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EKN FOOD SECURITY LEARNING
EVENT
HOSTED
BY
ICCO COOPERATION
FOOD SECURITY AND RURAL ENTREPRENEURSHIP FUND (FSRE-FUND)
FSRE-Fund Management TeamDecember, 2015
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FOOD SECURITY AND RURAL ENTREPRENEURSHIP FUND (FSRE-FUND)
• The FSRE-Fund is financed by Dutch Embassy and it
supports agricultural innovations in Ethiopia
• The initiative emerged from the AgriProFocus Ethiopia
network around 2011, particularly from organizations
active in the Ethiopia Learning Alliance including
AgriProFocus, KIT and ICCO Cooperation.
• ICCO is managing the fund on behalf of APF
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Purpose
• The overall objective of FSRE-Fund is to enhance Food Security of the farming households and Rural entrepreneurship
• The progress in achieving this objective related to two main benchmarks:
• Increased Food Security;
• Increased investments, incomes/profits and
jobs.
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Purpose Continued
• It provides financial support for innovative agricultural projects that aim to improve the food security of farming families and enhance income, investment and jobs in smallholder farmers, POs, and SMEs linked to smallholder farmers
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Funding Windows
• The Fund provides grants through two windows of
funding; Innovation and Matching Grant Funds
Innovation Fund-
- Innovation Fund: supports innovations in agricultural production and value chains that put a new idea or technology into use.
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Innovation Fund
• The intervention is considered as innovation when it improves how things are done, is economically viable and is applied by a significant number of people/organizations
- A fund amount ranges from €30,000 up to
€100,000 per project for a year
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Matching Grants Fund • It is a complementary fund to the innovation fund
and it requires partners to provide a 50% proportion of own contribution
- Major differences between the two funding windows:
• Applicants are expected to contribute 50% of the proposed budget
• Admin costs are not considered
- A fund amount ranges between €20,000 up to
€40,000 per project for a year
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Value chains and geographic focus
• Wide range of commodities at start: silk, taro, apiculture, turmeric, dairy, coffee, aloe, animal fattening, etc.
• Focus on four value chains for all calls from call 3 onward; Poultry, Potatoes, Fruit &Vegetables, Aquaculture
• Open geographic focus
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Eligible applicants
Small and Medium Enterprises (SME’s),
Producer Organisations (POs),
Cooperatives,
NGOs (mainly involving in value chain development),
Research Organisations (e.g. Universities),
Chambers of Commerce
Business Associations and
MFIs.
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Achievements against targets
• Targets- 42 innovation fund projects - 48 Matching grant fund projects
• Actual - 39 Innovation fund projects - 24 matching grant fund projects
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Example of Funded Innovative Activities- Purchase of automatic Bees Wax
foundation sheet making machine- Purchase of hatchery and setter machine - Purchase of reeling, spinning and weaving
machines - Purchase of chickpea cleaning machine- Grain store construction - Misting system development for fruit
seedling production
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Funded Innovative Activities Continued - Spawn lab development- Purchase of Turmeric Polisher and grinder- Cold storage development - Purchase of chickpea cleaning machine - Fish fingerlings production - Aquaculture training center development - Potato seed production - Purchase of poultry feed processing
machine.
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Funded Innovative Activities Continued - Purchase of coffee pulping machine - Rhizobium application for chickpea
productivity enhancement - Out growers scheme development- Farmers training on agronomic practices
and marketing - Coops development, etc.
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Achievements Continued
• FSRE-Fund enabled winner innovators to
envision bigger
• It enabled the partners, especially SMEs to do
what they can’t do with their own saving
• It improved the way NGO partners look at
development interventions
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Achievements Continued
• Funded innovation and matching grant fund
projects have huge potential to contribute
for increased food production
• At least 35 of the funded projects have high
potential to enhance availability of nutritious
food
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Achievements Continued
• Funded projects created/will create about 2000 job
opportunities
• 6 private companies with a potential to export their
products are financed
• The funded projects are expected to improve the
food security status of at least 30,000 rural
households
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Achievements Continued
• Three of the FSRE-Fund supported private
companies are identified for ICCO
Cooperation Agri-business booster program
and they are expected to successfully
graduate for ICCO investment
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Major Lessons- Having thematic focus enhances visibility,
facilitates effective peer learning among innovators and enhances the chance to create linkages with other Dutch supported initiatives
- Proofing success of innovations takes longer time
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Major Challenges
• Long import process
• Difficulties for some innovators in getting access to power grid
• NGO partners have difficulties in creating access to effective market
• Most Private Sector partners have difficulties in mobilizing farmers and organizing out growers
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Major Challenges Continued
• Limited contributions of Matching Grant
Fund for scaling up and adoption of
innovations.
• The start-up of some innovations failed
because the invention was not properly
tested in field situations
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Major Challenges Continued
- Working on large number of value
chains hindered us from fully involving
sector specialist in the appraisal of applications
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Conclusions
• In spite of the challenges FSRE-Fund
progressed well towards its intended
objectives
• FSRE-Funded projects have huge
potential to yield great return on
investment
• FSRE Fund creates a dynamic and
entrepreneurial attitude among applicants
leading to more value for money.
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Conclusions continued
• We need to scale up successful
innovations for bigger impact
• Finding effective ways of creating
synergy between innovators
• There is a need to strengthening cross-
fertilizations with other Dutch
supported programs.
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Questions to Groups
1. We know that malnutrition has life-long detrimental impacts. What innovation topics or strategies do you recommend for innovation funding in the future which contribute to food and nutrition security?
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Questions to Groups Continued
2. FSRE-Fund supports innovation projects with potential for scaling up. How can we make sure that other actors will take up successful innovations?
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Questions to Groups Continued
3. We have learnt that non-for profit organizations are better in organizing farmers while for-profit organizations have difficulties in this. On the other hand for-profit organizations are good in creating market linkages which is not an easy task for NGOs. What strategies can help us for addressing these challenges?
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Questions to Groups Continued
4. How can we organize to share technicalexpertise? e.g. one expert coming for project x while project a, b and c could also use thisexpertise.
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