PROGRAMME FOR COUNTRY PARTNERSHIP: Ethiopia 14 April 2016

Short background of PCP-ETH Early achievements ₋Partnership mobilization and government ownership ₋Synergy with other programmes ₋Resources mobilized Milestones for 2016 and upcoming events Outline 2

Background EthiopiaAgriculture accounts for 80% of jobs, 45% of GDP, 85% of exports PCPFocus on 3 priority sectors/industries: Agro-food Textiles and garments Leather and leather products All three sub-sectors have strong linkages with the agricultural sector Support GoE’s structural transformation agenda (GTP II) Cross-cutting: Environment, energy, trade, investment, capacity-building 3

Early achievements Coordination Ownership/ Partnership JSC chaired by MoFEC. Members: relevant ministries, donors, DFIs and private sector Operation MoI chairs National Task force, responsible for day-to-day operation of the PCP Result Improved inter-ministerial coordination PCP included in GTP II All stakeholders DPs, DFIs, UN agencies (FAO, UNDP, ILO, UNOPS, UNECA) participating Coordination (UNIDO) Focused approach: UNIDO technical experts working in priority sectors set by Government and partners 4

Early achievements Bigger impact through synergy and p artnership ( Inventory of programmes Partner programmes in priority sectors mapped SynergiesSynergies with ongoing/upcoming programmes Result UNIDO’s IAIP aligned with AGP (Agricultural Growth Program) - USD 400 million (5 years) to increase productivity of smallholder farmers; to supply raw materials to IAIPs IAIP aligned with ACC (Agricultural Commercialization Clusters) of ATA - USD 150 million aimed at organizing farmers in agricultural transformation corridors UNIDO’s leather value chain aligned with Livestock Development Programme of MoA (under development) 5

Early achievements Synergy and partnership with ongoing programmes IAIP Tigray IAIP Amhara IAIP SNNP IAIP Oromia 1,3,5,7,9,10,11,12,13, Agricultural transformation corridors (9/14) Modjo Leather City 6

Early achievements Highlights of project implementation Agro-food ‒Feasibility study and master plan for IAIPs completed and endorsed ‒Institution (nodal agency) for development and management of IAIPs established ‒Value chain development projects ongoing Textiles and garments ‒Project investment profiles including video developed for promoting 11 large textile and garment industries (JV) Leather and leather products ‒Feasibility study and master plan for Modjo Leather City finalized ‒First draft of the feasibility submitted to EIB for review ‒GoE conducting internal appraisal of the study before loan negotiations ‒Leather products cluster development programme under implementation 7

( Cross-cutting sectors Environment & energy ‒Project document developed for slaughterhouse waste utilization aligned to livestock master plan and IAIPs Trade‒Diagnostic Trade Integration Study (DTIS) update validated (in partnership with UNCTAD to update DTIS); agro-food products ‒Business process analysis study (BPA) for leather products finalized and validated ‒Field work on Growth Identification and Facilitation for Industrial Upgrading and Diversification (GIFIUD) study completed/draft report ready for consultations Capacity- building (policy) ‒Capacity-building programme launched for three sectoral institutions (F&B, TIDI and LIDI) ‒Textiles value chain sectoral analysis completed Early achievements Highlights of project implementation (cont’d) 8

( ResourceAmount mobilized to date Public finance for industrial infrastructure USD 300 million from GoE for four IAIPs USD 10 million from Italy as soft loan for one IAIP Feasibility study submitted to AfDB for industrial infrastructure funding (AfDB mission to Ethiopia this week to start discussion for funding IAIPs) USD 60 million for 1 MLC (under discussion with EIB and other donors) UNIDO TC9 projects developed 5 funded (USD 10.8 million) Total plan for five year programme is USD 38 million. To date, USD million mobilized USD 8 million (pipeline to be mobilized this year) Trust fundTrust fund established by GoE (MoFEC) for implementation of PCP Private finance to be promoted in investment profiles for agro-food, textiles and leather prepared for GFIs and JVs Early achievements Resource mobilization 9

Milestones for 2016 ( LeatherLoan negotiations started for funding Modjo Leather City construction with EIB and EU Agro-foodIAIP construction started in September/October 2016 Engineering design completed by summer 2016 Textiles11 large-scale joint venture investments promoted InvestmentFirst international agro-industry investment forum organized in October 2016 TradePartnerships strengthened with large-scale programmes of WB (trade logistics), and NQI envelopes of WB and EU Capacity-buildingImplementation of capacity-building programmes for federal and regional governments in the priority sectors Monitoring and evaluation Framework finalized by end of June

Thank you! 14 April 2016 Dejene TEZERA Team Leader PCP-ETH