The long-standing partnership between the Government of Ethiopia and the International Fund for Agricultural Development (IFAD) – the UN agency specialized in rural development – has proved to be effective in terms of project performance over the last six years, an independent evaluation revealed at a national workshop held in Addis Ababa today.

According to the Independent Office of Evaluation (IOE), IFAD’s investments in the Pastoral Community Development Project have contributed to increasing incomes that smallholders generated from using small-scale irrigation systems, bringing the average income from ETB 3,000 (US$143) to almost ETB 9,000 (US$430) per year. The report also highlights that, on average, pastoralists who took loans from a rural savings and credit cooperative for the first time earned ETB 2,477 (US$118) more than those who did not, while those who received more than one loan generated an additional ETB 4,000 (US$190).

The Ethiopia programme is currently IFAD’s largest in Africa. Since 1980, the Fund has provided US$473 million to finance 17 projects with a total cost of more than US$1.2 billion. IFAD has also provided US$28 million in debt relief under the Highly Indebted Poor Countries initiative and is considering the Government’s request of an additional loan of US$100 million even if it would fall outside of IFAD’s traditional country allocation system and terms and conditions for its resources.

Over the last few years, IFAD has been one of Ethiopia’s major development partners in areas such as small-scale irrigation, rural finance, natural resources management and support to the development of pastoral communities. The evaluation report found that the comprehensive portfolio of projects is likely to meet its development objectives.

“I am confident the portfolio of joint IFAD-Government supported projects will contribute greatly to reducing rural poverty in Ethiopia through increased food security, enhanced human and social capital and increased household income and assets,” said Sana F. K. Jatta, IFAD’s Director of the East and Southern Africa Division.

Although much has been achieved, the evaluation also highlighted several areas for improvement. The report found the country programme to be spread too thinly over many thematic areas, and recommended focusing in those areas where IFAD has a comparative advantage, such as small-scale irrigation, rural finance and pastoral community development. According to the report, IFAD should not be engaging in activities where it does not have a leadership position, as this would divert focus of projects and disperse its limited resources. Moreover, the report said that future projects financed by IFAD should be conceived as a part of medium and long-term programmes, an approach that would allow the Fund supporting consecutive phases of its projects with a much more strategic perspective.

According to evaluation report, the programme should also better show evidence of the outcomes and impact it has on the lives of poor rural smallholder farmers. Except, to some extent, for the Pastoral Community Development Project, none of the projects succeeded in putting in place monitoring & evaluation mechanisms that allow a periodic assessment of project results.

Oscar A. Garcia, IOE Director, said: “IFAD should to mainstream climate change and sustainable land, water and natural resource management in the next phases of the projects it supports. In addition, the next country programme should adopt a narrower focus, which would enable IFAD to better carry out its knowledge management activities and improve its dialogue with the Government and development partners.”

Among the recommendations, the evaluation also pointed out how the Fund could have better benefitted from the good relationship it enjoys with the Government to improve policy dialogue, based on lesson learned from IFAD-financed operations.

The full evaluation report is expected to be released in January 2016.

Press release No.: IFAD/75/2015

The International Fund for Agricultural Development (IFAD) invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided nearly US$17 billion in grants and low-interest loans to projects that have reached about 453 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN's food and agriculture hub.

The Independent Office of Evaluation (IOE). IOE conducts evaluations of IFAD-financed policies, strategies and operations to promote accountability and learning. The main purpose is to contribute to improving IFAD's and its partners' performance in reducing rural poverty in recipient countries. IOE's independent evaluations assess the impact of IFAD-funded activities and give an analysis of successes and shortcomings – to tell it the way it is – as well as identify factors affecting performance. Based on the key insights and recommendations drawn from evaluation findings, IOE also communicates and shares IFAD’s knowledge and experience in agriculture and rural development with a wider audience.