R4 Rural Resilience Initiative annual report January - December

Contents

Executive Summary 1 The R4 Rural Resilience Initiative 3 background 3 the r4 model 3 Project status 5 ethiopia 5 Senegal 7 Monitoring and Evaluation 10 monitoring 10 evaluation 13 Conclusion 14 Funding progress 14 looking ahead 15

Annex 1: r4 partners and institutional roles 16 Annex 2: metrics from the field 18 Annex 3: media citations and resources 22 Annex 4: rural resilience event Series 23

Figures

Figure 1: r4 achievements 2 Figure 2: r4 ethiopia activities timeline for the 2013 agricultural season 6 Figure 3: r4 Senegal activities timeline for the 2013 agricultural season 7 Figure 4: r4 Senegal scale-up areas, tambacounda and Kolda regions 8 Figure 5: average enrolment rates in IFW and non-IFW villages in tigray, 2012 and 2013 10 Figure 6: percentages of women and men purchasers in IFW and non-IFW villages in tigray, 2013 11 Figure 7: Donor contributions to r4 15

Cover: Women selling their produce in the local market in Koussanar, Senegal. Fabio Bedini / World Food Programme Acronyms

cnaaS Compagnie Nationale d'Assurance Agricole du Sénégal eVI enhanced Vegetation Index FFa Food assistance for assets HarIta Horn of africa risk transfer for adaptation IFaD International Fund for agricultural Development IFW insurance-for-work IrI International research Institute for climate and Society m&e monitoring and evaluation nGo non-governmental organization p4p purchase for progress oa oxfam america reSt relief Society of tigray Sfc Saving for change SnIID Social network for Index Insurance Design toc theory of change uSaID agency for International Development WII Weather Index Insurance WFp World Food programme WrmF Weather risk management Facility R4 participant Mulu-Birkan Mehari checks a rain gauge, Ethiopia. Eva-Lotta Jansson / Oxfam America

Executive Summary the r4 rural resilience Initiative (r4) is a strategic partnership governmental organization relief Society of tigray, ethiopian between the united nations World Food programme (WFp) and farmers and other partners (listed in annex 1). r4 was also oxfam america. Its aim is to enable vulnerable rural households piloted with 500 households in Senegal, with plans for scale-up in to improve their food and income security in the face of 2014 and 2015. the program is implemented in close increasing climate risks. r4 applies an innovative model that collaboration with local partners in ethiopia and Senegal.1 combines four risk management strategies: risk reduction, risk transfer, prudent risk taking, and the establishment of risk learning is central to r4. During 2013, analyses and assessments reserves. were conducted to enhance understanding of the initiative’s performance and capacity to improve rural resilience in a In 2013, R4 reached 20,365 farmers in Ethiopia, building on the transformative way. successful Horn of africa risk transfer for adaptation (HarIta) initiative started in 2009 by oxfam america, the ethiopian non-

1. See Annex 1 for the complete list of R4 partners.

R4 ANNUAL REPoRT January - December 2013 1 lessons learned, mostly from ethiopia, include the following: “HARITA/R4 is like an aunt who will take care of you when your mother is away.” • the initiative is improving ethiopian farmers’ resilience by Ethiopian farmer maintaining their livelihoods when rains fail. • Women-headed households achieve the largest gains, confirming that women should continue to be a priority target new learning tools will be developed in 2014: r4 implementation for r4 activities. guidelines, a study on basis risk, and a cost-benefit analysis of • Insurance-for-work (IFW) provides an essential mechanism for r4’s effectiveness in preventing or reducing the need for farmers to engage in r4; demand currently exceeds funding humanitarian assistance and safety nets in areas at risk of climate capacity. shocks. • enrolment rates among IFW participants remain stable even after seasons without an insurance payout, suggesting that participants Interest in this innovative risk management strategy is gaining value the disaster risk reduction activities they perform. traction. Several donors are interested in supporting r4. multi- • basis risk – the potential mismatch between insurance payouts year funding will allow the initiative to achieve scale in current and actual losses suffered – needs to be addressed before r4 is implementation countries and to expand into new countries. In scaled up. 2014, r4 will test and adapt its methodology in malawi and • Development of local capacity for designing and implementing Zambia. index insurance is a priority for the initiative’s planned expansion.

FIgURE 1. R4 achievements

$ $ $

Payouts $ 17,000 $ 320,000 $ 24,000

$ $ $ $ $ Value of Premiums $ 2,500 $ 27,000 $ 215,000 $ 275,000 $ 283,000

Total sum insured $ 10,200 $ 73,000 $ 940,000 $ 1,3 m $ 1,2 m

Farmers insured 200 1,300 13,000 18,000 20,000 24,000

2009 2010 2011 2012 2013 2014 (planned)

Countries Ethiopia Ethiopia Ethiopia Ethiopia Ethiopia Ethiopia Senegal Senegal Malawi Zambia Senegal

R4 ANNUAL REPoRT January - December 2013 2 Saving for Change group in Tambacounda, Senegal. Katie Naeve / Oxfam America R4 • 2 CoUNTRIES: EThIoPIA ANd SENEgAL • 20,000 hoUSEhoLdS • 4 INTEgRATEd RISk MANAgEMENT STRATEgIES e R4 Rural Resilience Initiative

Background 2 e R4 model more than 1 billion people in the developing world live on less than a dollar a day and depend on agriculture for their livelihoods. Vulnerability to climate-related shocks is a constant threat to the ir food security and well-being. conditions are Risk Reducon Risk Transfer degrading fast: land erosion, disappearing water tables, increasing R4 temperatures affecting yields, combined with population pressure and food price volatility, leave farmers and their families with few $ options. negative coping strategies in the form of asset sale (at a $ Prudent loss), meal skipping, and family expense foregoing are trapping Risk Reserves Risk Taking them in lon g-term poverty. as cli mate change increases the frequency and intensity of shocks, the challenges faced by food- insecure farmers also increase. Strategies for reducing and the r4 rural resilience Initiative (r4) is a strategic partnership mitigating risks are therefore essential to overcoming hunger, between the un World Food programme (WFp) and oxfam achieving food security and enhancing resilience. america (oa). Its aim is to improve the resilience and food

2. Morduch, J. 1995. Income Smoothing and Consumption Smoothing. Jour of Econ Pers , 9(3): 103–114. Parry, M., Evans, A., Roesgrant M.W. & Wheeler, T. 2009. Climate Change and Hunger – Responding to the Challenge . Rome, WFP. World Bank. 2011. Weather Index Insurance for Agriculture: Guidance for Development Practitioners . Washington, DC.

R4 ANNUAL REPoRT January - December 2013 3 security of vulnerable rural households in the face of increasing Food assistance for assets - FFA programs are the climate risks. launched in 2012, r4 currently operates in ethiopia cornerstone of WFP’s resilience building efforts. FFA and Senegal, reaching more than 20,000 households with four plays a double role: as a safety net it provides food integrated risk management strategies: risk transfer, risk and/or cash transfers to meet the immediate food reduc tion, prudent risk taking, and establishment of risk reserves. needs of the most vulnerable households; and as a tool for disaster risk reduction, natural resource rehabilitation and agricultural development, it builds assets that reduce the impacts of climate shocks, Risk transfer – Micro-insurance restore ecosystems and enhance agricultural r4 enables the poorest farmers to purchase production. weather index insurance (WII). W II is a financial Risk Transfer product based on an index which is highly correlated to local yields. Insurance covers specific perils or events – drought in the case of r4 – and payouts Prudent risk taking – credit $ are triggered by pre-specified patterns of the index rather than microfinance institutions are often reluctant actual yields, eliminating the need for in-field assessment. Prudent to offer credit to farmers because of the Risk Taking perceived high risk of default in bad seasons. compensation for weather-related losses enables farmers to With increased food security and a stronger avoid selling productive assets and facilitates faster recovery. asset base, r4 farmers can increase their savings and use their predictable income can reduce negative coping strategies and insurance as collateral to obtain credit for investing in productive encourage rural households to invest in activities and assets such as seeds, fertilizers and new technologies that technologies with higher rates of return. Insurance can also serve increas e productivity. as collateral to obtain credit at better rates.

Risk reserves – savings Risk reduction through individual or group savings, farmers $ Farmers can pay insurance premiums either can build a financial base for investing in in cash or through insurance-for-work (IFW) Risk Reserves their liv elihoods. Savings can also provide a Risk Reducon schemes that employ them in risk reduction buffer for short-term needs, increasing a activities. IFW schemes are built into household’s ability to cope with shocks. Group savings can be government safety net programs or WFp food assistance-for- loaned to individual participants with particular needs, providing assets (FFa) initiatives. a self-insurance mechanism for the community.

Farmers contribute their labor to risk reduction activities identified through participatory assessment and planning. In ethiopia and Senegal, IFW activities have contributed to natural resource rehabilitation and agricultural development.

R4 ANNUAL REPoRT January - December 2013 4 Farmers engage in participatory mapping in Kouthiakoto, Senegal. Fabio Bedini / World Food Programme 2013 kEy FIgURES • EThIoPIA: 20,000 FARMERS, 80 VILLAgES • SENEgAL: 500 hoUSEhoLdS Project status

Ethiopia 20,365 farmers purchased insurance, exceeding the target of In 2013, r4 reached more than 20,000 farmers in 80 villages in the 19,000. the initiative reached 80 villages: 79 in tigray and one in tigray and amhara regions of ethiopia. the initiative also started amhara, where insurance was offered for the first time. operations in Senegal this year where it reached 500 households during the 2013 agricultural season, building on WFp’s FFa and In tigray, 43 of the villages covered since 2011 and 2012 were oxfam america’s Saving for change (Sfc) programs. offered the option to buy insurance with either labor – through IFW – or cash. Farmers choosing IFW paid 10 percent of their In ethiopia, r4 builds on the initial successes of the Horn of africa premiums in cash. In the 36 additional villages, farmers were risk transfer for adaptation (HarIta) initiative, started in 2009 by offered insurance through cash payment only. the percentage of oxfam, the relief Society of tigray and several other national and farmers paying cash decreased from 32 percent in 2012 to 19 global partners. by the end of 2012, r4/HarIta had expanded percent in 2013; further analysis is needed to understand the from 200 farmers in the pilot village3 of adi Ha to more than reasons for this decline. all 350 farmers who purchased insurance 19,000 farmers in 11 districts4 across tigray. In 2013, a total of in amhara paid fully in labor.

3. The word “village” refers to the Ethiopian term “ tabia ”, or subdistrict, the second smallest unit in the Ethiopian Government’s administrative hierarchy of region (e.g., Tigray), zone (e.g., eastern Tigray), woreda /district (e.g., Kola Tamben), tabia /subdistrict (e.g., Adi Ha) and kushet . 4. The word “district” refers to the Ethiopian term “woreda”, which is equivalent to a district in other countries.

R4 ANNUAL REPoRT January - December 2013 5 During the 2013 agricultural season, farmers in tigray could obtain and will include improved index design and innovative ways of weather index insurance for short-cycle crops such as teff and managing basis risk (see "end-of-season assessments in ethiopia, beans, and long-cycle crops such as maize, wheat, barley and 2013" on page 11). sorghum. In amhara, farmers insured their wheat crop. two ethiopian companies – africa Insurance company and nyala Basis risk - Basis risk is the potential mismatch between Insurance Share company – provided the insurance. risk reduction the index-triggered payouts and the actual losses suffered activities for IFW were selected in consultation with the by policy holders. It is an inherent problem to index community and local agricultural experts and included: insurance because of the diverse microclimates found within relatively small geographic areas.

• catchment treatment; • reclamation of medium gullies;5 • spate irrigation; Ethiopia scale-up plan • micro-garden activities; In 2014, r4 plans to offer insurance through IFW to 21,000 • planting of cactus fruit and forest seedlings; and smallholder farmers, while also increasing the number of farmers • soil fertility management – compost making. paying in cash. the same districts and villages will be covered as in 2013, with IFW participants being the majority of policy holders. based on rainfall data, the index triggered payouts in 13 villages after 2014, participants should rise steadily, reaching approximately in amhara and tigray, where 3,571 farmers facing dry conditions 90,000 by 2018. achievement of this target will depend on r4’s received a total of uSD 27,138 (461,351 birr) in payouts. ability to attract additional funds for implementation and streamlining the process for index and product design. However, farmers reported rainfall shortages in 22 additional villages where the indices did not trigger payouts. a team from the In 2014, IFW farmers are expected to cover 15 percent of their International research Institute for climate and Society (IrI) visited premiums in cash. the objective is for participants to increase their eight of these villages to investigate the sources of basis risk. a cash contributions over time, until they are able to pay their premiums strategy for minimizing the effect of basis risk is being developed fully in cash, transitioning to a commercially viable insurance market.

FIgURE 2. R4 Ethiopia activities timeline for the 2013 agricultural season

JAN FEB MAR APR MAy JUN JUL AUg SEP oCT NoV dEC

Financial education and outreach

Savings and credit activities

enrolment

risk reduction activities

payout

5. Gullies are cracks in the earth caused by severe erosion from water runoff, which can damage productive land.

R4 ANNUAL REPoRT January - December 2013 6

Senegal Risk reserves an r4 pilot for Senegal was designed from early 2012 to February building on oxfam america’s Sfc program, 49 $ 2013, and started in april 2013 with 500 households from 12 new savings groups were formed and trained on villages in the communauté rurale6 de Koussanar. activities Risk Reserves financia l literacy. existing savings groups received involv ed all r4 components: training on small business management.

Risk transfer Prudent risk taking $ a prototype weather index for crop an inventory credit system linked to village insurance was developed base d on the Prudent cereal banks (known as “warrantage”) was Risk Taking Risk Transfer results of a feasibility study concluded in may initiated in one village. using the stored 2013. the prototype was tested and assessed cereal as collateral, this system provides during the 2013 cropping season and provides the basis for the farmers with access to credit immediately after harvest, when insurance scheme offered to farmers in 2014. the results of the high household expenditures often force households to sell their assessment are summarized in section "end-of-season food crops at low prices.

assessments in ethiopia, 2013" on page 11.

the insurance design for r4 in Senegal also benefited from the Risk reduction joint International Fund for agricultural Development (IFaD)/WFp these activities included construction of small Weather risk management Facility (WrmF). WrmF is testing water retention structures to expand and remote sensing methodologies for the future scale-up of index Risk Reducon intensify rice cultivation in the lowlands; insurance in Senegal, and was therefore involved in monitoring building of stone bunds to protect the the 2013 cropping season in Koussanar through satellite lowlands against silting; creation or rehabilitation of wells for estimates and ground recordings of rainfall, as well as the horticultural production; and training of farmers’ associations in measurement of crop yields in sample fields. improved rice production techniques.

FIgURE 3. R4 Senegal activities timeline for the 2013 agricultural season

JAN FEB MAR APR MAy JUN JUL AUg SEP oCT NoV dEC

context analysis and planning

Design risk reduction component

risk assessment

Insurance demand study and product design

risk reduction activities

creation and training of Sfc groups

conception of warrantage

process evaluation

Insurance dry run

6. The communautés rurales are groups of villages in limited geographic areas. They vary in size and density, but usually have 20,000–30,000 inhabitants.

R4 ANNUAL REPoRT January - December 2013 7 Senegal scale-up plan • household livelihoods based primarily on agriculture or In Senegal, r4 aims to reach 6,000 households with 36,000 pastoralism; beneficiaries in 2014, and 18,000 households with 108,000 • high prevalence of recurrent food insecurity; beneficiaries in 2015. • high vulnerability to recurring climate-related shocks; • presence of existing programs or partners aligned with at least In 2014, r4 will expand to nine communautés rurales in one r4 component, interested in participating in r4, and with tambacounda covering 4,000 households, and six communautés the necessary technical and organizational capacities; and rurales in Kolda covering 2,000 households. these communities • presence of active producers’ or women’s associations. were identified according to the following criteria:

FIgURE 4. R4 Senegal scale-up areas, Tambacounda and kolda regions

R4 ANNUAL REPoRT January - December 2013 8 the new communities in tambacounda will benefit from the communities, r4 will build on existing WFp FFa projects for its capacities developed under the Koussanar r4 pilot, including risk reduction and risk transfer components, and on oxfam capital investments, particularly in weather stations for index america’s Sfc groups for its credit and savings components. insurance; institutional relationships with local authorities, Kolda is also one of cnaaS’s priority expansion regions. technical government agencies and microfinance institutions; and technical capacity. Scale-up in tambacounda is aligned with From 2015 onwards, expansion is foreseen in the regions of the expansion plans of two r4 implementing partners – the non- Kaolack and Kaffrine, which were identified through a national- governmental organization (nGo) La Lumière for the credit and level context analysis in 2012. this analysis will be updated with savings components, and the agricultural insurance company the results of a comprehensive food security and vulnerability Compagnie Nationale d’Assurance Agricole du Sénégal (cnaaS) analysis 7 conducted in June 2013 by WFp in partnership with the for the risk transfer component. Senegalese Government, which provides the most up-to-date and detailed data on household food security and livelihoods at Kolda was chosen as an expansion region because it is the national level. characterized by high chronic food insecurity. In these

7. A comprehensive food security and vulnerability analysis is a baseline survey that provides an in-depth picture of the food security situation and vulnerability of households in a given country. It is conducted at “normal” times – not during crisis – in countries subject to vulnerabilities.

R4 ANNUAL REPoRT January - December 2013 9 Monitoring and Evaluation

monitoring and evaluation (m&e) systems in ethiopia and Senegal • a cost-benefit analysis will assess the comparative facilitate the assessment of performance in output delivery, and effectiveness of r4 in preventing or reducing the need for the evaluation of progress in building resilience, by measuring humanitarian responses in areas exposed to climate shocks. medium- to long-term changes that result from r4 activities. • an impact evaluation of r4 Senegal will start in 2014 and be the results of four m&e studies conducted in r4 countries in 2013 finalized in 2016. are reported in the sections that follow:

• study of r4 ethiopia enrolment results in 2013; Monitoring • end-of-season assessments in ethiopia and Senegal in 2013; • process evaluation of r4 Senegal in 2013; and Study of R4 Ethiopia enrolment results, 2013 • r4/HarIta impact evaluation in ethiopia in 2009–2012. It is crucial for r4 to monitor enrolment trends across years and to understand the factors that influence farmers’ decisions to to improve implementation and measure success, in 2014 the r4 enroll in the initiative and to re-enroll or drop out. Data on r4 team is developing four additional learning tools: ethiopia enrolment in 2013 were collected and compared with data from the previous year. • r4 implementation guidelines will provide a practical methodology for developing a r4 project, from inception to In tigray, there was a significant difference in farmers’ enrolment m&e. the guidelines will also facilitate knowledge management rates between IFW and cash-paying villages. average enrolment by collecting literature produced by the r4 team and external in the 43 villages where farmers were offered IFW was 34.81 stakeholders. percent, compared with only 7.16 percent in the 32 villages • a basis risk study will address the most significant challenge to where farmers were offered insurance for cash payment only. 8 r4’s index insurance. Insurance-for-work (IFW) versus cash-paying villages as shown in Figure 5, while enrolment increased in IFW villages, it decreased in non-IFW ones between 2012 and 2013. Farmers in FIgURE 5. Average enrolment rates in IFW and non-IFW villages tended to drop out of the scheme in 2013. this non-IFW villages in Tigray, 2012 and 2013 was true for the villages that received payout as well as those which did not. enrolment only increased in six of the 13 cash-payin g 40 34,81 villages that received payouts.

30 In IFW villages, average enrolment rates were more stable: they

28,56 even remained steady or increased in 81 percent of the villages that 2012 20 did not receive a payout in 2012. this indicates that farmers buying 2013 insurance through IFW tend to remain in the insurance scheme even if they have not received a payout. a possible reason could be 10 that farmers value the risk reduction activities that they conduct to

10,54 7,16 earn insurance. In non-IFW villages, the enrolment rate tends to 0 fluctuate, with more farmers likely to enroll in the year following a IFW villages (43) IFW villages (32)

8. Enrolment reflects a combination of demand for insurance and R4’s capacity to offer the IFW option.

R4 ANNUAL REPoRT January - December 2013 10 payout and less likely after a good crop year resulting in no payout. women more likely to purchase insurance when they had the monitoring over several seasons will help identify the factors that option of paying for it with labor. as highlighted by the impact affect demand for insurance. evaluation of r4 ethiopia (see section “evaluation” on page 13) , women achieve larger gains in productive assets and Women versus men purchasers productivity from r4 than men do. the percentage of women p urchasers also differed significantly between the 43 IFW villages and the 32 non-IFW villages, with

FIgURE 6. Percentages of women and men purchasers in IFW villages (left) and non-IFW villages (right) in Tigray, 2013

15%

34% men men Women Women 66% 86%

End-of-season assessments in Ethiopia and Senegal, the only independent data source that reflected the drought 2013 patterns reported was the satellite-based enhanced Vegetation the end-of-season assessment evaluates the performance of the Index (eVI). IrI provided recommendations for mitigating the index and informs efforts to improve its ability to reflect rainfall basis risk issue: patterns and reliably estimate crop production in each village. the assessments in ethiopia and Senegal were conducted by IrI, • the early and late windows (or period of insurance) need to be columbia university. restructured to better focus the payouts on the losses expected in the most severe years – the rainfall conditions likely to result In Ethiopia in more than 50 percent losses – in order to protect farmers and there was a significant basis risk event in north-eastern tigray, support their decision-making processes. at the same time the where drought patterns causing crop loss were not reflected in restructuring of windows should reduce the impact that small the index. complaints were raised in 22 of the 79 insured villages variations in rainfall measurement have on the size of payouts. across the region. to investigate the sources of basis risk in • the use of eVI may offer a promising solution to develop options tigray, IrI compared the satellite data used by r4 with additional for index design in addition to the existing satellite rainfall data from other satellite sources and ground-based measures currently used. IrI proposes to test an eVI-based index measurements, including the ethiopian national meteorological for the 2014 season, and to evaluate its performance and agency’s (nma) seasonal assessment for the region, nma’s reliability as an additional source for the index in future years. enact hybrid satellite and rain gauge product, as well as rainfall • While the index is scientifically designed to cover the rainfall assessments from the Famine early Warning Systems network patterns that result in farmers’ worst seasons, they are less (FeWSnet). However, these other sources also failed to reflect reliable for years with only moderate losses. this makes the the rainfall challenges experienced by farmers. all reports and incorporation of a savings component crucial. diagnoses of drought patterns during the 2013 season are • better and more formal systems for collecting yield and rain therefore based on farmers’ reports and interviews rather than gauge data should be implemented to enable comparison independent data sources. among seasons with severe losses for farmers.

R4 ANNUAL REPoRT January - December 2013 11 • In preparation for r4 scale-up, there is a need to develop a • two windows (periods of insurance) should be chosen instead strategy for transferring technical capacity to local partners. of three. processes and institutional partnerships should be • the index should be checked against other data sources. strengthened so that the bulk of index design, validation and improvement can be carried out in ethiopia, using in-country the insurance products for the 2014 season will be based on expertise and agricultural and meteorological information. these recommendations.

In Senegal r4 is developing a global basis risk Strategy, in order to better the 2013 pilot of r4 focused on testing the weather index avoid the chance of basis risk events occurring, and to mitigate insurance and the farmer-led Social network for Index Insurance the impacts when they do occur. the options include community Design. the assessment monitored and evaluated the savings or risk funds, and possible financial interventions, in performance of the index throughout the 2013 rainy season. addition to improving the index design process. Findings were used to adjust the index for each village to the village’s crop calendar, drought history, and rainfall. the farmer design teams reported a late start to the season, 2013 Senegal Process evaluation steady rainfall during the mid-season and localized gaps in the a process evaluation of r4 Senegal was conducted at the end of october rainfall. these conditions led to good production of 2013 to assess performance, document achievements and identify millet, sorghum and maize crops, but poor groundnut production, ways of improving the r4 model and replicating it at a larger scale. while rice was subject to floods in some riverbeds. Farmers agreed that this should not have been a payout year, providing the evaluation found that assumptions made during project initial validation of the indices. preliminary results from the design about the resilience challenges faced by communities in economic games also showed that both women and men Koussanar were largely accurate: addressing poverty, climate- engaged in the insurance scheme, and that many were related food insecurity and disasters emerged as the top priorities comfortable using an index based product. for communities. participants also cited other issues that are not among r4’s main goals, such as the need for improved agricultural IrI provided the following recommendations: information, training and tools, improved social solidarity, and better access to water, sanitation, infrastructure and education. • a simple index should be created that is not specific to a single crop but reflects rainfall expected to impact key crops in the r4 lessons learned and recommendations from the evaluation area. include the following: • Satellite rainfall information rather than rain gauges should be used for the index. • to ensure successful implementation, the r4 framework needs • an index with a variable date each year for the period of insurance to be more widely understood, and enhanced through greater should not be employed for the r4 project in Koussanar. It is integration of the four components and wider coverage of important that the indices are tailored to the growing season in activities. Koussanar and that agronomic information is used in determining • Simplified project management tools developed with partners the contract windows based on normal sowing dates. will improve r4 management and the tracking of progress. • attention must be paid to statistical aspects of the index, for • culturally appropriate educational methods are essential in example the dekadal (ten-day) rainfall cap.9 ensuring that farmers understand the insurance products and • It is important that there are no significant differences in are able to make informed decisions. payouts among locations. • r4 documents should reinforce farmers’ perception of climate- related shocks as causes of poverty and food insecurity.

9. Accumulated rainfall during the most recent dekad, which has been aggregated from daily estimates.

R4 ANNUAL REPoRT January - December 2013 12 Evaluation standards is an ambitious goal that requires time; it is too early to assess whether r4 in its current form can achieve this goal. R4/hARITA impact evaluation in Ethiopia, 2009–2012 r4 relies on independent evaluation processes to ensure that its Discussions with farmers, village leaders and r4 staff generated results and impact are rigorously assessed and widely shared. the the following recommendations for overcoming the current impact evaluation of r4/HarIta in ethiopia found that the challenges and addressing farmers’ needs. these lessons will be initiative is achieving its main objective of improving farmers’ incorporated into next year’s planning process: resilience by maintaining their livelihoods when rains fail. major impacts include the following: • most farmers and village leaders believe that r4 needs to expand its scope. they suggest that the initiative invest in • r4/HarIta is helping improve farmers’ resilience by diversifying rural livelihoods and in irrigation, as rainfall may be maintaining their livelihoods when rains fail. on average, across insufficient to support large increases in agricultural all districts evaluated, farmers with insurance have larger productivity. savings and more oxen than uninsured farmers. • In areas where IFW is offered, r4’s insurance component • the initiative has positive but less widespread effects on attracts few of the better-off farmers who can pay in cash. investments in production, such as compost, fertilizer and Inclusion of these farmers may be important for sustainability seeds in good seasons. and may broaden and deepen r4’s impacts on the livelihoods • Women-headed households, which were among the poorest, of the more vulnerable. achieved some of the largest gains in productivity, increasing • the initiative may realize significant improvements by starting their areas planted and spending more on hired labor and to register farmers for insurance and to implement risk oxen. Women farmers also used more improved seeds and reduction activities well before farmers need to prepare their compost than men farmers (both insured and uninsured men own land for planting. farmers). • the initiative would benefit from an expanded, and possibly • many more farmers want to buy insurance through the IFW redesigned, communication and education strategy that option than the program budget allows. this demand informs farmers about r4 and explains the mechanics of index demonstrates the farmers’ appreciation of insurance. insurance. • the initiative would benefit from farmers’ greater participation in decision-making about risk reduction activities. “e rain in this area is very unpredictable. is year it • r4 needs to improve its monitoring system for collecting annual came very late and ended early, so we got very little from our harvest. For me, this insurance is like saving: you put in data. your money now and you get it back when the rain is bad • the initiative may consider working with farmers to develop and the crops don’t do well.” ways of managing small payouts. the need to walk long distances to pick up small payouts is unnecessarily onerous for Gebre Michael Geday, farmer, Abraha Atsbaha village farmers.

In Senegal, the r4 global team plans to carry out an impact However, the consensus among farmers and respondents is that evaluation with the Centre d’Études et de Recherches sur le r4 is not yet having a transformative effect on livelihoods in ways Développement International starting at the end of the 2014 that help people to grow out of poverty. Improving living agricultural season.

10. The full report will be available in the second half of 2014.

R4 ANNUAL REPoRT January - December 2013 13 Community meeting before enrollment activities in Adi Ha, Ethiopia. Michelle Talukdar / Oxfam America

Conclusion

Funding progress mainstreaming of r4 in ethiopia. the number of participants has r4 is attracting substantial interest from donors in both the grown by an average of 28 percent a year since 2011, and the private sector and government. reliable, long-term funding is initiative could reach many more farmers through its integration crucial for reaching scale, ensuring long-term viability in current with the Government’s productive safety net program, which r4 countries and testing the model in new countries. currently involves more than 1.5 million households.

While funding for Senegal has been secured until the end of Figure 7 shows the contributions of r4’s current donors and 2016, there are opportunities for donors to support the technical partners.

R4 ANNUAL REPoRT January - December 2013 14 FIgURE 7. donor contributions to R4

donor Recipient Total contribution (USd) Funding period

Swiss re oxfam america 1 250 000 (2012–2016)

uSaID WFp 7 958 453 (2012–2016)

norway WFp 2 700 000 (2013–2014)

rockefeller Foundation oxfam america 599 000 (2012–2013)

oxfam america oxfam america 1 100 000 (2010–2013)

ToTAL WFP/oA 13 607 453

Looking ahead selling their surpluses at fair prices. the r4 team is examining the the end of 2013 marked a critical r4 expansion milestone to over possibility of linking r4 to p4p, as insurance may provide an 20,000 farmers in ethiopia and the successful launch of the additional incentive for p4p farmers to invest in agricultural initiative in Senegal. In 2014, r4 is working to reach new farmers inputs, become surplus producers and, eventually, move out of and communities in ethiopia and Senegal, while replicating the subsistence farming. model in other countries. by the end of 2014, r4 will have expanded into Zambia and WFp’s local purchasing program purchase for progress (p4p), malawi, preparing to reach an additional 40,000 farmers over offers opportunities for expanding r4’s reach in ethiopia. p4p the next few years and testing the model in the Southern africa links WFp’s demand for staple food commodities with the region. early assessments also show promising potential in technical expertise of a wide range of partners to support Kenya and bangladesh, which may be targeted for expansion in smallholder farmers in boosting their agricultural production and 2015.

R4 ANNUAL REPoRT January - December 2013 15 Annex I: R4 partners and institutional roles

Our local/national partners in Ethiopia Our local/national partners in Senegal

• Africa Insurance Company: private insurer in ethiopia • Agence Nationale de Conseil Agricole et Rural (ANCAR) - operating in the tigray, amhara, and oromiya regions. National Agency for Rural and Agricultural Assistance. technical agency affiliated with the ministry of agriculture. In • dedebit Credit and Savings Institution (dECSI): Second-largest Koussanar, it is responsible for leading community awareness microfinance institution (mFI) in ethiopia with nearly and mobilization activities, and providing seeds as well as comprehensive coverage of tigray. named by Forbes magazine technical advice to farmers. like papIl and Inp (listed below), as one of the top 50 mFIs in the world. ancar is a key partner for the risk reduction component.

• Ethiopian farmers’ cooperative: primary organizing body for • Agence Nationale pour l’Aviation Civile et de la Météorologie farmers in the community. (ANACIM) - National Meteorological and Civil Aviation Agency. anacIm helps with the design of insurance product(s) • Ethiopian National Meteorological Agency (NMA): agency by providing historical and current climate data, and installing offering technical support in weather and climate data analysis. and maintaining weather stations.

• Institute for Sustainable development (ISd): research • Centre d’Appui au Développement Local (CADL) - Support organization dedicated to sustainable farming practices. Center for Local development. a body of the ministry of regional Development and of local government, it is • Mekelle University: member of national agricultural research responsible for coordinating rural development projects in each System providing agronomic expertise and research. communauté rurale. It chairs the r4 local technical committee in Koussanar, and is responsible for the • Nyala Insurance Share Company: private insurer in ethiopia coordination between the various local partners and for the with a strong track record of interest in agricultural insurance. overall coordination of all r4 components on the ground.

• organization for Rehabilitation and development in Amhara • Crédit Mutuel du Sénégal (CMS) – Mutual Credit of Senegal. (oRdA): established in 1984 with a focus on natural resource a microfinance institution with an important national coverage, management, food security and agricultural development in including in the tambacounda region. In Koussanar, it is the amhara. implementation partner for the risk taking (credit) component.

• Relief Society of Tigray (REST): local project manager for • Compagnie Nationale d’Assurance Agricole du Senegal HarIta, responsible for operating the productive Safety net (CNAAS) - National Agricultural Insurance Company of program (pSnp) in six districts of tigray and overseeing all Senegal. Senegal’s only agricultural insurance company (public- regional coordination. established in 1978. Working with oxfam private company founded in 2008 by the government). It is the since 1984 on development issues. largest nongovernmental insurance provider for the product(s) offered under the risk organization in ethiopia (and one of the largest in africa). transfer component.

• Tigray Regional Food Security Coordination office: office with • Institut National de Pédologie (INP) - National Institute for oversight of the pSnp in the pilot area. Pedology. technical agency affiliated with the ministry of agriculture, in charge of soil conservation and restoration • Tigray Cooperative Promotion office: office responsible for projects, including building stone bunds and check dams, and helping organize farmers at the village level. composting.

R4 ANNUAL REPoRT January - December 2013 16 • La Lumière. a grass-root Senegalese nGo which provides Our global partners financial services to low-income rural households. It is the current implementation partner for oxfam’s Saving for change • Fondation pour les Etudes et la Recherche sur le program in Senegal, and the implementation partner for the Développement International (FERDI). the Foundation for risk reserves component in Koussanar. International Development Study and research was created in 2003 on the initiative of cerDI- the centre d’etudes et de • Projet d’Appui à la Petite Irrigation Locale (PAPIL) - Project to recherches sur le Développement International (université Support Small Local Irrigation. technical agency affiliated with d’auvergne, ) to support research in the field of the ministry of agriculture, in charge of lowland rehabilitation international economic development. and rice production activities. • goulston & Storrs, and Weil, gotshal & Manges. law firms • PlaNet gurantee. Insurance broker specializing in micro- providing pro bono legal expertise. insurance for development and poverty reduction. In Koussanar, it helps cnaaS commercialize r4’s insurance • Index Insurance Innovation Initiative (I4) at University of product(s) by conducting awareness-raising and marketing California, davis (UC davis). research partnership on index activities among clients. insurance between academia and development organizations, with uc Davis, the Food & agriculture organization, • Regional Research Centre for the Improvement of drought International labour organization, and the uS agency for Adaptation (CERAAS). ceraaS helps with the design of International Development. insurance product(s) by helping create the rainfall index (including by contributing to studies on the use of remote • Swiss Re. Global reinsurer and leader on climate change sensing tools), and by carrying out crop monitoring. advocacy with funding and technical expertise.

• Université gaston Berger de Saint Louis (UgB). the second • The International Fund for Agricultural development (IFAd) university established in Senegal, specialized in Social Sciences, a specialized agency of the un focused on rural poverty economics and business management, political Science and reduction, hunger and malnutrition. applied Science. uGb provides the enumerators for FerDI’s risk transfer studies. • The International Research Institute for Climate and Society (IRI). member of columbia university’s earth Institute offering research and technical expertise in climate data and weather index design for rural farmers.

R4 ANNUAL REPoRT January - December 2013 17 Wezero Embafrash weeds her small garden in Hadush Adi, Ethiopia. Michiale Tamrat / REST Annex 2: Metrics from the field

EThIoPIA

Risk Reducon Risk reduction • a total of 204 hectares (ha) of land has been irrigated with construction of flood-diversion structures, directly benefiting 3,150 farmers in tigray.

all the risk reduction activiti es planned for the 2013 season

were completed in tigray and amhara. • a total of 1,000 women-headed households in 9 districts of tigray prepared small backyard plots to produce vegetables • a total of 59km of deep trenches (1m width*1m depth*4m on a total of 2ha of land. length) were constructed and 59,940m 3 of soil was excavated on degraded communal catchments in the 9 • a total of 1,162 compost making pits were prepared in 43 project districts in tigray. villages to produce 2,324m 3 of compost for 93ha of land in tigray; In amhara, 200 compost making pits were prepared • a total of 33 percolation ponds were constructed in 33 in the project village to produce 200 m 3 of compost for 6ha villages in tigray. of farmland in amhara.

• about 7km of gullies were reclaimed in 34 villages by • a total of 30,770 forest seedlings were planted as part of construction of loose-rock check dams in tigray. soil conservation activities in the project village in amhara.

R4 ANNUAL REPoRT January - December 2013 18 • Hill-side terraces, 9km in total, were constructed in the • a total of 3,500 farmers participated in trainings on index project village in amhara to reduce soil erosion and insurance and risk reduction activities. increase the soil fertility of downward farmlands and increase the ground water and surface water discharge. • Insurance policies for long cycle crops (wheat, barley, maize and sorghum) and short cycle crops (teff and beans) were • a total of 252 micro-trenches, 3 eyebrow basin, 122 micro issued to farmers in tigray. In amhara farmers chose to basin and 2 water percolation trenches were constructed in insure their wheat crop. the project village in amhara to improve soil and water conservation. • a total of 86 development agents and woreda officials were trained on insurance concept; 686 farmers were trained in • Five participatory Vulnerability and capacity assessments 'train the trainer' workshops on insurance and consumer (pVca) in tigray and one in amhara were conducted with protection. district experts, extension agents and community representatives to identify risk reduction activities for the year. • a total of 15 participants representing insurance companies, mFIs and local government agencies from amhara were • a total of 23,000 trees were planted; 200ha of land was trained on index insurance development. irrigated through construction of flood diversion structures and about 19,900 trenches were constructed to prevent soil erosion. $ $ Prudent Risk Taking and Prudent Risk Taking Risk Reserves Ris k Reserves • a total of 320 women farmers prepared small backyard plots to produce vegetables.

• a total of 125 farmers received training on savings and • a total of 20 village-level design teams in tigray were credit and 56 farmers were trained in petty trade and trained to strengthen their knowledge on index design and income generating activities (IGa) in amhara; 36 farmers

r isk management. received IGa packages.

• a total of 40 Village Savings and loan Groups (VSlG) Risk transfer established, covering 705 farmers, including 188 women Risk Transfer and 517 men in the project village in amhara. each member saves 10 birr per week. • a total of 20,365 farmers from 80 villages purchased insurance for the 2013 agricultural season. • about 10,000 leaflets on financial education were distributed in an r4-run awareness and education program. • In tigray, 3,221 farmers in 12 villages qualified for a share of $ 23,451 in payouts; in amhara, 350 farmers who • a total of 477 households were organized in 25 savings purchased insurance obtained a share of $ 459 in payouts. groups formed in the pilot village of amhara.

• the IrI team visited 8 villages in tigray where indices did • a total of 297 households in the pilot village of amhara not trigger payouts but farmers experienced shortage of received loans for income generating activities through a rain this agricultural season. Inputs obtained from farmers local cooperative. will be used to refine indices for 2014.

R4 ANNUAL REPoRT January - December 2013 19 SENEgAL

• anti-erosion stone bund construction was completed in 12 Risk Reducon Risk reduction villages. 1,400 m of stone bunds were constructed in project villages.

• as part of gardening activi ties, about 2,800 acacia trees, 280

cashew trees, 547 mango trees and 90 papaya trees were • training sessions were conducted for 16 community relays planted in 12 villages, covering 4ha of land. the acacia trees on stone bunds and soil protection and restoration. serve as wind-breaks while the fruit trees provide income to farmers, particularly women. • 12 community relays were trained on seed management.

• Seeds were purchased and distributed to farmers for growing • a total of 12 farmers’ associations were trained in improved vegetables in Dawady, Kolombo and Sare birom village. lowland rice production techniques including seed these included 100 gram hot pepper seeds, 2kg onion seeds, treatment, storage and multiplication; 70 farmers trained in 1kg of tomato seeds, 2kg of turnip seeds, 200gram okra composting and phosphating techniques. seeds, 250grams of lettuce seeds, 2kg of eggplant seeds, and 1kg of carrot seeds. Farmers will use part of their production • a total of 12,845 farmers from 21 villages, including 2,870 for consumption and sell the remaining in local market. women, participated in awareness and education programs on community risk management and insurance through • curbs and walls were built around two new wells video shows. constructed in Dawady. • Fertilizer, tools and certified rice seeds for planting and • maintenance of 4 dams constructed as part of the r4 seed multiplication were distributed to 500 farmers. project is ongoing. • a total of 5 wells were built and 4 vegetable gardens set up • about 36 tons of rice seeds were distributed for lowland in 3 villages.

cultivation; 60kg of seed multiplication and 9 tons of fertilizers were provided.

Risk transfer Risk Transfer • about 3.5 tons/ha of rice production was achieved as part of the lowland management activities. • two automated weather stations were installed in • the lowland management activities carried out this year Koussanar in collaboration with the national meteorological resulted in an increase in the total land cultivated in agency and the Weather risk management Facility (WrmF). Dawady, Kolomba, Kouthiacoto and Kalbirom by about 108ha; the total area of cultivated land was 19ha in • experimental risk simulation games were conducted by IrI these areas before the program intervention which researchers with about 50 farmers, to understand farmers’ increased to 127ha after r4 intervention this agricultural perceptions of climate risks and insurance. as part of the index season. to prevent soil erosion, 1,400m of stone bunds insurance dry run, an economic research game was conducted have been constructed, the maintenance of which is by the IrI team with 200 farmers in order to gain information ongoing. on farmers’ preferences for risk management; draft indices were developed during the economic research game.

R4 ANNUAL REPoRT January - December 2013 20 • the insurance demand study conducted by cerDI was • a total of 12 theatre shows were conducted in two local finalized and its results helped inform the design of a languages- mandinka and pulaarin to build awareness prototype weather index for crop insurance. the index’s among farmers on financial tools. performance is being tested during this agricultural season, and will form the basis for the actual insurance product to • training on small businesses was conducted in 5 villages for be offered to farmers in 2014. 12 savings groups.

• training on index design was conducted by the IrI team for • Financial literacy training was conducted for field animators local partners in Senegal. and also for savings group members to build their knowledge on insurance and credit. • at the end of the agricultural season, an assessment was conducted to assess the performance of the prototype • community agents from La Lumière and members of r4 weather index. local technical committee members trained on the warrantage credit system. • an agreement was reached with cnaaS to market cnaaS’s existing livestock insurance products in Koussanar. cnaaS • a risk perception Study was carried out with 400 will assign staff in tambacounda as part of this agreement. households in the 12 pilot villages of Koussanar in February

and march by cerDI (université d’auvergne, France), in collaboration with Senegal’s université Gaston berger. the $ $ Prudent Risk Taking and study aims at understanding local communities’ Prudent Risk Taking Risk Reserves Ris k Reserves perceptions of the various risks they face in their daily lives- climate shocks, pests, and health issues, among • a total of 49 savings groups (40 women’s groups; 9 men’s others.

g roups) have been established, covering over 1,000 members.

• a community cereal bank was established in Kouthiakoto village with a storage capacity of 25 tons; the cereal bank has 973 members from 71 households including members from neighboring villages.

R4 ANNUAL REPoRT January - December 2013 21 Annex 3: Media citations and resources r4 was featured in numerous studies and reports in 2013, some of • r4 is highlighted in the July 30th edition of T his is Africa, a which are mentioned in the list below: publication by the Financial times in the article “ africa’s catalytic agricultural innovations” by adreinne Klasa and adam robert. • the rockefeller Foundation celebrated its 100 years through the event, “ realizing the potential of african agriculture: catalytic • r4 was presented at the Hunger, nutrition, climate Justice Innovations for Growth” , held July 8-9 in abuja, nigeria. the event conference convened in april 15-16 by the Irish was intended to highlight top agricultural innovations from across Government and the mary robinson Foundation. the conference africa and generate discussion among top-level african policy was organized by WFp and the cGIar research program on makers around furthering these and other innovations across the climate change, agriculture and Food Security (ccaFS). a case continent to support small holder farmers. oxfam supported this study on r4, “the rural resilience Initiative: building a risk initiative by conducting a scan of agricultural innovations of the management market for poor farmers” developed jointly by oxfam past decade, in partnership with Duke university’s center on and WFp was included in the conference publication. Globalization, Governance & competitiveness, and then generating a scoring process to select the most promising innovations for • the rockefeller Foundation selected the r4 Senegal project as one further research. based on desk research and field visits, eight of the agricultural innovations for their centennial event, “ realizing innovations, including the r4 Senegal project, were selected as the the potential of african agriculture: catalytic Innovations for most promising innovations to be featured at the event. these Growth”, held July 8-9 in abuja, nigeria. the event is intended to eight innovations were presented via oxfam-produced case highlight top agricultural innovations from across africa and summary documents, photographs and videos. generate discussion among top-level african policy makers around furthering these and other innovations across the continent to • In a report commissioned by the climate and Development support small holder farmers. oxfam supported this initiative by Knowledge network (cDKn)- “ resilience in action: lessons f rom conducting research on agricultural innovations of the past decade. public-private collaborations around the World” - r4 is highlighted eight of them were selected as the most promising innovations to as an example in a section that discusses emerging models of be featured at the event. public-private collaboration. the report discusses nine cases of collaborations that build resilience, selected from an analysis of • r4 was highlighted in the “ climate change: the new economy”, over 100 examples of public-private collaborations in developing the 39th G8 report published in June 2013 jointly by countries. the report was published in July, 2013. climate change the new economy (cctne), and united nations environment programme (unep). • the HarIta (Horn of africa risk transfer for adaptation) case study - “ using a social safety net to deliver disaster insurance to • the united nations International Strategy for Disaster reduction the poor: case study” - developed by the World bank early this year (unISDr) chose r4 as one of the cases to be highlighted in its 2013 is now part of the “building resilience to Disaster and climate Global assessment report (Gar). Gar is a major initiative of change through Social protection toolkit”. this toolkit provides unISDr which contributes to the achievement of the Hyogo guidance on how to prepare social protection programs to respond Framework for action (HFa) through monitoring risk patterns and to disasters and climate change, and is intended to guide decision through providing guidance, to governments and non-governmental makers in countries facing these risks. as part of initial actors on why and how they can, together, reduce disaster risks. dissemination of the work, HarIta/r4 was presented in the World bank’s Human Development learning Week event in February this • In a joint Disaster risk Financing and Insurance program (DrFIp) year, which brings together World bank social protection, health, and Global Facility for Disaster reduction and recovery and education practitioners from all over the world. (GFDrr) publication titled “Senegal: Disaster risk Financing and Insurance country note”, r4 is highlighted as a viable effort and a complementary risk transfer mechanism.

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R4 ANNUAL REPoRT January - December 2013 25 A Saving for Change group in Koussanar, Senegal. Fabio Bedini / World Food Programme

R4 ANNUAL REPoRT January - December 2013 26

Collaboration the r4 rural resilience Initiative is a strategic collaboration between the World Food programme and oxfam america, with no commingling of funds. each partner has its own sponsors as listed. r4 is inviting donors to support expansion.

the World Food programme is the oxfam america is an international relief world’s largest humanitarian agency and development organization that creates fighting hunger worldwide. each year, on lasting solutions to poverty, hunger, average, WFp feeds more than 90 million and injustice, working with individuals people in more than 70 countries. and local groups in more than 90 countries. oxfam america does not receive www.wfp.org/disaster-risk-reduction funding from the uS government. www.oxfamamerica.org/r4

With support from With support from

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