where we work

Ethiopia Map


PARM setting-up mission in Ethiopia was first organised in February 2015. The process has generated many successes, including risk assessment and prioritization, and capacity development training. It is currently awaiting the results from a feasibility study on Capacity Development for Extension Services to provide the basis for the proposal for ARM investment in Ethiopia.

Parm Phases Status

Setting Up
Risk Assessment
Policy Dialogue
Follow Up

Country Outcomes

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 and assessed key risks affecting agricultural sector development and productivity in Ethiopia.

Findings from PARM’s rigorous RAS revealed a clear picture of a diversity of risks in the Ethiopian agricultural sector. Further consultation with stakeholders led to the identification of worsening droughts and floods, and plant and animal pest and diseases as the key priority risks.

By the end of 2017, PARM and its partners identified the Integration of Holistic Approach to ARM into Extension Services as the main tool to address the key prioritized risks. Feasibility study on this tools is already contracted. When finalised, the study will present the proposal for investment in this ARM tool.

Adequate capacity is crucial for the holistic integration of ARM into policies and projects. PARM partnered with the Hawassa University to deliver a three-day capacity development (CD2) seminar aimed at creating a pool of ARM experts to provide advisory services to farmers. A Country CD Strategy for Ethiopia is also currently being drafted to define the entry points and the sustainability plans for ARM.

Having recognised the need to strengthen capacities for ARM in Ethiopia, the Ministry of Agriculture and Natural Resources (MOANR), the Agricultural Transformation Agency (ATA)  and PARM signed a Memorandum of Understanding in May 2017, to engage in a common effort to design a National Extension Services Strategy for Ethiopia and integrate ARM holistically.

Country Policy Process Timeline

Setting Up

Kick-off Workshop

PARM Process kicked of in Ethiopia on 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 FAO in Addis Ababa on 11-13 November 2014.

The workshop brought together stakeholders from the National Central Banks, MFIs, Insurance companies, NGOs, UN, Universities, research centres, the Ministry of Agriculture, ATA, DRMFSS and others.

Roadmap for the PARM Process

In February 2015, PARM undertook a setting-up mission to develop the roadmap and discuss potential synergies with the temporary ad hoc National Steering Committee.


Risk Assessment

Risk Assessment Study (RAS)

In February 2015, a Terms of Reference (TORs) for the RAS was discussed and developed with the ad hoc National Steering Committee (NSC) and by May 2015, the Natural Resources Institue (NRI) from the University of Greenwich contracted to undertake the study in collaboration with local experts.

Risk Assessment Validation Workshop

After the completion of the RAS, a National Stakeholder Workshop was held in Addis Ababa on the 16-17 December 2015, to present and discuss the drafted RAS report and identify priority risks and the potential ARM tools.

PARM published the full report in December 2016, after the official validation from the Government partners.

Capacity Development Strategy & the Memorandum of Understanding (MoU)

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

In May 2017, PARM held additional meetings with the ATA and MoANR to illustrate the Capacity Development (CD) Strategy.

The three parties (PARM/IFAD, ATA, and MoANR) signed a MoU for capacity development activities. The capacity development as agreed sought to focus on; 1) developing feasibility studies on the CD and possibly investment plans 2) increasing the synergies and complementarities among insurance, social protection, and humanitarian assistance; and 3) strengthening ARM information systems.


Policy Dialogue

Feasibility Studies

Consultations with stakeholders in August 2016 confirmed capacity development (CD) on social protection, insurance and market price impact of humanitarian programs as the key potential tools to ameliorate the prioritized agricultural risks in Ethiopia.

In May 2018 PARM launched a feasibility study to look into the existing capacities and develop an investment plan to mainstream ARM CD into the extension service activities.

The study was conducted by researchers from the Natural Resources Institute (NRI). It was completed in September, followed by a Technical Meeting organised PARM and NRI in Addis Ababa on the 2nd October 2018 where stakeholder reviewed the findings and commented on specific recommendations made with regards to implementation and funding of the proposed capacity development programme for Ethiopia.

The full report is currently awaiting validation from the government and will be made public ones approved.

Capacity Development (CD2)

A three-day pilot ARM CD course was organized in May-June 2018 in collaboration with Hawassa University and the Ethiopian Ministry of Agriculture and Natural Resources (MoANR).  It was designed to provide future support for ARM training needs to the extension service in Ethiopia and, for possible integration into the undergraduate and graduate courses in the future.