CS Ethiopia 2019-2025
CS Ethiopia 2019-2025
CS Ethiopia 2019-2025
1. Background
Among the world’s fastest growing economies, Ethiopia’s approach to economic development and in
particular to pro-poor investments has lifted millions out of poverty and led to reach 6 out of 8 Millennium
Development Goals (MDGs) in 2015. Despite achievements made, Ethiopia remains one of the world’s
poorest countries (annual per capita income of USD 795 in 2016). The Human Development Index 2017
places Ethiopia as 173rd out of 188 countries.
Ethiopia is home to more than 102 million people, with a population growth rate at 2.6% per annum, with
estimates forecasting Ethiopia’s population to reach 190 million people in 2050. The average Ethiopian
is 18 years old and 65% of the population is below the age of 25.
The official unemployment rate stands at 15% nationwide (25% for women and 9% for men), with do-
mestic work and unpaid care unaccounted for. Both are still predominantly responsibilities of women
and constitute barriers that produce gender inequality and in particular hinder women’s economic em-
powerment.5
Industrialisation is an important pillar of the reform agenda of the GoE, which includes partial privatisa-
tion of some government’s state assets and significant democratic reforms. The economy has experi-
enced strong and broad-based growth over the past decade, averaging 10.8% per year between
2003/04-2014/15, compared to a regional average of 5.4%.
Ethiopia and the Horn of Africa is particularly exposed to climate change shocks, such as the three years
of consecutive droughts between 2015 and 2017 in many parts of Ethiopia. Dry spells and erratic rains
are becoming more frequent across the country, which is a serious problem for a nation that relies on
rain-fed small-scale farming for most of its food production. About 77% of the population depend on
subsistence farming for their livelihoods. While food production has increased over the past years, it has
not been able to keep up with the increasing needs of a growing population. Almost 40% of children are
stunted, 23% underweight and 10% wasted.
According to the 2017 Gender Statistics Report, 62% of Ethiopian women are unable to read or write.
The total fertility rate is 4.6 children per woman, with 5.2 children in rural areas. Women who are socio-
1
https://europa.eu/capacity4dev/resilience_ethiopia/document/growth-and-transformation-plan-ii-gtp-ii-201516-201920
2
https://www.entwicklung.at/en/media-centre/publications/programmes/
3
https://sustainabledevelopment.un.org/memberstates/ethiopia
4
https://www.entwicklung.at/fileadmin/user_upload/Dokumente/Publikationen/Downloads_Laender_DivBerichte/Aethio-
pien/EU_Joint_Cooperation_Strategy.pdf
5
UNDP, National Human Development Report 2018
3. Thematic focus
Overall goal
Contribute to poverty reduction in Ethiopia and in particular the Amhara Region
In order to address the complex challenges of food insecurity, land and ecosystem degradation, multi-
dimensional poverty, inequalities and lack of access to basic services as well as weak democratic insti-
tutions and limited participation of civil society, ADC will focus its engagement on the following priorities:
improved delivery of local, accessible and affordable basic services and non-state actor participation in
development processes, as well as environmental and economic resilience of rural households, com-
munities and ecosystems. Emphasizing a pro-poor and gender-sensitive outlook guided by the principle
of leaving no one behind will be at the center of Austria’s interventions.
6
United Nations, Department of Economic and Social Affairs, Population Division (2017). World Population Prospects: The 2017
Revision, United Nations. New York. Esa.un.org/unpd/wpp (18.12.2018)
7
Federal Democratic Republic of Ethiopia, National Planning Commission (2016) Growth and Transformation Plan II (GTP II)
(2015/16-2019/20). Addis Ababa.
8
IPPF 2018
9
https://ec.europa.eu/trustfundforafrica/content/homepage_en
Outcome 1
3.1.1 Improved living conditions of the rural population, particularly women, youth, and per-
sons with disabilities, by fostering their socioeconomic and environmental resilience
10 https://www.entwicklung.at/fileadmin/user_upload/Dokumente/Publikationen/Leitlinien/Englisch/PD_Gender_2017_EN.pdf
11 https://www.oecd.org/dac/gender-development/Handbook-OECD-DAC-Gender-Equality-Policy-Marker.pdf
12
https://www.genderindex.org/
3.2.1 Inclusive Governance to foster equal access to basic services (health, education, agri-
culture, water and sanitation, infrastructure)
e. Increasing equal access to basic services and more effective, accountable, transparent basic ser-
vice delivery by strengthening of capacities of public administration at rural level
f. Increasing equal access to basic services and more effective, accountable, transparent basic ser-
vice delivery by regular and inclusive dialogue between the population, civil society, other stake-
holders and the public administration
g. Promoting empowerment of women, youth and persons with disabilities and their organizations to
voice their needs, claim their rights in the dialogue with government, including on awareness raising
regarding traditional harmful practices.
Furthermore, throughout the implementation of this strategy, the following general principles
and approaches shall be respected:
Human rights-based approach, with its elements of non-discrimination, participation, empowerment
and accountability of the state;
The four guiding humanitarian principles Humanity, Neutrality, Impartiality and Independence in or-
der to strengthen the nexus of development cooperation and humanitarian aid.
The principle of “Do-no-harm” shall be applied in all phases of project or program implementation.
Democracy, peacebuilding, conflict prevention and stability;
Good Governance and Rule of Law, by strengthening public service providers at the national, pro-
vincial and district level to improve the quality of services.
In addition, relationships with other Development and International Finance Institutions such as the
World Bank Group, the African Development Bank (in particular the African Water Facility for water
related issues) and regional African development banks shall be strengthened.
Through its Business Partnership Programme ADC supports European companies and local partner
companies who jointly invest in activities, which are economically viable and which have at the same
time a wider developmental benefit for Ethiopia. These include knock-on employment effects, training
programmes, environmental improvements, wider social benefits etc.
In close cooperation with the Austrian Economic Chamber, ADC supports business cooperation be-
tween Austria and Ethiopia. The Austrian private sector is a key partner for development, including
through the establishment of new enterprises, job creation, the provision of goods and services, the
generation of income and the contribution to public revenues, which are critical to increase the self-
reliance and sustainable growth of countries.
Austria focuses on forms of cooperation directly related to the focus areas described within this Country
Strategy, including Organic farming (in particular by inclusion of applied research) and sustainable, na-
ture based tourism in mountainous regions and in the context of National Parks (Simien Mountains/North
Gondar).
13
IGAD- Intergovernmental Authority on Development; EAC – East African Community; COMESA - Common Market for Eastern
and Southern Africa
14
To be finalized in 2019
Humanitarian Aid
Ethiopia is a provider and a host country for refugees and migrants. Internal displacement of people for
various reasons is rather frequent.
Multilateral organisations, Ethiopian institutions and CSOs play an important role in providing humani-
tarian aid whenever needed. In addition to special funding through the country programme, Austria can
also channel funds through its international disaster relief fund to Ethiopia in case of a humanitarian
emergency.
ADC subscribes to a nexus between development cooperation and humanitarian aid, which combines
the imperative tasks of providing ad hoc assistance amid a long-term view to improve the resilience of
affected people. Implementing humanitarian aid and development cooperation in a nexus approach is
vital for the success of the GTP. ADC support to increasing resilience is seen in this regard.
Multilateral Cooperation
Multilateral cooperation is essential in development cooperation and humanitarian aid. Multilateral or-
ganisations are key partners of ADC in Ethiopia in implementing its Country Strategy, together with
Ethiopian governmental institutions, CSOs and academia.
Special efforts are made to increase possible synergies and earmarking between the financial support
to such programmes and the focal areas described in this strategy, combining efforts as well with Aus-
trian expertise.
ADC also contributes to multilateral fora and in policy dialogue and advocacy platforms with other part-
ners and GoE.
Implementation of the strategy will contribute to SDG 17 and foster policy coherence for sustainable
development, synergies, partnerships and capacity building. The implementation of the strategy will be
monitored in this regard; reporting will take place within the semi-annual implementation reports.
Result orientation and an evidence-based approach will be at the core of the ADC implementation with
a view to continuously assessing the result matrix in order to adapt, if deemed necessary, the Austrian
approach.
Taking account of the principles of ownership and partner orientation, ADC primarily focuses on the
monitoring / result framework agreed by the partner country. The results matrix matches the strategies,
plans and programs of the partner country. Effective monitoring of development processes and results
requires collaboration on the quality of data available and the identification of baseline and reference
values. The current results framework is based largely on indicators of GTP II and will be revised after
the approval of the GTP III and once the indicators of GTP III are available. This is expected to be in the
beginning of 2020.
ADC monitors projects and programmes with governmental institutions in close collaboration with its
partners and the Government of Ethiopia according to the established and agreed-upon monitoring pro-
cedures and mechanisms. Additional monitoring may be carried out in full coordination with GoE and
sector partners, taking into account the need for keeping the transaction costs for GoE at a minimum.
Given the alignment of this Country Strategy to the timeframe covering GTP III, a mid-term evaluation
of this Country Strategy shall be foreseen in 2023. Results and recommendations of the mid-term review
will either inform a revision of this country strategy or formulation of the new Country Strategy.
Like all other partners, Austria is faced with the challenge of assessing and documenting its contributions
to development by measuring tangible results and outcomes and making them accessible to the public.
ADC performs this task together with its partners in the target countries and with due diligence and
accountability to the Austrian public. The systematic and precise reporting on the results and outcomes
of development policy measures will place the legitimacy and acceptance of publicly funded government
development cooperation on a broader footing.
Thematic focus 1
Improved living conditions of the rural population, particularly women, youth, and persons with disabilities, by fostering their socioeconomic and
environmental resilience
Outcome 1.1 Indicator 1.1.1. Baseline 1.1.1. Target 1.1.1. 1,2,5,6,8,1 GTP II ADA
Increasing sustainable, in- Number of women organized 8.581.962 Annual target 3 Table 19, p.72
clusive, gender-responsive and benefited from rural agri- 2014/2015 2.021.308
and climate-resilient agri- culture
cultural production, pro-
cessing and marketing
15
Indicators based on GTP II have a baseline year 2014/2015 and final target year 2019/2020, they will be revised based on GTP III indicators once available
Thematic focus 2
Inclusive Governance to foster equal access to basic services (health, education, agriculture, water and sanitation, infrastructure)
Outcome 2.1 Indicator 2.1.1. Baseline 2.1.1. Target 1,2,3,4, GTP II,
Increasing equal access Improve performance, effectiveness and 70 2.1.1. 5,6,8,10,16 Table 18
to basic services and organizational structure of government 2014/2015 100 Capac-
more effective, account- institutions, percentage of effective and ity build-
able, transparent basic efficient institutions ing and
service delivery by good
strengthening of capaci- govern-
ties of public administra- ance, p.
tion at rural levels 68
1
Output 3.1.2 Indicator 2.1. Baseline 3.1 Target 3.1 ADA
Strengthened gender fo- Percentage of project/programmes vol-
cus in the projects and umes marked with OECD DAC gender 69% (2019) 85% (2023)
programs implemented equality policy marker 1 or 2
under the strategy
Financial envelope
ADA will tentatively earmark an annual budget* for the implementation of this Country Strategy through
its country budget. This is notwithstanding any possible other decision on budget allocation taken by
the Federal Government.
This indicative amount will be complemented by funding through other ADA modalities which are based
on initiatives and therefore not predictable (for example: Business partnerships, AT NGO co-funding,
education programmes).
Other Austrian actors like other Ministries, Universities, Agencies, Development and Investment Banks
and of course non-state actors will be called to contribute to the implementation of this Country Strategy
through their funding instruments.
Indicative budget allocation Ethiopia (in EUR mio)*:
Budget allo- 2019 2020 2021 2022 2023 2024 2025 Total %
cation per
thematic fo-
cus
Resilience 60% 60% 60% 60% 60% 60% 60% 60%
Building
Inclusive 40% 40% 40% 40% 40% 40% 40% 40%
Governance
to foster ac-
cess to basic
services
Total (EUR) 6.5 6.5 6.8 6.8 7 7 7 47,6 100,00
*Final allocation of funds will depend on the identification of suitable interventions, the absorption ca-
pacity, as well as the efficiency and effectiveness of the cooperation with the relevant partners. Accord-
ingly, the information on indicative budget allocation cannot be considered a firm commitment or
claimed as such by the partner country. The indication serves as a basis for the Annual Work Pro-
gramme of ADA, reviewed and confirmed by Austria’s Federal Ministry for Europe, Integration and For-
eign Affairs each year.