Public-private partnerships in smallholder irrigation development and management in Ethiopia: a needs assessment

Seyoum, A.; Adamseged, Muluken Elias; Haileslassie, Amare; Ires, Idil; Jacobs-Mata, Inga

Public-private partnerships in smallholder irrigation development and management in Ethiopia: a needs assessment

Autores

Seyoum, A.

Adamseged, Muluken Elias

Haileslassie, Amare

Ires, Idil

Jacobs-Mata, Inga

Editor

International Commission on Irrigation and Drainage

Descripción

Smallholder irrigation development in Ethiopia has primarily been driven by the government, yet technical inefficiencies, socio-economic constraints, and institutional barriers continue to limit its effectiveness. Public-Private Partnerships (PPPs) offer a promising solution, leveraging private sector expertise, investment, and innovation to overcome these challenges. The Ethiopian government views PPPs as a viable strategy for addressing the significant challenges in small-scale irrigation projects. In response, it has introduced policies such as the national PPP policy (2017), PPP Proclamation (2018), and guidelines (2019) to create a legal framework for these partnerships. The Ministry of Agriculture and other stakeholders also developed an Implementation Strategy for Small-Scale Irrigation PPPs (2021) to address existing gaps. However, despite growing interest in PPPs for irrigation and agricultural development, there is limited evidence on the most effective governance structures, institutional arrangements, and business models. Balancing economic, social, and environmental goals remains a challenge, compounded by the risks involved, the long-term nature of the contracts, and the diversity of stakeholders. These challenges highlight the need for a tailored approach to designing and implementing PPPs in irrigation. In response, International Water Management Institute (IWMI), representing the CGIAR initiative Ukama Ustawi-Diversification in East and Southern Africa in collaboration with the Ministry of Agriculture, conducted a needs assessment and is developing sustainable business models for PPPs in small-scale irrigation. This study presents the findings of this assessment carried out in the following selected areas of Ethiopia: Sidama, Central Ethiopia, South Ethiopia, and Hareri regional states, and Dire Dawa Administration. It highlights the viability and sustainability of PPPs in improving smallholder irrigation in Ethiopia, especially for high-value crops. Key recommendations include establishing clear legal frameworks, creating inclusive governance structures, and developing attractive financing models for private investors and smallholders. It stresses the importance of pilot programs, technology adoption, and robust monitoring systems to ensure success. Furthermore, the study emphasizes equity, ensuring that marginalized groups, including women, benefit from these initiatives. Addressing risks like climate change and political instability, while fostering trust and capacity building, is crucial for effective implementation of irrigation PPPs.