where we work

Ethiopia Map


Ethiopia is a country located in the Horn of Africa. It has a structured agricultural commodity exchange platform than many African countries. PARM RAS 2016 identified top risks affecting Ethiopia’s agricultural sector as including drought, plant and animal pests and diseases, price shocks, input quality risks and erratic rainfall. Together these risks cause average annual losses of about US$ 276.4 million.  But the aggregate cost in the worst case scenarios is over US$ 2.25 billion. While these impacts are felt nationwide, the incidence is higher for regions of Afar, Amhara, Oromia, Somali SNNP and Tigray.

Parm Phases Status

Setting Up
Risk Assessment
Policy Dialogue
Follow Up

Setting Up

November 2014 - Kick-off Workshop

PARM activities kicked-off in Ethiopia in occasion of the occasion of a three-day “Policy Forum on Integrating agriculture and food risk management and innovative financial services” jointly organized by PARM, AFRACA, NEPAD and FAOthat took place in Addis Ababa on 11-13 November 2014.

The workshop brought together national and international stakeholders from the National Central Banks, MFIs, Insurance companies, NGOs, UN, Universities, research centers and other important national players linked to the Government of Ethiopia represented by the Ministry of Agriculture, ATA, DRMFSS and other stakeholders.

The workshop has represented the first and successful step to set-up PARM process in Ethiopia and its support to the ARM Agenda headed by the Government was positively recognized.

February 2015 - Setting-up Mission

A setting-up mission was undertaken on 9-12 February. During the mission, a PARM Roadmap was developed and discussed with the temporary ad hoc National Steering Committee.

Potential synergies to support PARM studies and capacity development plan were also identified.


Risk Assessment

February 2015 - Development of the ToR for Risk Assessment Study

The Terms of Reference (TORs) for the Risk Assessment study was discussed and developed with temporary ad hoc National Agricultural Risk Management (ARM) Steering Committee (NSC) to identify experts and/or service providers to carry out the study.

May 2015 - Risk Assessment Study Kick-off

The Natural Resources Institue (NRI) from the University of Greenwich (member of Agrinatura network) was identified and contracted to undertake the Risk Assessment study in Ethiopia in collaboration with local experts.

December 2015 - Risk Assessment Workshop

On the 16-17 December 2015, a National Stakeholder Workshop was held from in Addis. The objective of the workshop was to present and discuss the drafted Risk Assessment Study report and identify priority risks and the potential ARM tools.

October 2016 - Validation of the Risk Assessment Report

The study was officially validated by the Government of Ethiopia and the Ethiopia Agency for Rural Transformation (ATA) together with PARM published it in December 2016.

November 2016 - Capacity Development Strategy

A country mission took place in November 2016 to strengthen the partnership with the Ministry of Extension service and to jointly develop a capacity development action plan for the country. The action plan aimed to lay a foundation for ARM mainstreaming into Ethiopian extension services strategy and Ethiopian universities/training institutions.

Also, partners discussed the need for a Memorandum of Understanding for the planned capacity development activity.

May 2017 - Meeting with the Ministry of Agriculture and ATA

Three meetings were held separately with the ATA and MoANR to illustrate PARM Capacity Development (CD) Strategy. Officers of the two Institutions confirmed the interest of Ethiopian extension service in engaging with PARM on ARM CD activities, in particular to CD2.

May 2017 - Signature of the MoU

MoU on capacity development activities was signed by the three parties (PARM/IFAD, ATA, and MoANR). The capacity development as agreed sought to focus on;

1) capacity development and mainstreaming in extension services; 2) developing feasibility studies and possibly investment plans on a) increasing the synergies and complementarities among insurance, social protection, and humanitarian assistance; b) strengthening financial services for ARM; and c) strengthening ARM information systems.


Policy Dialogue

August 2016 - Kick off Feasibility Studies Mapping

Social protection/insurance and market price impact of humanitarian programs in Ethiopia were identified as areas of work for the PARM feasibility studies.

May 2018 - Development of the ToRs for a CD Feasibility Study

In order to sustain CD activities for national extension service in Ethiopia, PARM launched a feasibility study to develop an investment plan to incorporate and mainstream ARM capacity development activities and training into the national agricultural policy and investment plan. The CD targets the extension service, and also includes agricultural risk management into the new National Strategy for Ethiopia’s Extension Services.

May-June 2018 - ARM Training course (CD2)

A pilot ARM training course was organized in collaboration with Hawassa University and the Ethiopian Ministry of Agriculture and Natural Resources (MoANR).  This was a pilot course designed to provide future support for ARM training needs to the extension service in Ethiopia and, possibly, with a view of future integration into the undergraduate and graduate courses offered by Ethiopian universities.


Country Risks Information

A full profile of risks is currently under development.




(Source: EM-DAT Database 1900-2015)