Ethiopia SOCODEP CE - main report - IFAD

96. Overall, institutional capacity-building efforts have resulted in limited outputs for three main
reasons: (i) they focused on only two of the many relevant aspects of capacity-building, namely
training and physical resources. The issues of attitude change, policy reform and management systems
were not addressed; (ii) training was not planned and delivered systematically according to project
needs, and it probably had more benefit for individuals than for the organizations involved, and for the
project; and (iii) frequent restructuring and reshuffling of Government organs and their personnel
severely limited the effectiveness of capacity-building efforts.
97. Specific objective 4. Provide credit to meet financial requirements for agricultural inputs and
draught oxen and facilitate the supply of inputs through support to local traders and cooperatives.
98. Credit to cooperatives for their own businesses (consumer shops, flour mills, produce
marketing) have mostly been unsuccessful, except in areas of coffee production. Credit through
service cooperatives to individuals for oxen and small ruminants has been much more promising, with
many individuals benefiting. However, the culture of loan repayment has been variable, generally with
those in the western parts of the project area having a better repayment record.
99. Ox loans in particular made a big difference to the farmers fortunate enough to receive them
(Box 3). The main shortcoming in relation to meeting this objective was in terms of: (i) relatively
small numbers of loans disbursed, and (ii) lack of continuing access to loans.
100. Overall, the credit component was under-utilized; loans to cooperatives for their own business
activities were largely ineffective; loans through cooperatives to individuals were better used, but
repayment levels (with the exception of loans to women) were not impressive. Arguably the single
most important objective of the project – the delivery of small loans to poor rural farmers – was let
down by its limited reach, low prospects of sustainability and lack of continuity.
Box 3. Four Examples of Ox-loan Beneficiaries
Dana Dedetto is aged 55 years and belongs to Gagagocho Cooperative of Boreda Woreda, Gamo Gofa
zone. He is married and has 6 children (4 sons, 2 daughters). Due to the sudden death of his ox, he
used to cultivate by begging an ox from the community. He took credit for oxen purchase in 1999.
Now he cultivates 2ha of farmland and has set aside 1ha for grazing land. Currently he owns two oxen
and cultivates maize and teff and sells crops after harvest in markets. He sends his four children to
school and two are now employed as civil servants in the Woreda. As a result of the oxen purchase, he
uses improved household utensils and furniture. Instead of the traditional beds made of cattle hides he
uses a modern bed. The household members use plastic items for drinking water instead of pumpkins.
He states that his children are properly fed as well.
Darge Semane belongs to Gebele Beno Cooperative, Derashe Woreda and is 47 years of age. Three of
his children do farm work and one goes to school. He received an ox loan of EB 650, added EB 100 of
his own money, and bought an ox for EB 750. After fattening the ox, he sold it for EB 1400. With the
cash obtained, Darge bought an ox for EB 600, paid EB 77 for insurance of the ox, built a house,
bought clothing for his children and paid for medical treatment. He bitterly complains about the high
insurance cost he paid. As the locality is ridden with diseases, he also bought trypanocidal drugs for
treating his animals from trypanosomiasis. Currently he has one ox and cultivates 1.5ha of farmland.
The main crop he grows is maize.
A farmer named Temesgen Kebede lives in Bitta Cooperative, Bitta Woreda of Keffa zone. He
received an ox loan of EB 650 and used the ox for cultivation in the last four years. He has paid the
loan and interest. He has an arrangement with another farmer to cultivate his 2ha of land. He also
owns an enset plot of 0.25ha. Currently he has two oxen and sells grain for buying clothing for the
family and last year sold grain worth EB 1000.
Mammo Bongo is a farmer who belongs to Boha Cooperative, Decha Woreda, in Kefa zone. He is
married and has 6 children (4 sons, 2 daughters) and none of the children go to school. He bought an
ox with a loan of EB 600. After repaying the loan, he sold the ox for EB 880.The cash was used for
treating problems he had on his eyes. Now he has recovered from his illness and is intending to build a
house of corrugated iron sheet.
* Source: The Evaluation
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