New_Alliance_-Consolidated_Policy_Recommendations_FINAL_for_StM_MoANR.pdf

Proposed Policy Recommendations:

Towards a Revised New Alliance Cooperation Framework for Ethiopia

Suggested policy reform and institutional strengthening for responsible private sector investment in Ethiopia’s agriculture sector

Following the New Alliance Progress Review of June 2014, the ATA and AKLDP were mandated by the

Private Sector Development Task Force (PSDTF) meeting of 7 th November 2014 requested to facilitate stakeholder meetings among Private Sector, Civil Society Organization and Development Partner stakeholder groups with a view to identify policy recommendations for a revised New Alliance

Cooperation Framework for Ethiopia. Meetings for the three stakeholder groups were held on 23 rd

January, 12 th February and 18 th March 2015 respectively. On behalf of the Ministry of Agriculture and

Natural Resources the ATA organized an internal consultation process which identified additional policy recommendations.

The ATA and AKLDP received four separate policy priority listings which were consolidated into a single aggregated listing based on policy recommendations that were included in at least two of the four lists.

The aggregated list was presented to the PSDTF on the 22 nd

May 2015. In the meeting the policy recommendations were reviewed and suggestions documented for improvement. The improved policy recommendations are as follows:

1. Land tenure

Ensure the coherence of all Ethiopia land policies through the adoption of the UN Food and

Agriculture Organization’s Voluntary Guidelines on the Responsible Governance of Tenure of

Land, Fisheries and Forest in the Context of National Food Security

Implement the Rural Land Administration Proclamation (No. 456/2005) and derivative regional laws, accelerate second-level highland landholding certification and introduce pastoral areas communal land certification to halt land holding fragmentation and promote consolidation, scale-up proven land use and watershed-based approaches, ensure sustainable land management and protect Ethiopia’s rangelands for future generations

Institutional strengthening

Strengthen the Ethiopia Agriculture Investment Land Administration Agency and regional land administration agencies capacity to effectively implement land policies and laws

2. Seed systems

Implement the Proclamation on Seed (No. 782/2013) and accelerate the enactment of the draft

Seed Regulations to establish a more vibrant seed sector that respects and benefits smallholder farmers

Review and change the draft Seed Regulations to safe-guard smallholder farmers rights to produce and share seed; and enable farmer associations, cooperatives, public and private seed enterprises to produce and market seeds through multiple channels

Strengthen regulatory structures both at federal and regional level to enforce the new Seed

Proclamation and implementing Regulations, Directives, and Technical Guidelines

3. Livestock

Implement the Raw Hides and Skins Marketing Proclamation (No.814/2013)and accelerate the enactment of implementing Regulations and Directives

Strengthen the Ministry of Livestock and Fisheries and the Ethiopia Agriculture Investment Land

Administration Agency to identify and avail land for livestock-marketing infrastructure for domestic and export markets

4. Agriculture sector finance

Put in place a robust regulatory framework for smallholder farmers access to finance including enabling digital financial service providers to offer financial services to unbanked and remote rural populations

Strengthen regulatory frameworks for micro-insurance including establishing a new micro-insurance regulatory framework for scaling up appropriate and tested weather insurance schemes to reduce smallholder farmer risk

Strengthen the National Bank of Ethiopia capacity to regulate micro-finance and micro-insurance service providers to smallholder farmers

Strengthen rural finance and micro-insurance institutions to provide innovative and appropriate services

5. Private sector investment

Strengthen capacity at federal and regional levels to deal effectively with agriculture sector investors specifically that all are adequately familiar with procedures

Develop a transparent and inclusive - smallholder farmers, farmer associations, cooperatives, government and private sector - contract farming/ out-growers policy that provides clear rules and regulations

Strengthen the Ethiopian Investment Commission capacity to create more conductive environment for private sector investment including modernizing commercial registration and licensing procedures

Strengthen the Ethiopian Public Private Consultative Forum to organize at least one forum each year on agriculture sector marketing and trade related issues

6. Trade policy – imports/ exports Streamline policy processes under which cereals export restrictions are introduced and revoked to ensure increased levels of transparency and predictability Register additional named Ethiopia agricultural produces trademarks to create greater recognition and demand for Ethiopia’s produces

Strengthen the Ethiopian Agricultural Commodities Warehousing Services Enterprise to improved efficiency and integrity of warehouse operations

Strengthen the Ministry of Trade to put in place the necessary organizational structure and staff to regulate a third-party warehousing and receipt system including inspection, certification and grading

Strengthen the Ethiopia Commodity Exchange’s capacity to implement a traceability system

Strengthen the Ethiopian Intellectual Property Office, and Coffee and Tea Development and

Trade Authority capacity to implement the Trademark and Licensing Initiative (2004) and similar initiatives for other Ethiopia’s agricultural produces

7. Agriculture sector taxation

Review and enact agriculture sector taxation – including the livestock sub-sector – that encourage both domestic and export valued addition as well as enable Ethiopia smallholder and commercial farmers to be competitive in the regional and global market

Establish an inter-ministerial council to include the Ministry of Agriculture and Natural Resources, Ministry of Livestock and Fisheries, Ministry of Industry, Ministry of Trade, Ministry of Finance and

Economic Cooperation, and Customs and Revenue Authority to effectively address a range of agriculture sector taxation issues

8. Improved food and nutrition security

Review all agriculture sector policies, strategies, regulations and programs to include nutrition-sensitive agriculture and appropriate dietary diversity targets and outcomes

Enact minimum food fortification and nutrition standards

Harmonize and consistently apply incentives to make nutrition products available in the domestic market

Establish an Agriculture-Nutrition Steering Committee within the Ministry of Agriculture and

Natural Resources and Ministry of Livestock and Fisheries to champion nutrition-sensitive agriculture

Reorganize the National Nutrition Coordination Committee under the purview of the Prime

Minister’s office to consolidate and accelerate improved nutrition outcomes

Strengthen the Ethiopian Standards Agency capacity to formulate and implement nutrition standards