UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project of Government of Ethiopia Project number: SAP 140330 Establishing Moringa based economic development program to Project title: improve the livelihood of rural women of Ethiopia Thematic area code Poverty reduction through productive activities Starting date: September 2015 Duration: 5 years in two phases 1 Project site: Hawassa (Capital) and SNNP Regional State Government Office of the First Lady and SNNP Regional State Co-ordinating agency: Counterparts: Office of the First Lady and SNNP Regional State Executing agency/ UNIDO cooperating agency: Project Inputs: - UNIDO inputs: USD 1,554,000 - Support costs (13 %): USD 202,020 - Counterpart inputs: - in kind - Grand Total: USD 1,756,020

Brief Description: Women in Ethiopia represent approximately 50 percent of the total population and account for 70 percent of the household food production. The rural women share in the total agricultural labour force is considerable, as about 48 percent of the agricultural labour force is driven by female family members. Since the subsistence economy cannot meet the households’ basic needs, the participation of rural women in generating additional income is relevant. This is quite significant given the tendency of underestimating the contribution of women to production, food and nutrition security. In the Ethiopian context, the links between agriculture, agro- industry development and gender have important implications on poverty reduction, biodiversity conservation and environmental sustainability therefore rural women’s roles are critical and necessary in all development agendas. In this context the objective of the present project is to reduce poverty by combating malnutrition, creating jobs and preserving the environment and biodiversity through the promotion and development of the value chain of Moringa, including production, transformation, value addition and market structures development. To achieve these objectives the project plans to: i) set up moringa oil extraction and processing plants of appropriate scale, matching the present production potential/available farms; ii) promote technology transfer and in-job training, especially for rural women; and iii) carry out active R&D in support of the management, production and marketing of the moringa products .

The Present document contains details with regard to phase I only, which is expected to have duration of 3 years

Approved: Signature: Date: Name and title: On behalf of FL Office: ______On behalf of UNIDO: ______

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A. CONTEXT ...... 5 A.1.General Background ...... 5 A.2 Problem to be addressed ...... 10 A.1.3 Institutions and actors of the moringa value chain ...... 10 A.3. Origin of the project ...... 11 A.4 Target Beneficiaries ...... 13 A.5. Relevance of the Project In Relation to National and International Frameworks ...... 13 B. REASON OF UNIDO ASSISTANCE ...... 15 C. THE PROJECT ...... 16 C.1.Objective of the Project ...... 16 C.2 UNIDO approach ...... 16 C.3. Thematic area and code ...... 17 C.4. Impact ...... 18 C.5. Risks ...... 21 C.6. Sustainability ...... 23 C.7 Gender Mainstreaming ...... 23 D. BUDGET ...... 24 D.1 Counterpart input ...... 24 D.2. UNIDO Inputs ...... 24 D.3 Preliminary Budget ...... 25 E. MONITORING, REPORTING AND EVALUATION ...... 26 F. PRIOR OBLIGATIONS AND PREREQUISITES ...... 27 G. LEGAL CONTEXT: ...... 27 Annex 1. Map of Ethiopia ...... 27 Annex 2. The Moringa Tree ...... 28 Annex 3. Diagram on versatile use of moringa ...... 35 Annex 5. Moringa Value Chain ...... 36 Annex 6. Logical Framework ...... 37 Annex 7. Gender Matrix……………………………………………………………………………………………………………………………………….. 38

Annex 8. Risk Management Matrix…………………………………………………………………………………………………………………………42

Annex 9. Budget ...... 48 Annex10. Timeline of the activities ...... 49

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ACRONYMS

AAU Addis Ababa University AMU Arbaminch University CSA Central Statistics Authority EPHI Ethiopian Public health Institute EU European Union FAO Food and Agriculture Organization FQS Food Quality and Safety GAP Good Agricultural Practice GHP Good Hygienic Practice GMP Good Manufacturing Practice HACCP Hazard Analysis and Critical Control Points M&E Monitoring and Evaluation MTF Moringa Task Force MVC Moringa Value Chain NBHS National Baseline Households Survey PI Pack International PO Project Office PPP Public Private Partnership PSS Project Support System PTU Project Technical Unit SARI Southern Agricultural Research Institute SME Small and Medium Enterprises SNNPRG Southern Nations and Nationalities Peoples Regional Government SNNPRS Southern Nations and Nationalities Peoples Regional State UNIDO United Nation Industrial Development Organization USA United States of America FMHACA Food, Medicine and Health Care Administration and Control

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A. CONTEXT

A.1.General Background Ethiopia is located in the horn of Africa stretching from 3 oN to 15 oN latitude and from 33 o E to 48 o E longitude with an area of 1,127,127km2. It is a country of great geographic diversity with wide altitudinal and physiographic variations. The altitude ranges from 116 meters below sea level in the Danakil Depression in Afar national regional state to the highest peak of 4,620 meters above sea level on Mount Ras Dashen in Amhara national regional state. The Great Rift Valley divides the western and south-eastern highlands, and the highlands on each side give way to vast semi-arid lowland areas in the east and west, especially in the southern part of the country (EFAP, 1994) 1. Macro- and micro-climatic conditions of the country are highly variable with bimodal rainfall distribution. The major rainy season in most parts of the country lasts from June to September followed by a short rainy season that occurs between February and April. The mean annual rainfall ranges from 500 mm to 2800 mm. Similarly, mean annual temperatures range from below 10 to 30 o.

As a result, Ethiopia is known as one of twelve Vavilov centers of primary plant domestication in the world. Furthermore, due to its geographical position and socio-economic diversity, numerous crop plants that are known to have originated elsewhere have developed an enormous secondary diversification in the Ethiopian region.

Vegetation types in Ethiopia are highly diverse ranging from afro-alpine to desert vegetation. It has a large number of plant species and a recent work indicated that the number of higher plants was over 7000 species from which ca. 12 % are probably endemic. The Ethiopian rural farmers play a significant role in the development of the agricultural sector; they are custodian of important crops genetic materials used as food, industry raw materials, medicinal plants etc.

Despite the reform of the country and a registered fast-growing economy, the Government of Ethiopia has several challenges ahead to reduce poverty and improve the livelihood of rural communities. Ethiopia remains one of the poorest countries in the world, it is prone to weather-related shocks and experiences high levels of food insecurity, particularly among rural populations and smallholder farmers. Women farmers perform up to 75 percent of farm labor, representing 70 percent of household food production in Ethiopia. But they typically produce up to 35 percent less than male farmers because they have lower levels of access to resources.

To develop a sustainable livelihood for the rural farmers/women of Ethiopia it is important to scale up drought resistant and multipurpose indigenous/endemic trees, such as Moringa, coupled with a sustainable agricultural system linked with the processing industry.

1 EFAP, 1994. Ethiopian Forestry Action Program, EFAP, Addis Ababa.

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A.1.1. Moringa and livelihood of the rural women

A.1.1.1 Rural women in Ethiopia and SNNPRS

Despite registering fast growing economy and meeting some of its MDG, Ethiopia remains one of the least developed countries in the world, with significant challenges. It ranks 173th out of 186 countries in the recent (2013) UNDP Human Development Index 2. About 27.6% of the population was estimated to live below the total poverty line, with strong disparities between regions, as well as between rural and urban areas, in income levels, poverty and access to social services. The 2011 Global Gender Gap Report ranks Ethiopia as 116th out of 135 countries, indicative of the existence of significant gender disparities in the country.

The country is predominantly rural with only about 16% of the population living in urban areas. Accordingly, the economy is largely based on agriculture. In Ethiopia rural poverty and vulnerability are highly gendered. Women play a significant role in agricultural productivity (carrying out an estimated 40 to 60 percent of all agricultural labour (R. Holms R. Holmes and N. Jones , 2009) 3 but suffer from unequal access to resources and capacity building opportunities on a number of levels. As a result rural women are most vulnerable also in terms of food and nutrition security.

Removing gender disparity and ensuring gender equality and women’s empowerment is key to accelerated economic growth and social development. Women constitute about half of the population and the Government has placed a strong emphasis on their participation in the development process. Women are a critical component of the rural economy and are engaged in agricultural production. They contribute significantly to off-farm production/employment, cash and food crops, subsistence farming, and reproduction of male agri-labour forces. Nonetheless, they lack adequate access to extension services (Ethiopia: Sustainable Development and Poverty Reduction Program, 2002).4

Even though empowering women, in terms of capacity building, entrepreneurship development, self- employment, market access, and other economic activities is a major agenda, project initiatives such as traditional Hand Spinning, hand-weaving, embroidery, crochet works and hand knitting, gem stones and jeweller, basketry, leather etc. are concentrating in the urban areas therefore rural women are still marginalized.

Recognizing the gap, The First Lady of the Federal Democratic Republic, request UNIDO to focus on the empowerment of rural women, in the Southern Nationals Nationalities and People Regional State (SNNPRS). The Region is one of the largest in Ethiopia, accounting 10 percent of the country’s land area

2 http://hdr.undp.org/sites/default/files/hdr2013_en_summary.pdf

3 (R. Holmes and N. Jones December 2009) Gender inequality, risk and vulnerability in the rural economy: re- focusing the public works agenda to take account of economic and social risks Background Report for SOFA 2010

4 Ethiopia: Sustainable Development and Poverty Reduction Program (July 2002) Federal Democratic Republic of Ethiopia (FDRE), Ministry of Finance and Economic Development (MOFED), Addis Ababa, Ethiopia

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and almost a fifth of the country’s population, about 15 million people. The majority of the population of the regional state is rural, with less than 10% is living in urban areas (8.9%) in 2008. The State is extremely ethnically diverse, inhabited by more than 80 ethnic groups, of which over 45 are indigenous to the region (CSA 1996) 5. These ethnic groups are distinguished by different languages, cultures, and socioeconomic organizations.

The Region 6 has a diverse ecology, with relatively fertile and humid midland which contains the densest rural populations of Ethiopia, ranging from 100 to 400 pp/km 2.

Value chain development of Moringa Stenopetala , a tree endemic to arid and semi-arid areas of the region, is considered a major tool for economic empowerment of rural women. The local farmers in Konso, Gamo Gofa, Derasha, Sidamo and Wolaita, areas use the Moringa Stenopetala as one of the major arable tree intercropped in multi-storey systems. The plant provides multiple socioeconomic and ecological services. It is a staple food that can have a significant role in food and nutrition security, the development of its value chain is envisaged to benefit the community by value adding and processing.

A.1.1.2 Benefits of Moringa

The genus moringa is represented by 14 species, three of them - namely Moringa Olifera , M. Stenopetala and M. Peregrina are widely known and used. M. Stenopetala is native to Kenya and Ethiopia (Mark, 1998) 7 and, as Moringa Olifera , is used as leafy vegetable, oil source, medicinal plant and water purifier (Dechasa, J. et al., 2006). Moringa Peregrina naturally grows in the arid and semi-arid countries bordering with the Red Sea: Sudan, Ethiopia, Eritrea, Djibouti and Somalia(Munyanziza, E. et.al., 2007) 8.

The main distribution of M. Stenopetala is the SNNPRS, where it is known by different vernacular names such as Shiferaw (Am), Aleko, Aluko, Halako (GG), Kallanki (Ben), Telahu (Tse), Haleko, Shelchada (Kon), Haleko (Bur), Haleko (Dh) and Cabbage Tree (Eng).

5 CSA (1996) Central statistics Authority Ethiopia 1996, Ethnic distribution of SNNPRS 6 Enset (Enset ventricosum) is a distinct production system and livelihood in the region, mixed with high, lowland and mid altitude cereals, root and tuber crops, coffee and chat (major cash crops), fruit, vegetables, spices and livestock. 7 (Dechasa, J., Sonder, K., Alemayehu, L., Mekonen, Y. And Agena, N. (2006.) Leaf yield and nutritive value of Moringa stenopetala and Moringa oleifera accessions: Its potential role in food security in constrained dry farming agroforestry system. Moringa and other highly nutritious plant resources: strategies, standards and markets for a better impact on nutrition in Africa. 8 Munyanziza, E. & Yongabi, K.A., 2007. Moringa Peregrina (Forssk.) Fiori In: van der Vossen, H.A.M. & Mkamilo, G.S. (Editors). PROTA 14: Vegetable oils/Oléagineux. [CD-Rom]. PROTA, Wageningen, Netherlands. 7 | P a g e

Traditionally several African, southern American, Asian and Oceanic countries grow and use Moringa. In the last few decades several projects were initiated to promote the production and processing of Moringa in many western, eastern and southeastern countries of Africa, such as Senegal, Ghana, Nigeria, Malawi, Mozambique, Kenya, Tanzania, Ethiopia and South Africa.

Moringa Stenopetala is an important tree for millions of people living in the SNNPRS, it has economic, medicinal, social and cultural values. It is a staple food for over 5 million people, consumed as a vegetable. KURKUFA is a Moringa-based food mixed with maize and sorghum to supplement the carbohydrate with vitamins, minerals and protein. The rural people in Konso and Derashe use Moringa roots to cure malaria and to support mothers when they have difficulties to remove the placenta after giving birth. The juice of Moringa leaves is used to boost the energy of women during delivery and labour.

Having a Moringa tree in the garden or home shows wealth and represents a stable food supply for the family, resulting in respect for the head of the household. Wide and wild distribution of Moringa Stenopetala is recorded in several zones and woredas of SNNPRS, even though there is no distribution map. Moringa is grown and consumed by people in Sidamo, Gedeo, Wolaita lowlands, Dawro, South Omo, Gamo Gofa , Segen and other areas..

The production system differs from place to place: in Derashe valley M. Stenopetala is grown as agro- forestry tree in farms with maize and sorghum; in Konso, Wolaita Arbaminch Zuria and Western Abaya it is dominantly a homestead tree. M.Olifera is more widely grown in the tropics and well-studied, and it share similar traits with M. stenopetala .

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Moringa trees in Derashe valley farms Moringa in Konso gardens

Moringa also has the potential to be integrated with tourism. Konso, Arbaminch and Omo valley are important tourist attractions. Western visitors are often interested in buying and trying traditional foods and local products. If Moringa health benefits as anti-oxidant, antiaging oil, organic/natural vitamin and nutrition supplement is well promoted, it will open up marketing opportunities for the rural women in the area.

Every part of the Moringa tree is a source of protein, vitamin, minerals and carbohydrates, valuable nutrients for both humans and livestock. Leaves, pods, flowers and roots are edible. Moringa leaves contain more Vitamin A than carrots, more calcium than milk, more iron than spinach, more Vitamin C than oranges, and more potassium than bananas (Lowell J.Fuglie, 2001)9 . The mature dried seed of moringa is about 42% oil, the oil is of excellent quality (73% oleic acid), suitable for cooking and Biofuel production. Moringa oil is clear, sweet, odourless, and non-rancid, its nutritional values resemble those of olive oil, making it a useful raw material for the manufacturing of perfumes and cosmetics. Crashed seeds powder is used to treat skin infections and whole seeds are used as water coagulants, at high turbidity their action is as fast as alum. Pterygospermin and/or related compounds (isothiocyanayed) found in various parts of the Moringa plant, have been shown to have antibiotic and fungicidal properties. Though other parts of Moringa plant are reported to be effective against infections, much of the formal research to date has focused on extracts from the seeds. Using Moringa as a green manure can significantly enrich agricultural land. Moringa leaf extract can be used as foliar fertilizer, increasing yields by 25-30% for nearly all crops. One of its active substances is Zeatin, a plant hormone from the cytokines group and the foliar spray can be used in addition to other fertilizers, water and sound agricultural practices. The Cytokinin contained in Moringa leaf juice also has anti-ageing properties that make it useful for the cosmetics industry. Moreover Moringa wood makes excellent paper pulp, the bark is used to make mates and rope and blue dye is made from the wood of moringa in Senegal and Jamaica. The roots of young plants are eaten mixed with vinegar and salt, however the roots have to be consumed with caution as they contain alkaloids. Large or regular roots consumption should be avoided as they contain pterygospermin and the alkaloid spirachin, a nerve-paralyzing agent.

The importance of moringa as food supplement, cosmetic, medicinal and industrial crop is gaining attention not only as affordable protein, mineral and vitamin source for rural communities, but also for

9 L.J. Fuglie (Ed.), The Miracle Tree: The Multiple Attributes of Moringa (pp. 45-76). Dakar, Senegal: Church World Service, 2001. Fuglie, L. J. (2001). COMBATING MALNUTRITION WITH MORINGA. 9 | P a g e

its cosmetic and medical uses in the developed world. As moringa leaves contain about 46 antioxidants, and has anti aging effects the cosmetic industry considers it a good source for face and body products.

Even though Moringa Olifera is the widely domesticated in the tropics, the two spp. M.olifera and M. stenopetala are considered as the world’s most useful multi-purpose trees as they are drought tolerant, adapt to marginal areas with poor soil conditions, wide range of PH and erratic rainfall. Therefore Moringa has the potential to combat desertification and protect the land from soil degradation and erosion.

A.2 Problem to be addressed The major constraints to exploit the benefits of Moringa are the following;

1. A Moringa Task Force exists at federal and regional levels to facilitate and coordinate the research and development efforts. However there is no coherent development strategy that would strengthen the institutional structure and mandate relevant stakeholders, public/private institutions are not in the position to exploit the opportunities for development.

2. Small households and farmer families are using Moringa as staple food, only as cooked vegetable. Communities would have several fold benefits from processing of Moringa leaves as food supplement, feed and fodder, edible oil and industrial raw material. However, the lack of technical skills and knowledge to process the different parts of the Moringa tree, constitutes an impediment to livelihood improvement.

3. The benefits of Moringa as feed for poultry, food supplement for malnourished children, and valuable component of cosmetics products have been established. Nonetheless, the scaling up of research results is still a major challenge.

4. The absence of standards and quality parameters regarding food safety, GAP, GMP and consumer protection is a serious concern and relevant challenge.

5. The social and environmental impact of the Moringa value chain needs to be developed and promoted.

The above mentioned challenges are issues that will be addressed through the implementation of this project.

A.2.1 Institutions and actors of the moringa value chain

The Moringa Task Force (MTF) 10 is present both at the federal and regional level. The Federal Moringa Task Force is chaired by the Ethiopian Public Health Institute and the members are:

• Ethiopian Public Health Institute (EPHI) (Chairperson & Vice/ chair). • Ethiopian Environment Development Organization, member.

10 Proceeding of Consultative Workshop on Moringa stenopetala to Maximize Its Potential Uses, (Bishoftu, Ethiopia 2014)

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• AAU, Faculty of Life Science, College of Natural and computational Sciences, Addis Ababa University, member, • AAU, Department of Pharmacology, School of Medicine, College of Health Sciences, Addis Ababa University, member. • Ethiopian Biodiversity Institute (EBI), member • Ethiopian Institute of Agricultural Research, member • Community elder from Konso, member. • Ethiopian Food, Medicine & Health Administration and Control Authority (EFMHACA), member . • Horn of Africa Regional Environment Centre and Network Addis Ababa University (HoA-REC&N), Secretary.

The regional task force comprises:

• Arbaminch University (AMU) • Southern Agricultural Research Institute (SARI) • Hawassa University • Natural Resource and Environment Protection Authority (NREPA) • Agriculture marketing and cooperatives Bureau • Regional health bureau • Health and Health related Regulatory Bureau • Kalehiwot Church • Global Team for Local Initiatives

A.3. Origin of the project

On the 9 th of July 2014 UNIDO received an official letter form the First Lady of the Federal Government of Ethiopia requesting UNIDO’s support in developing a project that fosters rural women development in terms of technical assistance through skill development, particularly in the organization of women farmers clusters, introduction of value-adding rural agro-processing units, packaging and quality assurances for domestic, regional and international markets.

UNIDO promptly responded to the request of the First Lady of the Federal Government of Ethiopia and instructed the concerned unit to proceed with the preparation of the project as the issues indicated in the request are indeed among the pillars of UNIDO’s strategy, focusing on inclusive and sustainable industrial development (ISID) in which “no one is left behind” in benefiting from industrial growth, and prosperity is equally shared among women and men all over the world. In this context, it is essential to better integrate women and youth in the process of creating an industrial workforce, especially in the rural communities.

Mobilizing the potential productivity of rural people and particularly of women is crucial in order to achieve the resilient economic growth that will bring the targeted population out of poverty. The primary focus of UNIDO’s activities in this area is on knowledge, skills, technologies and business support services upgrading to enable women and youth to engage in productive activities, generate income, and thereby reduce poverty.

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The preparatory assessment mission has been conducted, based on the field visit and discussion held with the relevant stakeholders at a federal and regional level. The following opportunities and challenges were identified:

Opportunities Moringa Stenopetala is a tree endemic to the southern part of Ethiopia and over 5 million people are using it as staple food and medicinal plant, using traditional knowledge in terms of crop management and use. The potential of Moringa as multipurpose tree allows to expand its use significantly, as the following features indicate: • Drought resistant, fast growing tree that grows in marginal area; • Source of food supplement, feed, fodder, edible oil, biofuel and industrial raw material; • Potential plant to mitigate the issue of climate change- carbon sequestration, carbon trade— that contributes to green development; • Prospective crop to ensure food security and environmental management in arid and semi-arid pastoral or agro-pastoral areas; • Endemic plant that offers international market opportunities and recognition for the community; • Water purifying agent that helps rural people to clean water;

Challenges The following challenges are preventing a broader use of Moringa: • Weak/ non-existent quality, standards and regulatory framework to protect consumers; • Limited capacity to conduct multi-disciplinary research and development efforts; • Lack of awareness on Moringa’s importance at the policy making and community level; • Knowledge gap on sustainable use, access, beneficiaries, and safety if the Moringa value chain; • Lack of skilled human resources and institutional infrastructures with respect to safety, GAP, GMP and regulatory frameworks ; • Lack of coordination both vertically and horizontally; • Poor technology and lack of skills for production, processing and marketing; • Promoting Moringa as medicine without sufficient information, verification and regulation. The over promotion of Moringa as a remedy for different diseases, resulted in a demand-supply imbalance that encouraged adulteration, exposing the community to health damages; • Disorganized information disseminating infrastructure.

In response to the above mentioned opportunities and challenges UNIDO is developing a project that deals with the following issues:

• Addressing the lack of a coordinated effort and absence of strategy regarding the development of Moringa; • Alleviating the challenges related to the gap of knowledge, skills and technology of rural farmers to increase their income through processing and value addition; • Scaling up the research outputs to develop marketable products; • Enhancing the value chain, quality and standards that lead to a sustainable market structure; • Increasing the presence of Moringa, to tackle land degradation, deforestation and desertification that deeply affect agricultural productivity and food security.

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The proposed project includes the following activities:

a) Provide technical assistance for the processing of Moringa leaves as well as oil for small-holder farmers and develop entrepreneurial capacity with special emphasis on rural women.

b) Create synergies among the relevant stakeholders to support the scaling-up of the research initiatives on Moringa–derived products such as food supplement, oil, cosmetic etc.

c) Secure sustainable markets by assuring the respect of quality standards of the products, through the development of the necessary product standards (e.g. product specifications and testing methods), support the establishment of a traceability system along the value chain to access market through the development of conformity assessment schemes (e.g. organic certifications; Trade fair label).

A.4 Target Beneficiaries The objective of the project is to improve the livelihood of rural women in Ethiopia, especially in the SNNPRS. The project has a strong capacity building component for the rural and agrarian communities that will receive training on Moringa production and processing as food supplement, water purifying agent, as well as feed and fodder for animals. This will improve livestock productivity, income generation capacity and business opportunities of rural women farmers. As a result of the capacity building process, the technical capacity development, as well as the training and institutional support programs for the Ethiopia Public Health Institute, SARI, Arbaminch University Ethiopia will benefit from a quality product development and a consumer protected supply chain. Furthermore the project will support the entrepreneurs’ capacity to market the value added products and to create marketing infrastructures that will develop the private sector.

The beneficiaries will be all individuals and farmer families in the value chain of Moringa production, processing and marketing, specifically the project will target women farmers from SNNPRS. As Moringa is endemic to the Southern part of the country, it is grown and consumed by people in Sidam, Gedeo, Wolaita lowlands, Dawro, SOmo, Gamo Gofa, Derashe vally, Segen. The project will establish a demonstration unit of production and processing in an area that shall be selected at the inception period, taking into account criteria such as accessibility, access to water and infrastructure, etc. The project shall be linked to the existing organized associations or cooperatives to train the beneficiaries in production, processing, food safety, entrepreneurship, leadership and management.

A.5. Relevance of the Project In Relation to National and International Frameworks The Ethiopian Government, with wide national consensus, put poverty eradication as the main priority of the national development agenda. To achieve this goal Ethiopia is guided by a comprehensive and integrated strategic plan which is considered as a key tool to eradicate poverty and end dependency on food aid in a short period of time: The Growth and Transformation Plan (GTP, 2011)11 is a national vision of Ethiopians to end poverty.

11 The Federal Democratic Republic of Ethiopia: Poverty Reduction Strategy Paper: Growth and Transformation Plan 2010/11–2014/15 – Volume I 13 | P a g e

The objectives of the GTP is “building an economy which has a modern and productive agricultural sector with enhanced technology and an industrial sector that plays a leading role in the economy, sustaining economic development and securing social justice and increasing per capita income of the citizens so as to reach the level of those in middle income countries”. To achieve the targeted objectives the strategic pillars are: i) maintaining agriculture as major source of economic growth; ii) creating a conducive environment for industry to pay a key role in the economy, and iii) promoting gender and youth empowerment and equality. These strategic pillars are relevant in relation to the proposed project.

The Ethiopian strategy strongly supports the intensification of production by small farm holders and private producers of marketable farm products for domestic and export markets. This strategy relies on the shift of production to high value crops with a special focus on areas potentially feasible for commercialization by smallholder farmers as major sources of agriculture growth. The Government’s plan is to shift to a high growth path in order to meet the food security needs and to serve as a spring board for structural transformation and industrial growth through pragmatic agro-industrial development. The Government’s aim is to strengthen micro and small- scale processing and manufacturing enterprises, as they are the foundation for the establishment and expansion of medium and large scale industries. In this way opportunities will be opened for employment generation, expansion of urban development and close support for further agricultural development will be provided.

The GTP sector development plan stipulates that the plan cannot be achieved without empowering women and youth and ensuring that they benefit from the policy. To address the multi-dimensional problems faced by women and youth, the Government is committed to ensuring equitable socio- economics and political participation by unleashing the potential contribution of women to national development. This will have profound effects on the speed, equality and sustainability of economic development and on the country’s overall growth and prosperity.

The United Nations System is committed to prioritizing improved agricultural production and value addition, strengthening food security and generating income. It is therefore willing to support effective production systems that underpin rural livelihoods in Ethiopia, facilitating the establishment of farmer training system for small-scale producers to increase production and productivity, while also expanding farmers’ technical knowledge on design and utilization of technology related to food processing and rain-fed agricultural schemes. In addition, capacities of public and private sector institutions and Micro, Small and Medium Enterprises will be strengthened and focused on inclusive economic growth. Pro- poor value chain integration will be emphasized with regard to private sector development, and “risk- savvy” investments taking into account the challenges of geological and hydro-meteorological risks. Special attention will be given to enhancing the economic empowerment of people in the informal sectors, particularly rural women. Capacities of partners will be developed with linkages to entrepreneurial education to promote decent work conditions.

The project is also recognizing the need for Inclusive and Sustainable Industrial Development (ISID) 12 . It has been recognized that industrial development increases productivity as well as employment and generates income, thereby contributing to poverty eradication, while providing opportunities for social

12 UNIDO, February 2014, Inclusive and Sustainable Industrial Development, Creating shared prosperity | Safeguarding the environment 14 | P a g e

inclusion (i.e. gender equality, empowering women and girls and creating decent employment for the youth). As industry develops, it drives an increase in value addition and enhances the application of science, technology and innovation (STI), encouraging greater investment in skills and education, and thus providing the resources to meet broader, inclusive and sustainable development objectives.

While integrating in a balanced way all three dimensions of sustainable development — economic, social and environmental — it is believed that effective measures towards inclusive and sustainable industrial development should encompass enhancing productive capacities in a way that: i) supports the structural transformation of the economy; ii) encourages economic growth and the creation of decent jobs; enhances productivity and development, transfer and absorption of technology on mutually agreed terms, infrastructure and technological innovation; iii) advances trade and development, particularly in the small and medium-sized enterprise sector, micro-industries and other new forms of community-based entities; iv) promotes the sustainable use, management and protection of natural resources and the ecosystem services they provide; and v) supports related research and development.

Taking into consideration the priorities of the government and the aforementioned international strategy documents, the project will contribute to poverty alleviation by providing access to nutritious food supplements, cleaner water and by creating income generating opportunities for the vulnerable rural youth and women. These objectives will be achieved through agro-business development, processing and value addition, while combating desertification and contributing to the national agenda at large.

B. REASON OF UNIDO ASSISTANCE

The Ethiopian Government through the Office of the First Lady of the Federal Government of Ethiopia recognized UNIDO’s competence and experience in:

‹ Developing and upgrading agri-business value chains, creating networks, cooperatives and clusters of small farmers and producers through public and private partnerships; ‹ Aligning the project activities to the relevant policy strategies of the government; ‹ Considering international best practices and engaging with relevant stakeholders.

Therefore the First Lady of the Federal Government of Ethiopia requested UNIDO to provide support in the area of value chain development to build a national capacity to benefit rural women. Taking into account the potential of the country, the traditional knowledge and the endemism of Moringa Stenopetala UNIDO will develop Moringa Value Chain (MVC) that will play vital role in supplying cleaner water, food, animal feed and fodder and industrial oil, while creating income generation and self- employment activities thanks to the strengthening of entrepreneurship capacities. This leads to enhanced food security and poverty reduction. The intervention of the project will focus on training the beneficiary farmers to produce and process Moringa leaves and seeds, respecting health and sanitation parameters. The leaves will be processed into leave flax and powder to be used as food supplements to combat malnutrition in young children and pregnant as well as lactating women. The technical and infrastructural capacity development component of the project will assist the farmers group to extract oil diversifying income generation through entrepreneurship capacity development. The oil will be used for human consumption, body and hair care (cosmetics) and energy production (e.g. biofuel). The by- product of the oil extraction (i.e. cake), beyond its water purifying abilities, will enhance the productivity

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of the soil and will be a source of protein for the livestock of rural farmers. After the inception phase additional activities on cluster development may be included in the project, using UNIDO’s clusters development approach.

This proposed UNIDO project will be aligned to the ongoing research and development activities without any duplication of effort, rather complementing their scaling up. Furthermore, it will directly contribute towards the achievement of the UN Millennium Development Goals: 1 - eradicate extreme poverty and hunger; 3 - promote gender equality and empower women; 4 - reduce child mortality; 5 - improve maternal health; and 7 - ensure environment sustainability. Moreover, the project will contribute to the implementation of the UN Convention on Climate Change and to Combat Desertification.

C. THE PROJECT

C.1.Objective of the Project The objective of this project is to improve the nutrition and income of the targeted rural women/ communities in Southern Nations and Nationalities Peoples Regional State (SNNPRS) through the development of the Moringa Value Chain (MVC).

C.2 UNIDO approach The Project will take into consideration ongoing activities while considering the relevant Value Chain approach to support the development of rural farmers, especially women farmers, SMEs. It will address the major constraints present in the country and supporting specific target beneficiaries in capacity building with a focus on marginalized and underdeveloped small producers and businesses 13 . The project is envisaged to have two phases in 5 year. The Phase I details are reflected in the present project document for a period of 3 years. The Phase II, the scaling up, details shall be defined in the implementation period.

C.2.1. Project Phases The project will have three phases of implementation : Inception, Implementation (PHASE I) and Scaling up (PHASE II). C.2.1.1 Phase1 - Inception (6 months) 14

This phase is very important for the success of the project as it is the preparatory phase that leads to the identification of the management structure, project stakeholders and beneficiaries. Thus determines the overall feasibility of the project. The main activities in this phase will be:

13 UNIDO 2009, Value Chain Diagnostics for Industrial Development, Building blocks for a holistic and rapid analytical tool.

14 After the inception phase additional activities on cluster development may be included in the project, utilising UNIDO approach on clusters development.

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• Identification of the project management structure and establishment of the project office (PO), Project Technical Unit (PTU) and Project Support System (PSS); • Conduction of detailed baseline studies, assessing the current policy framework and relevant stakeholders role and participation framework; • Identification of the specific beneficiaries of the project; • Development of a monitoring and evaluation system; • Preparation of a marketing assessment indicating the potentialities of the Moringa value chain; • Preparation of a feasibility study for the transformation centres processing Moringa leaves and seeds for high added value Moringa-based products.

C.2.1.2. Phase 2- Implementation (18 months)

The implementation phase includes training, human and infrastructural capacity building, product development and market structures identification and establishment. The main activities of the Implementation phase will be:

• Publish and disseminate the strategy, including the organisation of a national consultative forum in cooperation with the Moringa Task Force (Federal and Regional); • Develop the infrastructural, institutional and human resources capacity building systems; • Exchange experiences through local, regional and international study tours and trade fare participation; • Provide physical infrastructures to develop moringa-based products; • Develop the Moringa production, processing, business management and investment capacity to benefit small farmer holders; • Develop pilot products and marketing strategies including organic certifications; • Develop product standards, establish a traceability system along the value chain, and develop a conformity assessment scheme for market access.

Phase II will include dissemination of the research and development results as well as a scaling up of the products through industrial processing and marketing initiatives at national and international level.

C.2.3 Project management

During the inception period of the project a “Project Coordination Unit” (PCU) shall be established. The Unit will have a Chief Technical Advisor, a National Project Coordinator and project administration staff. International and national consultants will be recruited on short-term basis with specific terms of reference (a detailed job description of the PCU staff shall be determined at a later stage). The PCU will be responsible for the overall day-to-day coordination and supervision of the project activities, the establishment of good working relationships between the project, counterparts and beneficiaries. The PCU will therefore ensure an effective day to day monitoring of all project activities.

C.3. Thematic area and code

• Results Based Management (RBM) code: EC13 • UNIDO thematic code: PRP

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C.4. Impact Developing Moringa products increases the income of the rural farmers and provides access to cleaner water, animal feed and fodder and nutritious food supplements that improve the life of children and women in rural Ethiopia.

C.4.1 Expected outcomes Identified target groups in SNNPRS are participating in small commercial activities related to the value chain of Moringa.

C.4.2 Outputs and Activities A comprehensive Log-Frame of the project can be found in Annex 6. The main outputs expected from this project are:

1. The Moringa national strategy is developed; 2. Target beneficiaries are trained in production, post-harvest, handling and processing; 3. Physical infrastructures to develop Moringa-based products (e.g. processing centres) are established in selected target areas (location to be determined during the inception phase); 4. The institutional capacities to develop Moringa-based test products are built up and the national quality and standard framework to supporting value chain compliance, capacities and market access of Moringa-based products is put in place; 5. Markets channels for Moringa-based products are identified; 6. Moringa is promoted as natural resource, environmental regeneration and source of feed and fodder for the agro-pastoral communities.

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Outputs and Activities Responsibility Output 0 Inception Period concluded /Management structure, feasibility study and Moringa UNIDO/Office of the FL/ national strategy is developed/ (Phase I) SNNPRG/ Project Management Unit, International Consultant Activities: 0.1 Identification of the project management structure and establishing of the project office (PO), Project Technical Unit (PTU) and Project Support System (PSS); 0.2 Conduction of detailed baseline studies, assessing the current policy framework and relevant stakeholders role and participation framework; 0.3 Identification of the specific beneficiaries of the project; 0.4 Development of a monitoring and evaluation system; 0.5 Preparation of a marketing assessment indicating the potentialities of the Moringa; 0.6 Preparation of a feasibility study for the transformation centres to process Moringa leaves and oil, for value addition of Moringa-based products. 0.7 Conduct an environmental impact assessment for analysing the possible opportunities to mitigate desertification and natural resources degradation. 0.8 Conduct a gender analysis to assess possible opportunities to address gender inequalities identified in the project, as well as to establish a baseline and appropriate gender disaggregated data, to set up an M&E system for the project activities. 0.9 Reviewing the existing plans and strategies for Moringa development and use, and assist to design a short, medium and long term development strategy. 0.10 Identify an appropriate implementation strategy, by identifying the duties and responsibilities and defining the organizational structure. 0.11 Collect baseline data, including gender-disaggregated data, to set up an M&E system for the project activities.

Output 1 Target beneficiaries are trained in production, post -harvest, handling and UNIDO/OFL/SNNPRG/ processing PMU/SARI/MTF/ Tourism bureau of the region International Consultant

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Activities: 1.0 Identify and select the beneficiaries of the different project activities. 1.1 Organize the farmers and the potential entrepreneurs into cooperatives and/or associations to provide training on production, post-harvest handling, processing, entrepreneurship, leadership, and business management. 1.2 Select appropriate technologies for post-harvest handling and processing. 1.3 Identify the appropriate partners to integrate to the tourism industry 1.4 Identify the project sites for production and the beneficiary farmers taking into account the economy of scale for the processing unit. 1.5 Identify the pilot project site for production and processing initiatives and the target groups training. 1.6 Identifying the appropriate location for the construction of processing facilities, such as moringa leaves drying, processing and oil extraction units. 1.7 Develop human resource capacity on management & accounting. 1.8 Conduct training on processing and maintenance of the equipment. Output 2 Institutional capacity including physical infrastructures to develop moringa -based UNIDO, SNNPRG, products, are established in selected target areas and institutions (location to be EPHI, PMU, EPHI, determined during the inception phase) including a national quality and standard FMHCAC, framework as well as support the value chain compliance, capacities and market access International Consultant (e.g. processing centres, testing laboratories and protocols). Activities: 2.0 Design construct the unit appropriate for processing and packaging moringa based products 2.1 Procure and commission on the equipment. 2.2 Equip the unit with environment friendly energy source, such as solar or wind power. 2.3 Equip the lab of Food, Medicine and Health Care Administration and Control, necessary for the quality and standard parameters determination and conformity assessment 2.4 Equip the units with appropriate processing and packaging equipment for moringa- based products 2.5 Identify and develop the appropriate methodology for the different Moringa-based product, focusing on quality, standards and fingerprint. 2.6 Develop training procedures and manuals based on the concepts and principles of the Food Quality and Safety procedures. 20 | P a g e

2.8 Support the training institutes to link with the value chain of Moringa to incorporate the relevant subjects in the training process. 2.9 Identify stakeholders suitable for promotion, dissemination and marketing of Moringa- based products, identify their training needs and provide them with the necessary skills to undertake promotion and marketing activities Output 3 Markets channels for Moringa -based products are identified. UNIDO, SNNPRG, SARI, NREPA, AMU, International Consultant, Activities: 3.0 Develop new and innovative Moringa products. 3.1 Develop promotional material for processed Moringa-based products 3.3 Organize market assessment activities (e.g. trade fairs, marketing agents and Moringa based industrial producers, cosmetics industries) 3.4Develop market outlets and linkages to retailers/wholesalers for processed and semi- processed Moringa products 3.5Establish linkages with niche international market structure like Slow Food, fair trade, organic food etc. 3.6Train and develop capacity on the area of GAP, GMP, GHP, and HACCP. Organize on job training and experts visit for experience exchange. Output 4 Moringa is promoted as a natural resource , environmental regeneration and feed SNNPRG, (NREPA, Agriculture bureau, Agriculture and fodder source for the agro-pastoral communities. marketing and cooperatives buearu) Activities: 4.0 Popularising Moringa within the pastoral and agro-pastoral community to be used as feed for their animals. 4.1 Promote Moringa for sustainable natural resource management and climate change, adaptation and mitigation. 4.2 Distributing seed and inputs to the communities 4.3 Support the communities to benefit from Moringa as food supplement.

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FORMULATION OF PHASE II I

PHASE II I Responsibility

Output 5. Moringa products are diversified and scaled up. UNIDO/Office of the FL /SNNPRG/ PMU , EPHI, FMHC AC, International Consultant Output 6 . Consolidate the market and develop sustainable livelihood UNIDO, SNNPRG, PMU International Consultant

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C.5. Risks

A Risk Management Matrix can be found in Annex 8. The Government of Ethiopia has shown a full commitment to the development of Moringa by organizing an MTF both at federal and regional level. It is however expected that some delays may be registered during the implementation due to lengthy procedures in the organization of growers into cooperatives as well as in the access to land.

C.6. Sustainability

The project approach is need-based and sustainability will be insured by integrating the technical assistance into the institutional framework and by maximizing the farmers’ benefits from value chain development. The project will strive to create an innovative development strategy and action plan, taking into account local knowledge as well as community based institutional structures and support systems. The project will make sure to maximize the number of farmers associations and women groups involved in the production and processing of Moringa. It will help to improve their livelihood and secure access to cleaner water, food supplements as well as feed and fodder for their livestock. Moreover the project will improve the entrepreneurship capacity of youth and women in SNNPRS by integrating its activities to the on-going traditional effort of rural people and to the institutional initiatives at federal and regional level.

The project will contribute to environmental sustainability through combating desertification and deforestation.

C.7 Gender Mainstreaming

The major objective of the project is to empower rural women without discriminating the male farmers to participate in the project. To guarantee gender balance a national gender expert will be attached to this project for its full duration and adequate financial resources have been allocated for the proposed gender activities:

• From the Inception Phase, the project will pay due attention to a balanced gender participation of target beneficiaries; • Inclusion of more gender-responsive outputs and activities; • While mapping the distribution of the resources at the inception period, gender-disaggregated data and qualitative information will be collected to analyse and track gender issues; • Developing a women centre, establish women farmers associations and cooperatives and work closely with the women affairs office of the region and other partner organizations; and • Regular monitoring and reporting of gender issues and behavioural changes towards greater gender equality.

Moreover, the gender expert will seek to ensure balanced access and participation of women and men in project activities, with particular attention to capacity building and related support activities to economically empower rural women. To this end, the gender expert will formulate exact targets in the

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inception phase, based on national and sectorial gender analysis, and develop specific actions to ensure gender balance and activities taking into consideration special needs of rural women. For example:

• Ensure that training curricula and tools are developed to accommodate the different education/skill levels that may exist between women and men; • Implement targeted awareness outreach activity to increase women’s participation in project activities; • Include special transportation or have mobile training units to address any security or distance challenges; and • Provide childcare services for women trainees. • A detailed gender Matrix has been included to this document as Annex 7 .

Regarding project staff, gender balance in the recruitment of project management and staff will be emphasized, and efforts will be made to ensure that recruited staff either has existing knowledge on integrating a gender perspective or their capacity will be built in this area, or will be trained. (e.g. I Know Gender Course on UN Women’s eLearning Campus https://trainingcentre.unwomen.org).

D. BUDGET

D.1 Counterpart input Southern Nations and Nationalities People Regional State (SNNPRS) will allocate land for the demonstration unit as well as for office facilities and utilities for the Project Management Unit. The SNNPRS assigned the Southern Agricultural Research Institute (SARI) as a focal point and confirmed the institutional infrastructures will be fully available to cooperate and participate in the implementation of the project.

D.2. UNIDO Inputs UNIDO will be responsible for:

• Establishing a project management unit, recruiting national and international experts and consultants required for the project.

• Identifying and organizing training-activities and study tours, in the region or/and internationally.

• Identifying the appropriate institutes, NGOs and private companies that could support the implementation of the pilot product development and processing unit.

• Sub-contracting the civil works, including the procurement of the equipment and machineries for processing the Moringa leaves and seeds.

• Providing a vehicle required for the project.

• Managing the overall implementation of the project, making sure priority is given to national expertise whenever applicable, insuring the gender balance through the entire project cycle.

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D.3 Preliminary Budget The preliminary budget below represents Phase I (inception) and Phase II (implementation) of the project. However, the final budget shall be determined during the Inception phase.

Estimated budget of phase I for a duration of 3 years: USD 1,756,020 (detailed budget see Annex 9) Unit cost BL Description Units Total cost USD

11 -00 CTA Technical Adviser 15,000 15 225 ,000

11 -00 International Experts 15,000 12 180,000

82 -00 Evaluation 50,000 1 50 ,000

17 -00 Support personnel (Secretary -Driver) 2,000 36 72,000

15 -00 Project tr avel 12,000 3 36,000

16 -00 UNIDO staff travel 8,000 12 96,000

17 -00 National project Coordinator 4,000 36 144,000

17 -00 National Experts 3,000 72 216,000

21 -00 Subcontracts 18 0,000 - 180,000

30 -00 Training 75,000 - 75,000

45 -00 Equipment 23 0,000 - 230,000

51 -00 Miscellaneous 50,000 - 50,000

TOTAL 1,554,000

Support cost (13%) 202 ,02 0

GRAND TOTAL 1,756,020

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E. MONITORING, REPORTING AND EVALUATION E.1. Reporting

UNIDO and the national focal point (SNNPRG) will develop a reporting structure in line with the accountability of the project management unit, taking into account the existing UNIDO reporting guidelines.

Inception report: Prepared after approval of the final project structure by the project overseeing body (UNIDO & SNNPRG), with implementation plans based on baseline data.

Semi-annual reports: Prepared twice a year, no later than 30 calendar days after the last day of every 6th month.

Final report: Prepared no later than 45 calendar days after the end of the implementation period.

E.2. Monitoring

The performance monitoring will be executed based on a detailed work plan and log frame, taking into account the baseline indicators that are going to be established during the inception phase. The monitoring will be performed by the project management unit and/or by consultants evaluated on a need basis. Day-to-day technical and financial monitoring will be part of UNIDO responsibilities. A Project Oversee Committee will be established and will be responsible for the overall program oversight and guidance. The gender expert will support the collection of sex-disaggregated data as well as the regular monitoring and reporting of gender issues and behavioural changes towards greater gender equality.

E.3. Evaluation

The program will be subject to an independent review process assisted by the UNIDO Evaluation Group. It will include: o mid-term review; o final evaluation, at the beginning of the closing phase;

The budget allocated for evaluation is $50,000. The conclusions and recommendations of the mid-term review will lead to the follow-up action to be taken and any corrective action necessary, including, if indicated, the reorientation of program components.

The counterparts and beneficiaries will be informed at least two months in advance of the dates foreseen for the external missions. The counterparts and beneficiaries shall collaborate efficiently and effectively with the monitoring and/or evaluation experts, and inter alia provide them with all necessary information and documentation, as well as access to the project premises and activities.

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F. PRIOR OBLIGATIONS AND PREREQUISITES

There are no specific prior obligations or prerequisites that need to be met before project implementation can start. Most of the open questions with regard to target areas and beneficiaries will be covered during the Inception phase.

G. LEGAL CONTEXT: The Government of the Federal Democratic Republic of Ethiopia agrees to apply to the present project, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Government, signed on 26 February 1981 and entered into force on 5 November 1984.

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Annex 1. Map of Ethiopia

Target Region

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http://www.bestbridge.org/project-location/about-snnpr/ 15

Annex 2 - Moringa Tree and Logistics

Pictures contributed by M. Bogale)

a) Moringa initiatives in Ethiopia

Moringa stenopetala is a tree that is endemic and indigenous to Ethiopia, The rural farmers are using Moringa as food and medicinal plant. In the recent year the medicinal value of Moringa is highly promoted by individual with our organized regulatory system. Universities (AAU, HAWASSA University , ABU etc. and research institutes, (SARI) recorded different research and development activities even though the efforts are not coordinated. The promotion of moringa medicinal value created undesirable effect as the regulatory, consumer protection mechanism is not in place. To address the problems mentioned and to better utilize the opportunities Moring Task Force is organized at a federal and regional level.

The MTF facilitates the overall activities pertaining to M. stenopetala to generate Scientific evidences on its medicinal, nutritional, industrial and other uses through research and development, and value add chain for improved livelihoods as well as to disseminate standardized information to the public.

The specific objectives are;

• Compiles all research undertaking on M. stenopetala and identify research gaps to generate additional scientific evidences in different discipline,

• Facilitate value add chain of M. stenopetala through good agricultural practice (GAP) and good manufacturing practice (GMP) for food and feed security as well as other economic benefits,

• Supports the dissemination of standardized information to the public based on scientific evidence, Support the facilitation of integrated research in different discipline,

15 http://www.bestbridge.org/project-location/about-snnpr

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• Facilitates the promotion of good quality M. stenopetala products generated through value add chain through ensuring the necessary safety precautions for medicinal, nutritional and other purposes,

• Strengthen collaborative efforts to maximize the benefits of M. stenopetala In health, agro- forestry, environmental rehabilitations, industry and other areas through ensuring the conservation of biodiversity for sustainable use and equitable benefit sharing of the indigenous community

The benefit of Moringa is recognized as; • source of food supplement to fight malnutrition, especially for children, • source of feed and fodder for animals; • offer access to cleaner water; • combat desertification; • generate incomes from the sales of the seed and surplus leaves and pods; • training the young generation in value addition and innovative product development for better job opportunities.

b) Current marketing status, opportunities for local and international outlet:

Moringa stenopemeta is staple food for millions of people living in the southern part of Ethiopia. It is used as food, vegetable, and medicinal plant. Very little commercial production is recorded, but farmers are planting moringa tree on the farm and in homestead garden to harvest the leaves for regular family consumption and to supply the local village market. The production can be characterized as informal and scattered, by small farmers and very limited private growers.

In the recent years the benefit of Moringa is picked by the middle class urban dwellers, which created business opportunity for the rural farmers, but still the marketing structure is rather informal and uncertified. Moringa is collected from the farmers and distribution by local traders to bigger cities, but no regulatory body certifies the use, benefit contain and quality.

Post-harvest handling and logistics 30 | P a g e

Food prepared from moringa (Kurkufa)

The traditional knowledge and information about the medicinal value of moringa is disseminated in an informal traditional way, orally. In the recent year the benefit of Moringa is highly popularized and getting more and more attention by the urban dwellers. Care should be taken while it is promoted as a medical plant, unverified, inappropriate use of moringa as remedy for different diseases, exaggerated dosage and mystified curing ability might harm the community. Furthermore it will also jeopardize the development and trust of the society. Protecting the community from unauthorised opportunist actions can be restricted and controlled through fingerprinted and certified product labelling. This can be achieved through developing regulatory system and empowering the authorities both technically and legally to control and regulate the operation and distribution.

In many countries of Africa, Ghana, Senegal, Sudan, Mozambique, Nigeria, Uganda etc., number of projects are on-going, on production and process of moringa as a tool to combat malnutrition, water

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purification, animal feed and environmental degradation. University of Pretoria and Cap town, South Africa, is undertaking initiative on moringa as source of biofuel16 .

c) Moringa International Market

Moringa leaf powder is demanded in the international market as healthy nutritional supplement and falls into the same market category as “green superfoods”, such as spirulina, green barley, wheat and alfalfa sprouts. The global nutritional supplement industry has enjoyed a high growth rate in recent years; a trend, which is expected to continue. The largest market for nutritional supplements is the United States of America (USA), followed by Western Europe and Japan, with an affluent middle class willing to invest more in alternative health and food products.

The market of nutritional supplements European Union (EU) is divided into the following three segments: vitamins and minerals; food supplements (sport nutrition, herbs and botanicals); and speciality supplements. Moringa Leaf Powder falls into the category of herbs and botanicals that contain more than 400 substances. (BMZ, 2013) 17

d) World market demand of exotic vegetable oils

Consumers in developed countries increasingly prefer cosmetics that are from extracts of plants rather than from mineral oils. Therefore, the cosmetics industry started to differentiate its products by using more vegetable oils in the production. This trend triggered a growing international demand, and thereby higher prices, for oils obtained from exotic plants like the moringa tree. Even though the market for exotic

16 Biofuels Industrial Strategy of the Republic of South Africa. 2007, Pretoria.

17 BMZ, 2013 Moringa Products: Opportunities and Challenges for Mozambique, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Maputo.

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oils and fats is still very small, moringa oil is one of the exotic oil identified to have plenty of potential, it is growing at a faster rate than that of traditional vegetable oils. The EU market for moringa oil is heavily influenced by the patent of a US company on cosmetic compositions containing moringa oil. Therefore EU companies are reserved in using moringa oil. Nevertheless, industry sources indicate there is great potential for moringa oil. (CBI) 18

Cosmetics industry uses moringa oil as a very valuable ingredient for face and body cream because of its anti-aging characteristics. Moringa contains 46 antioxidants, by developing obligatory and volunteer quality and standards to indemnify food safety parameters through conformity assessments international niche market can be accesses. International labels, such as Fairtrade, GAP, GMP, organic certification, EDGE certification with secured high quality packaging will be part of the marketing strategy. The promotion of moringa benefits and safety parameters to be developed will create an opportunity for the local farmers and entrepreneurs in the value chain to create businesses.

e) Moringa as Biofuel

The world, with emphasis on Africa, is faced with an increasing demand for energy and pressure for high potential agricultural land. Energy is a major economic factor in production, processing and transportation of agricultural crops which form the staple diet of a large proportion of the developing world, Therefore, fossil fuel oil reserves will deplete in time and carbon tax, imposed worldwide on fossil fuels, will increase the cost of these fuels that makes the food crops production cost more and more expensive. The search for alternative fuels which promise energy conservation, efficiency, environmental protection and sustainable development is subsequently on.

Biofuel production from agricultural crops has increased more than threefold from in the last decade and half. (FAO, 2008) 19 . It now covers nearly two per cent of the world's consumption of transport fuels and is continuing to grow. Land used for the production of biofuels and their by-products is projected by the International Energy Agency (IEA) 20 to expand three-to-four fold at global level, areas of high potential for food crops is converted into biofuel that pose a threat to food security.

Most of the annual crops currently used for biofuel production have relatively high water requirements and nutrient demands as well as intensive pest and disease management practices for optimal yield production which could lead to excess nutrient run-off, ground water pollution and soil erosion. It is therefore imperative to investigate perennial crop species that could produce sustainable yields fuel/feed/fodder) under sub-optimal growing conditions with low input and management costs and secure food resources.

Moringa olifera fits the criteria in all aspects. This “miracle tree” would benefit the rural communities of Africa in which large scale plantations will provide plenty of employment opportunities and provide a sustainable income as Moringa can be consumed and sold as a food source and contribute to an improved

18 CBI, September 2009, Natural ingredients for cosmetics, The EU market for exotic vegetable oils for cosmetics.

19 FAO, 2008 Reviewing biofuel policies and subsidies, Annual report weighs opportunities and risks of biofuels

20 University of Pretoria, MORINGA BIOFUELS RESEARCH, RESEARCH MOTIVATION

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quality of the rural water supply. Moringa seed will also benefit the biofuel industry as its oil has already been found to be suitable for the production of biodiesel (Rashid et al., 2008) 21 .

This tree is a suitable candidate as it grows worldwide in the tropics and sub-tropics, but will tolerate higher temperature extremes and can survive a light frost. It also tolerates a wide range of soil and rainfall conditions.

21 Rashid U., Anwar F., Moser B. R., Knothe G., 2008, Moringa oleifera oil: A possible source of biodiesel. Bio resource Technology

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Annex 3. Diagram on versatile use of moringa

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Annex 5. Moringa Value Chain

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Annex 6. Logical Framework

OBJECTIVE, OUTCOMES, OUTPUTS, ACTIVITIES INDICATORS MEANS OF VERIFICATION DEVELOPMENT GOAL Contributing to the national poverty reduction and food security strategy as stated on Growth and Transformation Plan (GTP). Objective To improve the nutrition and income of the targeted • income level of the target groups, -Baseline study, project rural women/communities in Southern Nationals and disaggregated by sex (increased); monitoring and evaluation Nationalities and People Regional State (SNNPRS) • area coverage of Moringa trees; reports; through the development of the Moringa value chain • # of processed products of Moringa (MVC). available on the market; -National statistics. • # % degraded land covered with Moringa. Outcome Identified target groups of Southern Nationals and • volume of Moringa production, and use - Processing units Nationalities and People Regional State (SNNPRS) are at house hold level, disaggregated by sex; registration; participating in small and commercial activities related • # of Moringa products available in the to the value chain of Moringa. local market; - licenses issues for traders; • # of farmers (at least 40% are women) involved in the production and processing - Baseline study and of Moringa; number of SMEs involved • # of small and medium enterprises involved in the different levels of the value chain. Output 0. Inception Phase Conducted (feasibility study, • full detailed project document where all -Baseline study environment, impact assessment, and strategic baseline data, including a gender analysis, document is developed are collected in order to be able to - The strategy document; identify target beneficiaries and areas of intervention. • the development strategy document is published and endorsed by the - feasibility study; government; • the feasibility study and environmental Impact assessment reviewed and endorsed. - EIA.

Output 1. Beneficiaries are identified and organized, appropriate • Number of farmer families, cooperatives - Baseline study and M&E technology selected, pilot site identified and training organized and registered (gender report; materials are developed and conducted. balanced ); • Number of beneficiaries acquired the - Official documentation capacity to use and supply processed from the local authority Moringa leaf and seed.

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Output 2. Physical infrastructures to develop Moringa-based • Number of post-harvest handling, - Building and equipment in products are established in selected target areas and processing and packaging constructed; place Institutional capacity to develop test products is • the environment friendly energy source is - Products standards are carried out with the aim of creating industrial items in installed; developed and published; line with the national quality and standard framework. • the processing unit is equipped with - traceability requirements processing and packaging equipment. and conformity • quality & standards methodology is assessment scheme developed; established; • developed manuals and trainings - no of trade certificates conducted on Food Quality and Safety manufacturing licenses procedures; issued • # of small and medium scale growers who improved quality and productivity (% m/f); • Training/research institutes are linked to and involved in MVC.

Output 3. Markets and market channels for processed moringa • Moringa products are available on local - Demand supply identified and networks created. and international market, including assessment report M&E online marketing channels; system; • # of marketing certificates acquired (trade - Purchase agreements fairs, Organic certificate, EDGE certificate) with local / regional • Identified stakeholders suitable for traders; promotion, dissemination and marketing - Brands and labels of Moringa products. Output 4. Natural resources and environmental regeneration • Moringa trees are planted in the marginal - Moringa land coverage and sources of known timber forest product feed and areas, area. fodder improved. • Level of knowledge and use of Moringa by the pastoral communities.

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Annex 7 - GENDER MATRIX

Outputs and Activities Possible Gendered Outputs Possible Gender Indicators Indicative Gender Outcomes • Gender impact assessments of • # of reports produced to inform • Project design and planned and current policies and policy design and implementation reflect Developing conducive regulatory regulations are carried out. implementation. women’s participation in • frameworks and project Policy makers and enforcers are • # of policy makers and enforcers production, processing , management structure. engaged and trained on gender trained. marketing of Moringa and implications of related policies and • # of gender impact assessments promotes women’s economic regulations related to the MVC. undertaken. empowerment • National/regional policies agro- • # of women cooperatives and • Policy makers and enforcers processing include gender associations. make use of gender sensitive equality and women’s • # of gender specific targets information for decision- empowerment. included in the frame work . making. • Sex disaggregated data and • # of specific recommendations for • Rural women farmers and gender information for MVC are equitable access to benefits for entrepreneurs have increasing collected male and female producers and access to productive assets and • Consultation with female entrepreneurs. market. farmers’ producers and • # of dialogues on gender • Opportunities for women and entrepreneurs are undertaken in implications of MVC processes men to benefit from MVC is inception and implementation facilitated. more equitable. phases. • Dialogues are facilitated among key stakeholders from government, civil society, private sector and community leaders to discuss gender implications of MVC processes. • Feasibility studies and environment impact assessments are undertaken to favour women with appropriate technology to improve their competitiveness and market access. Appropriate technology are selected • Technology transfer targets • #of female participation in • Women’s income increase female and male farmers and technology transfer events. through appropriate • Improveme nt of productivity, entrepreneurs; # of female-owned business technology identified on MVC . • • quality and marketing. Technologi es are selected applying MVC as a tool. . Women lead application of Diversifying Moringa based considering the need of the rural • # of technology transfer-agents technics in MSME. women. sensitized on gender dimensions • Working conditions for women products • Training materials and of business in the farming and improve through application of ‹ Generation of increased job infrastructures are developed food sectors and creative appropriate technologies. opportunities for rural women taking into account the rural industries. • and youth. women situation # of studies on women and appropriate technology undertaken. • • Strategies are identified to • Employment opportunities for improve equitable women increase in workshops employment and income and factory operations. opportunities for female and • Design and development of male workers. agro-machinery and tools are increasingly appropriate to specific women’s work in agro- based and agro-related businesses and creative industries.

• Institutional human and • National partners are sensitized on • # of women researchers and • Stakeholder institutions are infrastructure capacity building to the benefits of gender managers engaged in MVC. gender balanced working- develop moringa based products. mainstreaming in capacity • # of measures taken to support places. building. women’s and men’s professional • Enrolment in technology and • Encourage all stakeholders to involve in MVC. design centres reflects gender involved in MVC to offer equal • # of scholarships available to equitable opportunities within opportunities for professional support girls and women who and across all programs. involved in the project. . pursue education in moringa • National partners are able to • An education initiative (e.g. based products development. identify and meet gender- Infrastructural and scholarships) supports women • # of partnerships with the private sensitive goals by promoting human capacity researchers and women who sector to support gender women researchers to Development pursue education in moringa equitable employment participate in MVC.

based products development. opportunities. • The Moringa based agro- • Partnerships with the private • # of rural women benefiting from businesses benefit from a more sector to employ female and male the women centre. gender balanced work force. graduates, with equity. • Rural women in SNNPRS are • Develop women centre to train empowered by using the the rural women on women centre as tool for entrepreneurship, business education and facility management and use of moringa infrastructure. to improve their livelihood.

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• Development of training materials • Training opportunities in the • % of women newly trained on • Women are increasingly and provision of training at processing of moringa leaves and moringa leaves and oil processing. represented among MSME enterprise level to existing and oil available for women with • # of events undertaken to entrepreneurs. potential MSME entrepreneurs and specific incentives and facilities. sensitize trainers on gender • Women are increasingly to trainers. • Training materials reflect women equality in. . represented among the and men as dynamic actors with • # of trainees who can explain the qualified workforce in the equal rights and different gender dimension . farming and processing of priorities. • # of trained women who apply moringa. • Trainers are sensitized on benefits their knowledge in moringa • Increased awareness on gender of gender equality through the processing and marketing. implications of the farming and training materials developed. processing of moringa. • Training materials are developed to sensitize trainers and trainees on gender dimensions of the moringa processing. • All training programmes include information and awareness-raising on the gender dimensions of agro processing. • Building stakeholders partnership • All partners are gender sensitized • # of measures undertaken per • Women’s participation and with in the value chain established to and aware of the benefits of the project to sensitize involved decision-making power promote moringa based products gender equality and women’s stakeholders. increases marketing of both locally and internationally. empowerment approaches. • # of gender analysis/assessments moringa. . ‹ Promoting the benefit of • Promotion materials are carried out with participation of all • Marketing of products and moringa as food developed with the emphasis of partners. investments multiply their supplement to combat the rural women role. • # of publications on gender issues impact on poverty reduction as malnutrition, source of • Female representation in related to moringa marketing. women’s income increases. oil, feed and fodder stakeholders and partners are • # female representative and • Marketing in moringa are ‹ Develop and establish facilitated through specific participants in marketing and more efficient and sustainable standards, certificates measures (e.g. incentives and women’s economic as a result of women’s and labels for the direct invitations). empowerment. increasing participation. Market channels products (e.g. organic, • Trade fairs and market promotion • # of materials developed to of moringa based Fairtrade). materials are gender sensitive market the products and its products are ‹ Participate trade fairs quality in terms of gender identified and market promotion sensitivity, channels are established sustainable market

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• • • • Establishment of business networks Business networks’ frameworks # of measures undertaken to Women ) rural women in the among public and private contribute to gender equality in contribute to gender equality and SNNGS)are empowered to organizations and targeted rural business development. women’s empowerment as a become entrepreneurs in farmers. • Women’s specific business result of gender analyses. agribusiness. networks are established, • # of measures undertaken to • Business networks’ impact on including linkages to national and sensitize involved stakeholders. poverty reduction multiplies as international forums. • # of women’s specific business women’s income in targeted • Technical guidelines are networks established. rural communities’ increases.

developed and distributed to • # of linkages to national and • A more gender-equitable facilitate gender mainstreaming in international fora facilitated to business environment results in business models. women’s business and networks. more efficient and sustainable • Female owned start-up • # of technical guidelines on agro- businesses. entrepreneurs and SMEs are gender mainstreaming in moringa supported through technical value chain published. assistance and mentorships. • # of specific measures undertaken • Publications for start-up to support female entrepreneurs entrepreneurs and SMEs are and female led SMEs.

translated to women’s main local language, if necessary. • Gender analyses inform the identification of business networks’ key interventions in moringa value chains. • Promoting moringa for sustainab le • Rural women are trained and • # of trees planted by the rural • Desiminat6ion of materials and natural resource management and informed about the benefit of women inputs to empower the rural Promote moringa climate adaptation and mitigation moringa as climate change • # of rural women economically women in SNNPRS. to mitigate ‹ Distributing seed and mitigation method benefited from the MVC. • Healthier rural family members climate change inputs for the rural • Uses of moringa as feed and • # of trees planted and survived using cleaner water and restore community fodder for animals is introduced. • natural resources # of families benefited from • Use of moringa as water purifying cleaner water. agent is promoted.

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Annex 8 - Risk Management Matrix Risk Potential adverse Risk management Number Risks level Responsibility impact strategy (H/M/L)

Moringa development The quality of the More commitment UNIDO, OFL, strategy is not baseline study and and collaboration SNNPRG, MTF 1. completed and made performance is L among stakeholders available for the reduced during the Inception public. Phase

The Moringa value The impact of the Importance and UNIDO, PCU , chain actors are not project is limited or benefits of Moringa MTF 2. interested to none M are promoted among participate in the all the actors. project.

Farmer families No unions and/ Identify interested UNIDO, and/or farmers unions cooperatives are farmers and/or SNNPRG are not interested to established. farmers unions, 3. be organized and be M capitalize and part of the Moringa intensified existing growers union experience on organizing farmers.

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Potential private Increase of moringa Identify potential UNIDO, sector participants are use and value private participants SNNPRG, PCU 4. L limited or no addition not and promote the interested parties. achieved. project benefit.

Researchers are not No new moringa Developing incentives UNIDO, PCU , interested to develop products are for the researcher to SNNPRG, EPHI, products and scale it accessible locally. participate and 5. L up. developing partnership with private and public institutes.

Products of moringa No impact on Developing quality and UNIDO, EPHI, are not trusted and combating standard for the MTF, FMHACA not accepted by the malnutrition and products. Establish 6. L community. food security. consumer protection system and regulate the distribution.

Products of moringa The assumption of Promoting the values, UNIDO ,OFL, not acceptable by the combating benefits and different EPHI, NREPA community as food malnutrition and uses of moringa, via 7. supplement, feed, food security, L mass media and truest fodder or water access to cleaner worthy purifying agent. water is not communication achieved. systems.

Growers are not Certification and Research for farmers PCU, UNIDO , interested to quality products interested to be SNNPRG, participate on scaling marketing are not trained in GAP, to 8. L up their products and achieved. improve the quality certification. and production system for better income.

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Farmers are The income and Post -harvest handling, UNIDO, PCU interested to produce benefit from processing, value any more because of moringa decrease. . addition and demand supply in marketing strategy is balance. developed, including quality packaging, 9. L branding and labeling of products to win the trust of the high end health conscious market improve market access.

The national The project Roles and OFL, SNNPRG, concerned institutes implementation is responsibilities of each UNIDO, MSTC do not agree on the delayed. and every stakeholder project stakeholders’ shall be defined in the 10. M role. strategy document without overlap of duties, to avoid conflict of interest.

The concerned actors The certifications Importance and UNIDO, PCU are not interested in such as fair- trade, benefits deriving from certifications. organic labels are international labels 11. L not achieved. and certificates are promoted among all the actors

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The stakeholders do International Values and benefits of SNNPRG, not agree to market promotion promoting the UNIDO, PCU participate on does not take place. products to international trade L international market 12. fairs. are clarified to concerned stakeholders.

L: Low

M: Medium

H: High

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Annex 9 - Budget

Component Budget lines 11-00 w/ 11-00 17-00 w/m 17-00 15-00 16-00 17-00 w 17-00 21-00 30-00 45-00 51-00 Int’exp/ m total Supp Total Project UNIDO staff tra. Local / total Sub- train Equipm. Misc consultan ort staff tra exps m contr ts staff Output 0 Inception Period conducted/Management structure, feasibility study and Moringa national strategy is developed

0.1 15000 1 90000 2000 36 72000 60000 4000 36 144000 3000 72 216000 0.2 15000 1 0.3 - - 0.4 15000 1 15000 - 0.5 - 15000 0.6 15000 1 0.7 15000 1 0.8 15000 1 0.9 Output 1 Target beneficiaries are trained in production, post-harvest, handling and processing

Activities: 60000 1.1 - - 1.2 15000 1 1.3 15000 1 1.4 15000 1

1.5

1.6 15000 1 1.7 1.8

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Output 2 Institutional capacity including physical infrastructures to develop moringa-based products, and built up the national quality and standard framework to supporting value chain compliance, capacities and market access. (e.g. processing centres, testing laboratories and protocols) are established in selected target areas and institutions. (location to be determined during the inception phase)

2.1 15000 2 165000 2.2 - - 2.3 - - 2.4 15000 2 2.5 15000 1 230000 2.6 15000 2 2.7 15000 3 150000 2.8 2.9 15000 1 2.10

Output 3: Markets channels for moringa-based products are identified.

3.1 90000 36000 36000 60000 3.2 15000 1 3.3 15000 1 3.4 15000 2 75000 3.5 15000 1 3.6 15000 1

Output 4 Promote Moringa as natural resources, environmental regeneration and sources of feed and fodder for the agro-pastoral communities.

4.1 15000 1 15000 4.2 4.3 4.4 4.5

Evaluation 50000 Sub-Total 1,554,000.00 48 | P a g e

Output 5 . Moringa products are diversi fied and scaled up.

Support 202,020.00 cost (13%) Grand total 1,756,020.00

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Annex 10. Timeline of the activities Timing for the implementation of the various Activities

Year 1 Year 2 Year 3 Year 4 Year 5

Inception Phase Implementation Phase 3 Output ACTIVITY Quarters

1 2 3 4 1 2 3 4 1 2 3 4

0.1

0.2

0.3

0.4

0.5

0 0.6

0.7

0.8

0.9

1.1 1 1,2

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Year 1 Year 2 Year 3 Year 4 Year 5

Inception Phase Implementation Phase 3 Output ACTIVITY Quarters

1 2 3 4 1 2 3 4 1 2 3 4

1.3

1.4

1.5

1.6

1.7

1.8

2.1

2.2

2 2.3

2.4

2.5

2.6

2.7

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Year 1 Year 2 Year 3 Year 4 Year 5

Inception Phase Implementation Phase 3 Output ACTIVITY Quarters

1 2 3 4 1 2 3 4 1 2 3 4

2.8

2.9

3.1

3.2 3 3.3

3.4

4.1

4.2

4.3 4 4.4

4.5

4.6

5 5.1

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Year 1 Year 2 Year 3 Year 4 Year 5

Inception Phase Implementation Phase 3 Output ACTIVITY Quarters

1 2 3 4 1 2 3 4 1 2 3 4

5.2

5.3

5.4

5.5

6.1

6.2 6 6.3

6.4

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