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

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Pastoralist Areas Resilience Improvement Through Market Expansion (PRIME) Project Funded by the United States Agency for International Development Pastoralist Areas Resilience Improvement through Market Expansion (PRIME) Project Funded by the United States Agency for International Development YEAR 2 REPORT FY 2014 Reporting Period: October 2013 – September 2014 Submitted to: AOR: Mohamed Abdinoor, USAID/Ethiopia Country Contact HQ contact Program Summary Karri Goeldner Byrne Nate Oetting Award No: AID-663-A-12-00014 Chief of Party Senior Program Officer Box 14319 Mercy Corps Start Date: October 15, 2012 Addis Ababa 45 SW Ankeny Ethiopia Portland, Oregon 97204 End Date: October 14, 2017 Phone:+251-(11) 416-9337 Total Award: $52,972,799 Fax: +251-(11)416-9571 503.896.5000 [email protected] [email protected] Report Date: October 31, 2014 I. EXECUTIVE SUMMARY Using a market-based facilitation approach for building resilience in pastoralist areas, PRIME supported 46,708 households and 550 businesses/organizations in Year Two. In addition to being facilitative, program activities are designed to integrate across objectives, particularly in regards to nutrition. Based on our activity reports, we estimate that around a third of households have been involved in activities from more than one PRIME component/IR, evidence that our programmatic integration efforts are paying off. We believe that the more PRIME activities a household benefits from, the more likely a household is to become resilient to the effects of climate change. Integration efforts can also be easily recognized at the community level: when looking at the priorities set by communities (livelihood diversification, access to credit and savings, access to markets, water, seeds, animal health services and pasture, as well as access to reliable weather information, to name a few--see IR2 section). It is clear that these are the activities IRs undertake in PRIME operational areas. The community-level natural resource management work is underpinned by a periphery of support services (vet services, input suppliers, etc.) that directly address identified needs. While market facilitation is a new approach to development in Ethiopia, beneficiaries are slowly but surely understanding the importance of creating markets for sustainable economic gains. Enhanced production of livestock and agricultural products is one of the core functions of PRIME, and it requires linkages to different market actors (traders and input suppliers, for example) and an enabling environment that includes communal governance to become a reality. Success stories included in Annex 6 of this report, give some examples of individuals whose household incomes have increased due to PRIME’s support of markets. In addition, our indicator on value of incremental sales of live heads of livestock, suggest that sales have increased by more than USD 6 million in PRIME areas. Positive nutritional outcomes are also a core objective of PRIME – recognizing its positive correlation with women’s decision-making power in the household PRIME has ensured that women have been formally worked into the Rangeland Councils, resulting in participatory processes that include women, creating a solid integration of gender issues in decision making. (See more in Success Stories, Annex 6). Major accomplishments of Year 2 include: In support of Improved productivity and competitiveness of livestock and livestock products (IR1) . Strengthened rural enterprises that produce animal feed and fodder, while improving the capacity of milk-producing households and women’s groups to more successfully handle and market milk. IR1 also collaborated with IR2 and IR5 to integrate nutrition and climate change elements into its activities and trainings with milk-producing households. Facilitated a total of ten trade fairs at the zonal, regional, and national level in collaboration with local chambers of commerce and industry offices. Over 280 local and national exhibitors demonstrated products and services, generating an estimated $550,000 in revenue, and providing opportunities for local business linkages. For example, a local feed retailer that participated in the Yabello Zonal Trade Fair opened input supply shops in three new locations after seeing the demand for his products. Another entrepreneur who saw the high demand for solar lanterns at the Trade Fair, decided to begin distribution of micro-solar products in Borena as a result. All PRIME IRs contributed to the events. Provided business support grants (done jointly with IR3) to 80 enterprises, including: milk collection centers, feedlots, Private Vet Pharmacies, micro solar distributors, and agriculture input suppliers. These expansion grants are expected to create jobs and make products and services available in currently unserved areas. In support of Enhanced pastoralists’ adaptation to climate change (IR2) . Mapped and strengthened institutions for 23 rangeland systems across three regions, supporting climate-smart land use planning in communities. This mapping was also shared with the USAID-funded LAND (Land Administration Nurturing Development) projet to link PRIME's institutional strengthening and participatory rangeland management activities to supporting improved land rights and administration (enabling environment). Established at partnership with the Pastoral Directorate of the State Ministry of Livestock to create a learning and harmonization platform for natural resource management in pastoral areas. The Rangelands Management Platform (RMP) is designed to provide a space for development practitioners and researchers to come together and harmonize best-practices, facilitate coordination and partnership, contribute to strategy and policy dialogues as well as take collective action and approaches to implementation, under the auspices of the Government of Ethiopia. Conducted multi-stakeholder Participatory Scenario Planning (PSP) workshops with communities, traditional forecasters, meteorologists and local government representatives as a process for collective sharing and interpretation of seasonal climate forecasts (from both local and scientific knowledge). The PSP helped stakeholders to agree on options, contextualize weather forecasts by linking traditional and 'scientific' forecasts, develop disaster preparedness plans, and make climate-resilient livelihood decisions for implementation. In support of Strengthened alternative livelihoods for households transitioning out of pastoralism (IR3) . Piloted a Sharia-compliant loan product for livestock traders through the Somali MFI. This loan product is unique in the region for three reasons: 1) its focus on the livestock sector, 2) its focus on SME-level funding, 3) it is sharia-compliant. To date, SMFI has disbursed 5,000,000 ETB (approximately $200,000 USD) to 25 large and medium-sized livestock traders in the region. The injection of this loan in the livestock market will enable traders to buy and export roughly 15,400-18,400 livestock from approximately 7,000 households. Formed and expanded VSLAs using a Private Service Provider (PSP) model by training and certifying PSPs, who live in target communities and provide the services directly to VSLAs. PSPs train VSLA groups, for a fee paid directly by the VSLAs to the PSP, thus eliminating the need for long-term external technical support. The main advantage of this approach is that new VSLAs continue to be created (and supported) even after the project has ended. Within three months, 45 trained PSPs formed 73 VSLAs comprising 1,466 members (70% female), and the VSLAs mobilized group saving of around 130,000 ETB ($6700). Supported a new service – “Hellojobs/Hellosira” – to roll out in Somali, Oromia and Afar regions. This service matches job seekers to prospective employers. Job seekers call a number and have their profiles registered on the system or can do it themselves online. Employers may also either call or browse the web to find potential employees. The system integrates Ethiotelecom’s connectivity, BelCash’s information system and management, and Amasis’s existing agent infrastructure and advertising/communications expertise. Since the launch of “HelloJob” service in August 2014, 922 job seekers have registered; 30,000 job seekers are anticipated to register in the first year, with the expectation that 1 of 8 will obtain employment. Partnered with four TVET institutions, and 310 scholarships awarded to TOPs for skills development classes lasting 3-6 months. According to PRIME’s labor market assessment, the majority of TOPs lack skills that are in demand. Scholarship awardees will be able to improve their life-readiness and secure stable employment or create self- employment opportunities. In support of Ensure enhanced innovation, learning and knowledge management (IR4) . PRIME has worked on 18 policies, directives, strategies and administrative procedures critical to pastoralist areas, at both regional and national levels. This includes directives on leasing, interest-free finance, and foreign exchange, and the government policies on water resources management, energy, and climate change. The recommendations provided alongside these analyses will be used to shape activities implemented during Year 3. Changing current practices is important for community-level resilience, whether these practices are related to natural resource management, nutrition, or market systems. PRIME has tested innovative qualitative tools to guide the monitoring of behavior and attitude change in key areas, and findings are being incorporated into program design. Launched PRIME’s management information system, Ki-projects, that ensures
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