This is the third country strategy and programme evaluation (CSPE) conducted by the Independent Office of Evaluation of IFAD (IOE) in the Federal Democratic Republic of Ethiopia. The CSPE covers the period 2015 to 2022.

The CSPE found that the Government showed strong commitment to and ownership of the IFAD-supported interventions. Such interventions closely aligned with the Government’s strategic priorities and appropriately targeted rural areas with significant livelihood vulnerabilities. The IFAD–Government partnership enabled achieving positive results in the areas of inclusive rural finance, community-driven social services, ecosystem and livelihood resilience, and addressing food insecurity.

Among the challenges, the evaluation found that the programme failed to apply a pro-poor value chain approach, which led to insufficient post-production support. Rural finance regulations to ensure fair and appropriate treatment of consumers were not fully implemented. Smaller microfinance institutions still faced difficulties in sustainably accessing credit lines. The scaling up of Islamic-friendly financial services was yet to be achieved. Grassroots organizations were not fully autonomous  in providing services to their members.

For the future, the CSPE recommends, among other things, deployment of a pro-poor value chain development approach in IFAD’s future interventions in Ethiopia. IFAD should also foster engagement of key national microfinance actors to identify innovative solutions that address the challenges identified. Additionally, the Fund should enhance support for the sustainability of grassroots organizations.