Acknowledgements This evaluation would not have been possible without the support of a number of individuals and institutions. The University of Notre Dame Pulte Institute research team would like to express their gratitude to the following: USAID Ethiopia for funding the Livelihoods for Resilience-Oromia Activity and midterm evaluation. The staff of Catholic Relief Services who are responsible for implementing the Livelihoods for Resilience-Oromia Activity, principally Ian de la Rosa (Chief of Party) and Maria Alemu (Monitoring Evaluation Accountability and Learning Manager) for funding this evaluation, as well as for their guidance and support during the study preparation, implementation and reporting. The field staff from the Ethiopian Catholic Church Social & Development Commission of Meki for coordinating field interventions and sharing information related to the Activity and its participants. The key informants from the Women, Children and Youth Affairs office, Kebele/Woreda Food Security Task Force Office, Rural Savings and Cooperatives, Kelata Savings and Credit Cooperative Union, Metemamen Microfinance Institution, Adami Tulu Agricultural Research Centre, proprietors of various agro-dealers, and the staff of World Vision for sharing their insights and experiences. Yisak Tafere for recruiting and mobilizing high quality field researchers and completing the data collection so effectively and on time. The many field researchers who collected data from the various target communities and stakeholders. The various communities in Ethiopia for their cooperation. The community members who carved out time to participate in group discussions and interviews deserve a special note of thanks. 1 List of abbreviations and Acronyms Abbreviation Description Activity Feed the Future Ethiopia Livelihoods for Resilience Oromia Activity ATJK Adami Tulu Jido Kombolcha AWP Annual Workplan CA Community Animators CRS Catholic Relief Services CSA Climate-Smart Agriculture DA Development Agent DFSA Development Food Security Activity ETB Ethiopian Birr FA SILC Field Agents FFP Food for Peace FGD Focus Group Discussions FSP Financial Service Providers FSTF Food Security Task Force FY Fiscal Year GoE Government of Ethiopia GRAD Graduation with Resilience to Sustainable Development HH HH IFd Innovation Fund IPTT Indicator Performance Tracking Table ITT Indicator Tracking Table KFC Kebele Feedback Committee KFSTF Kebele Food Security Task Force KII Key Informant Interview LG Livelihood Group MCS Ethiopian Catholic Church Social Development Coordination Office of Meki MEAL Monitoring, Evaluation, Accountability and Learning MGs Marketing Groups MTEWs Marketing and Technical Extension Workers MFI Microfinance Institution MTE Mid Term Evaluation MoU Memorandum of Understanding NDIGD Notre Dame Initiative for Global Development PSNP Productive Safety Net Program Q Quarter RF Results Framework RuSACCOs Rural Savings and Credit Cooperatives 2 SACCOs Saving and Credit Cooperatives SILC Savings and Internal Lending Community SOW Scope of Work TFH/TIH The Faithful House/The Islamic House ToR Terms of reference ToT Training of Trainers TVET Technical and Vocational Education and Training USG United States Government WCYA Women, Children and Youth Affairs WFSTF Woreda Food Security Task Force WV World Vision Y Year YLG Youth Livelihood Group 3 Table of Contents Acknowledgements 1 Executive Summary 5 Midterm Evaluation 15 Background 15 Activity Intervention and Strategy 15 Evaluation Methodology 18 Objectives 18 Evaluation Questions 18 Evaluation Implementation 19 Analysis 21 Limitations of the MTE 21 Main Findings 22 LG Formation 22 Livelihood Pathways 24 Market Systems and Value Chain Development 25 Financial Services 28 Innovation Fund 30 Nutrition 32 Women’s Empowerment 32 Youth Empowerment 34 Collaboration 34 Resilience Capacities of LGs 36 Sustainability and Graduation 38 Financial Management 41 Recommendations 43 Annexes 49 4 Executive Summary In August 2019, CRS-Ethiopia commissioned the Notre Dame Initiative for Global Development (NDIGD)1 to conduct a Midterm Evaluation (MTE) of its Feed the Future Ethiopia “Livelihoods for Resilience Oromia” Activity (referred to hereafter as “Activity”). This MTE is an important component of the Activity’s Monitoring, Evaluation, Accountability and Learning (MEAL) plan, enabling Catholic Relief Services (CRS) to assess progress from the perspective of its participants and reorient the Activity’s strategies and interventions as necessary to improve their relevance. The evaluation employed qualitative methods—Focus Group Discussions (FGDs), Key Informant Interviews (KIIs), and site and intervention observations—to collect information from participants and key stakeholders. The Pulte Institute and CRS designed this evaluation to be participant informed and prioritized, instructing the research team to collect primary data from program participants and stakeholders. The evaluation reviewed routine monitoring data, partner and donor reports, and other pertinent Activity documents. Researchers from NDIGD visited field sites from August 24-31, 2019, to meet with Activity participants, implementing staff, and other pertinent stakeholders, amassing a total of 24 FGDs and 32 KIIs across six of the nine Activity Woredas. To ensure balance in perspectives and learning, researchers conducted six FGDs for each of the following demographic segments: adult male, adult female, youth male, and youth female. Out of nine Woredas where the Activity implements its program, six Woredas were selected for the primary data collection. The selection criteria for selecting six Woredas include political (administrative) zones considering two Woredas from each zone, remoteness/ accessibility to services (rural and semi-urban), diversity in livelihoods, number of program participants and overlap with other programs as well as donor interest for future interventions. Based on these indicators and more supporting information from CRS, the researchers selected two Woredas from each zone as follows: • West Arsi: Negele Arsi2 and Shala • Arsi: Dodota and Sire • East Shewa: Adami Tulu Jido Kombolcha (ATJK) and Boset The research team has organized the findings of this MTE under the following thematic areas. LG Formation Based on the primary data collected and review of Activity documents, the Activity interventions appear to be meeting planned benchmarks regarding formation of Livelihood Groups (LGs). As of Year 3 (Y3) Quarter 3 (Q3), the Activity has reached 29,000 participants3, covering 24,500 1 NDIGD changed its name to Pulte Institute in November 2019 because of an endowment from the Pulte Family Charitable Foundation. 2 At the time of the agreement, the Woreda was called Arsi Negele, but this report reflects the updated and current name of the Woreda. 3 All figures are as of Year 3, Q3. 5 households (HHs) across nine Woredas. These participants are spread across 1,385 LGs. That said, FGDs ascertained significant attrition within LGs, particularly the Youth Livelihood Groups (YLGs). This attrition appears to be tied in part to participant expectations that the Activity would provide more handouts, as have other projects serving this population in the past. Additionally, consistent participation in the groups has struggled amidst members migrating to city areas in search of employment opportunities. Some members complained that they are participating in “training after training”, and that they are having a hard time even recalling the names, content, and applications of all the trainings. Others complained that delays or cancellation of trainings without advanced notice have caused them to lose valuable workdays. This seemed to be an issue more at the start of the Activity, and some participants acknowledged that communication and scheduling of trainings has improved since. Livelihood Pathways Activity interventions include assisting Productive Safety Net Programme (PSNP) HHs to determine livelihood pathways, strengthening capacity around these pathways, facilitating business plan development, bolstering existing support systems, and brokering linkages with value chain actors or financing options. The Activity offers three distinct pathways to support efforts of PSNP HHs to move out of poverty: on-farm, off-farm, and employment. By Y3 Q3, 18,472 members adopted the on-farm pathway and are receiving related capacity strengthening trainings. This represents 64 percent of the total 29,000 participants reached by the Activity. These members are involved in various farming actions, such as vegetable gardening, growing maize with improved technologies, or fattening cattle for market; however, the availability of inputs, including financing for market-based actions, and market fluctuations continue to challenge HHs in this pathway. The off-farm pathway aims to increase the income of vulnerable HHs and diversify their income sources. By Y3 Q3, 2,344 members (8 percent of total Activity participants) participated in off- farm livelihood interventions. Some members indicated that they have already taken up various off-farm value chain actions (e.g. food catering shops, retail shops, animal-drawn carts), made possible through the support they obtained from the Activity. For example, some members have started to prepare business plans and explored financing options from FSPs. The training that the Activity provided proved instrumental in starting their businesses and, more importantly, managing them successfully. Members report being involved in running