International Development Grant

Engaging the Private Sector to Support Smallholder Farmers

Project Number: CA-3-A035466001

Status: Closed

Country/Region:

Ethiopia 100.00%

Maximum Contribution: $10,000,000.00

Start Date: March 27, 2013

End Date: February 28, 2017

Duration: 3.9 years

Project Description

This project aims to increase private sector engagement with smallholder farmers and improve smallholder farmers' access to markets in Ethiopia. The project benefits up to 1.7 million female and male smallholder farmers in the 217 proposed project districts. The project seeks to ensure that these farmers are able to earn enough to feed their families year round. The project directly supports the objectives of the G-8 New Alliance for Food Security and Nutrition agreed to by G-8 donors in May 2012. The Alliance is a shared commitment to ensure that 50 million people around the world are able to lift themselves out of poverty in the next ten years and have access to safe nutritious and sufficient food.

Expected Results

Expected results include: (1) increased private sector investment in smallholder agriculture in 217 targeted districts (out of 631) in four regions of Ethiopia; and (2) strengthened linkages of smallholder farmers to input and output markets in 217 targeted districts (out of 631) in four regions of Ethiopia.

Progress & Results Achieved

Results achieved as of March 2016 include: (1) a national seed sector strategy as well as a regulatory system to assess the quality of seeds including community based seeds have been developed; (2) approximately 5 600 model farmers and 300 government officials have received training on the basics of seed production and marketing; (3) value chain analyses and investment case assessments have been conducted to identify high-value investment opportunities and the following eight specific investment opportunities have been identified: beef milk vertically integrated poultry processing plant soybean processing facility for animal feed and consumer products tomato paste processing factory tropical juice processing factory packaging and export of fresh cut vegetables and durum wheat processing for biscuits snacks and pasta; (4) a five-year Cooperative Sector Development Strategy has been developed which focuses on comprehensive capacity building of farmer's cooperative unions and primary cooperatives which is currently supporting 34 cooperatives including four female led primary cooperatives; and (5) the project has also supported the development and rolling out of an input voucher system in the four main regions of the country to enable farmers to access agricultural inputs (seed fertilizer) through loan products with flexible terms and conditions adapted to the financial needs of rural households. These results have contributed to increasing private sector investment in smallholder agriculture and strengthening the linkages of smallholder farmers to input and output markets in targeted districts in Ethiopia.

Key Information

Executing Agency:
UNDP - United Nations Development Programme

Reporting Organization:
Global Affairs Canada

Program:
WGM Africa

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Agricultural policy and administrative management 25%
Agricultural services 25%
Agricultural financial services 25%
Agricultural co-operatives 25%

Aid Type: Contributions to specific-purpose programmes and funds managed by implementing partners

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Budget Breakdown
2012-04-01 to 2013-03-31 $10,000,000 CAD
Geographic Information
040
Project Number: CA-3-A035466001