The project benefits over 9,100 poor households

By Fasil Wolde Michael

Over  9,100  PSNP poor  households engaged  in different  value chains income generation activities has become   benefited   by  the  Graduation  with  Resilience to Achieve  Sustainable Development /GRAD/ Program, which has been implemented in Lay Gayint and Libo    Kemekem woredas as of July, 2013, Dagne Taddesse, the Program Coordinator at ORDA disclosed.

More than 6,400 poor households are engaged in different value chain activities; whereas, over 2,700 households have been involved in income generation activities, he said.

Overall operation of the program in the period from January, 2012 to Date (July, 2013) in value chain and income generation activities is in a good track, Dagne explained.

Libo  Kemkem  GRAD  Project  manager  reported  that more  than  5.1  million  Birr  was  distributed  for  1,100 HHs in the past two years to access loan through linking them with Amhara Credit and Saving Institution (ACSI) and  Rib   Saving   and   Credit Cooperatives   (SaCCO) Union. As a result, they have involved in livestock, onion and honey value chain, and made a profit up to 2,000 Birr.

In order to realize the project objectives, in the past two years, 11,660 poor HHs have been identified and orga­ nized   in  475  Village  Economic   and  Social   Groups (VESA)  which  are  built  to serve  them  for  knowledge and  attitudinal   transformation   as  an  entry  point  for GRAD's development  interventions,  Lay Gayint GRAD Project   manager,  Girma   Zewide  described. He  also added that those households  are engaged in animal fattening,  malt  barley,  haricot  (white  bean)  and  potato value chain commodities  or items.

On the other hand, as Anmut stated, after having identified over 6,200 HHs, they have been supported to organize themselves in 243 VESAs and based on the context of their locality, efforts are underway to engage them in fattening, honey and onion value chain activities.

The  Project   Coordinator   explained   that   ORDA  has agreed to transfer loan guarantee fund to Unions if beneficiaries  may fail  to repay  their  loan  on  time due  to natural disaster and other uncontrollable  causes. He also added that the main reason for creating such situation is to let the Unions embark on provision of credit service to Productive Safety Net Program households. Based on this ORDA has agreed to transfer loan guarantee fund which amounts 4 million Birr, 7.77 million Birr and 760 thousands Birr for the Rib and the Lidet SaCCO Unions, and the Ras Gayint Multi-Purpose  Cooperatives  Unions respectively, the Program coordinator  said.

As the information obtained from Lay Gayint indicates, over 1,200 poor HHs could able to access fertilizers and improved seeds using credit they accessed from Ras Gayinit Union.  Besides, situation has been facilitated for those HHs who engaged in producing white beans and Malt Barely

Anmut revealed that, in Libo Kemkem, more than 256 Cattle fattening HHs have been organized in the Farmers Economic and Marketing Associations (FEMA) in order to improve their product quality, to share market information and to access feasible market. However, the establishment of FEMA in Lay Gayint is under way.

As Debebe Digafie, Food Security and Agricultural Development Program Director in ORDA  stated, major challenges faced in the course of implementing are the followings: majority of GRAD's PSNP house­ holds cannot able to access loan due to high rate of outstanding backlogs; the interest rate difference between  the Household Asset Building  Program (HABP) and ACSI's own loan fund; lack of accessing improved seeds for the selected value chain commodities; and unable to attract and link with expanded marketing  opportunities   subject  to  limited  volume and quality of production

It is known that after signing a sub-grant agreement between ORDA and CARE, implementation of the GRAD has started since January, 2012 in Libo Kemkem and Lay Gayint woredas by the budget support secured from USAID.