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Ethiopia Map


PARM process was implemented from 2014 to 2019. The process allowed PARM to commit to providing technical and co-financial support to facilitate the integration of ARM into Ethiopia’s National Agriculture and Food Security Investment Plan and related development programmes.

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.

In Ethiopia, PARM and its partners identified the Integration of Holistic Approach to ARM into Extension Services. A feasibility study on this tool was finalized and findings were presented in a technical meeting with stakeholders.

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 was also developed to define the entry points for CD-ARM in extension service delivery.

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, which enabled partners 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, MoA, 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)

During the mission on 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 was contracted to conduct the study in collaboration with local experts.

Risk Assessment Validation Workshop

In weeks following 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.

Comments from stakeholders were integrated into the final report, which was later published in December 2016 after the official validation from the Government partners.

Capacity Development Strategy & the Memorandum of Understanding (MoU)

As Ethiopia’s commitment to ARM increases, PARM held additional meetings with the ATA and MoA (previously called MoANR) to jointly develop a capacity development action plan that will lay a foundation for ARM mainstreaming into Ethiopian extension services strategy and universities/training institutions. By May 2017, three parties (PARM/IFAD, ATA, and MoA) signed an 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.

Capacity development training on ARM

The agreed memorandum paved way for a three-day pilot CD2 course organized in May-June 2018 in collaboration with Hawassa University and the MoA.  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 country’s universities.


Policy Dialogue

Launching a 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 contracted to the Natural Resources Institute (NRI) of the University of Greenwich in the UK.

Technical Meeting on the feasibility study report

Followed the finalization of the feasibility study, PARM collaborated with the NRI and the MoA to organize a technical meeting in Addis Ababa on the 2nd of October 2018. The meeting aimed to review the findings from the study on the proposed capacity development programme for Ethiopia. It enabled the researchers to receive comments and diverse perspectives from stakeholders. The final report was published after validation from the MoA.



Matching ARM needs with priority investments

The technical analysis and studies developed by PARM in support of the Growth and Transformation Plan II, in consultation with international and national experts, contributed to raise the awareness on agriculture risk management in Ethiopia. The engagement of the Government along the PARM process strongly contributed to involve different stakeholders both at national than international level lay the foundations for the full integration of ARM into the national priorities and investment plans.

Development partners and stakeholders have already expressed their interest in these initiatives which will follow up and support on the implementation process. Keeping the momentum of ARM mainstreaming can significantly improve the livelihoods of farmers and boost the investment in the sector.

Country Final Report

Officially marked the end of Phase 1 of the PARM process, documenting all its processes, key activities and outcomes into the “Ethiopia Final Report”. The report also presents all the achievements in engaging with the Government, local institutions and development partners to mainstream ARM components in the country’s National Agriculture and the Food Security Investment Plan and related policies.