International Development Grant

Smallholder Farmers Prosperity Initiative

Project Number: CA-3-S064703001

Status: Closed

Country/Region:

Ethiopia 97.00%
Canada 3.00%

Maximum Contribution: $459,167.00

Start Date: August 13, 2009

End Date: March 15, 2012

Duration: 2.6 years

Project Description

This project seeks to increase the incomes of 1 000 marginal smallholder farmers by an average of $200 a year. It promotes the diversification of crop production to include high-value vegetables as a second crop. It uses effective and affordable micro-irrigation technology such as simple treadle pumps and drip irrigation kits coupled with skilled use of fertilizers and proven seed stocks. The project aims to put in place a sustainable commercial supply of affordable micro-irrigation equipment to train farmers in the new methodology and to provide them with access to microloans to initiate the diversification of their agricultural production. It also aims to strengthen existing marketing cooperatives and to establish new marketing cooperatives and collection centres. The project is located in the Bacho district south-west of Addis Ababa. Lessons learned from a larger adjacent project are used in the planning of this new project.

Progress & Results Achieved

Results as of the end of the project include: 659 smallholder farmers purchased micro-irrigation equipment and were able to increase the value of their production by 35% and their average gross revenues by 39% compared to farmers who did not purchase the equipment. The following elements were critical components to achieve this: i) An affordable well-digging service has been established. Eight well-digging crews have been trained with two crews having successfully started a business providing this service. 222 wells are in operation so far and the new well-digging technique introduced significantly reduces the cost of accessing water. ii) Two manufacturers of rope and washer pumps are in operation as well as a suction-only treadle pump manufacturer. Village mechanics are earning additional income installing the pumps. Warehousing has been established for the parts required to manufacture the pumps. This reduces volatility in the cost of parts for the manufacturers which in turn helps to stabilize the price of the pumps. iii) Microcredit services have been established and 369 customers have received loans. 258 customers (including 23 women) used their loan to purchase micro-irrigation equipment. The remainder of the customers used their loan to purchase other equipment or supplies. iv) 22 marketing groups have been created. This included establishing bylaws and financial management processes as well as training in crop storage leadership business planning initiating a savings culture improving crop quality and volume and the collection and dissemination of market information. v) Two collection centers have been constructed to support the consolidation of crops in order to capture higher prices from the markets. Direct links have been initiated between hotels and retailers as markets and pepper garlic cabbage potato and onion producers. vi) Advisory and community education services were provided to farmers who purchased micro-irrigation equip

Key Information

Executing Agency:
IDE Canada

Reporting Organization:
Global Affairs Canada

Program:
YFMInternaAssistPartnershp&Programing Br

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Water resources conservation (including data collection) 10%
Agricultural inputs 20%
Food crop production 20%
Agricultural extension 10%
Agricultural education/training 15%
Agricultural research 5%
Agricultural financial services 7%
Agricultural co-operatives 10%
Promotion of development awareness 3%

Aid Type: Project-type interventions

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Policy Markers
Level 1 Environmental sustainability (cross-cutting)
Budget Breakdown
2009-04-01 to 2010-03-31 $459,167 CAD
Geographic Information
799";Budget Type:Original;Start Date:2010-04-01;End Date:2011-03-31;Value Date:2009-08-13;Value:"$249
Reference ID: 799