Ethiopia Food Systems Resilience Project

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The proposed project supports the GoE’s vision for structural transformation of the national economy. It helps the GoE implementnew directions on agricultural development as expressed in the revised Agriculture and Rural Development Policy. The policy isaimed at (i) strengthening rural livelihoods through increasing rural incomes, ensuring food security, promoting improved nutritionand generating productive employment opportunities beyond agriculture; and (ii) transforming agriculture through accelerated growthwith sustainable use of natural resources and strong linkages with the rest of the economy.The IADP is intended to integrate thestrengthening of key agricultural value chains ensuring their competitiveness and resilience, with environmentally sustainableapproaches and enhanced rural livelihoods across diverse population groups focusing on both high performing producers andagricultural service providers as well as more vulnerable groups including women, youth and low-income households. IADP includesfour inter-related components with interventions that will lead to the above results. The components are as follows: Component 1:Transforming Agricultural Services, Technology, and Research Systems that promote the adoption of improved agricultural practices,key to the competitiveness and resilience of supply chains through farmer-led actions. The component will focus on the entireecosystem of agricultural services, technology, and research to enable the adoption of improved and sustainable agriculturalpractices on farm and across the supply chain. It would strengthen the public and private delivery of extension services, build anew generation of extension agency by overhauling the Agricultural Technical Vocational Education and Training (ATVET) system,support plant protection and animal heath, strengthen regulatory services and support the commercialization of agriculturalresearch systems. Activities under this component will focus on (a) Promoting efficiency, outreach and efficacy in agriculturalservices through strengthening agricultural extension services, supporting agricultural training services, supporting plantprotection and animal health services and supporting public agricultural regulatory services; (b) Commercialized agriculturaltechnology generation and research system that contribute to increased productivity of crop and livestock production and improvedmanagement of natural resources. IADP will ensure a more market-oriented research system. Proposed interventions include directsupport to agricultural research activities within both public and private institutions, capacity building including inter aliapromoting and institutionalizing strong PPP, support to source technology production (breeder seed, breed, feed seed, prototype,tissue culture, micro-organisms), and promotion of mechanized agriculture technologies. IADP will also support participatoryresearch programs as well as pre-extension demonstration to enhance farmer-extension-research linkages.Component 2: ResilientRural Infrastructure Development that aimed at to address vulnerability of rural population to climate and market risks and buildresilience through supporting the development of irrigation and water harvesting infrastructure, market infrastructure development,invest in last mile physical connectivity through bridges and connecting roads for irrigated command areas, support supply chaininfrastructure, and finance institutional and governance mechanisms for management of rural infrastructure. To this end, thiscomponent will involve in (a) the development of small-scale and household irrigation infrastructures through rehabilitation of theexisting small-scale irrigation (SSI) and construction of new irrigation schemes, (b) enhance water management and infrastructuregovernance through supporting the establishment of Irrigation Water Users’ Associations (IWUAs) and targeted capacity building toenable them become effective organizations, capable of managing the irrigation systems, strengthen public sector capacity forregulating the development of water resources (SSI and House-Hold Irrigation (HHI)) and support governance mechanisms for marketinfrastructure development and management; and (c) finance market and other rural infrastructure including marketcenter/infrastructure (public investment, private/joint management), cold chain infrastructure, collection centers, warehouses,silos, etc., which shall be led by the private sector through PPP arrangements. It will also support rural bridges for last mileconnectivity, and electronic marketing infrastructure.Component 3: Market and Enterprise Development aimed at to improving thecompetitiveness of strategic agricultural value chains in Ethiopia through building well-functioning agricultural markets (input,output, financial) and increases the engagement of farmers with such markets. It will support expansion of private sectorparticipation in the agri-food system, promote rural entrepreneurship (and thus create better rural non-farm job opportunities),support innovation, and help link farmers with markets. Thus, this component will provide support to ensure (a) improved marketservices, (b) enterprise development, (c) market linkages, and (d) strengthening producer groups through provision of matchinggrants, along with training and business advisory services to Common Interest Groups and commercialization of producer cooperativesand unions. Component 4: Enabling Environment for Agriculture and Program Implementation - Given that the IADP is intended as akey financing and implementation vehicle for the Government‘s new Agriculture and Rural Development Policy, this component providessupport to the implementation and monitoring of the Policy. It will support program management and ensure that the Program’sperformance and impact are carefully tracked for informed decision for better program management and result. The componentwill support for agriculture and rural development policy reforms, through three main activities, such as (1) Support for policyand regulatory changes. (2) Design and piloting of interventions around new approaches introduced by the revised Policy, and (3)Strengthen oversight mechanisms, particularly sectoral monitoring and evaluation (M&E) Systems; as well as program management,capacity building, learning and evaluation. The component will also host the Program‘s contingency emergency response resources toaccommodate unforeseen eligible emergencies following an adverse natural event that results in a major natural disaster. Shouldthis component be triggered, all expenditures would be made in accordance with the Bank Policy on Investment Project Financing(O.P. 10) and would be reviewed and accepted by the Bank before any disbursement is made.