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GRAD:
Graduation with Resilience to Achieve Sustainable
                 Development
    Helping the poor in rural Ethiopia graduate from Productive Safety Net Program



  Enhanced Livelihood Options of Chronically
    Food Insecure Households in Highland
                   Areas
             14 November 2012

                                                      By: Nicholas Nyathi (SNV-
                                                      CCU)
Moving to food sufficiency and food
             security
• HHs able to earn income to meet their daily
  needs
• HHs organized and strengthened to exploit
  available opportunities
• Input and Output market infrastructure built
• Barriers to financial markets reduced-gender
• Demand and market oriented extension
  services strengthened

                                        GRAD
Goal and Objectives

                                                   GOAL
                                            Assets increased,
                                            HH income raised
                                            by $365/yr.                                   Graduate 50K
                                                                                          PSNP HHs from
                                            Resiliency enhanced
                                                                                          16 Woredas, 4
Work with 65K PSNP                                                                        Regions
HHs & 10K Model                                   Objectives/
Farmers                                            Results


    Enhance                                 Improve Household                          Strengthen
    Livelihood                              and Community                              Enabling
    Options for CFI                         Resilience                                 Environment to
    Households in                                                                      Promote Scale
    Highland Areas                          1. Women’s resilience and access to        and Sustainability
                                               inputs, services and information
                                               increased
 1. On- and off-farm economic                                                         1. Collaboration among
                                            2. Nutritional status of infants,
    opportunities, inclusive value chains                                                stakeholders consolidated
                                               children and reproductive age
    and market access stimulated                                                         to promote joint learning
                                               women improved
 2. An inclusive financial sector                                                        and scale up
                                            3. Climate change adaptation improved
    promoted and access to a range of                                                 2. Enabling environment
                                            4. Aspirations for graduation promoted,
    financial products and services                                                      improved
                                               and enablers of graduation
    expanded                                                                          3. Evaluation, learning and
                                               enhanced
 3. Extension services upgraded                                                          sharing
                                                                                                      GRAD
GRAD Causal Model




                    GRAD
GRAD VCD Push and Pull Approach


                          Reliable Outlets
External                  Market Intelligence
Environmental             Embedded Services
Factors                                                    Opportunities
                                                           Market Intelligence
                      I           F       C        P          R       C



                                   Sector Interventions
                                   Service Provision
                                   Multi Actor Processes


 ‘PUSH’-strategies:                                           ‘PULL’-strategies:
 Facilitate access to finance,                                Market intelligence/information
 technology, assets.                                          Direct Business Support
                                                              Private sector engagement
 Provide capacity building                                    Business2Business
                                                              Market linkages
 Extension services                                           Promotion of pre and post
                                                              harvest technologiesGRAD
Push and Pull strategies
    Push                                  Pull
•    Increase access to productive        •   Facilitate linkages between the
     assets,                                  producers and private sector,
•    increase production,                 •   Facilitate private sector to provide
                                              embedded services, e.g.
•    improve productivity and quality,        appropriate technologies, market
•    Assist beneficiaries to aggregate        information and technical services
•    Facilitate access to financial       •   Promote transparency and
     products and services through            standardization in transactions
                                              (contractual agreements),
     VSLA and MFIs,
                                          •   Promoting dialogue among
•    Strengthen the farmers’ value            stakeholders with private sector
     positioning by improving farmer          involvement being the catalytic
     competitiveness,                         factor,
•    Facilitate farmers organisation to   •   Build mutual relationships based on
                                              Trust
     form functional marketing groups
                                          •   Enhancing technical skills and
•    Facilitate technical training            knowledge of both demand and
                                              supply side of market edge
                                                                       GRAD
GRAD Pull/Push Services Delivered
   Food secure      •Organize into Marketing Cooperatives
   (6,000 HHS)      •Training on product quality and market requirements
(Deepen resiliency) •Linkage with formal financial service providers
                      •Market linkage with high value markets

 Food Sufficient      •Transition PMAs to marketing cooperatives or SMEs, diversify income
  (4,000 HHS)         •Linkage with formal financial service providers for savings, bigger loan and insurance
  (Accumulate         •Linkage with private sector to provide embedded services
 assets, manage       • Access to market information
  risks better)       •Support groups to engage in value addition business
                      •Strengthen extension services

Chronically Food      •Technical training on production to increase productivity
 Insecure             •Support on- and off-farm enterprise selection
  ( 58,500HHs)        •Access to loan to engage in VC through MFIs and RUSACCOs ( individually/ group)
   (Increase          •Training on Business skill and business planning
    Income)           •Linkage with input suppliers
                      •Access to technology and inputs
                      •Strengthen/establish PMAs linkage with private sector to provide embedded services
                      •Access to market information
                      •Strengthen extension services
                      •Awareness raising on gender, nutrition , climate change and graduation

    Ultra Poor        •Training on simple business skill and financial literacy
   (6,500 HHS)        •Group formation/ strengthening
(Provide productive
 skills and assets)
                      •Promote saving and internal lending
                      •Asset transfer                                                          GRAD
Economic Opportunities
•   Value Chain
    selection
•   VC analysis
•   VC validation
•   MSP
•   CBA and
    Investment plans

•   Private sector
    involvement
                         GRAD
Decision Matrix – Multiple criteria
Criteria                        Weight Commodity X     Commodity Y     Commodity Z
                                       Score   Total   Score   Total   Score   Total
                                               value           Value           value
Economic
    Market Demand Potential
    Value Addition Potential
    Potential for improved
    productivity and quality
Mandatory
    Potential to involve more
    SHF
    Contribution to Gender
    Equality
Strategic
    Dynamism of chain actors

    Potential for scale-up
Total
Score 1-10                                                                GRAD
Farmers collectives




                      GRAD
Designing and facilitating MSPs




                                  GRAD
Basic collaboration conditions
Theoretical Model
.   MSP                                             VCD



    Involvement                                  Access to capital


                                                Access to inputs

    Collaborative                               Access to technology
    Variables          B2B

                                                Access to markets
                        Knowledge Development
                        Knowledge Development




    Embeddednes
    s                                            Access to information




            CONTEXT


                                                                         GRAD
Value Chain Intervention Areas

Honey value chain:    Livestock    small Haricot beans         Horticulture
                      ruminants
1. Colony             1. Feed              1. Seed             1. Seed
   multiplication,       technologies         multiplication      multiplication
2. Bee forage         2. Quality           2. New trading      2. Pre and
3. Appropriate           improvement          system, ECX         postharvest
   technology such    3. Market linkages   3. Quality and         technologies
   as transitional    4. Producer             grading          3. Producer group
   bee hives             groups            4. Producer group      strengthening
4. Wax                   strengthening        strengthening    4. Local actors
5. Adulteration and                        5. Pre and             coordination
   crop chemical                              postharvest
   use                                        technologies
6. Market linkages
7. Producer
   groups
   strengthening
Development     Implementati          Monitoring
Sustainability                              Process         on                    and
                                                                                  Evaluation
       MSP Facilitators                      Define roles                          Define
                                                                                   impact
                                               Vision                             indicator
                                                               Outputs
                                                                                      s

                                            MSP 2

                                                               Outputs
                          VC Stakeholders




                                                                                   Outputs
                                             MSP3
                                                                   Outcomes
Time




                                             MSP 4
                                                              Outputs             Outcomes
                                             MSP 5
                                                                    Outcomes




                                                                         Impact     Impact


                                                                                          GRAD
PSNP plus/GRAD Results
 Increased participation in value chain and sector
  meetings at national, regional and district levels.
 Improved identification of bottlenecks and
  requirements for the development of the value chains
 Improved awareness of issues for development
 Improved coordination of VC activities
 Improved information sharing and collective learning
 Improved efficiency and competitiveness in different
  value chains segments and functions
 Improved local and national advocacy and lobby for
  effective policies for economic inclusion
 Improved service provision both public and private
 Improved ownership of VCD process by local
  stakeholders
                                               GRAD
Challenges
•   Sustainability
•   Consistent representation
•   Balancing self interests
•   Strong private sector participation




                                          GRAD
THANK YOU




            GRAD

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Multi-Stakeholder Platforms and Private Sector Engagement in Ethiopia

  • 1. GRAD: Graduation with Resilience to Achieve Sustainable Development Helping the poor in rural Ethiopia graduate from Productive Safety Net Program Enhanced Livelihood Options of Chronically Food Insecure Households in Highland Areas 14 November 2012 By: Nicholas Nyathi (SNV- CCU)
  • 2. Moving to food sufficiency and food security • HHs able to earn income to meet their daily needs • HHs organized and strengthened to exploit available opportunities • Input and Output market infrastructure built • Barriers to financial markets reduced-gender • Demand and market oriented extension services strengthened GRAD
  • 3. Goal and Objectives GOAL Assets increased, HH income raised by $365/yr. Graduate 50K PSNP HHs from Resiliency enhanced 16 Woredas, 4 Work with 65K PSNP Regions HHs & 10K Model Objectives/ Farmers Results Enhance Improve Household Strengthen Livelihood and Community Enabling Options for CFI Resilience Environment to Households in Promote Scale Highland Areas 1. Women’s resilience and access to and Sustainability inputs, services and information increased 1. On- and off-farm economic 1. Collaboration among 2. Nutritional status of infants, opportunities, inclusive value chains stakeholders consolidated children and reproductive age and market access stimulated to promote joint learning women improved 2. An inclusive financial sector and scale up 3. Climate change adaptation improved promoted and access to a range of 2. Enabling environment 4. Aspirations for graduation promoted, financial products and services improved and enablers of graduation expanded 3. Evaluation, learning and enhanced 3. Extension services upgraded sharing GRAD
  • 5. GRAD VCD Push and Pull Approach Reliable Outlets External Market Intelligence Environmental Embedded Services Factors Opportunities Market Intelligence I F C P R C Sector Interventions Service Provision Multi Actor Processes ‘PUSH’-strategies: ‘PULL’-strategies: Facilitate access to finance, Market intelligence/information technology, assets. Direct Business Support Private sector engagement Provide capacity building Business2Business Market linkages Extension services Promotion of pre and post harvest technologiesGRAD
  • 6. Push and Pull strategies Push Pull • Increase access to productive • Facilitate linkages between the assets, producers and private sector, • increase production, • Facilitate private sector to provide embedded services, e.g. • improve productivity and quality, appropriate technologies, market • Assist beneficiaries to aggregate information and technical services • Facilitate access to financial • Promote transparency and products and services through standardization in transactions (contractual agreements), VSLA and MFIs, • Promoting dialogue among • Strengthen the farmers’ value stakeholders with private sector positioning by improving farmer involvement being the catalytic competitiveness, factor, • Facilitate farmers organisation to • Build mutual relationships based on Trust form functional marketing groups • Enhancing technical skills and • Facilitate technical training knowledge of both demand and supply side of market edge GRAD
  • 7. GRAD Pull/Push Services Delivered Food secure •Organize into Marketing Cooperatives (6,000 HHS) •Training on product quality and market requirements (Deepen resiliency) •Linkage with formal financial service providers •Market linkage with high value markets Food Sufficient •Transition PMAs to marketing cooperatives or SMEs, diversify income (4,000 HHS) •Linkage with formal financial service providers for savings, bigger loan and insurance (Accumulate •Linkage with private sector to provide embedded services assets, manage • Access to market information risks better) •Support groups to engage in value addition business •Strengthen extension services Chronically Food •Technical training on production to increase productivity Insecure •Support on- and off-farm enterprise selection ( 58,500HHs) •Access to loan to engage in VC through MFIs and RUSACCOs ( individually/ group) (Increase •Training on Business skill and business planning Income) •Linkage with input suppliers •Access to technology and inputs •Strengthen/establish PMAs linkage with private sector to provide embedded services •Access to market information •Strengthen extension services •Awareness raising on gender, nutrition , climate change and graduation Ultra Poor •Training on simple business skill and financial literacy (6,500 HHS) •Group formation/ strengthening (Provide productive skills and assets) •Promote saving and internal lending •Asset transfer GRAD
  • 8. Economic Opportunities • Value Chain selection • VC analysis • VC validation • MSP • CBA and Investment plans • Private sector involvement GRAD
  • 9. Decision Matrix – Multiple criteria Criteria Weight Commodity X Commodity Y Commodity Z Score Total Score Total Score Total value Value value Economic Market Demand Potential Value Addition Potential Potential for improved productivity and quality Mandatory Potential to involve more SHF Contribution to Gender Equality Strategic Dynamism of chain actors Potential for scale-up Total Score 1-10 GRAD
  • 13. Theoretical Model . MSP VCD Involvement Access to capital Access to inputs Collaborative Access to technology Variables B2B Access to markets Knowledge Development Knowledge Development Embeddednes s Access to information CONTEXT GRAD
  • 14. Value Chain Intervention Areas Honey value chain: Livestock small Haricot beans Horticulture ruminants 1. Colony 1. Feed 1. Seed 1. Seed multiplication, technologies multiplication multiplication 2. Bee forage 2. Quality 2. New trading 2. Pre and 3. Appropriate improvement system, ECX postharvest technology such 3. Market linkages 3. Quality and technologies as transitional 4. Producer grading 3. Producer group bee hives groups 4. Producer group strengthening 4. Wax strengthening strengthening 4. Local actors 5. Adulteration and 5. Pre and coordination crop chemical postharvest use technologies 6. Market linkages 7. Producer groups strengthening
  • 15. Development Implementati Monitoring Sustainability Process on and Evaluation MSP Facilitators Define roles Define impact Vision indicator Outputs s MSP 2 Outputs VC Stakeholders Outputs MSP3 Outcomes Time MSP 4 Outputs Outcomes MSP 5 Outcomes Impact Impact GRAD
  • 16. PSNP plus/GRAD Results  Increased participation in value chain and sector meetings at national, regional and district levels.  Improved identification of bottlenecks and requirements for the development of the value chains  Improved awareness of issues for development  Improved coordination of VC activities  Improved information sharing and collective learning  Improved efficiency and competitiveness in different value chains segments and functions  Improved local and national advocacy and lobby for effective policies for economic inclusion  Improved service provision both public and private  Improved ownership of VCD process by local stakeholders GRAD
  • 17. Challenges • Sustainability • Consistent representation • Balancing self interests • Strong private sector participation GRAD
  • 18. THANK YOU GRAD

Editor's Notes

  1. 11/14/12 Value Chain Analysis & Development - SNV Ethiopia