda implementing partners are advised to assist group members to join SACCOs in their respective Kebeles. The effort should however be coordinated and closely monitored to facilitate membership of SACCOs and access to loans. Trainings should be demand driven and members should mobilize savings to be able benefit from small grants designed for SMEs.

CPA has also facilitated ToT training for selected experts drawn from pertinent sectors (coops, youth and women affairs) to support coops to increase women and youth membership and leadership in primary societies.

• ToT training was provided to 42 experts (13 F). The training topics covered include saving and credit coop accounting, saving mobilization, credit administration, credit life insurance, grant and revolving fund administration, and how to transfer youth and women group members join SACCOs.

• Preparations have been made to cascade the training further down to Kebele level for selected women and youth groups and SACCO leaders in the 89 targeted Kebeles. A total of 1056 (700 youth and women group and 356 SACCO leaders) are expected to take part in the planned trainings. The training will be commenced immediately after budget is released from BoFEC/PSU. The anticipated result is that the number of women and youth membership increases, and continuous support to saving and credit coops enhanced.

Enhancing women’s entrepreneurship skills

BoWCA has designed and provided a three-day ToT training on gender, home economics, nutrition and entrepreneurship provided for 30 trainees (11 F). Trainees were selected from the respective woreda women’s affairs, agriculture and TVED offices who are currently assigned as gender focal persons in their respective sectors. The training has been cascaded in the respective woredas and attended mainly by female farmers. In Ribb Gumara cluster, 55 female (5 disabled) farmers have attended the training and in Gilgel Abay cluster 250 female farmers have attended the training.

As a result, awareness of women on gender issues have been raised; women farmers are encouraged to initiate home businesses and their home economics know how enhanced, though need to be systematically monitored. Close and more assistance are required in business plan preparation and access to loans.

Moreover, training has been provided for vulnerable groups, particularly women who could potentially be engaged in off farm income generating activities. In this respect, in Ribb Gumara cluster, 50 women (4 disabled) have been trained on income generating activities and business planning and management, though anticipated results are yet to be reported.

Result area 2.4: Provide technical support to cooperatives to improve member services Capacity of Koga Irrigation Marketing Coops Union enhanced

Koga Irrigation Coop Marketing Union has been established since long time by 12 irrigation cooperatives organized in line with the respective blocks, managed by member farmers and some employed staff. Its main


task is to assist its member irrigation cooperatives in the supply of inputs, output marketing and capacity building.

Based on the priority needs of the Union and its member PCs, training was provided by CPA to build the management and leadership capacity of the board and PC leadership and its employees. Most of the board members are newly elected and have no prior training on basic concepts, understanding and skills on coop management and marketing. The following results are anticipated: board members will discharge their responsibility as per rules and regulations and coop principles be adhered; financial fraud, wastage and extravaganza will be reduced; better service delivery to members; improved marketing practices and market linkages enhanced with wholesale traders and institution buyers.

• A three-day training was conducted by CPA senior trainers for 8 (1F) union board members, 85 (28F) primary coop leaders and model female members, 24 (12F) employees and 8 facilitators. The training covered a range of topics, including coop management, coop marketing and market linkage, accounting and coop inspection. Parallel training sessions have been conducted in three halls and more time devoted for group discussions and presentations made by rapporteurs. The participants concluded that the training is timely, relevant and demand based which could create ideal condition for newly elected leaders to discharge their responsibility and make knowledge-based decisions. Furthermore, the time allotted for coop accounting training was found limited; the woreda coop promoters should provide close support to coop leaders; and refresher training need to be provided in a continuous manner. Moreover, outstanding issues have been discussed and solutions proposed, of which the following are in priority, i.e. bureaucracy in accessing plot of land for office and warehouse construction; proliferation of illegal traders/brokers; value judgement-based marketing; and reluctance by Merkeb Union to timely collect wheat as per agreement. The training was concluded by the woreda chief administrator with the commitment to follow up and resolve the identified problems.

Horticulture retail market shed construction on-going

Close support has been provided to the Koga irrigation marketing coop Union to access the required plot in Bahir Dar city for the construction of horticulture retail shed. The design and specification of the shed and bid document has been prepared through technical support rendered by BoA construction engineer. The construction work is proposed to be re-planned, and scheduled to be accomplished in the coming quarter. The purpose of the facility is to stock vegetables during peak harvest season and supply to Bahir Dar market, promote vegetables produced in the Koga irrigation area for institution buyers and hotels and to serve as contact place for bulk orders.


2.3. Programme Management, M&E and Communication

Key results targeted and achieved include: • Programme Document reviewed and updated, including results framework and indicators; • Programme decision making structures (SVB, RTC, WTC, WSC) established and operational; • Programme Support Unit established and operational, including TA team members and support staff; • AgroBIG beneficiary groups defined and quantified; • Work plans and budgets for Jan-June 2018 and year 2018/2019 prepared • M&E Framework prepared; • Baseline survey conducted, validation and report preparation underway; • Training on AgroBIG reporting, monitoring and evaluation systems provided for implementing partner

staffs; • Cluster level review meeting and planning workshops for implementing partners organised; • Various reports produced: Monthly activity reports, Quarterly and annual progress reports produced ; • AgroBIG Communication Strategy and tools developed; • Communication materials, including AgroBIG’s social media platforms, developed and maintained; • AgroBIG Inclusion Strategy prepared and operational; • Collaboration and Coherence plan prepared and operational; • PSU office equipped and necessary upgradings done (ICT mainly), vehicles maintained; • Monthly accounts prepared and provided to respective entities (BoFEC, TA consultant).

Programme coordination The AgroBIG Programme Support Unit, housed under BOFEC, is operating with full staff and supervised by the Programme Director. The programme has been working with different bureaus and woredas, under the guidance of the AgroBIG Regional Technical Committee and the programme Supervisory Board, which is the highest decision-making body. There are also woreda level technical and steering committees established and operational. The regional technical committee meets every quarter, and the woreda steering and technical committees meet vas required.

On 25th October 2017, AgroBIG Phase II held its kick-off event at BoFEC in Bahir Dar. The event was well attended by participants from the MFA Finland, regional bureaus, administrators and sector heads from AgroBIG partner woredas and stakeholders. Participants concurred that the second phase of AgroBIG is most welcome and expressed their commitment to make the Programme successful.

Table 9: Members of AgroBIG Phase II SVB during 2017/2018.

Organization Assigned Person Position Role in Board BoFEC Dr Tilahun Mehari Bureau Head Chair Embassy of Finland/ MFA Finland representative Ms Tiina Byring-Ilboudo Councelor Co-Chair

BoA Mr Melke Tadesse Deputy Bureau Head Member BoT Mr Yohanse Afework Deputy Bureau Head Member BoWCA Ms Fentaye Tibebu Bureau Head Member CPA Ms Tiliksew Yitayal Manager Member Amhara Chamber of Commerce and Sector Association Eng. Melaku Ezezew President Member


AgroBIG PSU is technically supported by a TA team contracted by Ministry for Foreign Affairs of Finland. The TA team has 3 International staff and 5 national staff.

The programme implementation budget is administered by the Programme Director with dedicated accountant and cashier. The Chief accountant follows up and supervises the implementing partners in financial management system of the programme, and compiles quarterly reports of the implementing agencies receiving fund from AgroBIG.

Composition of AgroBIG Programme Support Unit Programme Director: Ato Berhanu Ayichew, BoFEC (1.7.2017 ) Chief Accountant: Mr Assefa Tilahun, BoFEC (1.7.2017 ) Programme Accountant: Ms. Genet Sewalem, BoFEC (1.7.2017 ) Cashier /Assistant: Ms. Selam Tariku, BoFEC (1.7.2017 ) TA team members (NIRAS staff):

• Ms Meeri Komulainen, TA team leader/ Chief Technical Advisor (5.9.2017 ) • Mr Kent Rashem, International Finance Advisor (25.9.2017 ) • Ms Katja Kuivanen, International Junior Expert (20.9.2017 ) • Mr Mezgebu Werku Ayalew - M&E Advisor (23.1.2018 ) • Mr Fekade Teshager - Cluster Advisor, Woreta office (29.1.2018 ) • Mr Getachew Fentie - Cluster Advisor, Merawi office (25.12.2017 ) • Mr Ayichew Kebede - Capacity Building and Social Development Advisor (22.12.2017 ) • Mr Endalkachew Yaregal – Rural Finance Advisor (9.4.2018 )

TA/ Support staff (NIRAS staff): • Ms Alemtsehay Mekonnen, TA Finance/Procurement officer (1.9.2017 ) • Ms Birhan Fekadu, Cleaner/ Office Assistant (1.9.2017 ) • Drivers: Mr Yibeltal Alemu, Mr Wondwoson Meles, Mr Getnet Hone, Mr Minilik Argaw, Mr Ferede

Tamiru, Mr Woldetensay Kifle, Mr Habtamu Merra

Additional tasks completed:

• Collaboration and Coherence Plan prepared and operational. Partner projects and programmes supporting agribusiness and agricultural value chains around Lake Tana sub-basin were during the inception phase identified and mapped (total of 23 projects), and collaboration and coordination plans with them were designed. (Summary of partner projects profiles is annexed in the Inception phase report.) Options for strategic cooperation were identified with potential training institutions, mainly with BoTVED/TVET colleges, Bahir Dar University, Fogera National Rice Research and Training Center, Woreta A-TVET and Bikolo Abay Horticulture Training Center. Later during the reported year, options to cooperate closely with HortiLIFE project (SNV) and MEDA were discussed, and MoU has since been signed by the key partners with the aim to expand and implement an intensive extension programme for farmers on horticulture production, based on Farmer Field School approach. Details of this plan will be elaborated in the Annual work plan 2018/2019.

• AgroBIG Inclusion Strategy prepared and operational. Relevant strategies by AgroBIG implementing partners (BoWC, BoYS and BoLSA) have been reviewed; the situation of vulnerable groups including women analyzed and the draft strategy prepared to guide the planning, implementation and monitoring of Programme interventions in an inclusive and gender sensitive manner.

• AgroBIG value chains specified and validated. Based on inputs from woredas and rapid assessment made during the formulation of AgroBIG Phase II, candidate value chains to be supported by the programme were selected. For deeper analysis, ToRs for two consultancies addressing tomato and livestock (milk, poultry, shoat) in particular were prepared. The respective value chain analysis were carried out in July 2018, including an update on the analysis made during AgroBIG phase I on onion and potato. The output of the assignment is to assist the AgroBIG implementers to identify their business opportunities and competitive advantages, and to address the shortcomings that pose a risk for their business initiatives to prosper. The findings will also guide AgroBIG decision makers and management to ensure resources for interventions that have the best potential to help developing the selected value chains. Validation workshops and final reports from the consultant teams are expected during the latter half of August 2018.


Work planning, monitoring and evaluation Various planning and M&E activities have been accomplished during the reported period in cooperation with woreda and regional level offices and other key stakeholders to operationalize the implementation of the programme. The necessary M&E measures are in place to enable systematic monitoring and respectively, corrective actions, where seen needed. Delays in report submission are common though and will require further actions to ensure timely reporting. Further details of the key activities attended to are found below.

• Programme Document reviewed and updated. The main amendments relate to targeting, outlines for grant and loan funding and budget allocations between the output areas. The structure of the programme components was amended (outputs 1 and 3 merged), and respective changes made into the budget and the results framework. Baseline values have been updated based on information collected from cooperatives, woreda offices and baseline household survey. The beneficiary and stakeholder analysis presented in the Programme Document chapter 2.3 was updated. Furthermore, based on the proven potential for intensive agricultural/horticulture production, a selection of kebeles (89) was proposed as the target area for the Programme during Phase II.

• Work plans and budgets for Jan-June 2018 and year 2018/2019 were consolidated, addressing the central capacity gaps and priorities in the targeted woredas. The work plan preparation was preceded by joint workshops and trainings with woreda staff and other stakeholders at cluster level. Trainings focused on M&E principles, value chain performance measurement, key results expected, reporting and other issues. In addition, a physical visit was paid by PSU to each woreda offices of finance, coops, and agriculture to inform how the reporting should be done, expectations in the government contribution etc. The TA team members further supported the implementing partners in finalising the plans and adjusting the budgets within the resource frames. In general, the IPs’ expectations for financial support hugely exceed the available resources of the programme during phase 2.

• A Monitoring and Evaluation (M&E) Framework was developed, describing how the whole M&E system of AgroBIG works. The Framework will help to track and assess the results of the interventions throughout the life of the Programme.

• ST consultancy: Baseline Survey. NIRAS staff from Tanzania office was in June contracted to provide short-term consultancy services for conducting a Baseline Survey, which sought to establish the current status of certain key indicators as stipulated in the Results Framework. The findings will serve as benchmark for monitoring of project progress,. The consultant team led the survey processes, including the survey design, the data collection instruments, training of enumerators, quality control, analysis and report writing. The AgroBIG team took care of logistical arrangement, recruitment of enumerators, field data collection, facilitation of validation workshop and supervision of the field teams. An Amharic speaking Consultant facilitated the Focus Group Discussions (FGDs) and delivered the transcriptions of the FGD exercises. The draft of the survey report was received on 26 July 2018, and key findings presented at a validation workshop in Bahir Dar on 9 August 2018.

• Monthly, Quarterly, and Annual Progress Reports produced. Concise, 4-paged monthly mini-reports have been produced to inform about key activities implemented during the month, main achievements and the challenges faced. Quarterly reports submitted to BoFEC have focused on short-term progress and completion of planned activities, and whether the project implementation is on track compared to the plans. The Annual report has been prepared against the annual plans and budgets, to be discussed and approved by the SVB.

The AgroBIG Phase II baseline survey was conducted in June 14 - 30. A field team consisting of 10 enumerators, AgroBIG MEA and JPO collected data from 8 woredas, 37 kebeles, 405 households, 59 coops and 41 enterprises. All data was collected using online mobile data collection platform called Open Data Kit (ODK). All data was synchronised to the main server hosted by NIRAS. In addition, 12 Focus Group Discussions (FGDs) were carried out from 30 June – 8 July 2018.


Communication AgroBIG Communication Strategy and tools developed The definition and streamlining of the internal and external information exchange plans and activities, as well as the re-design and modernization of the AgroBIG’s communication materials has been prepared as part of AgroBIG’s communication strategy, recorded in the Communication Plan document. It is expected that the Communication Plan will facilitate cooperation, create an active flow of information between all relevant stakeholders and with media, and help maintain transparency. This document and the associated tools will need to be regularly updated and reviewed. Production of various printed materials and communication products

• 3 e-newsletters disseminated to over 350 recipients using online MailChimp platform • 17 news articles shared on AgroBIG website http://agrobig.org/news.htm • Programme brochures and targeted fact sheets • AgroBIG general brochure has been designed, and is in the process of being translated and printed • Official business cards • Banners, posters and roll-ups

Maintenance of social media platforms AgroBIG now has an updated presence on various social media platforms: Facebook (“AgroBIG2”), Flickr and YouTube. Regular posts, sharing and curation of media and news on these platforms have boosted the visibility of the Programme since the Inception Phase.

Figure 4: Layout of AgroBIG Social media platforms

http://agrobig.org/news.htm


2.4. Analysis of successes and constraints encountered

AgroBIG strengths: participation, ownership, multi-stakeholder networks AgroBIG is pretty well known in the region by key stakeholders, and the achievements made during Phase I are recognized. The basis to continue AgroBIG work is thus favourable.

Efforts have been taken to ensure that the key implementers are well informed of the programme’s goals and strategies and that they take the responsibility of planning, monitoring and evaluation of the programme activities. The woreda technical and steering committee members and focal persons in particular have been engaged in joint events addressing these issues.

Joint forums where farmers and cooperatives as suppliers, traders, processors and public sector representatives attend are seen very important to improve awareness and understanding of the preconditions of successful value chains. Personal communication is needed to establish mutual trust to enable business relationships.

Challenges: Implementers’ expectations exceed the available fund resources The fact that there are now eight woredas instead of two engaged in the programme implementation, but the implementation budget is the same as in the previous phase, however causes clear frustration among some of the implementers. The MFA fund for the current phase does not allow for example similar investments in office and other constructions as were done during the first phase. The operational budgets for eight woredas and bureaus are clearly smaller compared to earlier times.

The fund limitations increase the tendency to claim that as AgroBIG is a bilateral programme, the private sector players should not be supported by grants. This is a serious misconception contradicting the spirit of the Programme Document, and may pose a threat for the programme unless corrected. Bureau and woreda sector heads and supervisors are in a key role to guide their staff in this respect.

AgroBIG is well in line with the government development strategy, GTP II, and with the evident need to encourage private sector actors increase their engagement in agribusiness. Agriculture and related processing industries are seen as the biggest potential for Ethiopia to improve its economy, but require substantial development leaps from the private entrepreneurs and companies that do not materialize overnight.

Continuous efforts are thus needed to boost both the public and private sector players’ capacities so they can play their roles and cooperate smoothly. Public sector is expected to ensure favourable environment and regulatory frameworks for entrepreneurs, companies and cooperatives to operate under and comply with, while private sector is expected to offer jobs to the growing population, increase exports and create tax revenues and welfare. More SMEs and companies are needed to invest in agribusiness to make this happen. Alleviating the risks of entrepreneurs through technical support and assisting their access to grants and other finance is thus the least that the programme should do. Generic principles of transparency and accountability in programme fund utilization shall not be compromised be the implementers or beneficiaries from the public or private sector.

Additional challenges encountered:

• There have been delays in operationalizing phase I investments. Delay in operationalizing completed projects (e.g. Bikolo Abay). The BoA has recently completed and handing over accomplished, but installation of equipment and furniture, allocating the required recurrent budget and staff deployment require close follow up and attention. Underestimated budget and unforeseen material cost escalation (iron bar) for charcoal cooler and mismatch between allocated budget and tender amount (e.g. procurement of fruit nursery black net for green house far away from allocated budget);

• Low enforcement of contract agreements made between coops/Union and buyers and breaching agreements due to minor price changes and disagreements (e.g. Etfruit and Koga Union);

• The first transfer of funds to implementing partners was delayed (effective implementation period was only April-June) causing delay in implementing planned activities and some rush towards the end of the fiscal year;


• Moreover, the approved budget for Fogera woreda was not transferred due to unsettled outstanding balance from phase I.

• Lack of motivation on the part of traders to participate in trainings and market linkage forums, which imply loss of daily earnings.

• Informal seed production, marketing and weak market linkages for seed producer groups/coops, • Government cumbersome procurement procedure impedes the procurement process of grant funded

projects;

Activities not accomplished:

Output Activity Reason Output I

Rice Warehouse equipment in Kuhar/Fogera operational.

Supply contract agreement cancelled by the regional public procurement agency due to supplier’s problem.

Output II Complete maintenance of market shade in Dera woreda

Delay in budget release and time constraint

Procurement of fruit nursery plastic sheet and black nets for green house

Tender amount was higher than allocated budget.

Construction of pilot charcoal evaporative cooler delayed

Design revision and tender process (the work currently on-going)

Training of youth and women CIG leaders to link with SACCOs

Budget shortage

Construction of horticulture retail market shed for Koga Union

No design, and securing the plot took lengthy time.

Procurement and installation of equipment for IVR

Suppliers delay to import the item

Recommendations:

1. Awareness of the goals of AgroBIG, especially in relation to the roles and responsibilities of public and private sectors and respectively justified programme support to both parties must be continued and strengthened, and responsible staff guided accordingly. The aim shall be is to ensure the private enterprises, entrepreneurs and cooperatives accumulate the needed capacities that helm them improve their businesses, and the public entities and officials are willing and able to provide the necessary services to entrepreneurs.

2. BoFEC and focal sector bureaus are requested to attend to the ongoing activities, such as procurement process of rice machines, and completing the rehabilitation of Bikolo Abay horticulture training center (construction, curriculum preparation) to make the centre operational. It is hoped that the training centre acquires the needed long-term support to become the Centre of Excellency in providing up-to-date capacity building and technology demonstration in Ethiopia in the future.

3. Awareness of the importance and impact of good quality seed, and of means to verify the source and quality of the produce, must be further strengthened among farmers and input suppliers.

4. Since the AgroBIG grant guidelines allow grant beneficiaries to do their own procurement by themselves, they should manage the procurement rather than tasking government entities for such. Guidance on appropriate procurement practices shall be provided and the use of the same followed-up.


3. Resources and Budget The overall budget of the Programme is 10.34 million EUR, of which about 9.4 Million EUR comes from MFA Finland and about 0.94 Million EUR is expected as a government contribution from Amhara Regional State.

3.1. Fund transferred from MFA to BOFEC

Since the beginning of the AgroBIG II, the Ethiopian Government/ANRS-BOFEC received about 727,012 EUR (Equivalent to ETB 23,519,799.12) from the Government of Finland.

The following table shows the opening balance, funds received from MFA, and expenditures during the reported year. Table 10: Opening balance, fund transfers and closing balance of BoFEC channel AgroBIG funds during 2017/2018.

EUR ETB Exchange rate ETB/EUR

Opening balance 1.7.2018 257,743.66 Fund transfer from MFA 18.9.2017 173,350 4,832,599.30 27.8777 Fund transfer from MFA 19.4.2018 553,662 18,687,199.82 33.7520 Total available 23,777,542.78 Expenditure total 20,302,283.06 Closing balance 30.6.2018 3,475,259.72

Table 11. Summary of partners own contribution for AgroBIG Programme

Implementing Agency Annual Plan total

Total Transferred

Total Expenditure

Expected GoE

contribution (about 10% from their utilization)

Actual Government expenditure

1 Programme Support Unit 2,678,340.00 3,144,728.00 2,926,167.34 0 174,240.00 2 North Achefer woreda finance 184,785.00 184,785.00 176,130.00 17,613.00 13,335.00 3 South Achefer woreda finance 179,263.00 179,263.00 128,821.00 12,882.10 17,779.00 4 North Mecha woreda finance 1,414,452.00 1,414,452.00 614,159.36 61,415.94 68,111.00 5 South Mecha woreda finance 179,263.00 179,263.00 177,500.00 17,750.00 6 Bahir Dar zuria woreda finance 344,263.00 344,263.00 155,300.00 15,530.00 1,997.00 7 Dera woreda Finance office 243,441.00 243,441.00 165,780.00 16,578.00 22,491.74 8 Fogera woreda finance office 677,952.00 0 0 0 0 9 Libokemkem woreda finance 267,274.00 267,274.00 240,547.00 24,054.70 33,416.75

10 ARARI 159,489.00 159,489.00 159,489.00 15,948.90 55,273.00 11 Science, Technology & IC

Commission 2,200,000.00 1,100,000.00 1,100,000.00 0 130,000.00

12 Quarantine Agency 165,000.00 165,000.00 165,000.00 16,500.00 29,437.00 13 Bureau of Agriculture 1,238,500.00 507,000.00 507,000.00 50,700.00 16,889.00 14 Bureau of Trade 517,600.00 517,600.00 315,419.25 31,541.93 17,214.00 15 BOTVED 275,000.00 275,000.00 275,000.00 27,500.00 6,060 16 BOWCA 85,800.00 85,800.00 70,006.92 7,000.69 5,772.00 17 CPA 2,430,489.00 1,230,000.00 741,549.00 74,154.90 671,700.00 18 Tana COSACU 6,600,000.00 5,200,000.00 5,200,000.00 0 0 19 Ribb COSACU 3,960,000.00 4,000,000.00 4,000,000.00 0 0 20 Adera Densa COSACU 2,640,000.00 2,600,000.00 2,600,000.00 0 0 26,440,911.00 21,797,358.00 19,717,868.87 389,170.16 1,261,718.49


Table 12. Summary of AgroBIG BoFEC channel funds transferred and utilised during 2010 EFY (2017/2018).

*) Disbursement not done due to unsettled outstanding balance from previous phase.

Implementing AgencyPlanned

during Jul-Dec 2017

Planned in Jan-June 2018 Annual Plan total Total Transferred Total Expenditure

ETB

TOTAL Expenditure

ETB

Estimated EUR

equivalent(30 ETB/

EUR)

TOTAL Estimated

EUR equivalent

% utilized (Exp/Transf

erred )

% of budgeted

utilized

1 Programme Support Unit 2,678,340.00 3,007,983.00 5,686,323.00 3,144,728.00 2,926,167.34 97,539 93% 51%PSU operational (BoFEC channel) 2,926,167.34 97,539

2 North Achefer woreda finance 184,785.00 184,785.00 184,785.00 176,130.00 5,871 95% 95%3 South Achefer woreda finance 179,263.00 179,263.00 179,263.00 128,821.96 4,294 72% 72%4 North Mecha woreda finance 390,000.00 364,452.00 754,452.00 754,452.00 614,159.36 20,472 43% 81%5 South Mecha woreda finance 179,263.00 179,263.00 179,263.00 155,150.66 5,177 99% 87%6 Bahir Dar zuria woreda finance 344,263.00 344,263.00 344,263.00 155,300.00 5,172 45% 45%7 Dera woreda Finance office 243,441.00 243,441.00 243,441.00 165,788.00 5,526 68% 68%8 Fogera woreda finance office *) 677,952.00 677,952.00 0 0.00 9 Libokemkem woreda finance 267,274.00 267,274.00 267,274.00 205,031.70 6,834 90% 77%

Total implementation by woredas (Output 2) 1,600,381.68 53,34610 Bureau of Agriculture 507,000.00 731,500.00 1,238,500.00 507,000.00 375,011.50 12,500 100% 30%11 Bureau of Trade 170,000.00 347,600.00 517,600.00 517,600.00 315,419.95 10,514 61% 61%12 BOWCA 85,800.00 85,800.00 85,800.00 70,006.92 2,334 82% 82%13 CPA 500,000.00 1,930,489.00 2,430,489.00 1,230,000.00 855,806.67 28,527 60% 35%

Total implementation by bureaus and other regional agencies (Output 2) 1,616,245.04 53,87514 ARARI 159,489.00 159,489.00 159,489.00 159,489.00 5,316 100% 100%

15 Science, Technology & IC Commission 2,200,000.00 2,200,000.00 1,100,000.00 1,100,000.00 36,667 100% 50%

16 North Mecha KIP/ Contract farming facility 660,000.00 660,000.00 660,000.00 660,000.00 22,000 100% 100%

17 BOTVED 275,000.00 275,000.00 275,000.00 275,000.00 9,167 100% 100%18 Quarantine Agency 165,000.00 165,000.00 165,000.00 165,000.00 5,500 100% 100%

Total disbursement for Value Chain Facility 2,359,489.00 78,65019 Tana COSACU 6,600,000.00 6,600,000.00 5,200,000.00 5,200,000.00 173,333 100% 79%20 Ribb COSACU 3,960,000.00 3,960,000.00 4,000,000.00 4,000,000.00 133,333 100% 101%21 Adera Densa COSACU 2,640,000.00 2,640,000.00 2,600,000.00 2,600,000.00 86,667 100% 98%

TOTAL disbursed for loans 11,800,000.00 393,333TOTAL 4,245,340.00 25,203,554.00 29,448,894.00 21,797,358.00 20,302,283.06 20,302,283.06 676,743 676,743 90% 69%


3.2. Budget utilization

Implementation Budget Plan Vs Utilization during the reporting year The total of MFA funded budget approved for the programme implementation during the year was Birr 29,448,892. Moreover, the Ethiopian government is expected to contribute in kind and in cash of ETB 3,630,000 in the fiscal year.

The total amount of funds transferred to implementing agencies is about Birr 21,797,358. Out of the total budget transferred, ETB 20,302,283.06 (90%) was utilized during the year (69% of the total budget). Table 12 previouspage) shows the amount of funds transferred to each of the implementing agencies and expenditure during the year. Detailed implementation budget plan and utilization report is attached in Annex 4 of this report, and summary of the overall utilization of MFA funds is found in Annex 5.

Government of Ethiopia Contribution As indicated above, the Government of Ethiopia is expected to contribute about 10% of the total programme budget in kind or in cash. Thus, from the beginning of this Programme, each of the implementing partners are advised to record their in kind or cash contribution and to report to the PSU. As a result, as Table 10 below indicates, IPs’ contribution during the reporting period is worth 1,261,718.49 ETB.

3.3. TA Budget Plan and Utilization of during 2017/2018 The TA budget channel accommodates long-term and short-term technical assistance fees as well as travel and accommodation costs, salaries of support staff (seven drivers, one TA channel accountant/ administrator and one office assistant), office running costs, purchase of equipment and purchase of sub-contracted services. The MFA fund allocation for TA costs during the entire AgroBIG phase II period is EUR 3,808,630.

The reporting period consists of the programme inception phase of six months (September 2017–February 2018), and of the period March-June 2018. In total, EUR 623,211 of TA channel budget was spent during the reported period, representing 16.4% of the overall TA channel budget. EUR 3,183,413 is thus available for the remaining part of the AgroBIG phase II (ref. Table 13).

The expenditure of TA budget remained at 55.7% of the planned during the inception phase, while the same during March-June 2018 was 81.3% of the budgeted. The main reason for the modest expenditure during the inception phase is that the recruitment of long-term national TA staff took longer than expected and consequently, allocations for fees and reimbursable costs were not consumed as planned. In addition, the initially planned purchase of a motor vehicle (EUR 40,000) was postponed till later stage.

Furthermore, short-term consultancies planned for May-June 2018 were delayed due to time constraints and slightly prolonged decision-making. ST inputs were budgeted for the phase II baseline survey assignment and two value chain analysis assignments that were considered justified based on the findings made during the inception phase. The baseline survey data collection was successfully completed in June, while the final analysis and report compilation will be done in July 2018. Field work for two value chain analysis assignments will commence on July 1st.

It is worth noting that there were four high-level delegations from MFA visiting the project sites during the reporting period, including a minister level visit, which required time and efforts from AgroBIG staff. In addition, the AgroBIG team was also engaged in preparations of a seminar in Bahir Dar in late November 2017 that the Embassy of Finland organized to commemorate the 100 years of independence of Finland.

Table 13. Summary of AgroBIG Technical Assistance days during Sept 2017 – June 2018

Summary of TA days Budget 2017/2018 Q1 Q2 Q3 Q4 Total

% of budget utilized

- LT International, # days 357 22 131 117 110 380 106.4%- LT national, # days 903 14 115 214 285 628 69.5%- ST international, # days 126 0 0 0 39 39 31.0%- ST national, # days 210 0 0 0 0 0 0.0%


Table 14:Summary of overall AgroBIG TA channel budget, allocations for Sept 2017–June 2018, respective expenses and overall balance (EUR).

TA TOTAL Inception phase Sept 2017 - Feb 2018 March - June 2018 TOTAL TA channel

Budget for AgroBIG II, 2017-2021

Budget Inception

phase, EUR

Expend-

iture EUR

% utilized of the

budget

Balance

EUR Budget

March-June 2018, EUR

Expenditure

EUR

% utilized of the

budget

Balance

EUR

Total budget

2017/2018 EUR

Total utilized by June 2018,

EUR

% utilized of the overall

AgroBIG TA budget

Overall balance

EUR

Technical assistance Fees, Long-term experts 1,908,500 243,700 203,735 83.6% 39,965 180,200 178,857 99.3% 1,343 423,900 382,592 20.0% 1,525,908 Fees, Short-term experts 403,300 104,200 0 0.0% 104,200 36,800 17,229 46.8% 19,571 141,000 17,229 4.3% 386,071 TA Reimbursable costs 737,600 136,875 80,582 58.9% 56,293 60,540 39,148 64.7% 21,392 197,415 119,730 16.2% 617,870 Technical assistance TOTAL 3,049,400 484,775 284,317 58.6% 200,458 277,540 235,234 84.8% 42,306 762,315 519,551 17.0% 2,529,849 PSU operational costs Administration 248,084 30,175 15,157 50.2% 15,018 19,908 20,600 103.5% -692 50,083 35,757 14.4% 212,327 Office running costs 273,400 38,080 27,130 71.2% 10,950 39,400 19,141 48.6% 20,259 77,480 46,271 16.9% 227,129 Equipment and supplies 65,000 45,000 14,895 33.1% 30,105 1,000 1,728 172.8% -728 46,000 16,623 25.6% 48,377 Sub-contracted services 170,746 17,000 1,209 7.1% 15,791 7,000 3,806 54.4% 3,194 24,000 5,015 2.9% 165,731 PSU operational costs TOTAL 757,230 130,255 58,385 44.8% 71,864 67,308 45,275 67.3% 22,033 197,563 103,660 13.7% 653,564 TOTAL 3,806,630 615,030 342,702 55.7% 272,322 344,848 280,509 81.3% 64,339 959,878 623,211 16.4% 3,183,413 VAT receivables, EUR -1,981 -874 -2,855

Table 15: Summary of overall AgroBIG TA channel budget for Sept 2017–June 2018, and quarterly expenditure during the reporting period.

Budget Sept 2017 - Jun 2018

September 2017 - June 2018 Inception phase March-June 2018 Q1

Expenditure, EUR

Q2 Expenditure

Oct-Dec 2017 EUR

Q3 Expenditure

Jan-Mar 2018 EUR

Q4 Expenditure

Apr-June 2018 EUR

TOTAL expenditure

EUR

% of total budget utilized

Budget Inception

phase

Expenditure Inception

phase

% of total

budget utilized

Budget March-June 2018

Expenditure March-June

2018

% of total budget utilized

Technical assistance

Fees, Long-term experts 423,900 17,819 110,859 121,795 132,119 382,592 90.3% 243,700 203,735 83.6% 180,200 178,857 99.3% Fees, Short-term experts 141,000 0 0 0 17,229 17,229 12.2% 104,200 0 0.0% 36,800 17,229 46.8% TA Reimbursable costs 197,415 34,368 28,462 31,080 29,820 123,730 62.7% 136,875 80,582 58.9% 60,540 39,148 64.7% Technical assistance TOTAL 762,315 52,187 139,321 152,875 179,168 523,551 68.7% 484,775 284,317 58.6% 277,540 235,234 84.8% PSU operational costs Administration 50,083 0 11,253 7,920 16,584 35,757 71.4% 30,175 15,157 50.2% 19,908 20,600 103.5% Office running costs 77,480 945 20,084 9,305 15,937 46,271 59.7% 38,080 27,130 71.2% 39,400 19,141 48.6% Equipment and supplies 46,000 5,427 1,091 8,377 1,728 16,623 36.1% 45,000 14,895 33.1% 1,000 1,728 172.8% Sub-contracted services 24,000 94 1,162 4,239 -480 5,015 20.9% 17,000 1,209 7.1% 7,000 3,806 54.4% PSU operational costs TOTAL 197,563 6,466 33,590 29,841 33,769 103,666 52.5% 130,255 58,385 44.8% 67,308 45,275 67.3% TOTAL 959,878 58,653 172,905 182,716 212,937 627,211 65.3% 615,030 342,702 55.7% 344,848 280,509 81.3% VAT receivables, EUR NA 0 -307 -1,674 -874 -2,855


4. Assumptions and risks AgroBIG PSU reviewed during the inception phase the original Programme Document, the current situation and prospects in the proposed woredas and the region and discussed with key stakeholders and development actors in the agriculture sector. Based on the assessment, some adjustments relating to AgroBIG Phase II target setting, results framework, respective budget allocations and the principles of awarding grants to value chain actors were proposed and approved by the SVB in March. These proposals are discussed in detail in the inception phase report, along with other issues that are considered critical for the success of the programme and therefore deserve due attention.

Programme approach in the light of the government’s agro-industrial targets The approach of AgroBIG is found feasible and indicated goals justifiable. The selected woredas have expressed their commitment to contribute to the attainment of the goals of the Programme. Furthermore, support from the local counterpart BoFEC is good.

Due to favourable agricultural production potential in the region, GoE, through international financing and also supported by several donor projects, is addressing Amhara with various development interventions and investments. One of the major initiatives is Bure Agro-industrial Park, whose construction some 150 km south-west from Bahir Dar along the route to Addis Ababa is currently on-going.

Even if Bure Park may not yet be fully operational during AgroBIG II, the Programme needs to closely address the potential emerging opportunities.

One of the aims of agro-industrial parks is to facilitate increased export of processed food stuffs instead of exporting raw materials. Compliance with the international food trade requirements will be one of the thresholds for smallholders to overcome to enable joining the supply chains. This will need external support and time. Also, processors will require meaningful volumes and continued supply of materials of proper quality. Continued support at the grassroot level, among smallholder farmers, is therefore seen necessary.

In the light of above the PSU considers that due attention needs to be devoted by the Programme even in the up-stream part of value chains to strengthen the capacity and competitiveness of smallholders as suppliers.

Re-allocations of MFA funds To follow the principle of results-based planning and reporting, the PSU proposed to the SVB that the breakdown of MFA fund allocations for project Implementation would be adjusted. The SVB discussed the proposal in March 2018 and further approved that once found useful, the PSU may combine the original output 1 and output 3 into one output area, as they both relate to facilitation of access to finance for indicated target groups. This final change in the budget structure also reduced the need of separate key results indicators, and has been incorporated in the revised AgroBIG Results framework (Annex 3).

In addition, as no funds were included in the original BoFEC channel budget to enable woreda staff members to attend regional or cluster level annual planning and review workshops and monitoring trips, or to accommodate annual audits of Programme accounts conducted by BoFEC, an allocation of EUR 52,500 was approved for this purpose.

Thirdly, some changes were proposed and approved in the TA reimbursable cost budget (reduced) and the PSU operational costs budget (increased) in order to accommodate purchase of office equipment as replacement for the worn-out laptops and other devices, to cover per diems for support staff and other and increasing maintenance costs of vehicles, and have adequate allocation for Programme M&E. The total EUR amount of these two budget lines was not changed due to the adjustment.

TA fee budget was in the TA consultant’s tender EUR 193,000 less than what was allocated in the original Programme Document. The amount is now reserved as contingency for future demands. BoFEC will prepare and submit proposal on the use of this contingency fund in the future.

The SVB approved the above listed adjustments in March 2018.


4.1. Analysis of realized and new/emerging risks and proposed risk responses

The risk matrix presented in the Programme Document is in most parts valid. Luckily, major concerns regarding social instability have for the time being diminished in Amhara. The region has not experienced similar serious ethnic clashes as have occurred in some other parts of the country. In addition, the recent changes within the political leadership at the federal level have raised more optimism among people.

AgroBIG is now targeting eight woredas with similar amount of support from MFA as was available during Phase I when two woredas were targeted. Possibilities to provide financial support for individual woredas has thus reduced considerably, and the Programme will no longer be able to support rehabilitation or construction of office buildings or purchase of vehicles to woredas as was the case earlier. Moreover, the TA team now has less staff than during the previous phase, hence hands-on support to field operators remains fairly limited. How these factors will affect the performance and commitment among implementers remains to be seen.

5. Sustainability

The most notable factors enhancing the sustainability of the programme interventions are summarized as follows:

• Mobilization of own contributions by grant applicants and loan takers utilising the programme’s revolving loan funds;

• Government contribution by IPs is encouraging, though need continuous recording. • Effort has been made to create market linkages between suppliers and buyers and the

capacity of supporters (enablers) has been enhanced through various capacity building actions in the area of production, post-harvest handling and marketing.

• Unlike phase I more attention has been paid to include women, youth and PwDs in programme interventions. CIG groups are organized, women and youth beneficiaries have been assisted to access credits from SACCOs to run businesses and for agriculture related activities.

• Contract farming initiated between Koga VEG and smallholder farmers in the Koga irrigation command area is an encouraging example that AgroBIG implementers can draw valuable lessons from

6. Lessons learnt, conclusions

• Business relationship between SACCOs and COSACUs is strong and close. Hence, any capacity building support of SACCOs shall be directly coordinated by COSACUs for its effectiveness and efficiency;

• Building trust between buyers and producers is crucial especially through improving the quality, volume and timeliness of supply of perishable crops. On top of that contract agreements (commitments) signed between buyers and cooperative /Unions in market linkage forums should be binding and need enforcement.

• Continued support to developing sustainable marketing system (downstream part) must be enhanced;

• Organizing farmers in clusters and on farm demonstration plots especially for vegetable production is an ideal strategy to reach more farmers (e.g. the case of Koga command area potato and onion demonstration) and side by side facilitate market linkages before production;

• Due attention must be devoted to ensure that the programme loan funds benefit the intended beneficiaries and to income generating activities. SACCOs and COSACUs that comply to this requirement shall be prioritized when disbursing loan funds in the future.


• There should be a strong coordinated effort to support women and youth groups including PwDs organized to join SACCOs to have direct access to financial and non-financial services;

• Capacity building trainings and cluster platforms should be better targeted and coordinated to address more value chain actors and women; moreover, training of farmers and other value chain actors should be organized close to their locality.

• Increased efforts and resources must be devoted on designing sustainable output marketing system (downstream of the value chain);

• In the 89 AgroBIG target Kebeles, there are SACCOs in 81. COSACUs have criteria when deciding whether a SACCO is credit worthy or not. This implies that beneficiaries residing in areas with less competent SACCOs will not be able to benefit from the programme loan funds. Additional measures should therefore be taken to assist potential entrepreneurs access credit from alternative sources.

Annexes:

Annex 1: Revised AgroBIG Results Framework (update August 2018)

Annex 2: Summary of disbursement of Women and Youth loan funds by SACCOs.

Annex 3: Summary of overall AgroBIG Phase II budget for 2017-2021 (update July 2018)

Annex 4: Implementation budget plan for 2017/2018 vs fund utilization.



Annex 1. Revised AgroBIG Results Framework (update August 13, 2018).subject to final revisions and SVB’s approval).

IMPACT INDICATORS 2017

Baseline 2021 Target Means

of verification

Assumptions

Agriculture provides decent livelihood to people in rural Amhara regional state.

Agriculture and allied activities growth rate in the region, annual % (baseline as per National Planning Commission NPC, target as per GTP II)

6.7% (initial figure for 2015/ 2016)

Annual growth 7.8% Cumulat. 31% NPC

Enabling factors support socioeconomic development: policy, stability, regulatory framework, infrastructure

Poverty head count, % of rural population (baseline as per NPC, target as per GTP II)

28.8% (2015/16)

1.3% annual reduction

NPC

OUTCOME INDICATORS 2017 Baseline

2021 target

Value is added at various levels of selected agricultural value chains to increase incomes and create jobs for farming households and other VC actors, with a particular focus on women and youth

Increase in total annual value of sales by

AB M&E

Commercialization of agriculture continues and strengthens agribusiness and increases employment. Value chain actors seize business opportunities. Women and youth groups set up enterprises Contnd.

a) enterprises and agribusiness units supported by AgroBIG during Phase II

Cumulative

Cohort 1 (Aug '18) b) *) b) 50%

Cohort 2 (xx) b) *) b) 50%

Cohort 3 (xxx) b) *) b) 50% b) cooperatives supported by AgroBIG II

Cohort 1 (Aug '18) b) *) b) 50%

Cohort 2 (xx) b) *) b) 50% Cohort 3 (xxx) b) *) b) 50% Number of jobs created in agricultural value chains supported by AgroBIG (Disaggregated by gender, age, PWD)

788 M 272 F 1060 Total

Cumulative 3,500 M 1,500 F 5000 Total

AB M&E

Percentage change in productivity, volume and value of production per household (all targeted commodities; average values)

Maize Volume Qt/ HH 19 20%

AB M&E

Yield Qt/ha 49.5 20% Value ETB/ HH 11,400 30%

Rice (paddy)

Volume Qt/ HH 28 20% Yield Qt/ha 56.6 20% Value ETB/ HH 23,520 30%

Onion Volume Qt/ HH 25 20% Yield Qt/ha **) 20% Value ETB/ HH 13,400 30%

Potato Volume Qt/ HH 14 20% Yield Qt/ha **) 20% Value ETB/ HH 5,138 30%

Tomato Volume Qt/ HH 13.5 20% Yield Qt/ha **) 20% Value ETB/ HH 5,778 30%

Milk/ HH/year

Volume litres 522 20% Yield litre/cow/year **) 20% Value ETB 4,698 30%

Shoat/ HH/ year

# of sheep 9 20% # of goats 11 20% Value (sheep) ETB 11,925 30% Value (goat) ETB 14,960 30%

Poultry/ HH/ year

# of eggs 1,056 20% # of chicks 26 20% Value of eggs, ETB **) 30% Value of chicken meat produced, ETB

**) 30%

Number of beneficiaries reached through actions strengthening market linkages, productivity, job creation and food security (Disaggregated by gender, age, PWD)

26,900 M 19,100 F 46,200 Total

Cumulative 300,000, (43% F) 2000 PWD

AB M&E


Contnd.

OUTPUT 1 INDICATORS 2017 Baseline

Target

Value chain actors’ access to finance and financial services is improved and sustainability of their enterprises and business initiatives is strengthened

Number of business entities in total supported by AgroBIG grants or loans (Disaggregated by size & type of core business: production; agro-processing; trade; service provision)

23 enter-prises, 45 coops

600 enter-prises& groups, 50 coops

AB M&E

Value chain actors have necessary minimum resources, including self-financing to develop viable business entities. Cooperatives and enterprises have sound management practices and apply the principles of an appropriate loan culture.

Number of grants issued: AB M&E a) medium-size grants a) 14 a) 35

b) micro & small-size grants b) 119 b) 270 c) value chain facility grants c) 9 c) 20

Number of members in women and youth groups supported by grants or loans (Disaggregated by gender, age, PWD)

57 5000 (70% female, 50 PWD)

AB M&E

% of the supported entities operational over two years after receiving grants or loans (Disaggregated by size and type)

Cohort 1 (Aug '18) Coops 100%, Enterprises 100%

Coops 100%, Enterprises groups 80%

AB M&E

Cohort 2 (xx) Cohort 3 (xxx)

Change in the value of the annual purchases by supported cooperatives

Cohort 1 (Aug '18) *) 100% AB M&E Cohort 2 (xx)

Cohort 3 (xxx)

Change in the amount of own capital (total assets less liabilities) of the supported coop unions and cooperatives

Cohort 1 (Aug '18) *) 50% AB M&E

Cohort 2 (xx)

Cohort 3 (xxx)

OUTPUT 2 INDICATORS 2017 Baseline

Target

Capacities of value chain actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way

Number of business entities in total supported by capacity building (Disaggregated by size and type of business)

201

1000

AB M&E

Most important capacity constraints are identified, and VC actors are motivated in removing them

Number of lead farmers capacitated in selected VCs (Disaggregated by gender)

NA 2100 (25% female)

AB M&E

Adoption rate of new/improved practices by direct beneficiaries. (Disaggregated by gender)

**) AB M&E

Direct beneficiaries’ satisfaction with the extension, financial and business development services provided (Disaggregated by gender)

Farmers satisfaction to Kebele extension experts

69% 80%

AB M&E Clients’ satisfaction in SACCOs’ financial services

Farmers

44% 80%

Enterprises **) 80%

Coop leaders

**) 80%

Change in awareness level of beneficiaries towards environmental sustainability (Disaggregated by gender)

Farmers’ awareness

**) 75%

AB M&E Enterprises’ awareness

**) 75%

Cooperative leaders’

awareness **) 75%

*) Rolling baseline data collection **) Data from baseline hh survey Note: Cohort refers to Batch


Annex 2. Summary of disbursement of Women and Youth loan funds by SACCOs during April-June 2018.

Opening balance

Received in the quarter Male Female total Male Female total Male Female total

S/ Achefer Genet Birhan 0.00 172,000 245 78 323 6 20 26 34,400 164,000 198,400 82.7N/Achefer Alem Meta 0.00 500,000 16 567 583 4 47 51 100,500 399,500 500,000 79.9N/Mecha Ambo Mesk 0.00 728,000 466 194 660 5 30 35 145,600 582,400 728,000 80.0S/Mecha Felege Hiwot 0.00 600,000 344 169 513 14 69 83 148,000 446,000 594,000 75.1B/zuria Edeget Lerobit 0.00 600,000 512 192 704 6 16 22 119,000 481,000 600,000 80.2

Total - 2,600,000 1,583 1,200 2783 35 182 217 547,500 2,072,900 2,620,400 79.1Selam Lelmat 0.00 600,000 115 33 148 12 44 56 128,000 472,000 600,000 78.7Addis Alem 0.00 700,000 209 59 268 0 17 17 0 700,000 700,000 100.0Total 0.00 1,300,000 324 92 416 12 61 73 128,000 1,172,000 1,300,000 90.2Atsede Mariam 0.00 702,450 373 119 492 24 67 91 173,400 703,170 876,570 80.2Tibibir le Edget 0.00 740,140 240 97 337 19 33 52 221,045 294,500 515,545 57.1Angut 0.00 102,400 76 22 98 3 7 10 35,406 66,994 102,400 65.4Genet 0.00 300,000 87 66 153 8 14 22 65,000 240,000 305,000 78.7Birbanba 0.00 160,000 76 29 105 4 10 14 32,000 128,000 160,000 80.0 Aba Kiros 0.00 400,000 39 9 48 1 4 5 8,000 32,000 40,000 80.0

Total - 2,404,990 891 342 1233 59 135 194 534,851 1,464,664 1,999,515 73.3Grand Total 0.00 6,304,990 2,798 1,634 4,432 106 378 484 1,210,351 4,709,564 5,919,915 79.6

Total Members in each credit union at the start of AB program. Source: Capacity assessment report (Feb 2018)

M F Total Nota bene: Tana 48 5,934 5,487 11,421 - There are 81 SACCOs with 16,146 members (6,789F) in the 89 kebeles targeted by AgroBIG. Rib 23 2,565 1,096 3,661 - A total of 484 members of 13 SACCOs were able to benefit from the 1st round of AgroBIG loan disbursement.Adera Densa 10 858 206 1,064 - This represents 2.9 % of all SACCO members in the AgroBIG target area.

Total 81 9,357 6,789 16,146 - Women accessing loan this round represent 5.6% of all female SACCO members in the targeted kebeles.

Disbursed loan amount % of loan share for Female

Tana

Adera DDera

Rib

Libo

Fogera

Name of COSACU

Target woreda

Name of the SACCO

Loan amount Total members Clients received loan (in Q4)

Credit union

No of SACCOs

Total members


Annex 3: Summary of overall AgroBIG Phase II budget for 2017-2021, update in July 2018. (NB Original Outputs 1 & 3 combined into OP1)

AgroBIG II, Programme Implementation Budget (update July 2018) Y1 Y2 Y3 Y4 Y5 TOTAL Output 1: VC Actors' access to finance and financial services is improved EUR EUR EUR EUR EUR EUR1.1 Provide grants for VC actors through the Grant Fund 0 650,000 650,000 200,000 0 1,500,0001.2 Support learning and new approaches (Value Chain Facility) 50,000 150,000 125,000 0 0 325,0001.3 Provide funds to the Women and youth groups through SACCOs (Women and Youth Loan Fund) 200,000 480,000 120,000 0 0 800,0001.4 Provide funds for cooperatives through SACCOs (Cooperative Loan Fund) 200,000 480,000 220,000 0 0 900,0001.5 Grant and loan fund management 15,000 20,000 20,000 15,000 0 70,0001.6 Phase I commitments for construction and equipment 75,000 125,000 0 0 0 200,000

Sub-total 540,000 1,905,000 1,135,000 215,000 0 3,795,000Output 2: Capacities of VC actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way2.1 Facilitate business and market linkages, investment and public-private dialogue 25,000 40,000 33,000 23,500 0 121,500 2.2 Improve business and farm management skills and service delivery for VC development 45,000 252,000 247,000 53,000 0 597,000 2.3 Form, train and mentor women/youth groups in agriculture-related income generating opportuniti 14,000 65,000 76,000 40,500 0 195,500 2.4 Provide technical support to cooperatives to improve member services 34,000 100,500 59,000 40,000 0 233,500

Sub-total 118,000 457,500 415,000 157,000 0 1,147,500Programme ManagementPSU operational costs /BoFEC (ref. SVB #9) 98,750 101,750 103,750 101,750 51,420 457,420

TOTAL 756,750 2,464,250 1,653,750 473,750 51,420 5,399,920

Summary of AgroBIG II budget, MFA contribution (update July 2018)PROGRAMME BUDGET Y1 Y2 Y3 Y4 Y5 TOTAL % of total MFATA total, fees & reimbursable costs (ref. SVB #9) 545,548 824,012 756,362 605,622 317,856 3,049,400 32.4%PSU operational costs (via TA cons) (ref. SVB #9)) 140,422 185,444 164,984 122,936 143,444 757,230 8.1%Implementation budget (updated in July 2018) 756,750 2,464,250 1,653,750 473,750 51,420 5,399,920 57.4%Contingency (ref. SVB #9) 193,000 193,000 2.1%GRAND TOTAL of MFA contribution 1,442,720 3,473,706 2,575,096 1,202,308 705,720 9,399,550 100.0%% of the total 15.3% 37.0% 27.4% 12.8% 7.5% 100.0%

Summary of AgroBIG II budget, GoE contribution (ref. SVB #9)PROGRAMME BUDGET Y1 Y2 Y3 Y4 Y5 TOTAL % of totalOutput 1: VC Actors' access to finance and financial services is improved 60,000 100,000 100,000 100,000 16,000 376,000 40.0%Output 2: Capacities of VC actors are strengthened to improve theire enterprises capability … 90,000 150,000 150,000 150,000 24,000 564,000 60.0%GRAND TOTAL of GoE contribution 150,000 250,000 250,000 250,000 40,000 940,000 100.0%% of the total GoE contribution 16.0% 26.6% 26.6% 26.6% 4.3% 100.0%


Annex 4.a. Implementation budget plan for 2017/2018 vs fund utilization. (Inception phase expenditure is presented in Annex 4.b.)

Budget UtilizedQ 1 Q 2 Q 3 Q 4 Total % utilized

Output 1: Value chain actor’s access to financial services improved

1.2.1 Support farmers to produce snow pea and sugar snap through out grower model with koga VEG # of farmers North mecha /KIP) 50 43 660,000.00 660,000.00 660,000.00 100%

1.2.2 Post-harvest handling technology # of tech produce STC 2 2 2,200,011.00 1,100,000.00 1,100,000.00 50%

1.2.3 Demonstration of improved potato seed multiplication of on farm 3G seed 725 quintals of seed ARARI 725 250 159,489.00 159,489.00 159,489.00 100%

1.2.4 Support cooperatives-based seed production 256 farmers PSCQA 256 67 165,000.00 165,000.00 165,000.00 100%

1.2.5 Support technology prototypes and capacity building support for industry extension service delivery to SMEs in AB # of prototypes BOTVED 2 274,989.00 275,000.00 275,000.00 100%

1.3.1 Provide training to woreda staff engaged in grant management person PSU 80 81 132,000.00 164,875.44 164,875.44 125%1.3.2 Print guidelines and promotional materials prints PSU 1150 130 66,000.00 4,000.00 4,000.00 6%1.3.3 Announce call for proposals adverts PSU 3 1 4,950.00 0.00 0.00 0%1.3.4 Introduce AB grants scheme to private BDSs # of BDSs PSU 25 13 19,800.00 0.00 0.00 0%1.3.5 Campaign for awareness creation on grants # of woredas PSU 8 8 66,000.00 0.00 0.00 0%1.3.6 Evaluation, monitoring and follow up of AB grants by WTCs # of meeting WOFEC 2 8 132,000.00 54,520.00 54,520.00 41%

1.4.1 Kuhar abo rice mill operationalization procurement of generator and other # of centers Fogera WOFEC 1 0 247,500.00 0.00 0.00 0%

1.4.2 Bikolo horticulture training center opertationalization # of centers BOA 1 1 247,500.00 0.00 0.00 0%Output 1 total (N.B. In Annex 5 of EFY 2010 report Outputs 3 and 1 are merged into Output 1) 4,375,239.00 0.00 0.00 0.00 2,582,884.44 2,582,884.44 59%

Output 2: Capacity of value chain actors strengthened

2.1.1 Promote regional crop and livestock products on trade fair and bazar # of events BOTIMD 1 1 109,989.00 91,376.20 91,376.20 83%

2.1.2 Support value chain actors to participate at regional and national bazars # of events Woreda coop PA 1 1 264,000.00 222,339.96 222,339.96 84%

2.1.3 Facilitate market linkage forums and business to business dialogue # of events BOTIMD 2 2 132,000.00 109,855.75 109,855.75 83%

2.1.4 Facilitate AB cluster platform establishment, review meeting Two events PSU & zonal BOTIMD 2 2 286,011.00 134,538.70 134,538.70 47%

2.1.5 Operationalize crop collection centers # of centers WOMTD 10 5 109,989.00 55,011.00 55,011.00 50%2.1.6 Complete/maintenance of market shades shades WOTMD 6 0 175,989.00 0.00 0.00 0%2.1.7 Support koga union to establish retailing shades at bahir dar # of retailing shade CPA 1 0 330,000.00 0.00 0.00 0%2.1.8 Promote localized price information on selected market sites Six woreda WOTMD 6 2 33,000.00 11,022.00 11,022.00 33%

2.1.9 Support inventory on onion farms through GPS recording to track reliable data on the onion coverage by kebele document Fogera WOA &

KIP 1 0 132,000.00 0.00 0.00 0%

2.2.1 Train government stakeholders on VC development and market linkage facilitation VC commodities PSU 130 114 165,000.00 79,625.10 79,625.10 48%

2.2.2 Organize validation workshop for the existing and newly selected Commodity workshops PSU 150 114 198,000.00 80,901.38 80,901.38 41%

2.2.3 Conduct TOT for experts and lead farmers on good agronomic practice # of people trained WOA 80 304 220,011.00 161,385.80 161,385.80 73%

2.2.4 Create awareness and stakeholder on environment issue, removing exotic weeds and facilitate E/A in AB woreda # of people awarded WEPLA 800 1522 132,000.00 114,700.00 114,700.00 87%

Activity code

Activity Unit Responsible body

Target Achieve-ments

Budget Jan-June/2018 (ETB)



2.2.5 ToT for selected horticulture wholesalers on product handling, bussiness plan, pricing and customer handling # of partici WOMTD 40 103 66,000.00 48,850.00 48,850.00 74%

2.2.6 Facilitate TOT for coop members, leaders and employees on quality, storage mgt agribusiness marketing and book keeping # of people trained CPA 24 0 109,989.00 0.00 0.00 0%

2.2.7 Facilitate training on post-harvest management and quality, business ethics # of trainees BOTIMD 80 72 105,600.00 65,665.75 65,665.75 62%

2.2.8 Supply greenhouses for the multiplication of fruit seedlings for 8 AB woredas M2 BOA 8000 0 109,989.00 0.00 0.00 0%

2.2.9 Introduce/support charcoal cooler for horticulture products # of system BOA 1 0 220,011.00 0.00 0.00 0%2.2.10 Black fruit nursery net shed for two woredas M2 BOA 3000 0 154,011.00 0.00 0.00 0%

2.2.11 Promote model water lifting technologies on FTC through training of youth and some lead farmers Model FTC Fogera WOA 3 0 66,000.00 0.00 0.00 0%

2.2.12 In line with upcoming VC analysis, support construction of fish ponds for commercial production # of fish ponds WOA 2 1 241,989.00 39,444.00 39,444.00 16%

2.3.1 Screen, organize and legalize youth and women common interest groups of the program on AB target kebeles CIGs Wo TVETs 45 67 33,000.00 28,126.16 28,126.16 85%

2.3.2 Training on production, marketing, business development and entrepreneurship for CIGs; support business plan preparation CIGs WOTEVED 45 67 247,500.00 212,868.90 212,868.90 86%

2.3.3 Provide entrepreneurship, home economics and gender issues TOT for women lead farmers in AB target woredas

2 events at cluster level BOWCA 60 30 85,800.00 70,006.92 70,006.92 82%

2.3.4 Cascade training on entrepreneurship, home economics and gender issues TOT for women follower farmers in AB target woredas At woreda level WOwomen and

CA 240 300 79,200.00 105,866.70 105,866.70 134%

2.3.5 Support coops to increase women and youth membership and leadership in AB supported woredas # of wored coops CPA 8 0 43,989.00 0.00 0.00 0%

2.3.6 Support for establishing women and youth groups # of trainees CPA 470 42 660,000.00 100,924.40 100,924.40 15%

2.3.7 Support vulnerable groups, particularly women, to engage in off-farm income generating activities # of people WOwomen and

CA 200 50 220,011.00 155,880.80 155,880.80 71%

4,731,078.00 0.00 0.00 0.00 1,888,389.52 1,888,389.52 40%

Output 3: Financial solidity and solvency of cooperatives and women and youth groups strengthened3.1.1 Through Tana union # of loan approve Tana COSACU 10 7 3,300,000.00 2,600,000.00 2,600,000.00 79%3.1.2 Through Ribb union # of loan approve Ribb union 6 12 1,980,000.00 2,000,000.00 2,000,000.00 101%3.1.3 Through Adera Densa union # of loan approve A.densa COSACU 4 4 1,320,000.00 1,300,000.00 1,300,000.00 98%3.2.1 Through Tana union # of loan approve Tana COSACU 220 217 3,300,000.00 2,600,000.00 2,600,000.00 79%3.2.2 Through Ribb union # of loan approve Ribb COSACU 150 194 1,980,000.00 2,000,000.00 2,000,000.00 101%3.2.3 Through Adera Densa union # of loan approve A.densa COSACU 100 73 1,320,000.00 1,300,000.00 1,300,000.00 98%3.3.1 Conduct promotional campaign to raise awareness of AB loans # of events PSU 8 8 35,178.00 0.00 0.00 0%3.3.2 Announce availability of loan funds # of calls PSU 1 1 3,960.00 0.00 0.00 0%3.3.3 Train and coach COSACUs/unions # of COSACU CPA 3 3 126,489.00 126,703.36 126,703.36 100%3.3.4 Support for strengthening primary coops # of coops CPA 90 40 660,000.00 205,919.71 205,919.71 31%Output 3 total (N.B. In Annex 5 of EFY 2010 report Outputs 3 and 1 are merged into Output 1) 14,025,627.00 0.00 0.00 0.00 12,132,623.07 12,132,623.07 87%

Activity code




Output 2 total



Output 4: Program me management4.1.1 Personnel salary # of staffs PSU 4 4 1,089,000.00 0.00 0.00 439,120.90 432,734.74 871,855.64 80%4.1.2 Employer cost # of staffs PSU 4 4 128,700.00 0.00 0.00 48,303.30 47,600.81 95,904.11 75%4.1.3 Office rent # of month PSU 6 6 205,920.00 0.00 0.00 187,200.00 187,200.00 374,400.00 182%4.1.4 Travel and peridiem # of days PSU 60 15 66,000.00 0.00 0.00 14,041.99 5,665.00 19,706.99 30%4.1.5 Fuel and maintenance # of vehicles PSU 1 1 132,000.00 0.00 0.00 72,772.47 73,647.24 146,419.71 111%4.2.1 Field supervision and report writing # of report PSU 2 2 66,000.00 0.00 0.00 0.00 4,845.00 4,845.00 7%

4.2.2 Training of WOFEC accountants on financial management and reporting # of trainees PSU 9 9 47,586.00 0.00 0.00 26,182.78 0.00 26,182.78 55%

4.3.1 Conduct M & E activities # of supervision PSU 2 4 33,000.00 0.00 0.00 0.00 0.00 0.00 0%4.3.2 Monthly meeting of woreda technical committee # of sessions WOFEC 24 24 15,840.00 5,940.00 5,940.00 38%4.3.3 Quarterly review meeting of woreda steering committee # of sessions WOFEC 1 1 2,640.00 740.00 740.00 28%4.3.4 Biannual joint review meeting # of sessions WOFEC 1 1 7,920.00 2,040.00 2,040.00 26%

4.3.5 Organize result monitoring field visit to AB interventions by woreda TCs # of sessions WOFEC 1 1 14,091.00 1,761.00 1,761.00 12%

4.3.6 Regional level review meeting and planning workshops for IPs # of sessions PSU 1 1 137,511.00 0.00 0.00 0%4.3.7 Training on AB reporting, monitoring and evaluation # of trainees PSU 45 114 59,400.00 0.00 0.00 0%4.4.1 Conduct annual audit # of audits PSU 1 0 66,000.00 0.00 0.00 0%

Output 4 total 2,071,608.00 0.00 0.00 787,621.44 762,173.79 1,549,795.23 75% Grand Total 25,203,552.00 0.00 0.00 787,621.44 17,366,070.82 18,153,692.26 72%

Activity code





Annex 4.b. Budget utilzation during AgroBIG II Inception period.Budget UtilizedQ1 Q2 Q3 Q4 Total % utilized

Comp. I: VC actors’ access to finance and financial services is improved.1.1 Operationalize phase I commitment % PD,RFA,CBSD 100 1,046,500.00 0.00 48,717.94 34,511.00 373,011.50 456,240.44 44%

1.4 Establish regional and woreda level technical committees for processing grant applications

# of technical committes PD,FA,RFA 9 115,000.00 0.00 0.00 0.00 0.00 0.00 0%

1.5 Campaign grants to VC actors and share information to farmers and other stakeholders of the available finance services # of events 3 103,500.00 0.00 0.00 0.00 0.00 0.00 0%

Output I total 1,265,000.00 0.00 48,717.94 34,511.00 373,011.50 456,240.44 36%Comp II: Capacities of VC actors is strengthened to improve their enterprises’ capacity to seize market opportunities in a profitable and sustainable way

2.1 Organize cluster platform # of cluster platform CBSD,CA 2 92,000.00 0.00 0.00 0.00 0.00 0.00 0%

2.2 Support the operationalization of phase I investments to facilitate coops’

# of market linkage forums facilitated CBSD,CA 2 690,000.00 0.00 0.00 362,114.60 236,155.85 598,270.45 86.71%

2.4 Set priorities and means for capacity development of targeted actors # of target actors CTA,CBSD,CA 75 115,000.00 0.00 0.00 0.00 0.00 0.00 0%

2.8 Design & initiate capacity building for RUSACCO management, credit committes,borrowers # of RUSACCOs FA,RF 4 115,000.00 0.00 0.00 0.00 0.00 0.00 0%

2.9 Design off-season farmer field schools pilot with selected farmer groups # of FFS CBSD,CA,CTA 2 230,000.00 0.00 0.00 0.00 0.00 0.00 0%

2.11 Pilot emerging innovations/new approaches # of pilots CA,CTA 2 230,000.00 0.00 0.00 0.00 0.00 0.00 0%2.12 Continue seed multiplication and pursue certification of seed # of seed coops CA,CTA 4 230,000.00 0.00 0.00 174,476.84 45,408.52 219,885.36 96%

Output II total 1,702,000.00 0.00 0.00 536,591.44 281,564.37 818,155.81 48% Comp III: Financial solidity and solvency of cooperatives as well as enterprises of women and youth groups as VC actors

3.4 Facilitate RUSACCos,committee members’ and beneficiaries engagement in WYLF activities # of events FA,RFA,CBSD 4 115,000.00 0.00 0.00 0.00 0.00 0.00 0%

Output III total 115,000.00 0.00 0.00 0.00 0.00 0.00 0%Programme management

4.1 Personnel salary # of employees PD 100 759,000.00 257,299.24 403,005.64 0.00 0.00 660,304.88 87%4.2 Employer cost # of employees PD 100 89,700.00 28,302.92 44,330.63 0.00 0.00 72,633.55 81%

4.3 Programme consumable # of consumable purchased PD 100 61,640.00 37,544.02 13,879.50 0.00 0.00 51,423.52 83%

4.4 Office rent/maintenance # of office rented PD 300 115,000.00 0.00 0.00 0.00 0.00 0.00 0%4.5 Travel and perdiem # of days PD 20 46,000.00 33,546.00 12,359.13 0.00 0.00 45,905.13 100%4.6 Contractual labour # of days PD 10 11,500.00 5,600.00 0.00 0.00 0.00 5,600.00 49%4.7 Meeting, workshops and reviews # of meetings PD,CTA 3 23,000.00 400.00 30,322.09 0.00 0.00 30,722.09 134%4.8 publication # of publication PD,M&E 34,500.00 0.00 0.00 0.00 0.00 0.00 0%4.9 Financial management PD,Chief .A 100 11,500.00 7,605.38 0.00 0.00 0.00 7,605.38 66%4.1 Conduct M&E activities # of reports PD,CTA,M&E 2 11,500.00 0.00 0.00 0.00 0.00 0.00 0%

Output IV total 1,163,340.00 370,297.56 503,896.99 0.00 0.00 874,194.55 75%TOTAL 4,245,340.00 370,297.56 552,614.93 571,102.44 654,575.87 2,148,590.80 51%

Activity Code Activity Unit Responsible

bodyInception

period Inception period

budget


Annex 4.c. Ongoing activities from AgroBIG Phase I (BoFEC channel)

No Implement agencyRemaining balance from phase one

Expenditures Total Utilized Not Settled

Q 1 Q 2 Q 3 Q 41 Bureau of Agriculture 5,142,018.45 2,282,844.90 0 1,621,924.56 3,904,769.46 1,237,248.992 Fogera woreda 1,733,371.20 0 0 0 0 1,733,371.203 AARI 1,233.41 1,233.41 0 0 1,233.41 04 Bureau of Trade 38.52 0 0 0 0 38.52

Total 6,876,661.58 0 2,284,078.31 0 1,621,924.56 3,906,002.87 2,970,658.71

SUMMARY of AgroBIG Budget, BoCEC channel, utilization in 2017/2018 budget year ending June 30,2010 E.CS.no Programme phase Allocated Budget Utilized in Birr Total Utilized Utilized %

Q 1 Q 2 Q 3 Q 41 Agro-Big Phase One commitments 6,876,661.58 0 2,284,078.31 0.00 1,621,924.56 3,906,002.87 57%2 Inception period 4,245,340.00 370,297.56 552,614.93 571,102.44 654,575.87 2,148,590.80 51%3 Agro-Big II, Implementation phase (Jan-Jun 2018) 25,203,552.00 787,621.44 17,366,070.82 18,153,692.26 72%

Total 36,325,553.58 370,297.56 2,836,693.24 1,358,723.88 19,642,571.25 24,208,285.93 67%



Utilization of MFA funds for AgroBIG implementation during Phase II (2017-2021), ETB

BUDGET 2017-

2021Used during

Q1Used during

Q2Used during

Q3Used during

Q4TOTAL

2017/2018

Output 1: VC Actors' access to finance and financial services is impro EUR ETB ETB ETB ETB ETB1.1 Provide grants for VC actors through the Grant Fund 1,500,000 0.00 0.00 0.00 0.00 0.001.2 Support learning and new approaches (Value Chain Facility) 325,000 0.00 0.00 0.00 2,359,489.00 2,359,489.001.3 Provide funds to the Women and youth groups through SACCOs (Wome 800,000 0.00 0.00 0.00 5,900,000.00 5,900,000.001.4 Provide funds for cooperatives through COSACUs (Cooperative Loan Fu 900,000 0.00 0.00 0.00 5,900,000.00 5,900,000.001.5 Grant and loan fund management 70,000 0.00 0.00 0.00 556,018.51 556,018.511.6 Phase I commitments for construction and equipment 200,000 0.00 48,717.94 34,511.00 373,011.50 456,240.44

Sub-total 3,795,000 0.00 48,717.94 34,511.00 15,088,519.01 15,171,747.95Output 2: Capacities of VC actors are strengthened to improve their capability to seize market opportunities in a profitable and sustainable way2.1 Facilitate business and market linkages, investment and public-private d 121,500 0.00 0.00 362,114.60 860,299.46 1,222,414.062.2 Improve business and farm management skills and service delivery for V 597,000 0.00 0.00 174,476.84 635,980.55 810,457.392.3 Form, train and mentor women/youth groups in agriculture-related inco 195,500 0.00 0.00 0.00 673,673.88 673,673.882.4 Provide technical support to cooperatives to improve member services 233,500 0.00 0.00 0.00 0.00 0.00

Sub-total 1,147,500 0.00 0.00 536,591.44 2,169,953.89 2,706,545.33Programme ManagementPSU operational costs /BoFEC (ref. SVB #9) 457,420 370,297.56 503,896.99 787,621.44 762,173.79 2,423,989.78

TOTAL 5,399,920 370,297.56 552,614.93 1,358,723.88 18,020,646.69 20,302,283.06

SUMMARY of AgroBIG II budget utilization (MFA contribution), EUR or EUR equivalent (exch.rate 30ETB/EUR)

PROGRAMME BUDGET TOTAL EUR

(MFA)Used during

Q1Used during

Q2Used during

Q3Used during

Q4

TOTAL used 2017/2018,

EUR equival.

% of total budget used

OVERALL BALANCE

EUR equival.TA total, fees & reimbursable costs (ref. SVB #9); EUR 3,049,400 52,187 139,321 152,875 179,168 523,551 17.2% 2,525,849PSU operational costs (via TA cons) (ref. SVB #9)); EUR 757,230 6,466 33,590 29,841 33,769 103,666 13.7% 653,564Implementation budget; Approximated EUR value 5,399,920 12,343 18,420 45,291 600,688 676,743 12.5% 4,723,177Contingency (ref. SVB #9) 193,000 0 0.0% 193,000GRAND TOTAL of MFA contribution, EUR or EUR equivalent 9,399,550 70,996 191,331 228,007 813,625 1,303,960 13.9% 8,095,590

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