Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) Project Funded by the United States Agency for International Development

7th Quarterly Report Year 2 – Quarter 3 Reporting Period: April 1 through June 30, 2014

Submitted to: AOR: Mohamed Abdinoor, USAID/

Country Contact HQ contact Program Summary Karri Goeldner Byrne Nate Oetting Award No: AID-663-A-12-00014 Chief of Party Senior Program Officer Box 14319 Mercy Corps Start Date: October 15, 2012 Addis Ababa 45 SW Ankeny Ethiopia Portland, Oregon 97204 End Date: October 14, 2017

Phone:+251-(11) 416-9337 Total Award: $52,972,799 Fax: +251-(11)416-9571 503.896.5000 [email protected] [email protected] Report Date: July 31, 2014

1. EXECUTIVE SUMMARY

PRIME is a five-year, USAID-funded initiative designed to support resilience among pastoralist communities in Ethiopia, and thus enhance prospects for long-term development in Ethiopia‘s dryland landscape where the pastoralist livelihood system prevails. Financed through Feed the Future (FTF) and Global Climate Change (GCC) facilities, PRIME is designed to be transformative, innovative and achieve scale through market-driven approaches to livestock production and livelihood diversification that simultaneously support dryland communities to adapt to a changing climate. In order to achieve its overall goal of Increasing Household Incomes and Enhancing Resilience to Climate Change through Market Linkages, the program works to meet the following five major objectives (intermediate results):

1) Improved productivity and competitiveness of livestock and livestock products; 2) Enhanced pastoralists‘ adaptation to climate change; 3) Strengthened alternative livelihoods for households transitioning out of pastoralism; 4) Ensure enhanced innovation, learning and knowledge management; and 5) Improved nutritional status of targeted households improved through targeted, sustained and evidence- based interventions.

This report summarizes the key activities implemented, and the associated accomplishments for PRIME over the period of April 1 to June 30, 2014, which is the seventh quarter (third quarter, second year) of program implementation. The following is a brief summary of the key highlights and achievements by the project‘s objectives:

1. Improved productivity and competitiveness of livestock and livestock products:

As part of IR1‘s work to increase productivity in livestock market systems, several business expansion grant recipients have been identified through competitive processes. Milk collector businesses (Southern cluster), Private Vet Pharmacies (Eastern and Southern clusters), milk aggregators (Southern cluster), local traders (Southern cluster) and milk collection centers (Eastern cluster) have all been selected for these grants and during Q8 will implement their expansions.

The livestock productivity team also supported the African Livestock Exhibition and conference, where 385 delegates attended to discuss livestock production and marketing topics in Ethiopia. During the zonal livestock fair in Afar cluster, 24 exhibitors participated and sold over 85000 ETB of solar products, agricultural inputs (seed), feed, and storage bags.

The IR1 team also organized, along with government agencies, a workshop on the livestock diesease surveillance and reporting system, while also working with LCRDB in 3 woredas of Eastern cluster in a parasite control campaign for small ruminants. In addition, the IBLI products designed with Oromiya Insurance Company have increased in sales to 403 policies with premiums of over 200,000 ETB and 2.4 million ETB ($122,256) of insured assets. PRIME has used cooperatives as intermediaries to offer these products.

The National Livestock Market Information System (NLMIS) will be implemented and run by the federal MoT and respective regional agricultural marketing agencies and bureaus with relevant technical and financial support from Mercy Corps under USAID-PRIME Project, Texas A&M University, USAID-LMD

2 and FAO. The Ministry of Trade, PRIME and LMD have signed the memorandum of understanding (MOU) outlining each collaborator‘s responsibility. The main activities as mentioned in the MoU will commence in the coming quarter.

2. Natural resource management and climate change adaptation: To improve science and information for decision-making, CARE signed a MoU with the National Meteorological Agency to support and upgrade agency‘s equipment and data collection methods in pastoralist areas. Moreover, CARE and Haramaya University designed a user-based survey to examine perception of current meteorological services and their information needs – results for which will be shared during Q8. Meanwhile, eight additional dialogues with communities to raise awareness of forecasting tools and their use in decision making took place in the 3 clusters with participation from traditional weather forecasters, clan leaders, youth and women representatives, as well as meteorologists and government representatives. Based on field verification exercises, a final version of seven rangeland system maps in Borena and Guji have been released during the quarter, and will be used by other USG-funded projects working on land tenure.

PRIME continued its partnership with the USFS to support remote sensing analysis of PRIME rangeland systems. A four-member USFS team visited Ethiopia to present the results of their land use/land cover analysis in four pilot PRIME areas, demonstrating the expansion of farmlands on or next to grasslands.

To increase capacity for effective governance for climate resilience, PRIME continued its partnership with LAND project, supporting the formation of the Zonal Oromiya Pastoral Advisory Committee, and providing inputs to LAND‘s impact evaluation. PRIME has also establihed a partnership with the Pastoral Directorate of the State Ministry of Livestock to coordinate a learning and harmonization platform for natural resource management in pastoral areas, providing a space for development practictioners and researchers to share best practices and take collective action. The first meeting of the platform took place during this quarter around the theme of Prosopis juliflora, and as a result, the State Ministry put forth a statement to incorporate the recommendations from the platform members into forthcoming national strategies the Minister is spearheading. Along the same topic, a workshop took place for high-ranking government officials in Awash Arba where PRIME provided technical and financial support, to take the recommendations from the rangeland management platform as well as field visits where prosopis removal with PRIME support is taking place. PRIME also conducted a series of map validation exercises involving digitized versions of community maps, across the three clusters to better delineate resource management responsibilities, and evaluate the role of traditional leaders to do these effectively.

PRIME supported the multi-stakeholder Regional Seasonal Assessment to track and monitor early warning indicators and performance of the Sugum rain in Afar region. Disaster Risk Management dialogues were also conducted in Babile Somali in two rangeland systems.

Participatory Scenario planning workshops took place in Babile, Amibara and Awash (female PSP) and monitoring of the PSP methodology is ongoing. PRIME has also adopted the social action and analysis approach to address behavioral and socio-institutional barriers to climate change adaptation among pastoral households.

To enhance water access through water point rehabilitation and development, PRIME is working to expand the Haro Bake (SC) dam to hold 1.6 million m3, as well as preserve its funtionality for another 20

3 years, build the Birkile Pond, Mullu, EC (capacity of 7,000 m3), and the Fatuma Delaytu pond in Afar (cpacity of 7,000 m3).

3. Strengthened alternative livelihoods for households transitioning out of pastoralism: During the quarter, PRIME continued to provide technical and financial assistance to the Somali MFI to rollout a Sharia-compliant loan product for livestock traders in the region. SMFI has to date disbursed 5,000,000 ETB ($250,000) for 25 large and medium sized livestock traders in the region. The injection of this loan in the livestock market will enable traders to buy and export from 18,000-20,000 livestock from approximately 7500 households. The increased income from these sales is approximately 2500ETB ($128) per household.

PRIME and Amasis signed a FOG agreement in June 2014 for the Hellojobs/‗(Hellosira)‘ service. The software adjustment has been completed, and the service has been launched in all areas of PRIME (and nationally). This mobile-based service registers job seekers via phone and internet, in order to match job seekers with open positions. Employers get free access to the data on potential employees; job seekers pay approximately 10ETB to register with the service.

During the quarter, PRIME organized successful trade fairs in Afar Zone 3 and Borena zone. PRIME partners CARE, AISDA, SOS and Mercy Corps IR1, IR3, IR4 and IR5 teams supported the organizing of the trade fair for two days in each zone. During the trade fair, PRIME introduced discount vouchers were introduced to encourage the purchase of inputs, and stimulate demand for new technologies and agricultural inputs. The trade fair also helped agricultural input dealers and micro-solar suppliers to conduct market research on their products.

During the quarter, PRIME commissioned a labor market assessment conducted in all clusters. The objective of the labor market assessment (LMA) is to uncover the skills in demand by the job market as well as the constraints and challenges that individuals (specifically individuals transitioning out of pastoralism) face as they look for sustainable work.

During the quarter, in Southern cluster Private Service Providers began forming VSLAs and the first 12 new VSLAs composed of 220 (135 female and 85 male) members were established.

4. Ensure enhanced innovation, learning and knowledge management: The main activities during this quarter under IR4 implementation included the finalization of customization of the Management Information System (MIS), which will allow all implementing partners to enter activity concept notes and reports, document said activities and get approvals/feedback from management in one portal. Metrics from reports will be then used to automatically generate indicator reports.

Following the monitoring and evaluation plan, a spot check methodology was tested and recommendations shared with the IR4 leadership and COP. The methodology has now been revised and is ready for full implementation during Q8. Data quality assurance (internal) will commence during Q8, along with DQA for recipients outside the scope of the spot check.

Several pieces of research have been started, such as milk quality, existing insurance products, and cross- border trade policy during this quarter. The policy information gap analysis was finalized, and the consultative discussion with research institution on their capacity and how PRIME can work with them in

4 on the stage of analysis. With matching funds from IIN, PRIME is testing the SenseMaker application to monitor attitude and behavior change on nutrition practices in the three clusters.

In terms of coordination with USAID projects in Ethiopia, PRIME has been working closely with LMD in policy issues, especially on concerns with the livestock proclamation. A set of recommendations were drafted jointly by LMD and PRIME for the New Alliance and sent to USAID. In addition, PRIME is working with AKLDP on future collaboration to organize platforms where learning from PRIME can be shared with different stakeholders both in Addis Ababa and at the regional level.

5. Improved nutritional status of targeted households improved through targeted, sustained and evidence- based interventions: In an effort to improve nutrition counseling at health facility level and establish community counseling support, PRIME trained a total of 115 health extension workers on essential nutrition actions (ENA). Following the ENA TOT trainings, the trainings were further cascaded to the kebeles through the trained health extension workers reaching an additional 1,250 community members. Moreover, to enhance mothers‘ counseling support at the community level, PRIME organized women-to-women peer-guided nutrition counseling groups, a platform for pregnant and lactating women to discuss and support each other on nutrition-related issues. The sessions are led by experience mothers who share tips/knowledge on pregnancy and childcare.

In furthering PRIME‘s nutrition key result to improve knowledge of nutrition-supporting practices through expanded communication and accessible counseling and implement behavior change communication that is compelling to the target audience, Mercy Corps and Warner Bros. further developed the Soap Opera for Social Change (SOSC) partnership. In this quarter, six (6) Mercy Corps staff (3 from Ethiopia, 3 from HQ) made a trip to Warner Bros. Studio in Burbank, CA in April. The objective of the trip was to build the skills of Mercy Corps Ethiopia social marketing staff and local creative talent in the use of compelling marketing tools (tactics, creative stories and ideas) and entertainment to enhance the competiveness of healthful versus unhealthful behaviors.

As a follow-up to the LA trip, four Warner Bros. volunteers—with engagement from key stakeholders throughout the studio and its community—traveled to Ethiopia to work with local writers and creative staff to develop the storylines for the radio show and ensure that the behavior change messages are incorporated into the social marketing materials. This mentoring and support is being provided pro bono by Warner Bros.; developing the skills of Mercy Corps local staff and local creative talent to tell more compelling stories; and develop characters that target groups want to talk about, emulate, and further supporting the positive behavior changes that PRIME seeks to bring about in communities. The specific targeted behavior changes are: use animal feed/fodder, use preventative animal health services, ensure pregnant women eat well, eat a diverse diet, and women should have greater decision-making power in the home.

Additionally during the quarter, PRIME used a mix of other innovative methods to send behavior change messages, including: theater performance, a camel caravan, and a nutrition trade fair to reach and engage audiences. Through the above activities, PRIME nutrition, was able to reach a total of 29,665 beneficiaries.

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6. USAID Forward PRIME carried out organizational and capacity-building support initiatives for Aged and Children Pastoralist Association (ACPA) in Jijiga and for the Afar Integrated and Sustainable Development Association (AISDA) in Afar as part of the USAID Forward objectives. The two partners have developed their action plans, and submitted them to MC and CARE. Their action plans were reviewed and feedback has been provided, with a common understanding reached for the next phase of the implementation process. Capacity-building activities and presentation to PRIME senior management will be carried out during the next quarter. Rating results for the two partners in the key area of Financial Management can be found in Annex 4 at the back of this report.

II. RESULTS SUMMARY TABLE

FTF Summary Table-Q7 (April-June 2014) Cum. Year 2 Progress to FY2014 Indicator Disaggregation Progress date (Q1- Target (Q5-Q7) Q7) (Q1-Q8) CROSS CUTTING INDICATORS

Number of HH reached (custom) Total 75,000 46,741 64,381 4.5.2(7): Number of individuals who have received USG supported short-term Total 18,640 14,715 27,594 agricultural sector productivity or food security training 4.5.2(11): Number of food security private enterprises (for profit), producers organizations, water users associations, women's groups, trade and Total 500 450 546 business associations, and community- based organizations (CBOs) receiving USG assistance (R 4.5.2(5): Number of farmers and others who have applied new technologies or Total 10,988 7,090 9,027 management practices 4.5.1(24): Numbers of Policies/Regulations/Administrative Total 2 2 3 Procedures in each of the following stages of development NATURAL RESOURCE MANAGEMENT and CLIMATE CHANGE INDICATORS (IR2)

4.5.2(2): Number of hectares under improved technologies or management Total 1,009,380 4,282,676 4,337,972 practices 4.5.2(34): Number of stakeholders implementing risk-reducing practices/ Total 16,820 5,946 21,133 actions to improve resilience to climate change 4.8.2-26 Number of stakeholders with increased capacity to adapt to the Total 20,000 13,857 21,264 impacts of climate variability and change

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4.8.1-29 Number of person hours of training in natural resources management and/or biodiversity Total 55,000 81,263 99,993 conservation

ECONOMIC INDICATORS (IR1 & IR3)

Value of incremental sales 1,356,711 N/A N/A (three regions)2

Afar value of incremental sales 133,727 199,410 199,410

Somali value of incremental sales 575,611 1,285,113 1,285,113

Total reporting year 4,858,069 N/A N/A sales (all regions)

Afar reporting 478,815 544,498 544,498 4.5.2(23): Value of incremental sales year sales

(collected at farm-level) attributed to

FTF implementation1 Somali total 2,060,856 2,773,111 2,773,111 reporting year

sales Total Volume of 2,858 N/A N/A sales (mt)

Afar 282 320 320

Somali 1,212 1,631 1,631 Total Number of 15,000 (all regions) direct beneficiaries

Afar 737

Somali 5,885 4.7.1-12: Total number of clients benefiting from financial services provided through USG-assisted financial Total 16,880 2,538 2,538 intermediaries, including non-financial institutions or actors3 4.5(2): Number of jobs attributed to FTF Created 1,022 355 355 implementation Obtained 0 0

1 Only Afar and data has been processed. Oromiya data shows values that are too high and will need to be reviewed to ensure there are no issues with data. It is important to note that the target values are for Y2 only (i.e. not necessarily cumulative) 2 Baseline value of sales per region: Afar 345,088; Oromiya 1,671,025; Somali 1,485,245 3 Target for this indicator was set based on the assumption that when mobile banking kicks off in 2014 the number of clients benefited would be 16880. The progress on this indicator seems to be slow due to SMFI-Belcash mobile banking project awaiting approval from the National Bank of Ethiopia, which has only recently taken place. The source of of clients for Y2 includes PRIME’s work in eexpanding RuSACCOs and VSLAs in order to improve households’ access to financial services while waiting for the mobile banking to start. 7

4.5.2(38): Value of new private sector investment in the agriculture sector or Total (USD) 10,000,000 6,721,845 15,291,975 food chain leveraged

NUTRITION INDICATORS (IR5) 3.1.9(1): Number of people trained in child health and nutrition through USG- Total 3,000 3,057 3,207 supported programs (S) 3.1.9(15): Number of children under five reached by USG-supported nutrition Total 20,000 42,749 42,899 programs (S)4

III. CORRELATION TO THE MONITORING PLAN

Data for most output and some outcome indicators has been gathered, as established in the monitoring and evaluation plan, through sub-activity reports filed by technical teams in the field. A tool and protocol for rapid survey for the value of incremental sales was developed and data was collected in June/July 2014. Only data for Afar was able to be processed and analyzed in time for this report.

Spot check methodology for consortium partners was tested and results show that DQAs will be important tools to use on a regular basis to evaluate the quality of data and correct errors made at the time of reporting. Spot checks will continue every quarter and a DQA methodology for recipients (institutions, private enterprises, etc.) of USAID-PRIME support will be developed during Q8.

Finally, an annual survey methodology will be developed and conducted during Q8 to inform custom indicators as well as specific FTF indicators that require annual data at the household level.

1V. RESULT BY RESULT ANALYSIS

INTERMEDIATE RESULT 1: IMPROVED PRODUCTIVITY AND COMPETITIVENESS OF LIVESTOCK AND LIVESTOCK PRODUCTS

During Q7, the Economic and Market Development team involved in implementing activities leading to achievement of IR1 (Improved Productivity and Competitiveness of Livestock and Livestock Products) followed up on several activities in all clusters that are in the core of the facilitative market systems development in the animal health services and products, livestock trade and dairy value chains.

Several activities contributing to Key result 1.3: Enabling environment improved and Key result 1.4: Effective emergency response protects pastoralists‘ assets were implemented including activities that improve the governmental agencies‘ capacity to support pro poor value chain development and help the main impact beneficiary base (pastoral and agro pastoral households) to protect the value and intgrity of their main asset – livestock.

4 Number under children under 5 reached – the figure has been revised to include information from the baseline about the calculation of average number of children under 5 per household. Previously our calculation was too high at 2, whereas the baseline figures demonstrate a number closer to 1. As such the progress to date has changed to 42,899. 8

Key result 1.1: Productivity in key livestock market systems increased

Refresher Training for Existing Active CAHWs in Fafan, Jarar and Siti Zones of ESRS

During the Quarter PRIME conducted this training to build up the technical, cost recovery and financial management skills and knowledge of the active CAHWs in the target region. The event provided an opportunity for the CAHWs to share their experience, which enables them to address prevalent diseases and preserve the main community productive asset: livestock. While it was planned to offer the training to 100 CAHWs in 10 districts and from three zones, a total of 114 (14 female) CAHWs ultimately received the refresher training. Three private vet input providers in the respective districts were also involved in the training on cost recovery and business management sessions. The refresher trainings were facilitated by eight district Animal Health Assistants (AHAs), who were earlier trained by Mercy Corps - PRIME and qualified as CAHWs trainers. It is anticipated that the refresher trainings will improve the quality of the veterinarian service for 11,434 individuals involved in livestock production (8,584 male and 2,850 female).

The training providers used participatory learning techniques centered on all-important points and training components, discussions and question and answer sessions. During all five training days, drugs or/and equipment were displayed in the training venue by the trainers and PVPs as training components for demonstration and practices. No major challenges were encountered during implementation. Both government officials and employees, as well as CAHWs are willing to participate in the cost-share-based training. The involvement of governmental AH officers and private veterinarian drug suppliers in the training has the advantages of the parties getting to know each other and to feel ownership during supervision and establishing good veterinarian products supply chains. It was noticed that a number of CAHWs are considering primary service delivery as a means of income and livelihood diversification for them.

Assessment and Mapping of Livestock Market Centers in Eastern Cluster

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In collaboration between PRIME partners Mercy Corps and ACPA and the ESRS Livestock Crop and Rural Development Bureau a thorough assessment of the livestock markets in the Fafan, Siti, Jarar and Babile Oromiya zones and woredas was conducted. Teams visited 42 livestock markets and identified and assessed for current state, physical infrastructure and operation. Prioritizing development needs was also conducted. In addition, the assessment was not only confined to market centers in woreda center towns but also included bush markets where large numbers of livestock are traded. The GPS location, terminal, secondary, primary and bush livestock market center details are summarized in Annex 1.

Different market centers are in varying states of repair. While some markets need upgrading to improve their functionality, some need to be built from scratch since they basically have no infrastructure and function as bush markets. Annex 2 summarizes the observed needs for rehabilitation, upgrading or/and construction.

This activity yielded a detailed report for the state of all assessed markets, their relevance for the livestock trade and livelihoods of the population that uses them. Construction and establishment of livestock market centers is important for all stakeholders involved in the livestock trade. Some of the findings of the assessment include:

 The markets that were improved / constructed in the past are not maintained since no management structure is established and no maintenance and rehabilitation budgets were allotted.  While some of the markets have been constructed in a modern way, trade continues on their outskirts with no single animal being brought in. Both sellers and buyers tend to not use the facilities because tax is collected for the trade if the facility is used.  Poor road infrastructure to and from most markets and lack of standardized livestock transportation facility also hinder active linkages between producers and potential livestock traders.  Lack of veterinarian services in market areas is evident. In some markets there are facilities designated for veterinarian services, but none of them are functional.  Shortage of shade, water and feed inside the market centers also reduces the interest of the traders and pastoralists to use the market facilities.

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Following this assessment a further prioritizing and development of activities aiming to improve markets management and the general state of repair of the prioritized markets will be conducted by PRIME.

Expansion Grant for Private / Cooperative Milk Collectors in Guji, Borena and Liban The objective of this sub-activity is to stimulate the establishment of strong dairy supply chain to facilitate more and better milk in the Guji, Borena and Liben zones, improve access of pastoralists in remote pastoralist areas to primary markets, and increase their income from milk sales. During Quarter 7, PRIME developed and advertised the call for proposals, collected business expansion proposals from already existing and interested local enterprises that collect and trade milk, established review committees and conducted the review process, identified potential qualifying enterprises, conducted field verification, due diligence, negotiated with prospective awardees, and developed FOGs for three milk collector businesses in Liben and Yabello woredas of Guji and Borena Zones respectively. The total amount of PRIME support to be awarded to these businesses for expansion is anticipated to amount to ETB 428,500 ($21,974) and the total matching fund from the corresponding business will be ETB 986,000 ($50,564). It is anticipated that this expansion of milk collection and handling capabilities of local milk collectors and traders will benefit 2,481 pastoral and agro pastoral households and that this activity will generate 12 new employment opportunities. Signing of the FOGs and implementation start is planned for Quarter 8.

Business Expansion Grants to Private Veterinary Pharmacies in the Eastern Cluster

 The processing for the release of grant for competitive Private Veterinary Pharmacies (PVPs) expansion is the first experience for Mercy Corps Ethiopia managing small facilitative business expansion grants. The processes of managing PVPs expansion grants have provided the project learning opportunities for the technical and support team. Twelve Private Veterinary Pharmacies were selected for PRIME PVPs expansion competitive grants from the four zones of the eastern cluster (four in Fafan, four in Sitti, three in Jarar, and one in East Hararge). The selected PVPs all fulfilled the 70-30 percent cost sharing for business expansion criteria, based on call for proposal advertisement. It is anticipated that this activity will result in investments valued at ETB 4.4 million ($150,000) out of which ETB 3.1 million ($105,000) from PVPs and ETB 1.3 million ($45,000) from PRIME. The average PVP business expansion investment is ETB 366,000 ($18,769) out of which on average ETB 256,000 will be invested by a single PVP and ETB 110,000 from PRIME for each expansion. With these PVP business expansions in presently underserved areas of Fafan, Sitti and Jarar it is anticipated that a total of 12,000 pastoral and agro-pastoral households will gain access to affordable veterinary drugs. The overall sales of quality and certified veterinarian products by recipient PVPs will increase by 10% and 24 new jobs will be created.

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 PRIME organized an orientation workshop for the awarded PVPs to increase their capacity to implement FOGs and create a clear understanding of the principles of implementation, compliance and program and financial reporting. The next step was to negotiate individual grant agreements with the selected applicants and produce individual milestones and budgets for individual expansions. As part of the overall investment in the PVP expansion projects PRIME limits its financial support to fixed assets procurement support at the maximum level of 30% of the entire cost of the expansion.

 Finally and after successful completion of all steps of this competitive process, 12 Fixed Obligation Grants were signed and implementation of the business expansion projects started during the last quarter. The summary of the FOGs is presented in Annex 3.

 The main challenge encountered during the implementation of this activity was the lack of clarity in the received business proposals in terms of format and substance. This challenge was addressed by offering technical assistance to the initially screened proponents which by itself increased their business and financial management planning. Technical assistance was also offered to the applicants to improve the soundness of their current business.

 The transparent and widespread advertisement of this PVP expansion support opportunity enabled PRIME to create relationships with a large number of enterprises in this value chain that are offer veterinarian products and services. The composition of the screening and review committee from different local governmental institutions increased the quality of the assessment and provided a multi-stakeholder inclusion. The field verification of the applications and the applicants increased the transparency of the process and showed the partners the impartial approach towards assisting the appropriate applicants, and simultaneously increased the commitment of the awardees. The involvement of government representatives in the entire process enabled PRIME to share the facilitative development approach in the pro-poor market systems development and familiarize the government representatives participating in this activity with the PRIME achievements.

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 The next steps in the implementation of this activity during Quarter 8 will be: (1) Technical assistance to the awardees in implementing their individual expansion projects; (2) Facilitate creation of business linkages for the PVPs with veterinarian products wholesalers and facilitate linkage with the CAHWs and pastoralist households – the users; (3) Continuous training of the recipient PVPs in business management, customer service and CAHW agent creation; (4) Business coaching, follow up on PVP performance and record keeping.

Expansion Grant for Private / Cooperative Milk Aggregators in Liban Zone The sub activity is intended to improve pastoral and agro-pastoralists access to sustainable and basic milk marketing which will improve their livelihood through income earned from milk sales. The activity is planned to be implemented in Filtu, Dolo and Hudet woredas of Liben zone. To effect the implementation, the advertisement was translated into local languages (Afan Oromo and Somali) and posted where the public can easily see it and additional communication was conducted with potential dairy sub-sector actors to inform them of the opportunity and the application process. During the Quarter PRIME received one application. It is anticipated that this activity will be conducted over Quarters 8 and 9.

Business Expansion Grants to Private Veterinary Pharmacies in the Southern Cluster As described above, the objective of this activity is to enable pastoralists and agro-pastoralists to have access to quality and affordable veterinary drugs through more effective and efficient supply chain linkages, and ensure that access to these critical vet inputs is sustainable. During Quarters 6 and 7 PRIME completed the administrative processes required, and during this quarter, 19 PVPs located in 7 woredas of Borena and Liben zones were approved for FOGs. The total amount of support from PRIME is anticipated to reach ETB 1,541,550 ($79,053) and the total matching fund from the recipient PVPs will be ETB 3,653,040 ($187,335). It is anticipated that these 19 PVP expansion projects will benefit 16,240 pastoralist and agro pastoralist households. In addition it is anticipated that 25 full-time jobs will be created as a direct result of these business expansions. Signing of the cost-shared grants with the recipients and initiation of the expansions is planned for Quarter 8.

Competitive Cost-Shared Business Grants to Private Veterinary Clinics in the SC

This activity was initiated in Quarter 7. The objective of the activity is to improve pastoral and agro- pastoralists‘ access to sustainable and basic clinical veterinarian services which are affordable through more effective and efficient supply chain linkages. A thorough assessment of the demand and feasibility for such private veterinarian clinics was conducted by the SC PRIME team over the past quarters and based on the assessments, the activity is planned to be implemented in five woredas: Yabello and Dirre woredas of Borena zone, Liben woreda of Guji zone and Hudet and Dolo Ado woredas of Liben zone. To effect the implementation, calls for proposals from interested veterinarian services providers were translated into local languages (Afan Oromo and Somali) and will be posted from 25th to 30th July 2014 for 15 days. PRIME anticipates that this activity will be completed in Quarters 8 and 9.

Establishment of Livestock Holding Grounds/Stockyards in Borena and Guji The objective of this activity is to support establishment of more permanent facilities for improved marketing of livestock from Borena and Guji, provide more intensive offtake of livestock and improve the quality of the animals coming from the region and traded on the terminal market. The activity was initiated

13 in Quarter 7 by encouraging local traders interested in improving their businesses to consider establishing livestock holding grounds and apply for a cost shared expansion of their business. After receiving applications, review and site verification five finalists (two in Somali Moyale and three in Yabello woreda of Borena zone) were qualified. Negotiation is under way, and it is expected that the implementation of these business expansions supported through fixed obligation grants will commence in August 2014.

Competitive Cost-Share Grants for Upgrading Milk Collection Centres

This activity facilitates upgrading of upgrading milk collection centers in the Eastern Cluster by providing training, technical assistance and competitive cost-share grants to existing enterprises and cooperatives that collect and trade milk. During Quarter 6, PRIME advertised the call for proposals, offering technical assistance to interested proponents to develop their expansion business plans and applications. During Quarter 7, the review committee comprising of members from Mercy Corps staff and ESRS Livestock, Crop & Rural Development Bureau, screened and reviewed the proposals received from eight enterprises and cooperatives, conducted field verification and negotiations with the selected awardees and signed the milk collection expansion FOGs with two of the applicants. Hormud Milk Marketing Cooperative from Gursum Woreda in Dhagahle Kebele and Barwako Milk Marketing Cooperative from Jijiga Woreda in Duhusha Kebele were awarded support. Implementation of the individual upgrading projects started in Quarter 7 and will be completed in Quarter 8.

During the implementation the awardee milk collection cooperatives reevaluated and studied the milk collection equipment they had received from earlier development activities, but did not use. The composition of the screening committee from different sectors and institutions added value to the selection processes, transparency was high and competitors were highly satisfied with the process. The field verification showed the partners how PRIME values the competitiveness of the applicants and increases their commitment to the proposed upgrade.

In follow up and during the implementation of the proposed projects in Quarter 8, PRIME will offer continuous technical assistance to the cooperatives through training, linkage activities with milk buyers, and an exposure visit for the technical and management staff of the collection centers to Debrezeit. This will help them increase their knowledge and capacity to run milk collection centers through observing the operation of similar enterprises in an area that has a more developed milk production, collection and trade value chain.

Competitive Grants for Establishment of Feed Lots in the Eastern Cluster

The overall objective of the sub activity is to support the introduction and establishment of standard feedlot operations and practices in pastoral areas to increase the quality and the value of livestock traded. The target recipients for this support are livestock traders from the Eastern Cluster who are interested in investing to improve their trading operation by establishing feedlot operations that can also serve as temporary holding grounds for livestock they trade in order to improve the overall condition and value of the animals. The model of this support is through awarding cost-shared fixed obligation grants to applicants meeting the established eligibility and selection criteria in a competitive process. During this Quarter the eight applications received in Quarter 6 were reviewed, field verification was conducted and four applications were moved through the second stage. It is expected that three applications will be awarded during Quarter 8 when the establishment of these feedlots will also start.

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Key result 1.2: Market linkages improved

Facilitating Vertical and Horizontal Linkage among Livestock Producers, Feedlots, Traders and Abattoirs in Afar

The objective of this activity was to improve the trade links within the livestock trade value chain relevant for the livestock producers in Afar.

Five invitees attended the linkage event including Metahara International Export Abattoir, Abdu Live Animal Exporter governmental representatives and smaller traders.

 During the discussion and presentation of the demand, the Metahara International Export Abattoir stipulated that they are interested in buying sheep and goats from lowland areas such as Afar, Borena and Somalia region with standard live weight of 15 – 32 kg for the goats and above 20 kg for sheep, their slaughtering capacity is 2,500 heads of small ruminants per week. Metahara International Export Abattoir buys animals based on the live weight offering currently 31 to 35 ETB/kg. However their terms of trade include weighing of the animals purchased one day after the animals have been delivered to their stock yard in order to reduce the digestive tract content which in some cases is 2-3 kg reduction in the live weight for 24 hours. Another problem noted by Metahara International Export Abattoir is that the pastoral producers are not keen on the weight- based transactions the slaughterhouse practices, so they prefer going through brokers and traders. In addition the slaughterhouse deals only with legally registered suppliers or brokers who are vat registered.  The largest trader present on the linkage event, Abdu Live Animal Exporter, on the other hand discussed that they trade all livestock species but the sheep prevail as the most demanded livestock for export trade. Their trade network has a potential of supplying about 120,000 sheep per year of which 20,000 heads in the peak demand before Arefa Islamic holiday. Currently they export about 72,000 heads of sheep per year due to inability to access additional finance and sharia compliant loans. Their buyers are also interested in buying meat.  Touching on the experience in working with the domestic slaughterhouses (ELFORA, Mojo Export Slaughterhouse), Abdu indicated that the transportation cost and other losses associated with those transactions make them unprofitable, and the bureaucracy of the abattoirs is unbearable. They also tried brokering deals between smaller collectors and ELFORA and Metahara International Export Abattoir, but that also did not work due to the generally low price offered and the abattoirs terms of trade.

The representative of the government cooperative development office discussed that multiple efforts were conducted to create linkage between the cooperatives on one and the traders and abattoirs on the other side of the chain. Majority of those efforts were not successful due to the following factors: (1) majority of the cooperatives are not business-oriented and (2) cooperatives have problems in accessing finance to be able to trade on a regular basis.

While no transaction deals could be executed during this event, it was observed during the discussions that the weight-based purchase transactions of the abattoirs is one of the most important factors that prevents trade relations. There is a large price gap since the live animal export traders currently offer about 36

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ETB/kg live weight for small ruminants (calculated average price based on per head transactions) and the abattoirs offer 31 – 35 ETB/kg live weight (weighted after 24 hours starvation).

In follow up to this linkage event PRIME will continue to stimulate discussions and negotiations between livestock traders and abattoirs. In addition the introduction of weight-based marketing through education and efforts for some of the livestock traders to adopt as a practice when purchasing from their supply networks will be supported. In order to address the need of the abattoirs to only work with VAT registered suppliers, PRIME will support the traders and suppliers in establishing registered businesses. As one of the main problems in stimulating the trade within the supply chain remains access to finance, PRIME will, within its mandate, support increased access to business finance and especially access to sharia-based loans for livestock trade.

Support to African Livestock Exhibition and Conference (ALC)

The African Livestock Congress was one of the activities organized during the 2014 African Livestock Exhibition and Conference (ALEC 2014) that was conducted in Addis Ababa Millennium Hall in the period 8-10 May, 2014, and was designed to provide a venue for presenting and discussing various issues related to the development of livestock production and marketing in Ethiopia and regionally. The Conference had 355 delegates registered. The topics of the Conference included: (1) Commercial Livestock Farming; (2) Livestock Marketing; (3) Animal Feeding Systems; (4) Breeding and Overall Livestock Management and (5) Animal Health and Standardization. PRIME financially and organizationally supported the session on Commercial Livestock Farming where two papers were presented: (1) Livestock Production for Food Security and Social Equity‖ by Dr. Edmealem Shitaye (Phd) from FAO and (2) ―Commercialization of Livestock Production: Challenges and Opportunities” by Desalegne G. Medhin from Ethiopian Meat and Dairy Industry Development Institute.

The conference gathered concerned professionals, policy makers, government officials, researchers, development projects officers, academic workers, private business owners, and farmers to discuss vital issues regarding livestock sector development. Different issues were raised through the presentations and discussions on how to achieve market-oriented and intensive livestock production and improve management and livestock marketing strategies. The conference helped the understanding that the future of sustainable livestock development is in public- private dialogue and experience sharing among concerned stakeholders.

With USAID PRIME support, the Conference was organized by the National Steering Committee including members from Ministry of Agriculture, Ministry of Industry, Ministry of Trade, Ministry of Foreign affairs, Ethiopian Meat and Dairy Industry Development Institute, Ethiopian Meat Producers-Exporters Association and Prana Promotion.

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The African Livestock Exhibition and Conference is an annual event organized by Prana Promotion in collaboration with various Ethiopian Government agencies. This year the number of exhibitions and participants was 40% higher than last year. To maintain the trend of increase and the recognition of ALEC as a relevant and important event both nationally and regionally the organizer will for next year increase the entire event standard, attract more exhibitors and participants, international buyers, researchers and businesses.

Support for Organizing a Livestock Show on the African Livestock Exhibition and Conference

One of the activities conducted during the African Livestock Exhibition and Conference was the Livestock Show, an activity that showcased Ethiopian livestock breeds. The activity resulted in a display of camel, dairy and beef cattle, sheep and goats from 19 different highland and lowland breeds. The importance of this activity was in the fact that many of the international livestock traders who participated in the Business to Business event organized during ALEC 2014 could become familiar with the Ethiopian livestock breeds.

In order to conduct the livestock show event during ALEC 2104, the organizer Prana Promotion with support from USAID PRIME and LMD projects constructed holding pens and contracted breeders to bring selected animals to the show and took care of the animals during their stay in the show.

Key results of this activity include: (1) Successful promotion of Ethiopian indigenous and improved livestock breeds (camel, cattle, sheep and goat) to potential foreign buyers visiting ALEC 2014; (2) Educational exposure of the local visitors of ALEC 2014.

Since this was the first time for the ALEC organizers to include a livestock show as an activity during the three- day event, valuable lessons were obtained for the future. It was concluded that for the purpose of having a good promotion of the Ethiopian livestock breeds for international buyers, preparations need to start at least six months in advance to secure extraordinary animals from the showcased breeds, bring them to Addis Ababa and prepare them for the exhibition at least one month prior the event. More animals in more categories within the breed: breeding male, young female, breeding female, productive dairy female as well as finished fattened male

17 animals are to be showcased for the visitors to have better exposure to the performance of the Ethiopian livestock breeds. Potentially the Livestock Show can be turned in to a Competition Show that will increase the interest of breeders to exhibit the best animals by providing an incentive in the form of prizes.

Zonal Livestock Fair in Afar Cluster

During the quarter and in collaboration with the local government in Afar Zone 3, PRIME facilitated the organizing of the first Agricultural Trade Fair in Awash (Afar) from June 8 to June 9, 2014. The objective of the activity was to improve market linkages among actors in the livestock and dairy value chains, agricultural input suppliers and retailers, pastorals and agro pastorals, research institutes and other stakeholders. Twenty-four exhibitors participated with stands. While the number of exhibitors was lower than anticipated, this event organized for the first time in Zone 3 of Afar managed to bring together diverse participants. Local and large-scale national feed suppliers, PVPs and veterinarian products wholesalers, dairy and poultry input suppliers, local cooperatives and livestock traders exhibited and showcased their products and services to close to 1,000 visitors, urban dwellers, farmers and pastoralists.

Despite organizational challenges due to the inexperience of the organizers, the event accomplished important results to be used as stepping stones in the future implementation of development activities in the Afar cluster. Stronger vertical and horizontal linkages were achieved among producer, local and regional business, cooperatives, governmental institutions and the non-governmental sector in the region. The small voucher scheme activities implemented during the fair enabled the pastoralists and agro pastoralists to purchase promoted inputs such as solar products, animal feed, storage bags and agricultural inputs at a discount. Over 113 pastoralists and agro pastoralists used this opportunity to purchase and familiarize with some of the inputs new to them which resulted in sales of 85,978 ETB of solar products, agricultural inputs (seed), feed, and storage bags.

Key result 1.3: Enabling environment improved

Livestock Disease Surveillance and Reporting System in Borena and Liban

This workshop activity was organized with the general objective to raise the awareness of both government and private veterinarian professionals about the importance of Animal Health Surveillance and Reporting as well as to identify main constraints the reporting system faces. The specific objectives of the workshop were: (1) discuss the current status of livestock disease surveillance and reporting system in the cluster; (2) investigate the constraints that limit the use of effective surveillance and reporting system; (3) discuss and identify the appropriate methods and approaches to enhance effective surveillance and reporting system. Only 19 animal health professionals from the public and private sectors participated due to the inability of the participant from the Guji Zone to attend because of the recent conflict between Guji and Borena as the workshop was held at Yabello town of the Borena Zone.

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The workshop was conducted in a series of separate sessions. Each session started with an introduction by the session facilitator followed by presentations and discussions. The main items on the agenda were: (1) Definition, Approach towards, Importance and Objectives of Animal Health Surveillance, led by Dr. Bula Mengesha, Borena Zone PDO AH Team leader; (2) Current situation analysis on status of Animal Health reporting system in each woreda; (3) Oral presentation by all participants of the workshop.

The overall discussion program was organized as stated below; (1) Importance of Animal Health Surveillance for Livestock Marketing facilitated by Dr. Ahmed Ibrahim; (2) Current status of Animal Health Surveillance in Somali, by Dr. Abdulahi; (3) Recommended methods and approaches to enhance effective AH surveillance and reporting system.

The overall limiting factors identified and prioritized during the workshop as most important for conducting effective local and national surveillance for animal diseases including zoonotic were as presented in the table below.

Gaps/Constraints Action to be taken Action to be taken by Time frame Poor linkage between Establishing proper Federal EU, Zone, 4th week concerned actors (FEU, coordination and networking National laboratory, of June OPC, Regional mechanism to involve all NVI , Laboratory, Zonal PDO, relevant actors by organizing Woreda PDO, Private Workshop and stakeholders sector, and Abattoirs consultation Lack of understanding by Awareness raising on the RS to Federal EU, Zonal PDO 4th week local and national PDO to properly allocate the of June decision-makers and resource and mobilization of stakeholders on the existing resource in case of importance of surveillance serious emergency and training of professionals Lack of commitment Awareness raising and regular Federal EU, Zonal PDO Always follow up with field staff Insufficient funding for Allocating appropriate funds Federal Epidemiology First surveillance and developing mechanism for week of continuous funding July Insufficient training in TOT Training at Zonal level for Federal EU, Zone PDO, First surveillance Districts level experts who then Regional Lab /PRIME week of methodologies train Animal Health workers in July Animal Heath Posts at PA Level Trained staff turnover Increasing the number expert Federal EU, PRIME First during TOT Training week of July Lack of baseline data on Conducting basic assessment Zone PDO, 3rd week livestock population and and make use of existing data Laboratory/PRIME of July priority diseases to that enables to establish risk establish risk based based surveillance and reporting surveillance system Lack of capacity of Laboratory /PRIME  Training and technical capacity regional diagnostic laboratory building of diagnostic

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laboratory (equipping / provision of basic diagnostic facilities) Lack of capacity of Training and technical capacity GoE/PRIME health posts building of health posts ( provision of basic field diagnostic facilities Lack of feedback for Establishing effective feedback Federal Epidemiology information providers at response mechanism Unit /PRIME field level

Other issues raised by the workshop participants include: (1) Current prescribed reporting format is complicated and there is a language gap in understanding and filling the format. The participants recommended translating the format to local language for ease of understanding; (2) The current reporting format is in form of hard copy, manually filled and sent by post. Participants recommended using IT and electronic sending by E-mail.

The recommendations from this workshop will be shared, refined and agreed upon by national experts and decision makers. Recognizing this, the participants recommend similar workshop to be held at national level that will involve higher decision makers and other relevant actors As a next step the participants will try organizing a similar country level workshop to bring the findings about this grass root level problem and recommended action to the agenda of decision makers and other actors in a bottom-up approach to refine and jointly plan and share responsibility and mobilize the necessary resources.

Grant to Ministry of Trade to Develop National Livestock Market Information System

Over the past three quarters PRIME was involved in the development of an activity to support the further development of the National Livestock Market Information System (NLMIS), a platform for collection and dissemination of up to date information on livestock prices in the main markets in Ethiopia. The main objective of the activity that is to be implemented by the Ministry of Trade and supported by PRIME, the USAID-funded Livestock Markets Development Project (LMD) and FAO are to assist the Ministry of Trade to develop and execute its strategy to improve and expand the NLMIS to reach out and make available the information collected to all interested users (institutional and individual) in all regions within Ethiopia as both a key market information access instrument, and a provider of critical information and analyses for Horn of Africa‘s various early warning systems (EWS).

While all committed implementation parties have provided continuous interest in initiating the actions, the activity has taken longer to start because the partners have tried to comply with individual processes regarding the commitments and signing of MoUs with the Ministry of Trade. The MoU was finally signed between the Ministry of Trade, LMD and PRIME and activities aligned in the MoU will commence during Q8.

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Key result 1.4: Effective emergency response protects pastoralists’ assets

Index-Based Livestock Insurance Sales Channel Strengthening in Borena

The overall goal of this activity is to increase pastoralists‘ resilience to drought shocks by transferring the risk to insurance companies through Index-Based Livestock Insurance (IBLI) type insurance instruments. The activity is one year facilitative support of Oromiya Insurance Company (OIC) to increase sales of the IBLI insurance product whereas PRIME supports cultivating insurance knowledge among Borena pastoralists and facilitating access to them. During the fourth round, more IBLI policies have been sold than during the past three sales windows. The sales summary indicates 403 policies with total premiums of Birr 234,605 ($12,031) and total sum insured of Birr 2,384,000 ($1222,256). The involvement of PRIME and use of cooperatives as intermediaries in this sales window have contributed much in selling more policies.

Summary of IBLI sales per woreda in the February /March 2014 sales window:

No of Policy Sum No of Livestock S.N Woreda Kebele Sold Premium Insured Cattle Camel Shoat 1 Dillo 6 36 27,564 320,400 47 0 48 2 Arero 7 48 20,715 272,400 37 0 63 3 Dire 10 67 11,874 141,600 10 0 102 4 Dhas 6 48 23,016 277,600 38 0 62 5 Taltele 1 9 9,122 118,400 18 0 13 6 Yaballo 6 53 23,670 352,800 48 0 81 7 Moyale 11 125 58,072 593,200 75 2 154 8 Miyo 3 15 29,662 302,800 38 5 31 9 D/Dawa 1 1 114 1,600 0 0 2 10 M/Soda 1 1 196 3,200 0 0 4 Total 52 403 204,005.00 2,384,000.00 311 7 560

The activity will continue through Quarter 8 of PRIME with training strengthening the OIC IBLI sales network and awareness building towards the second IBLI sales window August/September 2014.

External Parasite Control Campaign for Small Ruminants in the Eastern Cluster

External parasites cause severe economic loss through overall reduction of productivity and resistance of infested animals, reduction of milk production and reduced value and marketability of hides and skins due to the physical damage that external parasites cause. External parasites and specifically ticks are often carriers of other infectious diseases and may cause larger outbreaks that result in losses for the pastoral and agro pastoral households and to the livestock industry in general. In order to increase the awareness of the pastoral and agro pastoral households that raise livestock of the need to routinely both preventively and curatively treat the livestock against external parasites of livestock industry, the LCRDB of Somali region and the PRIME project carried out an external parasite control program in three woredas of Fafan zone of the ESRS.

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The objectives of this activity were to increase the awareness of the pastoral households of the need for and appropriate practices in preventive and curative treatment against external parasites, increase the resilience of livestock to other risk factors such as drought that can be expected in the next quarter, and reduce economic loss due to external parasites infestations.

The external parasite control campaign was carried out in Awbare, Babile and districts of Fafan Zone. The regional LCRDB in collaboration with Mercy Corps put up a team of veterinarians to focus on reducing infestations with ticks, lice, keds and mites in small ruminants. The preparations included securing the necessary parasite control products and application equipment by the LCRDB and extensive communication of the campaign to the LCRDWs in Awbare, Dadamane and Harshin. Coordination with the woreda level animal health authorities included: (1) Community mobilization and education; (2) Selection of sites for conducting the external parasite treatment and educational campaigns and (3) Mobilization of local animal health workers to participate in both awareness building and educational campaign and the treatment campaign. The actual treatment of the animals was conducted by spraying with 60% Diazinion (acaricide) using the best practices in assuring application safety. The campaign assured that the benefiting owners of livestock clearly understand the reasons for treatment, as well as best practices and the methodologies to be used when performing this kind of treatment. The table below synthetizes the results of the activity in terms of animals treated and households impacted with this activity.

Number of the Shoats Sub-total Benefiting Households Districts Sheep Goat Male Female Total Awbare 50,052 36,448 86,500 ,854 618 2,471 Harshin 50,228 29,772 80,000 1,714 571 2,286 Babile 51,760 31,740 83,500 1,789 596 2,386 Total 152,040 97,960 250,000 5,357 1,786 7,143

IR1 Activities Implementation Challenges

One of the major challenges for implementing market systems development activities to improve the resilience of beneficiary communities continues to be the lack of mid-level enterprises in each of the value chains supported. The pastoralist and agro pastoralist areas lack the presence of various enterprises on both livestock and agricultural input supplies (animal feed, veterinarian products and services, seeds, small scale agricultural equipment) and enterprises that are engaged in value addition to the commodities produced by the pastoral and agro pastoral households (milk, live animals). PRIME is working in promoting the establishment and growth of such enterprises by implementing activities that stimulate local and national investment in establishment or expansion of such businesses. This challenge is also linked with the overall

22 challenging business environment in the pastoral regions of Ethiopia as well as the poor but gradually improving infrastructure.

The need remains to continuously explain and educate the local government stakeholders in the PRIME transformative approaches towards market systems development and represents a challenge that is handled by consistent application of facilitative activities as opposed to direct service and product supply actions.

In several instances activities had to be postponed or canceled due to the security situation in the target regions and the reluctance of the local authorities to allow the implementation due to lack of understanding of the PRIME development approach.

IR1 Priorities in Quarter 8

One of the main factors for increasing the productivity of livestock in both milk and meat production, as well as a key factor for securing resilience of the livestock industry in the pastoral areas is improved nutrition of livestock. While the pastoral system of managing livestock relies little on supplemental feed and fodder provision, advancement in productivity inevitably requires increased use of supplemental feed and fodder in levels varying by the season, type and category and animals reared and the productivity levels. Most of the limited amounts of supplemental feed and fodder used by pastoral households are produced as by-products of other crops and not as feed and fodder crops designated for animal nutrition. There are very limited resources to establish agricultural production in the pastoral areas and especially for growing feed and fodder crops that require relatively large arable land and irrigation water availability. In addition the external supply of animal feed and fodder is limited in the pastoral areas as the demand is erratic and not well established for a viable supply chains to be established from the Ethiopian highlands or import. In the coming period, PRIME will increase the development and implementation of activities within work plan items: 131 Improved Availability and Quality of Animal Feed and 121 Improving Dissemination of Market Information.

The IR1 team as part of the Economic and Market Development team of PRIME will in the upcoming period strengthen internal reporting in timeliness and quality of activity reports and recording and reporting impact, especially FtF and other PRIME PMP indicators. In addition, collaborative and synergetic activities with the activities focused on achieving other PRIME resilience improvement objectives, will be developed and implemented to maximize impact.

To better develop and implement facilitative market systems development activities PRIME IR1 team will step up efforts to work more closely with private sector actors in the value chains supported. This is an ongoing effort to achieve the sustainable growth of private operators in offering livestock and agricultural inputs, services and products as well as market outlet for the commodities produced by pastoral and agro pastoral communities.

INTERMEDIATE RESULT 2.0: NATURAL RESOURCE MANAGEMENT AND CLIMATE CHANGE ADAPTATION:

Key result 2.1: Improved Science and Information for Decision-making

Building the capacity of the National Meteorological Agency in enhancing climate risk management through support to downscaled forecasts.

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CARE signed a MoU with the National Meteorological Agency for an 18 month workplan, to support the agency in strengthening its forecasting methodology, and build the capacity of the Agency and its regional bodies to provide timely, reliable, and user-friendly localized seasonal forecasts for pastoral areas. The MoU and accompanying workplan include both institutional and technical strengthening, including upgrading of the National Meteorological Agency's equipment and data collection methods in pastoral areas. A technical assessment is expected to take place in the upcoming quarter.

The MoU and workplan follow a scientific validation of seasonal forecasts by the Ethiopian National Meteorology Agency (NMA) in the previous quarter. The validation exercise consisted of comparing the strengths and weaknesses of NMA's forecasting methodologies in light of other emerging approaches, and comparing forecasts with observations since 1961. The objective of the exercise was to determine the NMA's ability to provide seasonal climate predictions that could serve as a basis for livelihoods and resource-related decision-making, as well as disaster preparedness in pastoral areas. A major finding was that while National Metrological Agency's forecasts for Ethiopia were strong relative to global predictions, they systematically failed to adequately predict below normal rainfall and therefore drought. The MoU includes providing international support to the NMA to revise its methodology.

Research on user assessment of climate information needs and meteorological forecasts, to support capacity of National Meteorological Station

CARE has worked jointly with Haramaya University to design a user-based survey that examines individual and household perceptions of existing meteorological services, and identified their desired products and services related to forecasting. The survey was implemented in this quarter by Haramaya University in Afdem, Harshin, Mulu and Kebribeyah in the Eastern Cluster, Moyale and Dirre in the Southern Cluster, and Awash Fentale, Amibara and Gewane in Afar, which were chosen as the sample sites. The draft report was submitted by the University, and is being finalized based on feedback provided. A brief discussion paper will be prepared for consultation with key stakeholders.

The objective of the study was to feed direclty into the partnership that PRIME has established with the National Meteorological Agency and its regional directorates to improve its forecasting methodologies and tailoring information products to local needs. Harmaya University's work provides a statistically significant and broad-scale analysis, building on the qualitative analysis, that is needed to adequately capture the needs of diverse households and users in the PRIME operational areas. The results will be fed back to the NMA, and inform the agencies‘ workplan on downscaling forecasts to pastoral areas, as well as guide PRIME's support to the agency. CARE is working with the NMA not only to increase the accuracy and skill scores of NMA's climate forecasts, but also to ensure that information products and services meet user needs.

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Figure 1: Old model of NMA's rainfall regions, or Figure 2: New model of NMA's rainfall regions, or homogenous climatic zones, that inform seasonal homogenous climatic zones to inform forecasts, based forecasts. on CARE-supported NMA forecast validation.

Creating awareness towards improved accessibility and utilization of community and scientific forecasting systems.

In its effort to increase access to weather and climate information on a local, seasonal basis, CARE developed a dialogue methodolgy to raise awareness of local and scientific forecasting mechanisms, and the use of forecasts in natural resource and livelihood related decision-making. A workshop was held, the objective of which was to enhance understanding of local climate information systems and needs, connect communities to their meteorological agency counterparts, and identify strengths and challenges of both systems in uptake accuracy and relevance.

Following a total of 16 dialogues in the last quarter, eight more dialogues were implemented in key remaining woredas, including in Babile Somali of Eastern Cluster, Awash Fentale and Duleassa of Afar Cluster and Arer, Miyo, Moyale and Mubakar of Southern Cluster. Participants included traditional weather forecastsers, clan leaders, youth and women representatives, meteorologists from zones and government DPPB representatives.

A key outcome of all meetings was increased awareness of legitimate and non-legitimate information sources, validating traditional sources of informaton, and preparing for the Participatory Scenario Planning process that allows communities to use forecast information for decision-making.

East Cluster - Babile Somali ACPA facilitated the EW dialogue in Babile, Somali. Participants included xidigis, or traditional community weather forecasters, early warning information providers, and government EW Experts. A total of 40 individuals attended the dialogues (34 male and 6 female).

Traditionally, pastoral communities in Babile Somali forecast weather and track information on water and pasture through Xidigiyal institutions, using star-alignment and star-moon alignment to predict seasonal rain performance. There are also traditional institutions called Sadaliye that use indicators related to plant

25 morphology and appearance of specific animal flocks (birds, insects) and the behavior of domestic animals to predict and monitor pasture, conflict and water conditions. While participants noted that using traditional forecasting supported local decision-making, there was increased reluctance to use and discuss this information publicly due to its association with fortune-tellers or sha-men, known as Faaliye, who were seen as unacceptable due to religious reasons. As a core outcome of the workshops, participants were able to distinguish the valid, scientific-based forms of community forecasting and agreed on how to use these more prominently in household and joint decision-making. A key action point from the meeting was how to use traditional sources of information-exchange, including the Isweraysi system, and community meetings and ceremonies to further discuss these issues. Participants also discussed how their traditional systems can link with government-led early warning systems, and linking woreda DPPO systems to community structures. Leaders also agreed on how to address socio-cultural barriers to using legitimate forecast information.

Afar: The workshop in Afar was organized jointly by AISDA and CARE Ethiopia at Awash Town from May 25- 26, 2014. A total of 48 participants (37 males and 11 females) representing the groups identified above attended. As in Babile-Somali, communities discussed the strength of their traditional early warning system by using seasonal rainfall forecast from traditional forecasters such as Hutukbeya, Ginile (Male) and Keluwale (Female), and the importance of local knowledge dissemination systems, including the pasture and conflict knowledge transfer system throuigh the Eddo and Remli. At the same time, strengthening of "formal" systems and increased religious influence have blurred the lines between valid local forecasting mechanisms and witchcraft, which have constrained pubic discourse and share decision- making around weather, pasture and even conflict information. Key action points that came out of the meeting were the need to create links between community and government early warning systems, as well as strengthen the capacity of meteorological bodies to better share and disseminate information through community systems.

South: In the Southern Cluster, three workshops across four woredas - Arero, Miyo, Moyale and Mubarak, brought together 77 participants (6 women and 71 men). The meeting assessed early warning indicators used by both traditional and meteorological forecasters, community information needs and information monitoring and dissemination mechanisms among traditional forecastsers and meteorology professionals. Communtiy members from both Borena and Liben Zones described strong traditonal forecasting systems that were weakend due to religious reasons and "formalization" of information structures - a similar phenomenon to observations in the Eastern and Afar clusters. This has meant that information is disseminated as heresay, or through casual meetings at water and pasture points, rather than openly and systematically. At the same time, participants were more outspoken about their lack of trust for scientific information, because it is too broad and removed from the context.

Multi-stakeholder Regional Seasonal Assessment to track and monitor early warning indicators and performance of the Sugum rain in Afar Region

As per the MoU signed, plan prepared and consultation held with the Afar Region DPFSPCO, PRIME covered supported the Regional Sugum Rain Seasonal Assessment, including members of the Pastoral and Agriculture Development, Water Bureau, Health and Education Bureaus. The multi-agency and multi-

26 sectoral needs assessment has been conducted twice a year across the country to identify humanitarian requirements. The areas covered by the assessment were:

Woreda Livelihood zone # of PAs Percentage of livelihood zone covered Elidaar Elidaar Pastoral 3 60 Kore Elidaar Pastoral 2 40 Abea‘la Aseale Agro - pastoral 3 60 Berehale Aseale Agro - pastoral 2 40 Erebite Aseale pastoral 3 60 Bidu Aseale pastoral 2 40

The seasonal assessment used a Household Economic Analysis methodology, collecting data on key indicators that reflect household food security. Data collected included current season/year crop production data, price data (including staple prices, livestock and livestock product prices, cash crop prices and labor prices), inflation, changes in livestock holdings, changes in availability of labor, and changes in other income sources. Livelihood Impact Analysis Sheets (LIAS) were used to store and analyze the collected data.

Participatory Dialogues on Climate Risks, Disaster Risk Management and Community Livelihood Adaptation

CVCA dialogues in the Southern Cluster As part of participatory mapping and rangeland analysis described below (Key Result 2.1, Activity 4) community vulnerability and capacity assessments (CVCAs) were conducted in two new rangeland systems of engagement, including Dheda Golbo in Borena and Dheda Wayama Somali area. A total of 92 participants (77 men and 15 women) representing clan leaders, rangeland council leaders, women and youth representatives and government experts drawn from Mubarek, Hudet, and Moyale woredas linked to Woyama Rangeland system, and Dire, Dillo and Miyo from Golbo rangeland system.

During the assessment, participants identified drought, conflict, erratic rainfall, human and animal diseases as the most important hazards affecting livelihoods and rangeland resources in both Golbe and Wayama- Somali. In Golbo, cross-border and intra-rangeland unit mobility between dry and wet season grazing areas, preserving communal enclosures, preserving crop residues and setting aside reserve grazing areas in some parts of the dheda are among the main strategies the people use to cope with those hazards. Unplanned excavation of ponds and private enclosures (kallo) are identified as undesirable and most problematic coping strategies used by some households in Golbo. In the Wayama area, separating wet and dry season grazing areas is the most frequently used coping strategy while the timely selling of livestock before the occurrence of a hazard is the least frequent used strategy by the community. The CVCA analysis is being used to map potential hazards and plan for improved preparedness strategies through improved resource management and utilization in the rangeland system.

DRM Dialogues in Babile Somali ACPA facilitated two discussions on climate risks, disaster risk management practices and livelihood adaptation options - separately with men and women in Babile Somali woreda of Fafen zone. The first

27 dialogue was conducted from April 25-28 at Elbahay Kebele of Dakhta valley rangeland system, while the second dialogue was facilitated from May 1-5 at Dhadhamne kebele of Erar valley rangeland system. The discussions included 30 men and 20 women representing women and youth forums, VSLAs, dairy producer cooperatives, government sector offices, and non-affiliated producers.

In both gender dialogues, the CVCA methodology was introduced, reviewing major climatic hazards in the area, affected natural resources and assets, and opportunities for improved preparedness strategies. Traditional water harvesting and diversion of flood water into rangelands, traditional conflict management, destocking and restocking of livestock, social support systems and sale of livestock at appropriate time were discussed as adaptive strategies that need to be strengthened. The most common mal-adaptive practices discussed included weakening traditional resource governance, settlement in low-lying areas prone to flood risks, expansion of settlement in grazing areas and indiscriminate cutting of trees for firewood and construction. Participants identified constraints to climate adaptive practices including poor saving culture and aid dependency, and limited productivity of animals that was met with a poor market price. Preparedness and adaptation strategies proposed by the Babile-Somali community included:  Establishing and supporting women's dairy development systems, including through the establishment of fodder/feed reserves, and strengthening dairy cooperatives  Constructing flood preventive and diversion structures in key pasture areas  Constructing irrigation structures, water diversions and establishing water harvesting structures  Expanding fodder production, privately at both household and commercial levels, as well as communal rangeland management systems  Supporting gender appropriate business development among women, including animal fattening, baking, and dairy production to enhance access to trade in relevant areas.  Creating access to finance

CVCA in Harshin, with Government Partners and the Climate Smart Initiative (CSI)

HAVOYOCO, with the support of CARE, led a CVCA analysis of Harshin rangeland system, as part of a wider dialogue that supported community map validation and institutional strengthening that took place from April 1 to 3. The discussion was a learning dialogue for government partners working with Productive Safety Net Programs (PSNP), and the new World Bank-funded Climate Smart Initiative designed to improve climate change adaptation and mitigation outcomes under the PSNP. PRIME team members led regional representatives and the CSI team through the CVCA process in the field, demonstrating how climate analysis is most effective when linked to community rangeland mapping and understanding the systems and institutions in place. Both PRIME and CSI staffs have shared roles in the overall facilitation process of the dialogue to create opportunities particularly for the CSI team to learn and exercise the process by doing. Following the dialogue the two teams (PRIME and LAND staffs) discussed how to harmonize their approaches and coordinate the work they do under the two projects in the Harshin rangeland system.

The Harshin rangeland management representatives identified drought, livestock disease, heat stress, flood, erratic rainfall and winds (dust storm) as the major hazards affecting their resources, and pointed to Hussein-Samane, Abokor-ahmed, Abdi-waqi west Afufley, Galol-fadhi, Bali Aman, Kambarwaaqo and Kam-Hashin sub-rangeland units as particularly affected. Livestock diseases were particularly manifested in grassland areas that are designated for wet season grazing being induced by nearby settlements and

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heavy stocking of livestock, while erratic rainfall was seen as mostly affecting woodland areas of the rangeland system that are designated for dry season grazing.

Digitizaion and Updating of Community rangeland system maps, to support land use planning and rangeland management

Based on field verification exercises of digtized community rangeland system maps in the previous quarter, CARE has released a final version of seven rangeland system maps in Borena and lowland Guji. The map includes both administrtive, geographic, and rangeland management features - particularly rangeland sub units (or reras) and wet and dry season grazigng areas. Two rangeland systems from Southern Cluster, Oromiya, Golbo and Wadera remain to be validated and updated in the upcoming quarter.

Rangeland system maps have been updated based on field verification exercises of Mullu, Afdem and Babile-Oromiya in Eastern Cluster and Gewane-Gellalo and Awash Fentale rangeland systems, linked to institutional strengthening activities described below (Key Result 2.2).

The table below summarizes work done in digitization and updating community maps, including new and continuing hectares of land under intervention. All mapping exercises are accompanied by intensive institutional strengthening processes and rangeland management planning, which supports improved management practices and technologies in hectares of land across the identified areas.

Cluster Rangeland Total Ha of New Continuing Work Done Systems Land Hectares Hectares AFAR Gewani- 249,119 249,119 Digitization and Geleallo Community map validation completed Awash 141,281 141,281 Digitization and Fentale Community map validation completed EAST Babile 23,188 23,188 Digitization and community Oromiya map validation completed Mulu 46,134 46,134 Map validation completed Afdem 65,079 65,079 Map validation under process SOUTH Dida 340,188 340,188 Golba 258,754 258,754 Updating and finalizing Dawa community maps based on Golba 138,933 138,933 validation. Genalle Dirre 728,762 728,762 Sub-Rangeland units Gomolle 695,112 695,112 mapping completed Mallbe 1,316,347 1,316,347 Wayama 515,457 515,457

Total 413,588 4,104,766

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Three Eastern Cluster rangeland systems are undergoing geo-referencing, including Babile-Somali, Harshin and Erer.

USFS collabortion to support ecological site analysis and presentation of the land cover land use analysis study

PRIME continued its partnership with the United States Forest Service to support remote sensing analysis of PRIME rangeland systems. The goal of the analysis is to provide a picture of the changes in resource conditions over time, and how this relates to changing land use patterns, that can inform improved land use planning towards better productivity in the rangelands.

A four-member USFS team visited Ethiopia to present the results of their land use/land cover analysis in four pilot PRIME clusters, that include Dheda Dida, and part of Gomole in Southern Cluster, Harshin in Eastern Cluster and Zone 3 systems in Afar. The primay results of the analysis demonstrated the expansion of farmlands on or next to grasslands. The result failed to provide a clear picture of bush invasion over time, as many landscape areas characterized as shrubland continued with this characterization over time, but failed to demonstrate the changing composition of palatable vs. non-palatable species.

As a next step, PRIME agreed that a species or more specific vegetation classification was critical to demonstrate degradation in shrublands. In addition, PRIME has asked for support in training on rangeland management and monitoring techniques for local government and staff that can be used with the community. A visit to take the two objectives forward is planned with the US Forest Service for the second half of the upcoming quarter.

Competitive grant to establish a Carbon Baseline Data and determine the Role and Effects of Participatory Rangeland Management Practices in Rangeland Carbon Sequestration

PRIME supports two mechanisms to fund research to establish carbon baseline data for key rangeland systems of intervention, and to determine the role and effects of landscape level participatory rangeland management practices in rangeland carbon sequestration and in improving soil quality and ecosystem resilience. PRIME released a competitive grant mechanism to fund related research to be conducted in Dida and Gomole grazing systems in the Southern Cluster, Harshin and Babile in the Eastern Cluster, and Amibara and Gewane-Gele'alo grazing systems in Afar. Haramaya University is also engaged in related initiatives in Muli, Babile, Hrashi and Afdem rangeland systems of Eastern Cluster, Awash Fentale, Gewane and Amibara rangeland systems of Afar Cluster and Dire rangeland system of Southern Cluster.

The two studies are intended to build an evidence base on the impact of participatory rangeland management not only in climate change adaptation for pastoral communities, but climate change mitigation as well. The hypothesis is that changes in rangeland management practices impact carbon sequestration, and that participatory techniques can improve carbon storage in biomass and soil organic matter that not only contribute to rangeland productivity but support climate mitigation. Rangeland management at landscape level is expected to improve the vegetation cover and soil quality of rangelands thereby enhancing the carbon stock there. Modest changes in carbon storage on rangelands hold promise to affect the carbon cycle and the climate system worldwide.

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Satellite documentation of cattle mobility patterns

To support rangeland management planning, CARE has partnered with Cornell University to conduct satellite documentation of cattle mobility patterns in key pastoral areas. The research will inform policy on protecting livestock corridors, and improve understanding of the relationship between cattle mobility, rangeland ecology and rangeland management. PRIME is linking the research to the rangeland system maps and institutions it has been working with, and joint research development has been on-going in the current quarter. The methodology of the research will provide GPS collars to cattle in key herds selected in discussion with rangeland council members. The full research is expected to begin in September.

Key result 2.2: Increase Capacity for Effective Governance for Climate Resilience

Establishing partnership and plans for improving land rights and resource productivity in pastoral areas

PRIME continued its partnership with the USAID-funded Land Administration to Nurture Development (LAND) project to link PRIME's institutional strengthening and rangeland system mapping work to support improved land rights and administration in pastoral areas. Key activities that have moved forward in this quarter under the shared initiative include:  Support to the formation of the Zonal Oromiya Pastoral Advisory Committee (ZPAC) for Land Administration and Natural Resource Management  Planning for Regional OPAC Field Visit: PRIME is coordinating with LAND to support a LAND-led visit of the regional land adminsitration officials to the rangeland systems supported by PRIME to enhance understanding of the regional officials on community-systems of land management, and the option of certification at rangeland system level. The visit is scheduled for August in the upcoming quarter.  Input into the LAND Impact Evaluation: PRIME has assisted with targeting for LAND's impact evaluation through its rangeland system maps, and provided substantial input into the design of the evaluation to make it more context sensitive.  Development of a Memorandum of Understanding that is expected to be signed in the upcoming quarter.

Strenghtening of Rangelands Management Platform under the Pastoral Directorate, State Ministry of Livestock

PRIME has established a partnership with the Pastoral Directorate, State Ministry of Livestock to coordinate a learning and harmonization platform for natural resource management in pastoral areas. The Rangelands Management Platform (RMP) is designed to provide a space for development practitioners and researchers to come together and harmonize best practices, as well as take collective action and approaches to implementation, under the auspices of the GoE. As the State Ministry of Livestock houses several bi- lateral funded projects to build the resilience of dryland communities, the platform is designed to also benefit these projects by disseminating good practices. The platform also provides an opportunity for development partners to input into national strategies and policies around rangeland management. Platform meetings are designed to take place quarterly, around key themes in rangeland management that are selected jointly with the Directorate, PRIME and development partners.

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The first meeting of the platform was held on April 16th, 2014 around the theme "Addressing Prosopis Juliflora in Ethiopia's Rangelands: Practice, Status and Way Forward." The meeting brought together 48 stakeholders in rangeland management, including 16 representatives from national and regional agriculture bureaus and government research institutes, 28 members from civil society and 4 from private sector consultancies. Experiences in prosopis clearing, control, and use were presented by the Ethiopian Institute for Agricultural Research (EIAR) as well as the Kenya Forest Research Institute (KEFRI). A key outcome was a statement from the Rangeland Management Platform to the State Ministry of Livestock to incorporate into forthcoming national strategies on prosopis that the State Minister is spearheading. Workshop minutes and the recommendations were distributed to all platform members for feedback, and have also fed into the agenda of the higher-level policy workshop that PRIME supported among higher government officials in Awash Arba in June, as described below.

Higher official prosopis policy workshop, Awash Arba

CARE provided technical and financial support to a higher-level government workshop in Awash Arba, on June 17 - 18, that was intended to initiate the process of forming a national prosopis strategy. The workshop, led and organized by the Pastoral Directorate, State Ministry of Livestock, engaged 52 people, including 15 officials and experts from the the NRM, Livestock, and Land State Ministries under the Ministry of Agriculture, experts from Ethiopian Research Institutes, regional government officials, and key civil society representatives engaged in prosopis. The workshop built off of the recommendations from the Rangeland Management Platform (Activity 2 above), which were presented by the Ethipoian Society for Animal Production (ESAP)/Pastoral Rangelands Forum Ethiopia.

The workshop also included a site visit to model areas for prosopis clearing. This includes the sites in Amibara where PRIME has supported prosopis removal using a frontloader. Community members were on site to explain to higher officials the process they had gone through in identifying the site through a participatory rangeland management approach, and their community contribution to clearing and management.

As a key action step, the State Minister has formed a technical sub-group of key partners to work with the federal and regional governments on a national prosopis control strategy. PRIME is represented in the group via its technical consultant, Fiona Flintan.

Community Map Validation and Instituitonal Strengthening

PRIME conducted a series of map validation exercises involving digitized versions of community maps, across the three clusters. Map validation exercises were tied to institutional strengthening meetings, as the map review helped key community representatives to better delineate resource management responsibilities, and evaluate the role of traditional leaders to do these effectively.

Digital Map Validation and Institutional Strengthening - Eastern Cluster

Institutional strengthening processes were conducted in Afdem, Mullu, and Babile Oromiya rangeland systems in the Eastern Cluster, as part of digital map review and validation exercises in the respective systems. A total of 75 people (55 men and 20 women) from community elders‘ councils, women and youth, and woreda officials and experts participated in the processes at the three rangeland units. While providing

32 feedback on the digitized maps, participants verified wet and dry season grazing areas, mobility patterns and distribution of water points, and identified missing or extraneous data on the map. In Mullu for example, participants identified areas on the digitized map that are managed by neighboring Afdem area rangeland councils, and thus removed this area from the map. Importantly they identified which kebeles were part of which rangeland units, and analyzed how their traditional resource management systems linked with administrative systems. In Afdem, a challenge was observed in terms of mobilizing the appropriate stakeholders for the meeting, and the map validation will be redone in the upcoming quarter. Data from the verification exercises has been included for Mullu and Babile Oromiya and the maps are being updated.

The process also included institutional strengthening. First, participants reported back on the community consultation sessions that they agreed to conduct following the previous participatory resource mapping exercise. The outreach sessions were designed to introduce the concept of participatory rangeland management approaches, raise community awareness on the importance of separating wet and dry season grassing areas, and build momentum for revitalizing traditional systems of rangeland management. According to the elders report, 13 meetings were conducted by the council of elders with 2,934 community participants, including 1,729 participants in five meeting in Mieso, 413 participants in Afdem, and 792 participants in Babile Oromiya. 675 participants were women representative from the three rangeland systems.

Second, participants reviewed the strengths and weaknesses of their resource use and governance practices, referring to feedback from the community meetings. Elders‘ councils reviewed and finalized the delineation and division of their larger rangeland unit into rangeland management sub units. Six units were identified in the Mieso rangeland system, seven in Afdem, and three in Babile Oromiya. Responsible elders were assigned in each of the relevant sub-units, and roles and responsibilities were reviewed and agreed upon.

Map Review and Institutional Strengthening in Harshin Rangeland System

To strengthen the participatory map that was conducted in Harshin previously, a follow-up community mapping exercise was conducted in Harshin from April 1-3, 2014. A total of 25 key community elders and representatives (20 men and 5 women) that included Kebele leaders, chief clan leaders, and experts of relevant woreda level government offices attended. The objective of the dialogue was to add detail information and known features to the resource map produced during the previous dialogues for digitization, to review the existing customary resource governance institution and to create a plan to strengthen rangeland institutions and rangeland productivity. In Harshin rangeland system, resources are managed and governed by the clan leaders ''board of committees" assigned by the major clans. The meeting provided an opportunity for participants to review the strength and weaknesses of their clan-based resource management and governance system and strengthened their institution by reforming the resource managing "committee" to make it more inclusive. As part of the discussion, key rangeland sub-units were identified for management, and councils were elected to each.

Digital Map Validation and Institutional Strengthening in Gewane-Gelallo and Awash Fentale Rangeland Systems, Afar

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Map validation and institutional strengthening exercises were organized in Gewane-Gelealo and Awash Fentale rangeland systems from April 4-5, 2014 and June 25-26, 2014 with a total of 60 and 38 participants, respectively. Participants included rangeland council members, key community representatives - men and women, and government representatives including kebele chairpersons, heads of Pastoral and Agricultural Development Offices, woreda administration and land use and administration process owners. Group discussion was undertaken the digitized maps, which include the presence of some reference areas, key resources such as dry and wet season grazing lands, water points, and their geographic placement. Key resource areas under the rangeland system which are found in the community maps but missed in the digitized maps were identified and included, while others were excluded. Mobility of the communities in and out of the rangeland systems and of others/outsiders towards the rangeland systems are identified and indicated in the map.

Digital map validation in Awash Fentale Rangeland System

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As part of the map validation process, institutional strengthening was conducted to review the roles and responsibilities of the rangeland councils, clarify structures, and validate members.

Rangeland Management Structure in Bunketo-Molalle Rangeland Sub-Unit of Gewane- Gelallo Rangeland System,

Follow-Up Dialogues on Institutional Strengthening and Setting of Rehabilitation Priorities

Apart from map validation exercises described above, rangeland council dialogues were conducted to strengthen governance and structures for rangeland management in Dire Rangeland System in Southern Cluster, and in Harshin, Gashamo, Mullu, Afdem, and Babile Oromiya rangeland structures. These discussions also focused on working with the rangeland councils on setting rehabilitation priorities to enhance rangeland productivity, based on the system mapping and analysis conducted in previous sessions.

Eastern Cluster Five institutional strengthening discussions have been conducted in Mulu, Gashamo, Afdem, Harshin, and Babile Oromiya rangeland systems of Eastern Cluster during the quarter. A total of 189 people (169 male and 20 female) from community members and the relevant woreda level government offices participated. Here again, the discussions were focused on strengthening the customary NRM institution at rangeland system and sub-rangeland units, and electing representatives to serve on the rangeland management council. As part of the institutional reform and review process, women have been included with 25% representation in the newly reformed council to enhance women's role in resource governance and decision making (see the table below). A summary of the rangeland management system for the concerned areas is depicted below.

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Women's representation in the rangeland management council # Rangeland # of # elders council # of elders council at Women system sub- at sub-units system level (average) members at units (average) system level 1 Harshin 8 3 24 6 2 Afdem 6 4 24 6 3 Gashamo 6 3.16 19 6 4 Mullu 6 4 24 5 5 Babile Oromiya 3 8.30 25 8

Participants also discussed and agreed on their institutional structure and the relationships between the rangeland councils at the rangeland unit and sub-rangeland unit level. Finally, they have discussed and instituted a regular meeting schedule (on a monthly basis) to agree upon and address issues related to rangeland system management.

The dialogue participants have also discussed and prioritized resource rehabilitation activities at their respective rangeland units and identified roles and responsibilities of the community and the support they expect from PRIME for implementing the prioritized rehabilitation activities. Below is a table summarizing the rehabilitation priorities in each discussion, and their status:

Rangeland Top Priorities Impact Status System Beneficiaries Harshin Hussei Saman Pond 750 HHs Completed technical Rehabilitation (40,565 heads of assessment; design livestock) under development Abokr Ahmed Pond Completed technical rehabilitation assessment; design under development Mullu Berikle Pond Development 8,500 HH; (45,300 Under construction (see heads of livestock) 2.3) Hulkadoba Pond Technical assessments Development and concept note Afdem Kudajale Borehole development underway Rehabilitation Kumbi Pond Development Karaba River Diversion Under Review Technical Assessments under way Gashamo Ana-madobe, pond Under Review Technical Assessments rehabilitation under way Dhagaxyo-ado pond rehabilitation Gashamo Kebele Pond rehabilitation Babile Lekole Pond Rehabilitation Oromiya

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Southern Cluster: In Dire, the institutional review and strengthening dialogue was conducted on April 27 with the aim of nominating elders to manage and lead the entire rangeland resources on behalf of their community. The election was made based on the set criteria by the particpants and through thorough discussion on the need for the elders' council to be inclusive and representative of the diverse interest groups in the rangeland system. The total of 31 people (26 male and 5 female) of which 27 are from members of the six sub-unit's resources management councils, and the remaining 4 are from the local government line departments have participated on the meeting. Each Rera also elected a leader and Rera level council members will be accountable to the dheeda leaders named above. The nomination has been approved by the Gada leader (Guyo Goba) and made legitimate and recognized by the Borena Gada system.

In Malbe Rangeland system, NRM follow-up dialogue was held during May 15-16, to identify and prioritize resource rehabilitation and enahncement activities and facilitate the development of detailed community action plans for implementing prioritized activities. A total of 38 people (5 women) represented from ten sub rangeland units (Reras) and local government offices participated on the meeting. Accordingly, rehabilitation priorities identified and among the priorities identified by the participants selective bush thinning on 5270 ha areas of lands encroached by invasive bushes was the first priority. The identified selective bush thinning activity is assumed to benefit over 1900 HHs in providing better pasture availability for the dry season. In addition to the bush thinning activities, about six non-functional or damaged water points were identified for rehabilaition. The water points are also expected to benefit about 4100 HHs living in the area by providing them sufficent water for both livestock and human comsuption during both dry and wet seasons.

Negotiations on addressing diverse land use interests among stakeholder groups in Borena and Guji rangeland systems

As part of a wider process of enhancing rangeland system governance, CARE has developed a methodology to enhance the capacity of rangeland councils to represent and negotiate diverse land use interests within their units of management. Since rangeland systems are vast units that cover farm areas and forests, as well as private sector investment, the legitimancy of the rangeland concils stands not only in their ability to manage grazing areas, but also support to protect the intersts of other land users, and allocate land uses accordingly. In this quarter, four dialogues were conducted around negotiating internal interests, including two in Guji Zone rangealnd systems, and two in Borena. The dialogues brought together Gada leaders, or the most senior decision-makers of Borena, dheda elders or the rangeland council, pastoralists, farmers, investors and goverment officials. The meetings were facilitated by the dheda elders themselves, with whom PRIME reveiwed a facilitation plan and agenda for the meeting. A summary of participant numbers and key discussion points is provided below:

Rangeland # of ppts Key Issues System Dheda Dida, 44, including . Farmers discussed the need for use right recognition; Guji Zone 5 Gada concession or certificate represntatives . Full recognition of overall communal land management by dhedas, and recognition of individual rights with it . Rangeland system management by dheda was seen as critical to overall rangeland productivity

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. Importance of integrating rangeland system work with Gada leadership Golba Dawa, 44, including . Review and acknowledge of Gada leadership of Borena Guji Zone 5 Gada as fundemantal decision-making structure represntatives . Exclusion of women reviewed and restructured to add three women to the senior dheda council . Overhaul of leadership in one sub-grazing unit to ensure greater representation . Acknowledgment of communal land certification, but with structures to endorse private rigths within it Malbe 33 . Support for importance and revitalizaton of customary institions to lead and manage resources on behalf of the diverse groups . Revision of Arda (kebele) structure to be more inclusive and represntative . Clarification of roles and responsibilities among councils, on behalf of various interest groups . Agreement to communal land certification at dheda, or rangeland system level Gomole 39, including . Pastoralist land rights being a critical issue for pastoralist 10 Gada and other livelihood groups in the rea leaders . Dheda as the appropriate level of land certification pastoral areas to avoid land fragmentation . Dheda is the appropriate institution to protect diverse land rights

Formation of the Zonal Pastoral Advisory Council (ZPAC) for Land Administration and Natural Resource Management in Guji and Borena Zones

Zonal Pastoralists' Advisory Committtee (ZPAC) was establish at both Borana and Guji zones. The ZPAC is formed with members represented from different zonal level government offices such as the Zonal administrator, and Heads of the Zonal Rural Land and Environment Office, Water, Mineral and Energy office, and Pastoral development offices, as well as the Chairmen of the rangeland councils of all the rangeland systems, or "dhedas" in the zone. The ZPAC idea emerged from the Regional Oromiya Pastoral Advisory Committee (OPAC) that the LAND project has established in support of guiding regulatory frameworks and legislation on securing pastoral land rights. As part of Regional OPAC meetings and based on agreemetn with LAND, PRIME was charged with facilitating the establishment of the Zonal Forums to interface with the region on the issue of pastoral land tenure. As per the approved ToR, the ZPAC is expected to play a facilitation and advisory role on the processes of securing the pastoral land rights. In this quarter, PRIME has supported two meetings in Borena and one in Guji among dheda elders and the key zonal represntatives on the expected fundtions of the ZPAC, and discussed prepartions for a field visit of the Regional OPAC to discuss key issues of land tenure at a local level. The field visit led by LAND is expected to take place from August 4th to the 14th in the following quarter. PRIME will support all preparations for the visit at a field level.

Participatory Mapping and Institutional Analysis in Four New Rangeland Systems

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In this quarter, PRIME supported participatory resource mapping and accompanying institutional analysis in four new rangeland systems of intervention, marking the total rangeland systems of intervention under PRIME at 23. In this quarter, Mercy Corps conducted the exercise in Golbo, the final and fifth rangeland system in Borena Zone, Wayama Somali, the rangeland system across the border from Borena in Liben Zone, Somali Region, and in Erer Rangeland System, Siti Zone. ACPA conducted the exercise in Babile- Erer Valley, the second rangeland system identified within Babile worda. Both Southern Cluster and Eastern Cluster are now intervening in nine rangeland systems each.

In each case, communities mapped wet and dry season pasture areas, water points, farmlands, settlements and mobility patterns. User, decision-maker and relationship analyses were conducted with the mapping, to begin the process of revitalizing and strengthening customary institutions for rangeland management. As part of the institutional and governance analysis, communities identified resource users and decision- makers, the relative effectiveness and legitimacy of various decision-makers as well as relationships among users and among decision-makers. Participants in all meetings included key resource decision-makers and knowledge holders, and local government representatives. Customary governance institutions were reviewed, revitalized and reformed to include women and youth representatives. Details of the mapping exercises are provided below.

Southern Cluster - Golbo and Wayama-Somali Rangeland Systems Ninety community members, of whom 13 were women, 69 were from community representatives (elders, women and youth) and the remaining 21 from government partners participated in the processes across the two sites. Wayama was mapped covering 60 keblele, and is estimated to be one of the largest rangeland systems of intervention. As part of the mapping process it divided into 12 sub- units, supporting communal resource management and mobility. It has one of the major water sources - the Laye traditional wells - in the southern rangelands, and a number of private and communal ponds. There are no distinct areas set aside for dry and wet season grazing, although mobility patterns in the dry season were identified. Improved management of dry and wet season areas was noted as a key action point. Water is relatively better managed than pasture by a traditional institution known as Abba Herrega (water manager). Pasture use is decided upon by the kebele chairman, but regulations around pasture use and mobility are unclear and need to be strengthened.

Golbo was determined to encompass 21 kebeles, 6 from Dillo, 1 from Dire, 8 from Miyo and 6 from Moyale woreda. While most of the rangeland system lies in Kenya, and is managed jointly with Kenya, eight sub-rangeland units in Boren have been defined and mapped by the community on the Ethiopian side. As in Wayama Somali, traditional water management in Golbo is strong compared to the pasture (grasslands) management which is also managed by the community. Clearing invasive and unpalatable bushes, rehabilitating degraded land through reseeding with grass seeds, rehabilitating damaged water points, and arranging inappropriate settlements were some of the key action points that communities discussed to take forward. Maps of both rangeland systems are being digitized and hectares of land are under verification.

Eastern Cluster - Babile-Erer Valley, Fafan and Erer-Gotha, Siit Rangeland Systems Eighty community representatives (50 men and 30 women) including kebele leaders, chief clan leaders, and NRM and rangeland experts from woreda government offices participated in the process at the two sites. Babile-Erer Valley rangeland system was divided into three rangeland sub-units based on the existing resource use and management systems, while Erer-Gotha was divided into four. The systems were mapped

39 at 41,568 and 204,057 hectares of land, respectively. In Erer-Gotha, participants emphasized that rangeland has been shrinking and livestock mobility has been constrained in recent years due to the expansion of crop farming activities. Remaining rangelands are continuously grazed all the year round and the rangeland productivity is always very poor. Institutional strengthening for improved management of rangelands was identified as a top priority in both cases. Regular rangeland council meeting dates were set by participants on a monthly basis. Participants in the dialogue agreed to conduct wider community consultations at their respective units before their next meeting, to share the messages of the meeting, the decisions they made and also to introduce the elected council members to the community members that did not participate on the process. The councils of elders at both systems will meet in a month at their respective rangelands to prioritize resource enhancement rehabilitation priorities and identify roles and responsibilities of the community, the elders' council and the type of support they expect from PRIME.

Participatory mapping and institutional analysis in Erer-Gotha Rangeland System, Erer woreda, Siti Zone

Key result 2.3: Implementation of Climate Solutions

Follow-up implementation support and monitoring of the dissemination and utilization of Participatory Scenario Planning (PSP) advisories by pastoralists and small businesses

Babile-Babile Participatory Scenario Planning ACPA and Mercy Corps facilitated a joint participatory scenario planning workshop in Babile town, with participants from Babile Somali (Dakhata and Erar Valley rangeland systems), and Babile Oromiya

40 woredas. The objectives of the workshop were to provide information on possible rainfall scenarios for the upcoming Gu (mid-May to mid-June) rainy season, identify opportunities and threats associated with forecasts, and develop and disseminate preparedness plans.

A total of 50 stakeholders drawn from regional meteorology offices, woreda DPPO, woreda administration and sector offices, traditional weather forecasters, clan leaders, community data collectors (CDCs), and women and youth representatives attended the workshop. Traditional forecasters predicted relatively good rains for the upcoming rainy season, which they expect to be similar to the previous year. The meteorological forecast showed normal to above normal rain with odds of above normal rainfall in Babile – Babile and surrounding woredas, In addition, there were warnings of possible unexpected high rainfall that could cause flash floods and disease outbreak in low-lying areas, such as Dakhata and Erer valleys. Community members developed scenarios for the mid May-mid June season for various rainfall possibilities, considering major potential hazards and risks, associated impacts and opportunities.

For normal and above normal rainfall, with a combined probability of 75% of occurrence, communities considered the risk of flooding, diseases, crop pests and diseases. At the same time, this seasonal forecast was predicted to be favorable for pasture growth and water harvesting. Given the uncertainties of forecasts, participants identified risks and possible impacts and strategies for the 25% chance that rainfall will be below normal. In this case, water and pasture shortages and diseases were identified as major risks. Also having identified the possible hazards, impacts and opportunities, participants identified and developed alternative plans and advisories to address each of the three scenarios. Specific plans for dissemination of advisories and monitoring of implementation progress were developed by workshop participants. As a follow-up to PSP, both ACPA and Mercy Corps have conducted consultative meetings with government and community stakeholders.

Monitoring of PSP Advisories in Babile-Babile: From June 20-30, 2014, ACPA and Mercy Corps conducted monitoring on the dissemination of PSP advisories agreed upon in the workshop as well as the implementation of preparedness measures. The meetings with workshop stakeholders also supported an assessment of rainfall, pasture and water conditions on the ground.

Through the monitoring process PSP advisories were directly disseminated to about 5,180 households through community information disseminators. Despite the outreach, a number of challenges were identified to more effective outreach and utilization of information. As the PSP was a pilot, the absence of institutional arrangements to take it forward was a constraint in its effectiveness. Broader awareness- raising around forecasts and advisories was also critical.

In the monitoring, discussions were held with relevant government institutions for co-organization and ownership of the process, and the need to engage key community institutions in government early warning structures. The following were identified as key action steps:  Strengthening of EW committees through inclusion of traditional forecasters, rangeland councils and other norm holders as members for monitoring and tracking early warning information on a regular basis.  Linking PSPs with relevant community development agents and institutions such as CAHWs, VSLAs, Teachers, Health workers.

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 Engaging the most appropriate stakeholders in the PSP workshops (DPPFSO, Rangeland councils, early warning committee, forecasters, CAHWS).

Also, despite a jointly agreed upon forecast of normal rains among scientific and traditional forecasters, rainfall was below normal, preventing the full recovery of key pasture areas and water points. Livestock body condition in the area was deteriorating. Also, as the PSP was conducted for the first time as a pilot without sufficient planning for monitoring and institutional arrangements, specific advisories targeted to households were not developed.

Amibara and Awash Fentale Participatory Scenario Planning, Afar Cluster Afar cluster conducted two participatory scenario planning processes, one that brought togeter Gewane, Gelallo and Amibara woredas, and the second focused on Argoba. A total of 102 community members attended the process in the two workshops. The PSP process was well-received by the participants, and noted as an important step in not only disaster preparedness and planning, but also to take advantage of potential opportunities within the seasons. Clan leaders mobilized participants for the workshop, and as a result, many of the participants had already come to the process of key objectives and methodology. Forecasts for the season included normal to above normal rainfall.

Monitoring PSP in Afar Cluster Following the PSP, CARE and AISDA conducted four follow-up workshops at woreda level to guage the success of the PSP process, and to facilitate the dissemination of advisories at a local level. A total of 428 participants, including 160 women and 268 men, attended the workshops, which included both government and community stakeholders. The meeting provided an opportunity to reflect on the effectiveness of the PSP approach and draw lessons for future PSPs. From the meeting, CARE Ethiopia realized that most target community members have in one way or another received the advisories from friends, co-villagers, clan leaders, and youth in their community. At the same time, the need for institutionalizing the process to be more effective became apparent. Also apparent was the the need for more clearly delineating roles and responsibilities among different stakeholders for both disseminating advisories and implementing actions. As in the Eastern Cluster, challenges were associated with the need for both institutionalizing PSP within the government early warning structures, and at the same time making those structures more inclusive and reflective of community interests.

Training of Trainers and Practitioners on Social and Behavioural Communication tool developed to address behavioral, attitudinal and socio-institutional constraints and limits to climate adaptation

PRIME has adopted CARE's SAA (Social Action and Analysis) approach to address behavioral and socio- institutional barriers to climate change adaptation among pastoral households. In the reporting quarter, a five-days training of trainers was organized in Dire Dawa (from 10-14 June 2014) for all IR2 technical staffs on the method. The training focused on the methodological aspects and practical applications of the SAA approach to addressing behavioral, attitudinal and socio-cultural barriers limits to adoption of climate adaptive behaviors and practices. A total of 24 participants drawn from all the three clusters attended the training.

SAA is a community conversation technique that includes both norm holders and other wider target participants. The process allows stakeholders to deeply reflect on existing practices and social norms that form an obstacle to communities achieving particular development goals. In PRIME, SAA will focus on

42 climate change adaptation. Key issues for discussion through the SAA methodology have been identified in previous livelihood adaptation dialogues and may include the lack of savings culture, relations between power and herd size, herd management and social dynamics such as women's decision-making power in the household. Positive practices, such as rotational dry and wet season grazing and customary management of water points, will be highlighted and promoted, with emphasis on their value for risk management. The SAA dialogues will also delve into the social and cultural norms that determine acceptable behavior, and how these norms establish restrictions on adaptive action by certain groups based on gender, age, disability and/or ethnicity.

Support to Regional Early Warning System in Afar Region

Afar support to DPFSPCO In this quarter, CARE Ethiopia/PRIME and the Disaster Prevention, and Food Security Programs Coordination Office (DPFSPCO) signed a Memorandum of Understanding on a broad workplan designed to strengthen the regional early warning and disaster risk response system, and incorporate forecasting information for disaster preparedness. DPFSCO has agreed to use the PRIME concept note system to develop and identify key ativities, which will include the Region's engagement in and scale up of Participatory Scenario Planning processes, facilitating information exchange and communication among woreda, zone and regional counterparts, and stengthening aspects of the existing household economy analysis based early warning system, according to priorities identified by the Region and not supported by other partners operational in the area, including PCDP and UNICEF.

Early in the next quarter, PRIME will support a a consultative meeting to strengthen the current community based early warning system and its linkages with the region.

Somali EWS Progress Update PRIME is funding the Regional Somali Disaster Preparedness and Prevention Bureau (DPPB) thorugh a sub-grant to support its Household Economy Analysis (HEA)-based early warning system. Through PRIME's financial support DPPB conducted three assessments around local emergencies to mobilize response. This included the storms in Kebredihar, flash flood in Shilaabo, and a locust outbreak in some woredas in the north. In addition, DPPB continued its monthly food security and ealry warning data gathering and production of related bulletins.

Also in this quarter, PRIME worked with the DPPB to establish a schedule for updating the Household Economy Analysis baseline. It was agreed that DPPB would submit a separate proposal on updating the baseline based on comments from PRIME, and the proposal would be used as a grant modification. PRIME would contract out the Food Economy Group (Food Economy Group) directly to support in training members of DPPB that would run the baseline updating process, as well as support in updating the data collection sheets. PRIME is finalzing details regarding the process with USAID and FEG, and based on the agreement, may move forward with grant modification in the upcoming quarter.

Enhancing access to water through water point rehabilitation and development

Haro Bake Microdam - Yabello: Southern cluster: Bake microdam is a water reservoir supporting pastoralists of Borana area including those bordering from Kenya. It serves 15,000 HH from Yabello as well as surrounding woredas. The existing capacity of the

43 dam is 1.5 million m3 but the structural functionality of the dam, and therefore the service it provides is under threat. PRIME's initiative would expand the dam to hold 1.6 million m3, as well as preserve its funtionality for another 20 years.

Figure 7: Topographic assessment of Haro beke catchment area

Technical assessment of the dam has indicated that the dam is under pressure because of its deteriorated structures and long-term sediment deposited from the catchment draining to the water point. A comprehensive assessment has been conducted by both PRIME and government bodies. The findings of the PRIME engineer regarding the condition of the dam and the situation have been presented to all government and community stakeholders, and the design has been jointly agreed. Construction and rehabilitation of spillways, stabilizing works, expansion of the reservoir area are the core components designed to upgrade the dam. Bid documents for contracting the civil engineering work were prepared and the bid was announced at the end of the quarter. It is expected that the contractor will begin work early in the upcoming quarter, and that civil engineering work related to the dam will be completed by the end of Quarter 8. In addition to the civil engineering work, watershed management of the catchment area draining to the dam has been emphasized with the elders council, or dheda, of the rangeland, and is also being synchronized with the government's watershed management plans. Watershed management activities are to be undertaken in the upcoming quarter.

Birkile Pond, Mullu - Eastern cluster Berkile is a new pond designed jointly with the local community to balance the resource condition in wet and dry season rangeland in Mulu rangeland unit. The pond construction is already started with PRIME‘s machine mobilized and involvement of local community in clearing access roads. Its planned capacity is designed for 7,000 m3 and it is expected to serve 1,300 HHs in Mullu Rangeland system. The total excavation work volume from PRIME is calculated at 7,776 m3 and the embankment work, including fill and compaction is estimated at 7,583 m2. 15% of the work volume on both the excavation and embankment has been accomplished in this quarter.

Fatuma Delaytu pond, Gewane-Gelallo, Afar Cluster The Fatuma Delaytu pond will serve community members from Gewane-Gelallo rangeland system. Bunketo-Molalle sub-rangeland unit near their dry season grazing operates at a total capacity of 7,000 m3.

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It is expected to serve 1,000 HH in Gewane Gelallo rangeland system, Bunketo-Mollale sub-rangeland unit. PRIME's work completed has included removal of 1,117.5 m3 of silt. A water regulating structure is also under procurement process whose implementation shall commence soon.

Supporting community prosopis removal efforts with new technologies in Afar In this quarter, 210 hectares of prosopis were cleared across three rangeland systems and their corresponding sub-units in Afar Region, including Dudub grazing land from Awash Fentale; Bunketo- Mollale rangeland units from Gewane-Gelealo; and Arba, Halaydege, and Andido grazing lands from Amibara. The 210 hectares of land cleared mark the piloting of the bulldozer as a technique for prosopis clearing. The mechanized clearing was accompanied by community participation as described below.

Clearing of sites was preceded by through multi-stakeholder consultations in each rangeland system around priority sites for clearing. This included rangeland councils, government, women and youth representatives. Prior to each clearing exercise, respective community members from each of the six rangeland sub-units had a two-day orientation on the role of the clearing rangeland management, clearing techniques and safety procedures during clearing. During the six trainings, which took place in each of the six rangeland units, participants also delineated their roles and responsibilities during clearing. A total of 383 participants from across the three rangeland systems and six rangeland sub-units, including 289 men and 94 women, participated.

410 community members (165 female and 245 men) participated in the clearing alongside the bulldozer, which included the removal of small and sparsely populated stands, uprooting and burning remaining roots and stems of prosopis cleared by the loader, and in some cases fencing the area to allow it to rest and rehabilitate. The woreda PADO supported the activity by assigning a focal person for the NRM activities, providing technical support and following up the day to day implementation of the activity. PRIME provided hand tools and refreshments.

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Bulldozer clearing of prosopis on selected sites.

Of the 210 hectares of land cleared, 55 ha in Gewane-Gelealo, 135 ha in Amibara, and 20 ha in Awash Fentale rangeland systems. The approach has been deemed successful, and PRIME will further examine how the prosopis can be used productively, and work on rangeland management plans following the clearing.

Competitive grant for prosopis removal In this quarter 17 technical proposals were received and reviewed for the competitive grant for conducting research on alternative technologies for clearing prosopis at scale. Potential institutions were shortlisted and questions sent for clarification. A consortium of EIAR, SUST and ILRI was selected as the strongest proposal. Given that the consortium is led by EIAR, a government institute, PRIME will seek approval from USAID to fund the grant, and it is expected to be awarded in the upcoming quarter. The grant will cover 18 months of research on the application of up to five new technologies for prosopis clearing in community-selected sites.

2.4 Support Environmental Management of Reg 216

Prosopis clearing Clearing of prosopis from potential range lands has continued in Afar cluster. As per the mitigation plan identified for the activity, significant and useful species were marked to avoid damage by the machine; controlled burning of cleared prosopis was permitted only in specific areas and at specific times. Fires

46 were extinguished prior to abandoning the sites. Land leveling is finally made to restore the site disturbed during clearing. The local community is undertaking its part within a radius of work sufficient to protect them from approaching the machine. In case of emergencies or any injury, the machines are well equipped and operators are ready to give first aid on site on top of awareness creations made before the work starts.

Water point rehabilitations As core part of the enhancement works, environment examinations are conducted to see the effects of the proposed enhancement works. In a screen summary template prepared for this purpose, the likely impacts of each proposed activities in respective clusters are evaluated to recommend the threshold decisions; the proposed activities under development are found to be in the ‗negative determination with conditions’ category. As concentrated floods are being directed to reservoir areas, catchment water shed managements are considered for each site under development as a follow-up activity to prevent soil erosion and detachment.

Harobake micro dam rehabilitation Materials to fill the weak sections of the dam will be excavated from environmentally appropriate designated areas. Materials excavated from the reservoir area of the dam will be disposed to fill and balance the open areas from where the selected materials are produced. For part of the subcontracted civil works to local contractors, environmental issues are clearly addressed in the contract document and will be monitored. Environmental protection office of the Zone is jointly working with PRIME team and elders‘ council of the rangeland in implementing and monitoring the environmental management actions. Flood diversion dykes and stabilization works are designed to guide the excess flood spilled from the dam.

Details regarding environmental regulations for Barwako environmental regulations monitoring have been included under the IIF section.

Challenges

 On-going conflict situations have continued to stall activities, particularly in Southern Cluster and related to Haramaya University, which were affected by conflict on the campus.  Erratic, unexpected rainfall patterns across Eastern and Southern Clusters have delayed water point rehabilitation. Some water was found in the water points that were planned under rehabilitation, which prevented the enforcement and expansion efforts. A number of critical water point rehabilitation activities are planned for the upcoming quarter.  Dependence on centrally aggregated forecasts from the National Meteorological Agency for Participatory Scenario Planning meant that communities do not have strong scientific forecast information to inform the process. PRIME is still using the methodology to support communities to think through uncertainties and possibilities of the upcoming seasons, considering the performance of the previous season.

Lesson learned

 Participatory Scenario Planning can benefit from integration with the government Early Warning systems under the DPPB and DPFSCO structure and systems. PRIME has identified DPPB as the appropriate structure under which to institutionalize Participatory Scenario Planning, while strengthening the government early warning systems to be more inclusive of community structures.

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PRIME has learned that government early warning committees can be much more effective if benefited from linkages with key stakeholders in the community that have "live" access to critical information. This includes rangeland council members with knowledge of pasture, water and mobility, Health Extension Workers with knowledge of disease outbreak, community animal health workers with knowledge of animal disease are among some of the key stakeholder groups who require representation in the structure. PRIME is moving forward with strengthening this in the coming quarter.

 Gada leaders, or the most senior leadership of the Borena, were deemed critical for engaging in rangeland management planning, particularly around negotiating internal interests among diverse land users in the rangeland unit, and negotiating community land rights with government. As the Gada are the most respected and powerful leaders of the Borena and Guji, and are also important negotiators, inclusion of this institution alongside the rangeland council, or dhedas, was successful in gaining government support for the rangeland system approach to land use and management at a zone level.

PRIORITIES FOR NEXT QUARTER

2.1 Access to Science and Information . Capacity assessment to understand the capacity of local and regional meteorological institutions/personnel and stations to downscale and provide localized and timely forecasts . Technical support for improving NMA forecasting methodology . Supporting strengthening regional EW information systems, including updating HEA baselines . Digitizing climate hazard exposure and disaster mapping of selected grazing systems, incorporating the information into rangeland system planning . Digitizing and validating remaining rangeland systems under intervention . Completing layering additional land use and mobility data on maps . Facilitating participatory monitoring of early warning indicators/crisis triggers as part of participatory scenario planning follow-up . Training on the "rangeland school" approach to rangeland management . Technical and logistical support to zonal/district early warning units for enhanced information tracking, management and flow systems . Awarding grant on carbon stock baseline in selected rangeland sites

2.2 Enhanced Governance . Institutional strengthening through supporting the regular rangeland council review meetings and consultation dialogues at all rangeland units of on-going intervention . Conducting rangeland council strengthening in new/recent units of intervention . Facilitating and hosting Regional Officials visits to Borana and Guji zones and respective rangeland systems in support of building buy-in towards rangeland system level land administration Providing the necessary follow-up support to the zone in implementing agreed upon plans for land administration . Development of rangeland management plans in selected rangeland units across the three clusters . Strengthening community-level EW committees to be more inclusive of key community groups and responsive to community information needs . Government international exchange visit on use of forecasting information in disaster preparedness

2.3 Implementing Solutions

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. Awarding prosopis grant and starting the actual trials of the prosopis removal technologies in Afar . Expansion of existing prosopis removal efforts . Implementation of civil engineering and watershed management activities in relation to Haro bake pond . Building demand for improved, climate adaptive seed varieties, with particular focus on fodder . Completion of ten new rehabilitation initiatives, including water point rehabilitation and bush thinning - particular focus on SRS . Application of new rangeland school technologies in selected rangeland systems, with focus on prescribed fire and rotational grazing based on plan ecology . Application of SAA with respect to savings culture and herd management . Support and monitoring of the implementation of PSP advisories . Follow-up implementation support and monitoring of the dissemination and use of PSP advisories by pastoral communities

INTERMEDIATE RESULT 3.0: STRENGTHENED ALTERNATIVE LIVELIHOODS FOR HOUSEHOLDS TRANSITIONING OUT OF PASTORALISM:

Key Result 3.1: TOPs employability increased through life skills, financial literacy and entrepreneurship training

PRIME signed an agreement with Amasis for ‘HelloJob’ service and the service is launched During the quarter, PRIME received a proposal (last quarter) from Amasis and Belecash to implement Hellojobs/Hellosira service aimed at registering job seekers through the phone and online and providing free access to prospective employee data for employers. PRIME and Amasis signed a FOG agreement in June 2014. Following the agreement, Amasis completed software adjustment and the service was launched; the phone and online service started registering job seekers on July 15, 2014. Amasis started hiring operators and a minimum of six call center agents in Somali, Afar and Oromiya regions will be established in the first year and the number will be adjusted based on need in the coming two years. The expected impact of this activity is to register 30,000 profiles of job seekers in year 1 and eventually another 100,000 the two following years. One in eight registered job seekers are expected to obtain job through this system during the one year agreement period.

Jobs created for youth: training in irrigation pump maintenance PRIME carried out another round of trainings on pump maintenance for ten semi-skilled youth and two government members of staff in Moyal (Somali) and Hudet Woreda. The trainings were facilitated and conducted by technicians of Liben Woreda Irrigation Department. After the training, PRIME provided the maintenance toolkit for the ten trainees on a cost-sharing basis enabling them to start offering a fee-based maintenance service which has enabled them to recover their startup costs and earn decent incomes. This round‘s training brings the total number of trainees to 24 and that created job opportunities for 21 youth in the areas. That

49 Hands-on training on motor-pump maintenance means more than 500 farmers who have motor pump for irrigated agriculture now have access to timely maintenance of their broken motor pumps at reasonable price.

TOT training on Private Service Provider (PSP) and Field Agent (FA) models of Village Saving and Lending Associations (VSLA) In order to improve the financial literacy of pastoralists, PRIME is pursuing the private service provider model to form and expand VSLAs in the project operational areas. After twelve PRIME financial services technical staffs trained as ToTs on Field Agent and Private Service Provider models during last quarter, the trained ToTs are selected and rolled out the training for 45 new entrepreneurial PSPs in Southern and Afar cluster. Then 40 of them qualified to provide the service through PRIME transitional support until they are certified.

VSLA formation through the Provider Service Provider model In the review period, the PRIME supported PSPs have started the formation and expansion of VSLAs through the PSP model, a more cost effective and sustainable method to expand outreach in target communities and provide the service. PSPs train VSLAs, for a fee, paid by the VSLAs, eliminating the need for long-term external technical support. The main advantage of this approach is that new VSLAs continue to be created (and supported) after a project has ended.

During the quarter, in southern cluster PSPs started forming VSLAs and the first 12 new VSLAs composed of 220 (135 female and 85 male) members were established. In eastern cluster selection of PSPs is in progress and the training for selected PSPs will be given in July. It is envisaged that these 40 trained PSPs will continue forming VSLAs and providing training to members by the next quarter culminating in their training 120 new VSLAs and revitalizing 35 existing VSLAs in all clusters by the end of this year.

Entrepreneurship, MIS development to One-Stop Centers/MSEs agency in the eastern cluster During the quarter, PRIME and MSE agency of Jijiga and Degahabur signed a Fixed Obligation Grant agreement and hired a consultant to establish MIS that help eight OSCs act as resource points where TOPs go to get information on the labor market, employment and skills development. It is also expected that the OSCs will provide ‗Creating Enterprises through Forming Entrepreneurs‘ (CEFE) training benefiting 5,000 TOPs. Consultant recruitment is progressing and once hired, it is expected that MIS development will be completed in three months and the OSCs‘ performance will be improved.

Labor market assessment (LMA) conducted in all Clusters During the quarter, PRIME commissioned labor market assessment (LMA) that was conducted in all clusters. The objective of the LMA is to uncover the skills in demand by the job market as well as the constraints and challenges that individuals (specifically individuals transitioning out of pastoralism) face as they look for sustainable work. The PRIME LMA was built on previous studies undertaken by PRIME including the TOP-focused employment and entrepreneurship market assessment (TEEMA) as well as several value chain assessments during the start-up phase of the program. The LMA employed a blend of qualitative and quantitative information to ensure that we are looking at the larger landscape for livelihoods.

For the LMA 12 lead assessors from PRIME and Mercy Corps East and West Africa regional staffs and 15 local enumerators trained and undertook the assessment in respective clusters for two weeks. The methodologies used are business survey, focus group discussions and key informant interviews.

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Accordingly, 400 business surveys, 12 focus group discussions and around 30 key informant interviews were conducted. The data collected are analyzed and report writing is about to be completed. In July, report writing will be completed and shared internally and in August this will be shared widely.

Profiling of public and private TVETS in all PRIME operational areas During the quarter, Haramaya University completed a profile of Technical and Vocational Education and Trainings (TVETs) in all PRIME operational areas. Profiling these institutions is one of the principal steps before making the decision for partnership; it is important to know the profile of these institutions in PRIME intervention areas. Assessment and profiling were carried out on 18 TVETs and TVET equivalent institutions operating in three clusters in Southern Oromiya (Borana and Guji Zone), Afar and Somali pastoral areas.

The assessment depicted the nature of TVETs in various dimensions summarized in a database in Excel and a descriptive report. The report used data reflecting the internal capacity of the institutions in terms of manpower and physical infrastructure (Training facilities, laboratories, and demonstration rooms), apprenticeship programs, curriculum or training packages the institutions host, and external aspects such as admission requirements, the labor demand, collaboration with stakeholders, the challenges and future plans of the institutions. The information collected will help develop TVET profile database and make an informed decision for the screening of best TVETs to partner with to grant scholarship programs to selected TOP in PRIME operational areas.

Assessed TVETs and Training Institutions by Towns/city where they are found Town/city Number Yabello 5 Moyale 2 Negele Borena 4 Awash 1 Gewane 1 Dire Dawa 1 Jijiga 3 Werer 1 Total 18

PRIME’s Short-term vocational scholarship program for TOPS underway The main objective of PRIME‘s scholarship program for TOPs is to improve their life readiness through short-term skill training that will assist them to secure stable employment or create self-employment after requisite training. According to PRIME‘s labor market assessment, the majority of TOPs lack skill sets demanded by employers. Therefore, PRIME partners in all clusters have identified short-term trainings that can create job/business opportunities and make TOPs employable in the labor market. The selection of TVETs and partners for the training and apprenticeship is completed.

During the quarter, PRIME finalized preparations to award scholarships for approximately 357 TOPs to attend various short-term skill trainings in different selected TVETs in all clusters and from the beginning of the next quarter candidates will start training that lasts 3-6 months. Types of vocational trainings for 51

PRIME‘s short term vocational training scholarship program are electricity installation, cobbling, machinery operator, driving, catering, and hair-dressing. These short-term vocational trainings are identified during the labor market assessment because they have more demand from potential employers and are also good for self-employment. PRIME‘s short-term vocational training program covers the full tuition fee and apprenticeship cost and awardees will cover other costs such as their own transportation. (Note: In Afar, the current round of scholarships is for machinery operators and drivers (based on highest unmet demand from employers); therefore no women applied. In the next round of scholarships, ToPs women will be specifically targeted.)

Number of candidates targeted for PRIME’s short-term scholarship program Location Lead implementer # of potential candidates # of TVETs Male Female Total identified Afar cluster CARE & AISDA 152 0 152 3 Eastern Mercy Corps 73 47 120 3 cluster Southern Mercy Corps & SOS 42 43 85 2 cluster Sahel Grand Total 267 90 357 8

Sharia compliant training for RuSACCO in the Eastern Cluster Mercy Corps and ACPA are jointly facilitating training for RuSACCOs in Eastern Cluster. The objective of this training is to improve rural financial service providers‘ core functions and develop sharia-compliant products for members of RuSACCOs. Mercy Corps and ACPA are working with a woreda Cooperative Promotion Agency staff to revitalize RuSACCOs in the Eastern Clusters to increase access to finance for pastoralists and TOPs, while improving their financial literacy level. During the quarter, 457 members (405 female, 52 male) from 11 RuSACCOs were trained and the training will continue next quarter to train up to 1000 RuSACCOs members in the region.

Capacity Building Training for federal and regional cooperative agency Village-level financial services—through RuSACCOs—are still not rolled out as widely as they could be, preventing poor households from accessing savings and lending productions suited to their needs. This is especially true with Muslim populations, which are underserved by RuSACCOs. In response to these gaps, PRIME, AEMFI and Federal Cooperative Promotion Office organized and conducted a five-day training for 32 experts on Sharia-compliant financial products for households. The main objective of the training was to sensitize and train the federal and regional Cooperative Promotion Agency experts on inclusive finance, particularly sharia- compliant products, policy and procedures pertaining to such financial products. It is expected that the trained experts will cascade the training to their respective locations to improve the quality of service and core functions of RuSACCOs in all regions particularly PRIME intervention areas.

Key Result 3.2: Increased income opportunities for TOPs

Islamic/sharia compliant loan facilitation to livestock traders in Easter cluster During the review period, PRIME continued providing technical and financial assistance to the Somali MFI to rollout a Sharia-compliant loan product for livestock traders, the first of its kind in the region. SMFI has

52 to date disbursed 5,000,000 ETB approximately 250,000 USD to 25 large and medium-sized livestock traders in the region. The injection of this loan will enable traders to buy and export between 18,000-20,000 livestock from around 7500 households over a period of one year. SMFI is planning to roll out loans to another 25 traders who are interested in the product after assessing the performance of this loan. Plans are underway to sign an MOU with Oromiya MFI and Oromiya International bank to roll out the same product to businesses and livestock traders in Borena and Guji zones of southern cluster in the next quarter.

Exposure visit to Sudan facilitated for MFI leaders, AEMFI and NBE representatives During the quarter, PRIME facilitated exposure visit to Sudan‘s National Bank and MFIs from May 19- 24, 2014. Nine delegates from NBE, AEMFI and different MFIs from PRIME operation areas traveled to Sudan to share experience and best practices of Islamic finance.

The objective of the exposure visit was to build the capacity of microfinance institutions, industry association and policy makers through an exposure visit by sharing the experiences of Sudan (Central Bank and MFIs) which is a country with a good rating and track record in implementing inclusive financial services and different Islamic financial products at MFI Delegates from Ethiopia holding meeting at level. central bank of Sudan Therefore, the exposure visit is expected to help develop more inclusive financial services like Sharia-compliant products that better serve the pastoralists and businesses working in pastoral areas that are predominantly Muslim.

Financial market campaign to promote sharia compliance products in southern cluster: During the quarter, PRIME facilitated a marketing campaign for an interest-free banking product of Oromiya International Bank (OIB). The objective of the campaign was to promote this product among the pastoral community such that they will open saving account and later will have access to credit from OIB. During and after the campaign, around 283 individuals and cooperatives opened accounts in OIB and started saving. The campaign will continue and until the reporting period as a result of this campaign the branches of OIB mobilized saving of 4,453,385 ETB ($272,000) that can be used for lending to the savers in demand.

OIB campaigning about their interest free product to individuals and business people

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Creation of a forum for formal and informal financial service providers to better understand and respond to the financial service needs of TOPs and pastoralists in the southern cluster To improve financial services for TOPs and pastoralists, PRIME facilitated the creation of a forum to create linkages between micro finance institutions and rural saving and credit cooperatives in Liben Woreda of Guji Zone. Representatives of ten RuSACCOs from Guji zone and leadership of Oromiya MFI and SACCOs participated in the forum and discussed the financial service needs of pastoralists in the Zone. A similar forum was conducted in Borena zone last quarter and as a result, around 400 members of RuSACCOs opened saving accounts and saved 311,400 ETB ($16,000) at Oromiya MFI which will give them access to credit in the short and long run.

ToT training for woreda Cooperative Promotion Agency staff During the quarter, PRIME and AEMFI provided a ToT training for woreda Cooperative Promotion Agency staff. Next quarter, the agreement will be signed and 72 experts from operational woredas will be trained. The ToTs will then cascade, to revitalize existing and form new RuSACCOs. It is also expected to improve the management practice and coverage of rural finance activities in pastoralist areas of Ethiopia.

Technical and financial support for establishment of Afar MFI (AMFI) During the reporting period, PRIME continued its support for the establishment modalities of Afar MFI. A key requirement for the MFI to get license from the National Bank of Ethiopia (NBE) is to hire a competent general manager and revise its business plan. In response to a request from AEMFI and AMFI, for the first year, PRIME will cost share the salary of the general manager and the general manger is hired thereby the recruitment is accepted by NBE. The NBE provisionally approved the establishment of the Afar MFI and soon it will receive its license and will start operating in the region. PRIME will continue providing technical support during its setup and startup stage until it becomes fully functional.

PRIME provided assistance to Rays MFI and received its license from NBE to start operation PRIME provided technical assistance to establish Rays MFI (RMFI) and National Bank of Ethiopia has given the permit and license to start operations in Somali region. RMFI is a fully private owned company and shareholders have desire to play a better role towards improving the financial service provision in rural and urban population in the region. Rays established its head office in Addis Ababa and will open nine branches in the cities of Ethiopian Somali National Regional State (Jijiga, Gode, Kabri-Dahar, Dagahbour, Fik, Warder, Filtu, Shinile and Hargele) and Dire Dawa. Rays has now submitted a proposal to PRIME for support on establishing core business systems of the MFI and the proposal will be reviewed in the next quarter.

Micro-franchise business for women to create income streams Micro-franchising is a methodology designed to allow less experienced individuals build on the experience of a successful business model or product. Micro-franchisers essentially work as distributors for an existing, well-known product. The objective of this activity is to create employment opportunities for up to 300 women through the micro-franchising of consumable goods. During the last quarter, wholesalers and distributors who had potential to be micro-franchise partners was completed. In the

54 coming quarter, PRIME will undertake the selection of beneficiaries and business startup activities will begin.

Cost sharing grant for poultry input supplier expansion in Jijiga The objective of the cost-sharing grant is to expand poultry input and feed supply in the agro-pastoralist communities and for people transitioning out of pastoralism in the region. Friends Poultry Farm from Jijiga has submitted its proposal for funding to PRIME. The proposal has been reviewed and accepted for a grant and ACPA is facilitating the signing of an FOG agreement and advance modalities are due to be completed in the next quarter. After the agreement Friends Poultry Farm will commence expanding their business.

Job fair organized in southern cluster Mercy Corps and SOS Sahel in collaboration with Guji zone government offices (especially Labor and Social affairs and Youth and Sport Offices) organized a job fair in Negelle Borana town on June 12, 2014 attended by job seekers (TOPs), potential employers and employment placement agencies (EPAs). The job fair included a panel discussion designed to explore opportunities and discuss the challenges in the labor market system. Twenty potential employers, 6 EPAs and 68 job seekers (TOPs) attended the job fair and actively participated in the panel discussion. The discussion during the job-fair and panel discussion created awareness about integrating TOPs in the labor market and provided opportunities for TOPs to look for jobs and information about how to search for jobs. Three entrepreneurs with disability who are engaged in petty trade participated and received certificate and award from the organizers of the event.

National Women’s Entrepreneurs trade fair The 8th National Women Entrepreneurs trade fair was held in Jijiga, Somali Region from June 11 to 24, 2014. PRIME contributed financially and technically to organize the trade fair. Twenty six businesses with different products from 6 regions (Tigray, Amhara, SNNPR, Dire Dawa, Oromiya and Somali) participated. First Lady W/ro Roman Tesfaye and W/ro Zenebu Tadesse (Minister of the Minsitry of Women, Children and Youth Affairs) officially launched the event. The regional women‘s association raised ETB 155,000 through sale of entry tickets and rent of business stalls, while businesses (9 WTAs and 17 private businesses) sold over ETB 3,205,000 worth of goods. 132 (47F/85M) people were employed temporarily and earned around ETB 230,000.00. Over 250 linkages with potential business relations/interests were discussed.

Key Result 3.3: Market Access Expanded to Increase Employment Opportunities

SMFI- Belcash mobile and agent banking project in Eastern cluster SMFI presented and defended its proposal for a mobile banking pilot to NBE. The NBE has accepted the pilot of mobile banking pending the approval until the Prime Minister‘s office gives a letter for data storage at the national data center. Meanwhile, Belcash has started providing training to SMFI officers at the main and branch offices and training for agents will be undertaken once they get approval from the NBE.

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Zonal level agricultural trade fair in southern and Afar cluster As presented in the section under IR1, PRIME partners CARE, AISDA, SOS and Mercy Corps IR1, IR3, IR4 and IR5 team helped organize the trade fair for two days in each zone. In the trade fair PRIME introduced a voucher scheme for beneficiaries to buy and use inputs at a discounted price. The voucher scheme is meant to stimulate demand for new technologies and agricultural inputs. At the same time, the trade fair helped agricultural inputs and micro-solar suppliers to conduct actual market research.

Afar zonal trade fair; official opening and inputs and micro-solar lantern suppliers displaying and selling products

During the Afar and Borena trade fairs, more than 1200 PRIME beneficiaries bought inputs and technologies such as micro-solar lanterns, seeds, animal feed and machinery. Three commercial and private banks and one MFI also participated in the events by promoting their products, including opening saving accounts at a temporary window opened at the trade fair. More than 5000 people visited the event, which helped them become aware of different inputs and meet businesses that supply agricultural inputs and different technologies, and learn about financial institutions and their products. During the trade fair, a competition for ―Best Borena Breed‖ was held and the best livestock exhibitors were awarded. To encourage people with disabilities who run small businesses, an award was given in front of hundreds of visitors and businesses.

Yabello trade fair; financial institutions inputs and micro-solar lantern suppliers displaying and selling products

District level agricultural trade fair in Eastern cluster Mercy Corps and ACPA also organized trade fairs in Awbere and Degahabur woredas of SRS, and regional and local input suppliers displayed and sold their products to more than 600 farmers and agro-pastoralists. To create demand for inputs, PRIME has introduced voucher scheme such that beneficiaries are able to by seeds, water harvesting technologies, postharvest storage bags and different farm tools and irrigation equipment at a discounted price. The demand created through these trade fairs gave input suppliers an opportunity to better understand their market and potentially expand their business to those locations.

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Competitive cost sharing grant for business expansion to regional agricultural input suppliers and micro-solar distributors PRIME received proposals from interested agricultural input suppliers and micro solar distributors to expand their business to pastoral areas. During the quarter, the proposals were reviewed and successful proposals were selected and began pre-award assessments. The technical and financial compliance teams have thoroughly conducted the due diligence and finally selected eight agricultural input supply and five micro solar-distribution proposals for award. Accordingly, as summarized in the below table, five of the awardees have signed FOG agreements and the remaining are set to sign agreements shortly. These expansions will create jobs and improve beneficiaries‘ access to inputs and new technology.

Status of business expansion FOG agreement in Eastern and Southern cluster Sub- # of FOG Location Business expansion Sector/Activity businesses agreement status targeted Status 3 Signed Eastern cluster Expansion started Agric input 2 In process Eastern cluster Expansion will start supply business early next quarter expansion 3 In process Southern cluster Expansion will start early next quarter 1 Signed Eastern cluster Expansion started

Micro-Solar 1 signed Eastern cluster Expansion started supply business 3 In process Southern cluster Expansion will start expansion early next quarter

Exchange visit to Haramaya University integrated seed system development (ISSD) project Quality seed of improved early maturing varieties hold the key to enhancing agricultural productivity and increasing agro pastoralists‘ capacities to adapt to a changing climate. However, the availability of, access to, and use of such improved seeds in agro pastoral areas is quite low, mainly due to a lack of sales outlets in the seed supply system in the pastoralist areas. Cognizant of this fact, PRIME facilitated an experience sharing visit to Haramaya University integrated seed system development (ISSD) local seed business project for agro pastoralists and staffs of Jijiga University and Somali Seed enterprise to set up similar initiatives in agro pastoral areas of the eastern cluster. Following the visit, Jijiga University is working on proposal and once it is completed PRIME will support the initiative of the university to set up localized seed businesses. Implementation of this activity will enhance HHs access to quality early maturing crop seeds and create alternative income for groups involved in the business.

Forum for vegetables market system actors facilitated In Guji Zone, agro-pastoralists that produce vegetables using irrigation water have been facing a market problem for their produce. In response to this, PRIME IR3 team partnered with local government offices facilitate a market linkages between major actors of the vegetable market in the area. As a result of the activities, major producers and buyers discussed output market information during the harvesting season, as well as aggregation and logistics. Producers now know the buyers of their producers and how to contact them to arrange transactions before vegetables begin to degrade.

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Support for postharvest storage bag business expansion Promotion of Postharvest Grain Storage Bag (PSB) technology has been identified as a climate change adaptation strategies able to build households‘ resilience. PRIME has started working with existing PSB manufacturers to scale up the pilot activities. The manufacturer is putting forward a proposal to scale-up and expand the businesses to other areas.

Constraints, challenges and lessons learned for IR3

The key challenge IR3 is facing is caused by the approval delays from the National Bank of Ethiopia for the mobile banking project. Although approval had been given at the time of project signing in November 2013, shortly thereafter approval was rescinded for all projects of that nature, nation-wide. This was due to some members of the NBE holding the opinion that this type of project allowed foreigners to become involved in financial services, which is not allowed under Ethiopian Law. While the NBE Board debated the issue, no mobile banking projects moved forward.

Eventually the Board came up with a compromise solution – technology platform providers are required to sell their technology to the partnering financial institution within 5 years. We began moving forward our mobile banking project again, but we await a final letter on data storage from the President‘s Office to fully begin the pilot. Training and other allowable activities have started, but no product testing or rollout can be done without this final letter.

However this delay has directly impacted PRIME‘s job creation indicator, and the financial services indicator, as these are both major outputs of the SMFI-Belcash agreement.

Priorities for Next Quarter

3.1: TOPs employability increased through life skills, financial literacy and entrepreneurship training  Facilitation of market based emergency response through fodder voucher  Facilitation of availability and access to emergency and recovery loans during destocking  Facilitation and assistance to new and existing MFIs to expand their service and develop inclusive financial products  Linkage and loan facilitation with MFI/Banks for business like PVP, SMEs, Solar business, and disabled groups  Financial Literacy and numeracy training via PSP model to RuSSACOs/VSLAs

3.2: Increased income opportunities for TOPs  Continue facilitation of zonal and district trade fair  Business expansion grant for agricultural inputs, solar technology, PSB, poultry, fodder, and aloe soap  Identifying opportunity and work with institutions that support establishment of seed (crop and fodder) businesses  Facilitation of investment forums

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3.3: Market Access Expanded to Increase Employment Opportunities  Awarding short term vocational scholarship program for youth, women and disabled TOPs in all clusters  Micro-franchising business opportunity for women and disabled TOPs  Financial and technical assistance to institutions such as TVETs and OSC to provide literacy and numeracy trainings  Exposure visits to areas where TOPs obtain best experience on climate change adaptive alternative livelihoods  Facilitating apprenticeship opportunities for TOPs

INTERMEDIATE RESULT 4: ENHANCED INNOVATION, LEARNING AND KNOWLEDGE MANAGEMENT

Key result 4.1: Project performance enhanced through effective monitoring

Management Information System for PRIME: Ki-projects™ & Ki- metrics™ Ki-projects™ The beta version of Ki-projects™ was successfully rolled-out through on the job training for 98 PRIME consortium member staff located in all three operational clusters and Addis Ababa. The training accomplished several objectives including:

 Systems performance testing under conditions of intermittent power outage,  Systems performance testing when accessed using EVDO (mobile) internet devices,  End-user feedback on quality of user experience; and  Identification of design features of Sub-Activity Concept Note (SACN) and Sub-Activity Reports (SA-R) needing enhancements The training sessions confirmed Ki-projects™ capacity to perform under varying conditions of infrastructure support and user feedback converged towards overall systems user-friendliness. The few minor and optional changes which were recommended to further enhance certain features of Ki-projects™, SACN and SA-R were addressed during and immediately after the completion of the training sessions.

As a result of the successful outcome of the training roll-out sessions, PRIME has officially started using Ki-projects™ for project activity initiation, approval and reporting. Data entry of backlogs from existing SACN and SA-R has started as well and will be completed during the next quarter.

Ki-metrics™ Ki-metrics™ was introduced to first-time users during the quarter under review. This additional tool generates quantitative analysis of output and outcome level indicators using mathematical algorithms. Ki- metrics™ will continue to be directly administered by Kimetrica and access and management of Ki- metrics™ will be limited to PRIME Learning and Knowledge Management advisors and senior managers only. Ki-metrics™ now hosts PRIME‘s performance data and has provided most of the quantitative analysis for the quarterly report alongside output tracking sheets which will continue to be used until Ki- projectsTM and Ki-metricsTM data entering is completed.

PRIME participated in the AIDTracker+ training which will replace the FTFMS information system by Q8.

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Spot Check methodology roll-out Spot checks provide PRIME with an additional layer of random project performance monitoring and control. The tool is comprised of five components including Data Quality Assessment (DQA), Consortium Partner Compliance (CPC), partner service quality feedback, best practices and partner portfolio planning. Spot checks target both consortium and market facilitation partners and use secondary data found in Sub- Activity reports, interviews with project teams and external stakeholders and site visits.

Kimetrica tested the methodology with consortium partners HAVOYOCO and ACPA and proved useful in informing management on strengths and weaknesses in data quality and related management procedures and giving feedback on partner perceptions of the quality of their relationships with consortium leadership. The main findings include:  Consortium partner overall satisfaction with current PRIME information management tools and feedback mechanisms,  Consistent use of Sub-Activity Concept Notes and Sub-Activity reports by all program staff for activity initiation and reporting,  Overall level of satisfaction among project participants on PRIME‘s responsiveness to their needs, including clear efforts to integrate their priorities into activities,  Additional guidance needs to be provided to staff to ensure higher quality data and management procedures are in place and variances are minimized; and  Partner activity portfolio planning capacity needs to be strengthened in order to promote greater alignment with PRIME‘s financial and program target objectives. The spot check findings have been shared with all consortium members and remedial measures are underway to strengthen areas requirement improvement. Spot checks will be administered quarterly across PRIME operational areas.

Baseline report Kimetrica finalized the baseline report, which provides descriptive and quantitative analysis on key knowledge areas of interest to PRIME in support of program decision-making and performance monitoring and measurement efforts. The analysis is disaggregated by wealth quartile, region and gender and the result of a quantitative survey administered with 1,095 households located in the dry lands of Afar, Oromiya and Somali regions of Ethiopia. The main findings are summarized per the following thematic areas.

Household characteristics  Average Household size increases with wealth for all three areas, and female headed households make up the majority of lower-wealth quartiles across all regions, peaking at 50 percent in Oromiya.

Livestock Productivity  Livestock ownership correlates with wealth and the types and species owned vary by region. Somali region has the highest livestock holding across all wealth quartiles (WQ), while in Afar and Oromiya more than 60 percent among lower wealth quartiles do not own herds.

 Herd growth appears positive in Somali and Oromiya regions, but negative in Afar. Almost all households rely on pasture as their main source of animal feed, however, access to pasture increases with wealth.

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 Livestock sales correlate with wealth, with the exception of small ruminants mostly marketed by lower WQ to meet their subsistence needs. Milk is the main by-product sold and sales of hides and skin is limited across all regions.

Household wealth status  Household expenditure increases with wealth and Afar records the highest food-related expenditures at 65%.

 Alternative sources of income are mostly sought after by poorer households and correlates with livestock ownership levels.

 In Somali and Afar regions, households across all WQ benefit from some form of remittances and transfers, but these drop to only 15% in Oromiya.

 Uptake of financial services is low across all regions as well as savings. Loan amounts are less than USD 50 with Somali region recording the highest access level at 34% of households.

Support systems  In addition to existing traditional social and economic support systems, Community Animal Health Workers followed by veterinary stores are the most commonly accessed services across all regions. Overall human health service coverage is very low across all regions and shows no correlation with wealth.

 Access to information is poorest in Afar and mostly conveyed through traditional leaders in Somali region.

Knowledge and decision-making  Women remain central to household decisions related to nutrition and milk management.

 Economic decisions are typically made by men, with some evidence of joint decision-making across the regions, most notably in the Oromiya Region.

Nutrition  Dietary diversity is lowest in Afar among all WQs, especially for pregnant and lactating women and children. Dietary diversity in Somali and Oromiya appear to be medium. However, further investigation is needed to better qualify household level characteristics of dietary diversity taking into account seasonality and quality of diversity.

 Breastfeeding is high across all wealth groups and regions with more than 97 percent of households with children under the age of two reporting that they breastfeed their children.

Vulnerability and Resilience  Food price inflation was the biggest shock in both the Afar and Oromiya regions, while drought was the biggest shock in the Somali Region.

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 Households in Afar and Oromiya are still recovering from previous shocks, though very few in Somali region lost their herds entirely.

 Higher income households across all regions have a higher tendency to choose livestock-related solutions to changes in pasture and climate.

 Nearly all households in the study regions have a low CSI, indicating that they are currently food secure.

In addition, a revised M&E plan was submitted to USAID. It is currently under review from USAID and PRIME to ensure harmonization of targets. We envision the M&E plan will be finalized during Q8 of the project.

PRIME-wide Review Meeting ACPA will organize the PRIME consortium partners‘ bi-annual review meeting to take place in Dire Dawa during Q8 of the project.

Key result 4.2: Project decision making and adaptations based on strong evidence

Annual survey methodology The annual survey methodology will be implemented during the upcoming quarter. In preparation for this deliverable, during Q7 initial consultations on the survey objectives and approach have taken place within the PRIME IR4 team. The results of the survey will advise PRIME on progress in achieving planned targets taking into account baseline values as well as capture information now required by Feed the Future indicators and selected custom indicators where needed and feasible. Ki-metrics will be the primary host and data processing center.

SenseMaker With matching funds, PRIME is testing the SenseMaker application to measure and monitor attitudes and behavior change for its nutrition work in all clusters. PRIME staff were trained in collecting stories and information from impact beneficiaries to have a baseline of attitudes related to nutrition. Data was collected and a preliminary analysis was finalized during the quarter. The full data set will be used in the final analysis and continuous story collection will take place during Q8. The results of this test will help inform PRIME as to whether SenseMaker is an appropriate application to use for monitoring changes in nutrition attitudes and behaviors in PRIME areas.

Key result 4.3: Policy information base strengthened

Milk Quality Analysis This study aims at identifying the milk quality problems, existing methods for quality analysis, testing methods, procedures and practices traders can use with affordable price and documenting simple, cost- effective and equipment that can be used on spot. The research is conducted in Afar and Eastern Cluster and 95% of the research is completed. Interview and laboratory analysis is completed in both clusters and field-level milk testing is completed in Afar Cluster.

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Market Research on Existing Insurance Products and Study of Best Practices/Lessons Learned The assessment has been going on in two phases: the first preliminary case study and the questionnaire based survey. In the case study phase, the insurance companies, micro-finance institutions and NGOs supporting the micro-insurance products have been assessed. Some of the existing practices on micro- insurance products on Borana pastoralists and farmers in northern part of Ethiopia have been documented. This part of the report is at its final stage. The survey to pastoralists regarding their willingness to buy insurance products has been also conducted in Afar (55) and eastern cluster (67). In total the survey has 122 sampled pastoralist respondents. The survey covered 4 woredas (Kebriebeyah, Awbare, Gursum, and Tuli gulied) in eastern cluster and 3 woredas (Awash Fentale, Gewane and Dulecha) in Afar cluster. The data entry and analysis is almost complete for the survey part as well and the final report will be ready in the beginning of August.

Consultative Discussion with Regional Research Institutions This is research conducted with the purpose of identifying the capacities of regional research institutions and the way by which they could work with PRIME. Discussion with relevant officials of regional research institutions and questionnaires were used to gather information. The research was conducted in the three regions that cover a total of eight (8) institutions. These are Bule Hora University, Semera University, Jijiga University, Yabello Pastoral and Agro-Pastoral Research Center of the Oromiya Agricultural Institute, Awash Melkasa Agricutural Research Center (MARC), Afar Region Pastoral and Agro-pastoral Research Institute (APARI), Somali Region Pastoral and Agro-Pastoral Research Institute (SOPARI) and Yabello Veterinary Laboratory. The data are collected through the discussion held with relevant institutions and partnership assessment tools. The research team is now analyzing the data and the report will be completed this month.

Policy Research on Cross-Border Trade The concept note on cross-border trade research was approved in May. The research is aimed at: identifying the laws and institutions that govern the conduct of cross-border trade relevant to the productions and demands of the pastoral communities (these include import-export regulations, monetary regulations-especially with respect to currency used in cross-border trade, availability of custom duty posts, animal health institutions, quality control, infrastructure etc), examining the actual and potential legal, institutional, economic and political obstacles for cross-border trade and relationship between cross-border trade and resiliency of pastoralists in PRIME operational areas, investigating the modalities of transactions taking place across borders in PRIME operational areas (Afar-Djibouti, Ethiopian Somali-Djibouti, Ethiopian Somali- Somalia, Ethiopian Somali-, Borana-Kenya), identifying the key actors in cross-border trade. According to the findings of the research available best alternatives for intervention in the expansion and increase of cross-border trade in livestock and livestock products, animal feed and other food items will be recommended.

Currently, the multi-disciplinary team established to conduct this study is working on literature review and development of research tools. Field assessment will take place starting from the late July.

Policy Information Gap Analysis This research is finalized and the policy analyses on various sectors (natural resource management-land, water and forest, climate change and disaster prevention, energy, livestock marketing, micro and small enterprises and entrepreneurship, and technical and vocational education and training) are compiled in a

63 single document. Thirty federal and regional government institutions are interviewed for key informant interviewing and/or for collection of policy and legal documents.

Key result 4.4: Information dissemination and coordination improved

External communication and coordination In an effort to continue coordination with other USAID projects in Ethiopia, PRIME is working closely with LMD in formulating policy recommendations in the areas of livestock and how these relate to markets and nutrition. A coordinated response for the New Alliance policy commitments was drafted together by the LMD and PRIME COPs, including the following recommendations:  Clarification on opportunities for public-private partnerships for infrastructure  Privatization of animal health services and its implications  Leasing proclamation for access to finance clarifications  Feed and fodder issues  Traceability  Access to land  Fortification of foodstuffs

In addition, PRIME has met with the AKLDP project to link resources that can help PRIME in writing of learning briefs, collaboration in the organization of a ‗feed matters‘ learning event, and presentation of the livestock proclamation to multi-stakeholder groups in Somali Regional State – all which will be worked on during Q8.

A final draft of the PRIME communications plan was revised during Q6 and will be shared among key PRIME consortium partner representatives to get their comments and suggestions before launching it and sharing with the wider PRIME community. In addition, PRIME one-pagers have been reviewed to tailor them to wider audiences and will be re-designed (format) during Q8. Weekly updates for consortium members, USAID and other partners continue as planned.

Internal communication and coordination A quarterly LKM workshop took place in June 2014 to orient new LKM (IR4) staff who had recently been hired in Afar and Addis Ababa. The next LKM workshop will take place in August/September and will focus on FTF indicators.

Key result 4.5: Two-way communication channels strengthened

Monthly cluster coordination meetings (monthly) and partners‘ management meetings continued during the quarter. Cluster coordination meetings will be revised in terms of objectives to ensure these include strategic planning at the cluster level, as well as reflection sessions with the different technical teams to continue high quality programming.

IR4 PRIORITIES FOR Q8  Development of monitoring and evaluation guidelines to be rolled out along new reporting format training and on-going ki-projects/metrics training

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 Spot checks for partners and DQA (methodology for recipients)  Organization of learning event with AKLDP project  Assessment and improvement of community scorecard as a way to communicate with PRIME beneficiaries

INTERMEDIATE RESULT 5.0: USE OF NUTRITIONAL PRODUCTS

Key result 5.1 Knowledge, Awareness and Practices around Household Nutrition

Improved Counseling & Community Support ENA TOT Training for health workers A three-day ToT training on Essential Nutrition Actions (ENA) was conducted for the second time in all three regions. As was reported in the last quarter, PRIME nutrition team conducted a rapid assessment to explore the existing counseling services at health facility and community level. The assessment found that generally, health workers are not providing proper counseling on maternal/child nutrition. In addition, health facilities lack ENA BCC materials such as posters with key messages, critical contact point care, and a quick reference for health workers and community volunteers to be used for nutrition counseling. Even when other non-nutrition health messages were available, they were not contextualized in terms of local language and images. In this quarter, PRIME continued to capacitate health facilities through health extension workers training on ENA, with the intention of further cascading the trainings to community groups. A Total 115 health workers and HEWs attended the training. The training deployed participatory methodology, as a result, there was high level of participation especially when participants discussed existing nutrition practices and challenges faced by the health workers.

ENA ToT training in Afar

Cascading ENA training to the community level Following the ENA ToTs, the trainings were further cascaded to the kebele-level through the trained health workers. A total of 1250 community members were reached. Individuals or community group members targeted for community training include: community level health volunteers (such as Traditional Birth Attendants (TBAs), malaria women agents), influential women, members from health committee, women 65 development army group leaders, pregnant and lactating women. The main purpose of cascading the training was to provide orientation on key ENA messages for target groups to improve counseling through community support group. This is meant for the messages to further penetrate into the community and possibly improve demand for health services by the primary beneficiaries of PRIME nutrition: pregnant, lactating women and children under 5 years. In order, to ensure the quality of the training, PRIME staff and woreda-level health supervisors monitored all training at kebele-level. Facilitators were provided with all necessary materials required for cascading the trainings during the ToT training. Additionally, ENA booklet, translated to Somali, Afan Oromo and Afar local languages were provided to the trainers beforehand.

Community level ENA Cascade training

Women to women peer-guided nutrition counseling group organized Women to women peer-guided counseling groups are a platform for pregnant and lactating women to discuss and support each other on nutrition related issues. Each group has a group leader, who previously participated in the community-level ENA training and received training in counseling techniques for pregnant and lactating women. The main role of a group leader is to facilitate the women gathering and support women to women peer-guided counseling discussion using an open-minded, supportive & non- judgmental communication processes. Facilitators role is also to support mothers to overcome their own barriers & find their motivations for change, while providing technical input/guidiance on misconceptions around nutrition.

Based on this concept, PRIME nutrition organized twenty women to women peer-guided counseling group in 6 woredas (Awash Fentale, Gewane, Amibera, Gelealo, Argoba, & Dulessa) of Afar cluster. In each woreda, three to four groups were organized with a plan to scale up to the other kebeles in the woreda. Each group has a member of 20 women who share similar issues.

The established women to women peer-guided counseling groups will discuss different essential nutrition accions every week, for consecutive 8 weeks, based on the ENA session guideline and later advance the discussion to other nutrition concepts/topics such as the 1000 days and IYCF. The group will also deliberate on the SOSC radio series as part of listener group discussions.

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Training in Food Utilization

Assessing Indigenous Nutrition Food During the quarter, PRIME nutrition teams of Eastern and Afar clusters finalized the data entry and analysis of the indigenous nutrition food assessments.

The main purpose of the assessment was to identify locally available foods, and determine the food groups that are locally produced and those that are imported, and their cost comparison. The assessment also explored practices on food preparation in the communities of the Eastern Cluster i.e. Fafen, Sitti and Jarar zones and Afar cluster of Zone 3.

The following are the preliminary key findings of the assessment:  There is a significant difference between rural and urban communities in market access, as urban communities get direct access to markets. This is a barrier/challenge to rural communities to get the food they need, when they need it.  The different food types available in each area have also been identified. This is key to developing a diet diversity strategy for PRIME beneficiaries.  The assessment also identified pregnant/lactating mothers and children under 5 have low diet diversity. On the food availability in the market: The market is growing and is more or less competitive. However, the supply of food was being disrupted in some areas, leading to shortages and price hikes.

Cooking demonstrations During the quarter, PRIME Nutrition team conducted cooking demonstrations as part of the trade fairs in Afar and South clusters. The purpose of the cooking demonstrations are to provide knowledge and skills on preparing a nutritious and improved diet for pastoralist and agro-pastoralists.

An estimated total of 4000 community members attended the demonstration shows. A private local supplier of fortified flour was also invited to the trade fair to display their products and demonstrate ways of using the flour in cooking. The local supplier provided diversified flour-based foods for childrens‘ complementary feeding, made from local food like Mofe in Afar and Porridge for Borana.

Cooking Demonstration at Yabello Fortified flour display at Afar trade fair

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Behavior Change Communications (BCC)

Development of Soap Opera for Social Change (SOSC) MC Ethiopian team Visit to LA During the quarter, six Mercy Corps staff (3 from Ethiopia, 3 from Mercy Corps HQ) made a trip to Warner Bros (WB) Studio in Burbank, CA in April. The objective of the trip was to build the skills of Mercy Corps Ethiopia‘s social marketing staff, as well as local creative talent, and assist them in the development of compelling marketing tools (tactics, creative stories and ideas) and entertainment to enhance the competiveness of healthful versus unhealthful behaviors.

During the visit the Ethiopian team shared drafts of stories for SOSC with WB team. Based on the developed story, WB creative writers and marketers provided feedback and support on how to make the stories more compelling, and jointly worked one of the stories as learning process. At the end of the meeting, the team had developed a summary synopsis of first season of the story.

Mercy Corps and Warner Bros then further developed a framework and timeline for concrete partnership deliverables. As a result, four Warner Bros. volunteers—with engagement from key stakeholders throughout the studio and its community—are now providing pro bono expertise in marketing and writing, which included travel to Ethiopia to work with local creative talent and Mercy Corps Ethiopia staff. This work will result in more compelling stories that engage listeners, model good behavior, and provide a platform for discussion in ―listeners groups‖, as well as the design of social marketing materials that reinforce the behavior change messages and support positive behavior change.

The Soap Operas for Social Change (SOSC), taps into the strong Ethiopian tradition of oral storytelling, and harnesses the power of stories not only to entertain, but also to provide ―edu-tainment‖. Mercy Corps and Warner Bros. are working together to ensure that the program has tangible impact for all of the stakeholders involved in Soap Operas for Social Change, including:

 Strengthening Mercy Corps‘ behavior change nutrition program in Ethiopia  Positively impacting the program beneficiaries‘ lives by instilling measurable nutrition-related behavior changes  Building Mercy Corps‘ staff capacity to produce quality behavior change communications  Providing an integrated employee volunteer program for WB, yielding increased employee engagement, from which volunteers can take learning and apply them to their roles.

SOSC will be funded partially through PRIME, and partially through match funding.

Local Writers’ workshop Following the LA visit, the Ethiopia SOSC production team organized writers‘ workshop for two days in Addis Ababa. The workshop was organized with two main objectives: familiarizing writers with the objective of

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SOSC and cascading the learning and skills the teams received from WB trip. As a result, during the two day workshop, a total of 12 local writers from Afar, Somali and Borena zone attended the workshop. The workshop helped participants to understand the five behavioral themes of PRIME nutrition and how these messages blend with SOSC stories. In addition, the facilitators using the Season 1 episodes summary developed in LA, supported local writers to further develop episode summaries for each of the three regions. Most importantly, the writers‘ workshop helped them to blend the story with PRIME BCC messages.

Development of Creative Brief During the quarter, PRIME‘s Nutrition team, with assistance from WB, developed two creative briefs on: Marketing Soap Opera for Social Change and Promotion of Core Behavioral themes. The objectives of these are to create compelling marketing tools (tactics, messaging, creative stories and ideas) and entertainment to attract and sustain SOCS listenership; develop social marketing and messaging framework and design; and produce and disseminate compelling behavior change materials for critical nutritional messages through multichannel.

The following are deliverables expected for SOSC promotional activities:  Rural population plus urban: 1 minute radio advertisement of the soap opera drama in three languages. Start twice weekly and then once weekly after the drama launch.  20 circus and/or camel caravan shows before the launch  3,000 posters that contain ads of the soap opera drama  15,000 posters/flyers around critical nutrition themes  30 billboards that contain ads of the soap opera drama and messages around critical nutrition themes.

Building the capacity of local theatre groups PRIME IR5 follows an ‗edutainment‘ approach to improve the household nutrition of the pastoralists in the PRIME intervention areas. One of the mechanisms to reach the community with the PRIME SBCC messages is through the locally-known theatre groups, for they are well accepted by the local community and they perform in compliance with the indigenous culture and norms of the local community. However, the local theater groups lack sufficient skill to artistically blend PRIME nutrition messages with the theatre performances.

In order to bridge their skill gap, PRIME facilitated a three-day capacity building training for 43 local theatre group performers from Afar and Southern Cluster. The training was offered by an international consultant who is an expert in intergenerational theater. The workshop covered topics such as basic concepts and types of theatre, role play, character development, directing and script writing for live drama. All topics were practiced

69 through rehearsal shows during the training period.

Having gained the theoretical and practical training, the local theatre groups were observed to have a remarkable change in mixing and conveying the education and entertainment components while promoting PRIME nutrition messages with their theatrical performances. As a result, the PRIME nutrition SBCC messages were more successfully conveyed via local theatre groups were conveyed better. This was verified by the feedbacks gained following assessments made.

BCC Promotional events on four behavioral themes During the quarter, PRIME nutrition program conducted 21 promotional events in the Southern and Eastern clusters on diet diversity, ―1000 days‘‘, fodder/feed promotion in the dry season for milking livestock, and animal health promotion behaviors; a total of 16,400 people benefited from the promotional events.

In the Eastern Cluster, HAVOYOCO‘s circus team presented 9 public shows in Siti Zone of the Ethiopian Somali regional state, focusing on the ―First 1000 days‘‘ and dietary diversity behavioral themes. Before the shows, the drama specialist and the scriptwriter developed storylines on the two topics, and the circus team rehearsed before presenting the shows to the public. The dramas are staged to the public after it was verified that they contain messages which can adequately depict and convey nutritional messages and realities in the local communities.

In Southern Cluster, IR5, in partnership with local theatre groups, conducted one promotional event in diet diversity in Haro Bake marketplace, four promotional events on fodder during the dry season for milking livestock at Mubarak and Yabello district of Oromia region and Moyale district of the Ethiopian Somali regional state, and seven promotions on animal health seeking behaviors in Dublulk, Haro Bake, Balami, Borbor, Hidi, Moyale of Oromia, and Leyi of Moyale Somali areas. The promotions contained dramas and key messages which convey the actual nutritional and livestock scenarios in the local communities. The messages were disseminated on the spot via the entertaining songs and funny comedies by the theatre groups.

SBCC Promotions on Agri-Nutrition Trade Fairs Trade fairs are special occasions where one can attract a large number of people in the pastoral communities. The trade fairs provide an opportunity to bring different market actors such as livestock traders, fodder producers, pastoralist community members and local government representatives. Hence, the PRIME nutrition program, in partnership with local theatre groups, has reached these gatherings with different SBCC messages. In Q7 alone, an estimated of 4,000 community members, with a large proportion of female participants, were reached. Thus, PRIME SBCC messages were well-promoted and disseminated in Afar and Southern Cluster through trade fairs organized in two zones, each round lasting for two days. The main behavioral theme promoted in Afar was diet diversity, while in the Southern cluster it was fodder promotion for milking livestock.

During trade fairs, a cooking demonstration was also staged with locally available food items (Detail of this activity described under food utilization part) displayed.

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Trade fair conduted in south cluster, in Yabello town

Key result 5.2: Increased/Sustained Availability of and Access to Milk and Livestock Products

Improve animal health services for nutrition

Promotional event on animal health behaviors through Camel Caravan event The PRIME Nutrition team organized a BCC Camel Caravan for one week in Gewane woreda of Afar region. The campaign was organized with the objective of promoting animal health service seeking behaviors for better nutrition outcomes. The campaign reached a total of 7,789 community members of which 3,689 are female. The PRIME team designed locally-appropriate edutainment methods to disseminate different nutrition-related messages. Thus, in this campaign, the team developed key messages related to promotion of animal health service seeking behavior for improved nutrition, and disseminated them through the camel caravan show, drama, music, spot messages, and question & answer sessions. Apart from the promotion of the animal health service seeking behavior, the campaign also addressed fodder and child feeding practices.

In the camel caravan show, thirty camels are made to wear banners bearing PRIME messages supported with photos and texts message in Amharic and Afar languages, and appear in parades passing through residential villages & homes, businesses and open areas to capture community‘s attention.

The community members have the opportunity to read the messages, see the pictures, ask others what the parade was about and receive the nutrition messages delivered during the parade. At the end of the parade, the camels congregate at a

71 specific location where a local theater group stages dramas that deliver nutrition messages. The messages are reinforced with discussions on the theme of the caravan. The camel caravan is commonly known in Afar for transportation and migration, and hence culturally appropriate, but this was the first of its kind to be used as communication strategy in promoting nutritional messages for community behavioral change in the area. Therefore, it became an eye- caching event and attracted a lot of people. PRIME used the opportunities to dissiminate critical nutrition messages.

Improved Availability and Quality of Animal Feed for Nutrition

Fodder Promotion for milking livestock during the dry season During the quarter, PRIME conducted five promotional events in the Southern Cluster on fodder for milking livestock during the dry season. Four of the promotional events were conducted at community level events, while one event was organized at trade fair conducted in Yabello woreda. The promotional events conducted at community utilized a local theater group and a storyline developed around fodder provision, followed by discussion on exploring the local problems and solutions. Below is a table showing the messages the promotion focused on and the target audience.

No Target audience Messages 1 Government  Focusing on the fodder extension package through: officials and  (a) Promoting drought resisting forage seeds experts  (b) Bridging the gap in the demand and supply of fodder  (c) Supporting and improving communal grazing system  (d) Awareness rising on fodder conservation and utilization. 2 Livestock traders  Practicing healthy feeding system while fattening the livestock.  Investing to build local feed lot and dairy business 3 Pastoralists  Preserving, conserving and purchasing fodder for better milk, and fattening livestock.  Utilize fodder to increase household income.

Key result 5.3: Strengthened Local Capatcity for Supporting Improved Nutrition

Training on Keyhole Gardening (KHG) for extension agents and community A two-day training on keyhole gardening (KHG) was organized and facilitated in the Southern cluster. The training provided technical concepts and skills on the technology for different types of extension agents including: DAs, HEWs, school teachers and model community members. The KHG is meant to promote backyard gardening for water-stressed areas to increase diet diversity and provide a source of micronutrient. Keyhole gardening is new technology for the PRIME areas; therefore, only two woredas (Gorodola and Liben woredas of Guji zone) were selected for piloting the technology. Based on lessons from these two woredas, PRIME will look at possibilities of scaling up KHG in other areas. The training sessions on KHG included both theoretical and practical session. Initially, the trainer taught basic concepts of KHG and its importance for household nutrition. In the practical sessions, the participants constructed KHG in order to improve skills around building the garden.

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All participants of the training were selected from their respective woredas based on their willingness to build the keyhole garden in their home, health center, health post, farmer training center (FTC) and school, and also support and train others who are interested to build the garden. The training was conducted in coordination with the respective woreda office and private seedling producer. The keyhole gardening technology was adopted from of Catholic Relief secretory (CRS) project in Dire Dawa funded by USAID. Total of 42 (30 male and 13 females) people participated on this training.

Theoretical session on KHG Practical Demonstration of the KHG

Training school teachers on the concept of ‘First 1000 days’ The ‘First 1000 days’ period, refers to the time from the start of conception until a child is two years old. The purpose of the training is to convey the basic concepts to school teachers, so that they can extend this understanding to school clubs and use them for the promotion of the First 1000 Days concept in school and community level. The ultimate goal of this activity is to embed these ideas into young people prior to them becoming parents.

The training was conducted in coordination with the Borena zone Education Office with eight selected model schools that have school clubs with the potential to dissiminate nutrition messages. The two days training was facilitated by resource person from Borena zone health office and PRIME field-based Technical Advisor. Total of 26 (16 male and 10 female) teachers participated in the training, which wrapped up with the development of an action plan on how to cascade the training to school clubs and engage in community-level promotional activities.

School Clubs for Good Practice of Livestock Husbandry and Better Nutrition Practice The school clubs workshops were successfully conducted in the Eastern Cluster, particularly Faafan zone. The workshop reached a total of 98 school club members from Jigjiga, Hadow, Dhagaxle, Lafaciise, Gobyaray, Qabribayax and Hartashekh. The purpose of the training was to equip the students with better knowledge and skill about livestock husbandry techniques and encourage them to help their families and other students in their community.

Following the training, club members anticipate reaching 1800 pastoralist and agro-pastoralists to improve their knowledge and practice of animal husbandry.

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Constraints, challenges and lessons learned for IR5

IR5 activities in the Eastern Cluster halted for the most of Q7, following the Somali Regional Government cancellation of the previously-signed nutrition MoU. PRIME is working with the regional government to rescind the cancellation and progress is been made in that regard.

Government extension workers have been less engaged on nutrition promotion activities due to other priorities. In the future, this will be improved by strengthening coordination with local government actors.

Priority activities for Q8

 Continue promotional events on 1000 days, fodder and diet diversity through circus and local theater group.  TOT on IYCF for staff and regional/ zonal level health workers.  Promote Key Hole Gardening for model community and extension workers.  Study appropriate innovations in food technology for milk, meat and vegetable preservation.  Training on 1000 days concept for health workers, HEWs, agricultural extension and elders.  Training of religious leaders, community elders (men and women) and other influencers on nutrition and IYCF.  Nutrition add-on training (through VSLA, Coops, and other market actors).  Further strengthening local theater group capacity.  Review and reflection meetings for better nutrition outcome with other IRs and government sectors.  Organizing field days on plastic bag grain storage experience for model agro-pastoralists and different stakeholders.

INNOVATION AND INVESTMENT FUND (IIF)

The US$5 million IIF supports activities across PRIME through targeted investments in the form of technical assistance, matching grants, and service contracts with private sector, government and non- government stakeholders.

Jijiga Export Slaughter House (JESH) PRIME is supporting an activity to establish a new slaughterhouse in the village of Faafan in the Somali Regional State of Ethiopia that will process meat specifically for export. The Jijiga Export Slaughter House will provide improved market linkages for over 500,000 households and create up to 1000 jobs.

Construction of warehouse has begun for storing the slaughterhouse equipment at the site. Civil works including preparation of remaining substructure works for the refrigeration and slaughter workshops is also underway. Also included, is work necessary for the solid waste treatment facilities on-site, as recommended by the environmental consultant. The remaining civil work on service buildings and structures is expected to start next month. The last shipment containing the refrigeration equipment is en route to Djibouti.

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From the obligated amount of $3 million from JESH investors, we have received and verified cost-share documentation for $1,145,360. JESH will be reporting on match every quarter, we expect $500,000 documented match report by next quarter.

Somali Microfinance Institute (SMFI) - Belcash PRIME‘s IIF signed an agreement with the Somali Microfinance Institution Share Company (SMFI) to co- finance the Financial Inclusion for the People of Somali Region in Ethiopia (FIPSRE) project. The FIPSRE project is a three-year initiative to be implemented jointly by the SMFI and Belcash Technology Solutions PLC. The project will enable the SMFI to extend financial services to the unbanked population of the region via mobile phone banking and payment services. During this period, 50% of mobile phone users in Ethiopia‘s Somali Region are expected to have improved access to financial services, and 3,000 self- employed women and men are anticipated to increase their incomes by 25% using loans received through the SMFI‘s new service.

During the quarter under review, SMFI‘s senior management team presented their proposal to the board of National Bank of Ethiopia (NBE). Following the presentation the bank has given its approval to carry out the pilot. The pilot phase of the project will be under the supervision of the National Bank of Ethiopia. The objective of the pilot period is to go through all the steps of the mobile and agent banking implementation process, test the system in a real environment and integrate lessons learned before engaging in full rollout. Project aims to execute pilot operational program on 500 end users, through 6 branches of SMFI and 10-20 Agents (Merchants). SMFI and Belcash are now waiting the final approval letter from the Prime Minister‘s office for data storage at the national data center.

Belcash is preparing a match report on the expenses they have incurred to date on this project. We expect a documented report on the pilot phase for at least $61,125 by next quarter. We will receive quarterly reports on match funding once the project is off the ground. Total contribution from SMFI and Belcash throughout the three years is anticipated to be $4,229,723.

RENEW Investment advisors Plc. - Private Equity Leveraging Services PRIME signed a contract with an investment advisory/private equity firm to encourage private equity investment in the targeted regions of Ethiopia. This activity is anticipated to create more than 2,000 direct jobs in the targeted regions and leverage $6 million from the private sector. The goal of this activity is to leverage private sector equity financing for investment in promising Ethiopian livestock sector-related ventures facing capital constraints.

After signing the contract, PRIME‘s IIF and RENEW‘s team worked closely to develop a list of investment criteria and screen opportunities in RENEW‘s current pipeline against PRIME‘s investment criteria. During the quarter under review, RENEW team traveled to the Eastern and Southern Clusters of PRIME regions to identify companies that meet RENEW‘s and PRIME‘s IIF investment criteria. RENEW‘s team also conducted an investor trip to the US to discuss investment opportunities in Ethiopia with angel investors from different parts of the country. RENEW will connect investors in their network to investment opportunities through a number of outlets including: Econ-Tourism trips, meetings with the Government of Ethiopia (GoE) and U.S. government officials, site meetings, a ―deal show‖ where business owners pitch their investment opportunities to investors, and negotiation meetings.

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Annual Program Statement (APS) for value chain investments The IIF have released an Annual Program Statement that is open for eligible entities to apply during 2014. Through this APS, the IIF is mainly targeting value chain actors in order to catalyze sustainable improvements in industry capacity, expanded supply chains, increased sector competitiveness, and a strengthened financial services industry.

The IIF committee met to review full proposals from Addiskidan Milk processing factory and Agflow Poultry Poultry/Mekele Farms. Addiskidan Milk processing factory is a new start up in Awash and is a medium-size modern milk processing facility with processing capacity of 10,000 liters of milk per day. Addiskidan presented their full business plan for the IIF committee on April 15. After careful analysis of the business plan and feasibility study the committee decided to have Addiskidan re-submit their business for second review incorporating comments received from the committee members. The second review is scheduled for July 31, 2014.

Agflow Poultry/ AGP Poultry is a poultry franchise business model in Ethiopia targeting the bottom of the pyramid. The company produces and markets day-old chicks, feed, and medicines, and trains SMEs to enable them to own and manage their own businesses. The management of Agflow Poultry/AGP Poultry presented their expansion plan into Southern Region to the IIF committee on June 3. After careful consideration of the impact this activity will have on PRIME‘s targeted beneficiaries, the IIF committee approved the application for funding with a total score of 162/200. This activity is anticipated to benefit 30,000 households (HHs), increase HH income by an average of $400 per year and leverage $3.7M from the private sector.

The sub-grant initiation process has begun for this project: PRIME staff have carried out the first stage of due diligence and are currently working on drafting the agreement. PRIME will carry out an Environmental Impact Assessment (EIA) on the site to ensure the proper waste treatment plan and all necessary mitigation measures are in place in compliance with GoE and USAID regulations. Other development partners working with Agflow Poultry include AGRA, Growth Market Partners (GMP) and Acumen Fund.

The APS will continue to be advertised monthly till November 2014 in Fortune Weekly newspaper.

Barwako Milk Processing Factory (Jijiga) The IIF committee met on May 27 to review the request for funding submitted by Barwako milk processing plant and approved 50% of the total requested fund. The project entails establishment of a raw milk processing plant in Jijiga. The plant is designed to have an initial throughput capacity of 10MT of raw camel and cow milk and produce pasteurized milk for both local and export consumption. Barwako will have to pass the Environmental Impact Assessment (EIA) before signing an agreement; PRIME will hire a consultant to carry out the EIA for Barwako. The IIF and Finance team will travel to Jijiga in the third week of July to conduct due diligence on the company.

Leasing proclamation clarification and roll out, and support to microfinance institutions seeking to develop leasing products. The International Finance Corporation (IFC) has signed agreement with the National Bank of Ethiopia (NBE) to support the bank through building its capacity. IFC will contract consultants to support the bank in areas of providing technical support on drafting the leasing proclamation and monitoring and supporting leasing companies and MFIs. In coordination with IFC, PRIME will support the NBE in other intervention

76 areas where IFC‘s support does not reach, such as the rollout to SMEs. Planned activities include carrying out policy analysis on capital goods, and helping NBE develop a comprehensive operational manual for private lease companies. IFC and PRIME have continued discussing ways to work together to roll out the product in PRIME‘s target regions.

Islamic banking services in pastoralist areas (Islamic banking window) – in collaboration with National Bank of Ethiopia (NBE), Oromiya International Bank (OIB), Commercial Bank of Ethiopia (CBE), and United Bank PRIME team continued discussions with Oromiya International Bank (OIB), Commercial Bank of Ethiopia (CBE) and United Bank on Islamic Finance (Interest Free Banking). PRIME is planning an exposure visit for 12 senior bank officials to London and Malaysia in the next few months. PRIME will also conduct policy analysis on Islamic Finance during the next quarter.

Request for Applicants (RFA) Under this quarter, PRIME received five requests from interested organizations in reply to the RFA for small grants. So far PRIME has not received any application under this mechanism. Through this RFA, the IIF is seeking to award a range of potential recipients, including NGOs, research institutes, consulting firms and others with the aim of bringing innovation and technology into use.

CRISIS MODIFIER

This quarter, PRIME focused on finalizing crisis modifier systems and procedures, and ensuring that partner agencies understood the approach and systems used under the Crisis Modifier. To this end, relevant trigger indicators for PRIME have been identified, reliable information sources both at national, zonal and community level mapped out, and working relationships established and strengthened. The indicators fall broadly into three categories, namely: environmental indicators (e.g. change in rainfall, change in pasture, change in water availability), market-based indicators (e.g. change in milk price, Terms of Trade, change in wage rates), and coping mechanisms being utilized (such as change in mobility pattern). These indicators do not utilize threshold measures to determine when the crisis has ―hit‖, as this hinders early response and measures to prevent deep crisis. Instead, PRIME‘s methodology uses process maps and regular analyses that ensure that observed changes are analyzed in an integrated manner, providing a more robust view of the situation and the opportunities for early response. This approach to crises supports a resilience approach to programming, and provides greater opportunity to protect household assets built through the development work of the project. The triggering indicators were identified through participatory and guided discussion among PRIME technical leadership. For each indicator a process map—a map similar to a decision tree, designed to aid in decision making and to identify where additional information may be required—was prepared through a consultative process with PRIME partners. To date, two consultative workshops have been conducted to familiarize the wider consortia members on the crisis modifier systems, procedures and triggers. Additional workshops planned to introduce the approach to government counterparts.

PRIME is tracking the indicators using multiple external information sources, and once a week the Senior Management Team reviews whether there have been changes in the tracked indicators and whether this requires action on the part of the PRIME team. The information collected at national level is verified through community consultation where appropriate; specifically, through the participatory scenario

77 planning sessions and community fora such as rangeland councils. These sources substantiate the accuracy of the information. In addition, regular field visits by technical leaders help to crosscheck with realities on the ground.

Tracking triggers and monitoring information in this manner, and at different levels, has enabled PRIME to stay up-to-date with changing events, and put structures in place for early response, such as developing the systems for fodder vouchers. That in turn helps the project to respond to emergencies in a timely and effective manner through proactively coordinating with implementing partners and key stakeholders.

In Q8, PRIME anticipates rolling out Fodder Vouchers in all three regions, in response to the oncoming drought. Complementary activities such as destocking loans and animal health services will continue under the normal PRIME activities.

DISABILITY Consortium partner ECDD provided disability awareness and inclusion training to TVET teachers and administrators as well as personnel of transformative institutions (government and private banks, micro finance institutions) in Southern cluster-Negelle Borena and Yabello and Eastern Cluster-Jijiga, with the objective of raising their general awareness on disability and ensure disability inclusion in their services.

Planned activities which are underway include studies on the situation of persons with disabilities in pastoral communities and policy analysis to identify policy gaps to inclusive pastoral development together with Haramaya University. Moreover, provision of micro-grants in alternative accessible formats to selected TVET institutions and provision of technical support and funding to make premises physically accessible for trainees with physical impairments at selected TVET institutions is also under process.

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V. FINANCIAL SUMMARY

Expenses per Funding Stream:

Climate Feed the Nutrition Crisis Total Change Future (FtF) Modifier Adaptation

Budget: $ 7,866,161 $ 42,006,541 $ 2,975,152 $ 4,577,137 $57,870,829

Expenses to Date: $ 3,123,128 $ 2,501,489 $ 7,293,717 $ 9,341 $11,787,831

Expenses per Intermediate Result:

IR1: Improved IR2: IR3: IR4: IR5: Crisis Totals productivity and Enhanced Developmen Enhanced Nutrition Modifier competitiveness adaptatn t of innovation, of livestock and to climate alternative learning livestock change livelihoods and products for knowledge households' mgment transition out of pastoralism

Budget: $ 18,714,169 $7,751,944 $16,050,958 $6,514,131 $4,262,490 $4,577,137 $57,870,829

Expenses $ 4,231,399 $2,501,489 $1,672,031 $2,660,434 $702,479 $9,341 $11,767,832 to Date:

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Annex 1. Summary information on the livestock markets assessed in Fafan, Siti, Jarar and Babile Oromia Zones

Market Animals Market Type of livestock Market No. GPS days Users Functionality traded Name traded importance weekly annually 1 Ararso 08*44.952 043*22.485 7days 150 Yes Shoat 43,680 Good 2 Dh/bur 08*11.980 043*33.670 7days 250 Yes All types 475,800 Very good 3 Yoale 08*02.611 043*51.091 - 150 No Shoats 15,600 Good 4 Aware 08*15.870 044*09.820 7days 100 Yes Shoat 721,344 Good 5 08*13.740 044*41.975 7days 800 Yes Shoats 85,800 Very good 6 Gashamo 08*06.965 045*20.148 7days 300 No Shoats 205,920 Good 7 Moholli 08*56.570 044*54.580 7days 150 Yes Shoats 492,960 Excellent 8 Harshin 08*55.847 043*45.075 7days 600 Yes All types 417,300 Excellent 9 Kebribayah 09*05.808 043*11.042 7days 1000 Yes Shoats 37,128 Very good 10 Hartishekh 09*09.772 043*21.540 7days 2500 Yes All types 1,020,240 Excellent 11 Amadley 09*15.727 042*59.756 6days 150 Yes Large animal 49,920 Very good 12 Jigjiga 09*20.026 042*48.664 6days 600 Yes All types 639,600 Excellent 13 Tulli 09*36.996 042*45.390 - 60 No No 18,720 No 14 Lafisa 09*36.379 042*58.971 6days 350 Yes All types 112,320 Very good No 15 Wojale - No No No function 16 Babili som. 08*90.365 042*41.468 2days Yes All types Very good 17 Gursum 09*23.729 042*60.163 2days No All types Very good 18 Ayshaca 10*75.444 042*57.087 2days 19 Adaytu 11*12.129 040*75.961 2 1500 No Shoat and equines 162,000 Good 20 Andufu 10*52.725 040*75.821 4000 yes Shoat, camel, cows 111,600 Very good 21 Biki 09*52.557 041*19.151 1300 Yes All types 1,587,600 Very good Cows, camel, 22 Hardin 09*01.451 040*33.636 500 Yes 198,000 Good shoats 23 Gedugas 09*41.045 040*73.803 170 Yes Bulls, shoats, camel 259,200 Good Cows, shoats, 24 Asbulli 09*97.683 041*16.457 1000 Yes 586,800 Very good camel Equines, shoats, 25 Hadagala 10*42.133 042*23.008 200 Yes 66,600 Good camel Cows, shoats, 26 Samakab 09*74.959 042*44.481 80 Yes 47,880 Good camel Equine, shoats, 27 Araabi 09*93.185 042*71.955 150 yes 214,200 Good camel 28 Danbal 09*80.359 042*60.452 95 No No - - 29 Agarweyne 09*85.186 042*77.666 45 Yes Caws, shoat, equine 29,520 Fair 30 Dhure 10*03.574 042*38.506 50 Yes Shoats 72,000 Fair 31 Hoore 10*31.851 041*76.727 40 Yes Cows, shoats 26,640 Fair 32 Shinile 09*23.729 041*85.443 No No - - - 33 Hurso 09*60.529 041*63.954 700 Yes Shoats, cows, camel 118,080 Fair 34 Erer 09*56.221 041*38.123 150 Yes Shoats, cows, camel 17,952 Fair 35 Mulli 09*29.075 040*83.289 No No - - - 36 Afdem 09*46.351 040*99.605 150 Yes Shoats 96,000 Good 37 Asli 09*80.937 040*92.542 112 Yes Shoats 91,800 Fair 38 Gadhmadaw 09*73.504 040*45.627 200 Yes Shoats, cows, camel 100,000 Good 39 Fafan 09*23.729 042*60.163 300 Yes Shoats, camel, cows 108,480 Good Shoats, bulls, 40 Dhadhamane 08*90.365 042*41.468 300 Yes 104,640 Good equines Camel, shoats, 41 Biyoqabobe 3700 Yes 108,000 Good camel 42 Dhagago 940 Yes Shoats, equines 19,200 Good

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Annex 2. Summary of Improvement needs of the assessed livestock markets in ESRS

Market Upgrading Rehab. Needs of Construction Remarks Name Needed Market needs Ararso New Market construction Yoale New Market construction Aware Fence, shades, toilet ,loading and - unloading, crash, small shade for tax collectors. Daroor New Market construction Gashamo New Market construction Moholli New Market construction Harshin Shade water supply K/bayah New Market construction Existing market was destroyed by Master plan H/shekh Shade and water supply - Amadley New Market construction Jigjiga - Tulli Shade and compartments - Not functioning walls Lafisa Shades - Wojale Shade - Not Functioning Babili som. - Gursum Shade, toilet crush, water supply adaytu Shades, water, thoughts Andufu New market Construction Biki Shades, water, fencing Hardin New market Construction Gedugas New market Construction Asbulli New market Construction Hadagala New market Construction Samakab New market Construction Araabi New market Construction Danbal Shades and water Agarweyne New market Construction Dhure New market Construction Hoore New market Construction Hurso New market Construction Afdem New market Construction Asli New market Construction Gadhmadaw New market Construction Fafan Water and shades Dhadhamane Shades, trough, Biyoqabobe Shades, water supply, vet-clinic Dhagago New market Construction

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Annex 3. Summary of the Competitive Cost Sharing Business Expansion Fixed Obligation Grants for PVP Expansion Awarded Amount in Birr Amount in USD Geographic Location No PVPs PRIME Recipients Total PRIME Recipients Total Kebele Woreda Zone 1 Africa PVP 133,700 312,000 445,700 6,953 16,225 23,177 Erer Ibada Babile EH Awgobyar 2 109,350 255,100 364,450 5,666 13,218 18,883 Abay fulan Awbare Fafan PVP 3 Badbado PVP 120,000 280,000 400,000 6,218 14,508 20,725 Lafa Isse Awbare Fafan 4 Barwaqo PVP 91,000 212,300 303,300 4,715 11,000 15,715 Ayiliso Shinile Sitti 5 Dambal PVP 120,850 282,000 402,850 6,262 14,611 20,873 Agarwoyne Dambal Sitti 6 Du'ale PVP 97,300 227000 324,300 5,041 11,762 16,803 Dakahbaharo Ararso Jarar

7 Erer PVP 72,000 168,000 240,000 3,731 12,435 Erer Erer Sitti 8,704 8 Gahnug PVP 121,700 284,000 405,700 6,306 14,715 21,021 Haljid Ararso Jarar Dundumo 9 Harwo PVP 134,600 314,080 448,680 6,974 16,274 23,248 Awbare Fafan Ad Kebribayah 10 103,200 240,760 343,960 5,347 12,475 17,822 GarbiHarre Kbayah Fafan PVP 11 Mullu PVP 96,850 226,000 322,850 5,018 11,710 16,728 Mullu Mieso Sitti 12 Shifo VP 115,700 270,000 385,700 5,995 13,990 19,984 Ali Jama Gashamo Jarar Total 1,316,250 3,071,240 4,387,490 44,891 104,743 149,633 Average 109,688 255,937 365,624 5,611 13,093 18,704 12 9 4

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Annex 4. Assessment of Financial Management Competencies for USAID Forward

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PRIME Success Story: Improving pastoralist livelihoods through access to animal health services

Ahmed Mohammed Sirad, 58, lives in Galmarodi Village in Fafan Zone of the Ethiopian Somali Region. Ahmed owns 50 cattle and five camels. His livelihood, like his ancestors‘, has always depended on livestock for as long as he remembers. The more animals he has, the better off he and his family are. Drought and animal diseases are the two worst tragedies that could happen to him and his community.

Drought is still a problem, but animal health is improving. Talking about the animal health situation a few years ago, Ahmed says, ―Our Ahmed, purchasing medicines for his animals from a vet pharmacy in Fafan lives were uncertain.‖ Pastoralists did not have Town control over their animals‘ health. The latest tragedy he remembers happened about five years ago when he lost three cattle (estimated at about 23,000 birr, or over 1000 USD) to diarrhea. In those days, a lot of his community members lost livestock to various diseases. Ahmed says, ―There was nothing we could do about the diseases. We just had to look at our animals die. It‘s so heartbreaking.‖ Diseases did not only claim the lives of animals but also undermined their productivity, resulting in less milk and meat. Ahmed and family did not have enough to eat. All that has changed thanks animal health

services provided by community health workers (CAHWs).

The Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) project has been working with government, the private sector and FAO to improve the animal health services in the Ethiopian Somali Region. PRIME is facilitating technical training to CAHWs. In the Eastern Cluster, PRIME delivered a ten-day training of trainers (TOT) to 19 government health officials so that they can cascade the training to CAHWs. Based on the National Minimum Standards Guideline, the training was focused on diagnosing animal diseases, community mobilization, adult learning, livestock disease incidence, morbidity, and mortality, and sustainable community animal health. Since then, the TOT trainees cascaded the training to about 150 CAHWs in two rounds, reaching between 1200 and 1500 households with these services.

According to Ahmed, pastoralists who take their sick animals to CAHWs and get the necessary vaccination do not lose animals to diseases any more, instead making them healthier and more productive. Ahmed, his family and community are better off. ―My children drink more milk,‖ says Ahmed. ―Today, I have more and healthier livestock and I can afford to sell some so that I can buy fodder for my animals and more food for my children.‖ In all, Ahmed and his community are better prepared to weather the storm in case of droughts or other emergencies. ―In case of drought, we can sell older animals,‖ points out Ahmed confidently. .

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PRIME Success Story: Murabaha Results in More and Better Animals

The demand for Ethiopia‘s lowland livestock breed and camels in neighboring countries and the Middle East is well recognized. The large volume of livestock resources and proximity to the export markets gives the country comparative advantages. However, the sector is beset with problems, including inadequate market information and difficulties for producers to sell their products to a large range of buyers. Umer Abdi, an animal trader, used to work on trust basis. He used to buy animals from pastoralists on credit. Not a lot of pastoralists were keen to sell on credit for understandable reasons. Thus, Umer supplied to local markets only; he could barely meet even the demands of the local market. Umer struggled to make ends meet. None of his seven children went to school. He also lived in a small hut.

The Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) realizes Umer, next to his newly built house that improving the financial capacity of livestock traders and exporters is the key to addressing the bottlenecks of animal trade. The project worked with SMFI to support the pastoralist communities in the Ethiopian Somali Region by designing a new loan product, known

as Murabaha, tailored to livestock traders and exporters.

Umer is one of the traders who benefitted from the scheme. In October 2013, Umer secured a loan of 200,000 birr (10,000 USD). That money changed his life. With the loan, he bought more animals and started to supply to Sheikh Musa, a livestock exporter, who has a contractual agreement with Aljabir, a livestock importer in Dubai, to export 2000 ruminants a month. Umer‘s monthly income increased by 50%. His business is doing so well that life for him and his family changed dramatically. Today, five of his children are in school and he built more comfortable housing for his family. The recent change has make Umer optimistic about what the future may hold for him. ―A few years from now,‖ he says, ―I‘ll be a different person. I‘m dreaming of helping not only my family but also a lot of smallholder pastoralists.‖

With this loan, Umer reaches 30-35 pastoralists, who are benefitting from the scheme in several ways. To begin with, now that Umer has a more lucrative and sustainable market, he can afford to pay more to the producers, about 50% more depending on the age of the animals and their body weight and look. Umer then goes to villages to purchase the animals, saving pastoralists a lot of time and money. Finally, the loan is encouraging pastoralists to raise more and better animals. For Somali pastoralists, livestock is the principal source of subsistence providing milk and cash to cover family expenses for food grains and other essential consumer goods. If pastoralists have a reasonably good market, they have the potential to double animal production and productivity The scheme is contributing to improving animal productivity and quality as traders are sharing information with producers regarding market requirements for their animals.

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Umer is just one of dozens of livestock traders, who are benefitting from the scheme. With more financial products like Murabaha, more livestock producers and traders will enter the market, enhancing animal production and productivity. It is an incentive for small holders to produce more and take a good care of their animals. Ultimately, it will contribute to building resilience among pastoralist communities.

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