Livelihoods Support Program

Operations Manual

Ministry of Agriculture
Addis Ababa
TABLE OF CONTENTS
SECTION 1. ABOUT THIS MANUAL........................................................................................... 3
1.1. Overview of the PSNP Operations Manuals .......................................................... 3
1.2. Organization and main users of the Livelihoods Operations Manual......................... 5
SECTION 2 INTRODUCTION TO LIVELIHOOD COMPONENT ......................................................... 7
SECTION 3 LS PROGRAMME POLICIES AND PARAMETERS ........................................................ 10
3.1. Geographical targeting and rollout.................................................................... 10
3.2. Livelihood Support ......................................................................................... 10
3.3. Conditionalities for livelihoods capacity building ................................................. 10
3.4. Environmental Risks ....................................................................................... 11
3.5. Target Beneficiaries and Eligibility Criteria.......................................................... 11
3.6. Nomination of Household Recipient .................................................................. 11
3.7. Reduction of Number of PW Working Days for LH Beneficiaries ............................ 12
SECTION 4 LH PROGRAMME ENTRY AND EXIT ........................................................................ 13
4.1. About this section........................................................................................... 13
4.2. Entry process into the Livelihood Credit............................................................. 13
4.3. Entry process into the Livelihood Grant ............................................................. 13
4.4. Livelihoods Support Programme Exit ................................................................. 14
SECTION 5 LH PROGRAMME IMPLEMENTATION..................................................................... 15
5.1. Implementation modalities .............................................................................. 15
5.2. Sequencing and timing of livelihoods interventions ............................................. 16
5.3. Common Livelihoods Support Prior to Business Plan............................................ 20
5.4. Household/client livelihoods consultation and livelihood selection ........................ 23
5.5. Crop and Livestock Livelihoods Pathway ............................................................ 25
5.6. Off-Farm Livelihoods Pathway.......................................................................... 30
5.7. Employment Pathway ..................................................................................... 32
5.8. Employment linkages ...................................................................................... 34
5.9. Regional Variations......................................................................................... 34
5.11. MIS Implementation ....................................................................................... 38
SECTION 6. KEY ROLES AND RESPONSIBILITIES IN LIVELIHOODS IMPLEMENTATION .................... 39

List of Figures and Tables

Figure 1. Livelihoods Activities Prior to Implementation............................................................ 18
Figure 2. Livelihoods implementation Flow Chart ..................................................................... 20

Table 1. Tailoring of Livelihoods Interventions to Livelihoods Types in Pastoral Lowlands ............... 35

ACRONYMS

DA Development Agent
AGP Agriculture Growth Programme
ATA Agricultural Transformation Agency
BOA Bureau of Agriculture
BOLSA Bureau of Finance and Economic Development
BPP Big Push Plus
ESMF Environmental and Social Management Framework
ETB Ethiopian Birr
FEMSEDA Federal Micro and Small Enterprise Development
FTC Farmer Training Centre
GOE Government of Ethiopia
GRAD Graduation with resilience to achieve sustainable development
GRM Grievance Redress Mechanism
HABP Household Asset Building Programme
HICES Household Consumption and Expenditure Survey
HIV/AIDS Human Immune Virus/Acquired Immunodeficiency Syndrome
IGA Income Generating Activities
JCC Jobs Creation Commission
LICU Livelihood Implementation and Coordination Unit
MEL Monitoring Evaluation and Learning
MFI Microfinance Institute
MIS Management Information System
MOU Memorandum of Understanding
MSE Micro and Small Enterprise
MTR Midterm review
NGO Non-Governmental Organization
OA Operational Annex
OM Operational Manual
PASS Payroll and Attendance Sheet System
PCDP Pastoral community Development project
PDS Permanent Direct Support

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PIM Programme Implementation Manual
PLW Pregnant and Lactating Women
PMT Proxy Mean Test
PSNP Productive Safety Net Programme
PTC Pastoral Training Centre
PW Public Work
PWFU Public works focal unit
REMSIDA Regional Micro and Small Enterprise Development Agency
RJOC Rural Job opportunity creation
RUSACCO Rural Savings and Credit Cooperative
SNNP Southern Nations, Nationalities and Peoples (Region)
TDS Temporary Direct Support
TVET Technical Vocational Education and Training

UJCFSA Urban Job Creation and Food Security Agency

Village Savings and Lending Association/Village Economic and Social
VSLA/VESA Association

WOFED Woreda Office of Finance and Economic Development

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SECTION 1. ABOUT THIS MANUAL

The Livelihoods Support Programme is, at the time of drafting this manual, only partially designed.
An assessment by a training firm or NGO with local and international experience will guide the
revision of the package of support and curriculum for trainees and trainers in 2021. The revision will
include: Targeting of beneficiaries, Eligibility criteria sequencing of activities, modules and content
to reinforce business skills, life skills, women’s empowerment, nutrition and market linkages. In
addition, the curriculum for trainers will also be revised, and the capacity of trainers to deliver the
curriculum will be enhanced through training and coaching by an experienced firm. Finally, digitally
enabled training will be rolled out if the results from the currently on-going impact evaluation are
positive. Youth, gender, disability, nutrition, and diversification of income sources will be given
special attention when revising the curricula. The livelihoods OM of the PIM will also be revised
accordingly after the assessment of the consulting firm.

Overview of the PSNP Operations Manuals

The PSNP 5 operational procedures are described in a series of Operations Manuals and
Operational Annexes. Operations Manuals and Operational Annexes constitute a set of
policies, rules and procedures that implementers must follow. Audits and spot-checks are
conducted with the goal to ensure that these rules and procedures are properly complied
with by implementers.
The complete list of manuals and annexes is as follows:

Operations Manuals
Vol 1: General PSNP Manual
This is an Introduction section introducing the PSNP’s background, context, goal and
outcomes. The introduction section also presents the PSNP’s outputs and how they relate
to the various components, along with a discussion of programme principles, scale and
scope, safeguards and an overview of what’s new in this phase of the PSNP

Vol 2: PW Operations Manual

The Public Works (PW) Operations Manual describes the policies and processes that rule
the programme for the public works component, in order to efficiently and effectively
implement the programme. The volume starts with a description and the document is sub-
divided into three Sections:
• Programme Policies and Parameters
• Programme Entry and Exit
• Public Work Implementation and Attendance

Vol 3: TDS Operations Manual

The Temporary Direct Support (TDS) Operations Manual describes the policies and
processes that rule the programme for the public works component, in order to efficiently
and effectively implement the programme. The volume starts with a description and the
document is sub-divided into three Sections:
• TDS Programme Policies and Parameters

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 • TDS Enrolment and Exit
• Verification of Co-responsibilities and Payment of TDS

Vol 4: PDS Operations Manual

The Permanent Direct Support (PDS) Operations Manual describes the policies and
processes that rule the programme for the public works component, in order to efficiently
and effectively implement the programme. The volume starts with a description and the
document is sub-divided into three Sections:
• PDS Programme Polices and Parameters
• PDS Entry and Exit
• Case Management of PDS Clients

Vol 5: Livelihoods Operations Manual

The Livelihoods (LH) Operations Manual describes the policies and processes that rule the
programme for the livelihoods component, the volume is sub-divided into:
• Livelihoods Programme Polices and Parameters
• Livelihoods Programme Implementation
• Livelihoods Related Analysis

Vol 6: Shock Responsiveness Operations Manual

The Shock Responsiveness Operations Manual describes PSNP’s response to shock and the
impacts of disasters through the establishment of a comprehensive and integrated shock
responsiveness system.

Operational Annexes

OA 1: Targeting, registry and enrolment

The Targeting, registry and enrolment Operational Annex describes processes that the
targeting of households to become PSNP beneficiaries. It complements the two following
operations Manuals: The Public Works operations Manual, and the Permanent Direct
Support operations manual.

OA 2: Payment
The payments Operational Annex describe the payment processes for permanent direct
support and for public works beneficiaries.

OA 3: Annual Planning
The Annual Planning Operational Annex describes the various planning activities that needs
to take place prior to commencing programme implementation.

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OA 4: Resource Management
The Resource Management Operational Annex describes management of PSNP resources
and is divided into the following five chapters:
• Financial management
• Food management
• Procurement
• Physical resource management

OA 5: Grievance Redress Management (GRM)

The Grievance Redress Mechanism annex describes the means by which programme clients
and community members can raise grievances with different aspects of programme
implementation and get these grievances resolved.

OA 6: Monitoring, Evaluation and Learning (MEL)

The Monitoring and Evaluation Operational Annex describes the monitoring and reporting
processes for the programme along with a number of monitoring and evaluation tools.

OA 7: Capacity Development (CD)

The CD OA provides the systematic approach to annual programming of CD support for PSNP. It covers
the critical procedures and standards which must be applicable for the whole program and across all
implementing agencies.

OA 8: Environmental and Social Management Framework (ESMF)

The ESMF OA describes the potential environmental and social issues arising from PW and the
livelihoods component and identifies mitigation actions on how to address these issues. In addition,
certain technical aspects may be covered by guidelines. Guidelines are documents aiming at providing
guidance on certain technical aspects of programme implementation and are not binding in the same
way as are OMs and OAs. Guidelines must not contradict procedures described in manuals and
annexes.

Organization and main users of the Livelihoods Operations Manual

The Livelihoods Operations Manual describes the policies and processes that rule the program. The
Livelihoods Support Programme is, at the time of drafting this manual, only partially designed. In
particular consultancy services will be contracted to enhance the design of the component, and will
lead to a revision of this draft manual.

The main users of the Livelihoods (LH) Operations Manual are:

• Federal Food Security Coordination Directorate (FSCD)
• Women, Children and Youth Affairs (WC&YA)
• Natural Resource Management Director (NRMD)
• Agricultural Extensions Directorate

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• Rural Job Opportunity Creation (RJOC)
• Livelihoods Implementation and Coordination Unit (LICU)
• Federal Cooperative Agency
• Technical Vocational Education and Training (TVET)
• Micro and Small Enterprises (MSE)
• Financial Service Providers (FSP)
• Development Agent (DA)
• Community Facilitators
• Food and Nutrition Coordination Office (FNCO)

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SECTION 2 INTRODUCTION TO LIVELIHOOD COMPONENT

The livelihoods component aims to enhance livelihoods of targeted PSNP households and contribute
to building sustainable livelihoods and resilient rural PSNP households. It also seeks to contribute to
the nutrition outcome of households. This will be achieved through the provision of a bundled and
time bound package of support to address key barriers that prevent households from developing
productive activities, and to find jobs and contribute to sustained increases in income and assets for
the targeted PSNP households. The livelihoods package is designed to support clients, improve access
to developed watershed resources, and enhance households’ capabilities to increase their respective
productive activities and diversify their income sources.

The livelihoods component includes technical training and complementary livelihoods interventions
in three pathways: -
1. Crop and livestock
2. Off-farm and
3. Wage employment

Clients participate in the livelihoods component in one of the two ways. The first is getting access to
credit from financial service providers and the second is by receiving the livelihood grant, which is
provided for livelihood clients who are from the poorest quintile to engage in the off-farm and on-
farm pathways. This is in recognition of the fact that the poorest are risk averse and would likely have
difficulties accessing credit.
PSNP Big Push
The PSNP V livelihood intervention is characterized by manageable client size, intensive technical
support, and increased inputs, to enable improvements in livelihoods and exit from the program. This
is referred to as the big push.
The livelihood component entails the following: -

• Supports selected households to improve their livelihoods through a combination of time-

bound and appropriate strategies and investments and provision of loans, cash grants and
technical support.
• The PSNP provides livelihoods support that is tailored to 1) households and individuals
according to their capacity and the context in which they live, and 2) institutional capacity for
each of three livelihoods pathways. This support is available to clients who are targeted based
on their motivation and potential to create productive activities or to find jobs. Household
profiling will help in identifying household typology / motivation and potential.
• Focus on providing relevant, intense and high-quality support to targeted clients with the
potential to develop productive activities or find jobs. To achieve this, a standard training
curriculum will be developed for trainees and trainers to provide training of trainers to the
frontline implementers, including woreda experts and development agents. Additional
assistance in the form of community facilitators and training/coaching of trainers by a training
firm will be provided. The livelihood component will aim to push for more diversification of
livelihoods by increasing participation and quality of support in the off-farm pathway and by
reshaping the wage employment pathway to achieve better results. A minimum target/quota
will be introduced for clients in off-farm activities.
• Increase the focus on improving women’s economic opportunities and reducing the gender
gaps in access to inputs and ownership and control of assets, as well as wage employment,

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 through participation in livelihoods support. The program will directly support women in three
dimensions:
I. Production and marketing (access to extension services, training and inputs): during
the first 6 months, the assessment and revision of the curriculum for trainers and
trainees will propose adjustments to provide gender-sensitive extension services and
market linkages better address the constraints to productive inclusion that women
face and propose gender sensitive livelihood options. Promotion of the off-farm
pathway will encourage female participation as data show that women are more likely
than men to work on off-farm businesses;
II. Resources (access to assets and credit): a quota of 50 percent of the livelihood grant
will be established for women (up from 48 percent in PSNP4) and 50 percent of the
business plans funded will be developed by women (up from 46 percent in PSNP4), so
that implementers focus specifically on these groups; and
III. Improved access to job services: the program will encourage women’s participation
in the wage employment pathway.

• Diversification will be promoted actively by encouraging participation in the off-farm pathway

(participation is aimed to be increased to approximately 25 percent) and wage employment
pathways and by coaching beneficiaries to identify and choose livelihood options.
Beneficiaries will be coached to make better informed decisions about pathway selection. In
addition, the menu of options of potential livelihood activities will be revised for each agro-
ecological zone for the on-farm and off-farm pathways and will be used as a basis to coach
clients to choose appropriate and economically viable livelihood options. This menu of options
will strive to make linkages with existing value-chains (including nutrition smart value-chains),
to identify options that are profitable, well suited to women’s needs and to promote off-farm
options. Finally, an off-farm expert will be assigned at woreda level to support clients in the
off-farm and wage employment pathways. In the case of the on-farm and off-farm pathways
the aim is to increase impact by: improving the quality, intensity and relevance of training for
trainers and beneficiaries, introducing a new role of community facilitators to support
Development Agents (DAs) in delivering livelihood support to clients, and adding a curriculum
for community facilitators. Digitally enabled training will be rolled out and livelihoods may be
scaled-up further if the results from the on-going impact evaluation are positive.

• Engagement of youth as community facilitators. Community facilitators, who will be selected

among young educated public work participants and trained by DAs and woreda experts, will
assist DAs in various elements of PSNP, including the livelihoods component. Community
facilitators will work closely with DAs and woreda experts and maintain constant contact with
households and livelihoods economic and social groups. This model intends to use rural youth
and fill the capacity gap at the kebele level and deliver the highly needed support to
households for transforming their livelihoods and preparing them to exit from the PSNP.
Community facilitators will be compensated as part of PW beneficiaries with the same wage
rate but extended number of days per month. In NGO operating woredas, NGOs support CF
selection process, the training of CF and guidance, mentoring and supervision of the CFs.
Detailed community facilitators Terms of Reference and guidance will be established and
shared.

• High potential areas for seasonal employment will be identified and a plan to pilot new
approaches to link young clients to jobs will be developed. New approaches will include job

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 matching through job centers (or One Stop Services 1 ) designed specifically for rural areas, and
transport subsidies for seasonal migration, complemented by training. PSNP-private sector
platforms will be established for the wage employment pathway in areas with potential for
seasonal wage employment on farms or in nearby cities. Employers will be consulted and
encouraged to hire PSNP livelihoods clients, particularly the youth.
• The livelihoods component of the programme promotes off-farm activities and wage
employment, as well as on-farm activities. PSNP5 aims to enhance women’s equal
participation and increase their benefit including in the program’s livelihood pathways. The
program facilitates linkages to available employment opportunities. Furthermore, provision
of financial literacy skills is expected to increase program clients’ employability and/or
engagement in income generation activities.
• In addition, innovative approaches to increase the intensity and type of support under the
complementary livelihoods services sub-component will be piloted in 17 woredas. Woredas
will be selected based on i) accessibility and proximity to towns and markets; ii) availability of
financial service providers and loanable funds; iii) capacity to implement; and iv) availability
of functioning institutions.

1 Rural job opportunity creation experts are either already placed or being hired in each kebele of PSNP regions except Afar; r oll out of One
Stop Services (OSS) that facilitate rural job creation will be finalized in EFY 2013. There will be one OSS for every three or five kebeles.

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SECTION 3 LH PROGRAMME POLICIES AND PARAMETERS

3.1. Geographical targeting and rollout

In addition to continuing delivery of livelihoods support in the highlands, the livelihoods programme
will be rolled out to the lowland regions. This will be done in year 2 on a phased basis, with 40 woredas
participating in the first phase.
In all participating regions, Livelihood interventions will only be rolled-out in woredas that have the
capacity to implement them and to deliver timely transfers. In addition, in woredas where NGOs
engage in PSNP implementation, livelihoods intervention will roll out. Woredas have to demonstrate
that they have achieved at least one year with more than 70 percent of payments made to core
PW/TDS and PDS beneficiary households according to the program’s standard for timeliness, and that
microfinance institutions have the capacity and resources to provide credit to at least 90 percent of
the livelihoods clients they are planning to enrol in the credit track.

3.2.Livelihood Support

PSNP V recognizes the need to increase the intensity of coaching, mentoring and follow-up for
households targeted for livelihoods. Livelihoods support will be time-bound i.e. clients will receive the
package with one round of the livelihood grant or at least one round of credit, in addition to non-
financial support for both on- and off-farm pathways to increase production and productivity of their
individual land.

3.2.1. support for women and youth

PSNP will increase focus on improving women’s economic opportunities through participation in
livelihoods support. During the first 6 months of PSNP5, the assessment and revision of the curriculum
for trainers and trainees will propose adjustments to better address the constraints to productive
inclusion that different groups of women face (married women, FHHs, female youth, and women in
polygamous HHs). In addition, the coaching to identify livelihood options will help women clients
identify options that are well suited for them. Of the 550,000 (including the target for the big push
plus pilot) business plans that are expected to be financed under PSNP5, fifty percent of the livelihood
credit support as well as transfers will be for women. Women’s participation as community facilitators
will also be encouraged. NGOs where available can support in identifying options for women and
youth and coaching them.
Youth members of PW eligible households with some level of education will be assigned to act as
community facilitators to assist development agents and support various elements of PSNP, including
the livelihoods component.

Conditionalities for livelihoods capacity building

Conditionalities for livelihoods capacity building budget transfer is agreed to enhance accountability
and thereby livelihood results. Some of the conditionalities include:
• Regions confirming availing required loanable fund by engaging public and private financial
service providers;
• Regions implementing compulsory saving by livelihood transfer clients; and

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 • Woredas and kebeles planning and implementing jointly with Microfinance Institutions
(MFIs), both private and region affiliated MFIs, and Rural Savings and Credit Cooperatives
(RuSACCOs) on loan provision and repayment
• MoU signed between BoA and Cooperative Agency and financial service providers (both
region affiliated and private MFIs) at regional level

Environmental Risks

Environmental risks from the livelihoods sub-component arise from the potential cumulative effects
of large numbers of households in the same area all undertaking the same activities. The risks are
related to impacts that might occur such as, for example,
• Degradation caused by overgrazing resulting from animal-fattening;
• Loss of endemic tree species due to tree-cutting for the manufacture of furniture or
handicrafts;
• Pollution from poultry keeping using drugs or chemicals;
• Deforestation and reduction in local energy sources due to trading in fuelwood, poles or
charcoal;
• Deforestation due to a reduction in energy resources resulting from the processing of
agricultural residues for animal feed production.
These environmental risks will be managed through the PW and LH ESMF procedures, which includes
site-specific mitigation measures. The required expenditure for the mitigation measures will be
included in the concerned subproject budget.

Target Beneficiaries and Eligibility Criteria

A total of 550,000 households will be selected, including 167,000 in the livelihoods transfer track, and
383,000 households in the credit track. It is planned that 50% of the LH clients must be women, i.e. at
least 225,000 business plans (for both transfer track and credit track). These could be female headed
households or women in a male headed household.

3.2.2. Eligibility Criteria for Livelihoods credit track

Households are eligible to participate in the LH credit track if they are (i) PW participants (ii) motivated
and have potential to create productive activities or jobs which will be identified through household
profiling. Further eligibility criteria will be developed as part of the assessment and design by the
consulting firm.

3.2.3. Eligibility Criteria and Level of Benefits for Livelihoods Transfers Track
Within the PW beneficiary households, the bottom 20% of the poorest households are eligible for
selection in the LH transfer track. The amount of livelihoods transfer is USD 300 equivalent amount in
Birr using the agreed exchange rate at the beginning of the budget year (July)

Nomination of Household Recipient

The nomination of the recipient will be determined by the household profiling process (the design of
the profiling process will be done by the selected consulting firm).

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Reduction of Number of PW Working Days for LH Beneficiaries

Starting in the second year of participation in the PW program, LH beneficiary clients targeted for all
the three livelihood pathways will receive a reduction of one day per person per month in their public
works requirements to develop and improve their private land productivity, participate in various
trainings, and engage in their off-farm enterprises. The reduction in PW working days for LH
beneficiaries will not reduce their total PSNP transfers. Participation in trainings will be mandatory.
Detailed guidelines on how the one-person day for the livelihoods intervention will be planned,
implemented and monitored, and mandatory attendance in the livelihood training activities will be
developed. Details will be available in the second year of LH (after the assessment and design of the
consulting firm).

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SECTION 4 LH PROGRAMME ENTRY AND EXIT

4.1. About this section

This section of the manual describes the processes for identifying beneficiaries eligible for the
livelihoods program. It describes how beneficiaries are targeted in the livelihoods programme (credit
and transfer track) and how they exit.

4.2. Entry process into the Livelihood Credit

Participation in the livelihood programme is voluntary. In this phase, the targeting for the livelihood
pathway has been improved to focus the interventions on those with motivation and potential to
develop productive activities or to find employment and improve the matching between clients and
available pathways.

In order to maximize the impact of the livelihoods support, household profiling will be used to guide
DAs in collaboration with /WFSTF/KFSTF select potential household and individuals at different stages
and improve the matching with the different pathways. In NGO supported woredas, implementation,
household profiling and selection will be supported by NGOs. Household profiling involves using a
selection of variables from the HICES 2016 data to profile households and individuals with potential
to maximize the impact of the intervention on consumption expenditures and household’s self-
sufficiency. A quota for youth and women will be set to ensure their participation. (Details of the
household profiling will be design by the consulting firm).

4.3. Entry process into the Livelihood Grant

The livelihoods grant support will target the ultra-poor PSNP clients. In a place where household socio-
economic data is available these data is used for targeting, but where such data is not available
household level data should be collected by the DA, supported by community facilitators and KFSTF
as appropriate, during the registration process and entered into the MIS to target the bottom 20% of
the poorest households.

Priority will be given to households with pregnant or lactating women (PLW) and children under the
age of 2 to receive the grant if they fall within the poorest bottom 20% category of the of PSNP clients.
The targeting and household selection for the livelihood grant will be done before development of
business plans to maximize its impact and ensure that households in the livelihood grant track develop
business plans and think through what they will do with the grant.
A mobile extension service (for pastoralist clients) during mobility seasons will be considered in
lowland regions.
Based on the household socio-economic data or household level information a list of potential clients
will be prepared and wealth ranking developed through the MIS by the WFSTF. The wealth ranked list
will be shared to kebele administration and community / village levels; the community would come
together and facilitate the verification and validation processes. NGOs engage in facilitation,
verification and validation processes in woredas supported by NGOs.

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4.4. Livelihoods Support Programme Exit

Livelihoods support is limited in time. Clients will receive the package with one round of the livelihood
grant or one round of credit, in addition to non-financial support for both on- and off-farm pathways.
One round of support is expected to be carried out within one fiscal year.
Every livelihood supported household that has been in the LH programme for 2 years, that has
received a grant or credit and their business plan has been operational, will be assessed during the
recertification process. DA’s will collect socio-economic data of selected households based on the
criteria. The socio-economic data of the households are entered into the MIS and a Proxy Mean Test
(PMT) is applied. Based on the results of the PMT household will be determined ready to leave the
programme. (further detail of Programme Exit is provided in the Targeting, Registry and Enrolment
OA)
Should an external shock occur, households that have exited may re-enter the programme as
additional clients in order to maintain the investment gain of the programme and assets of the clients.
NGOs where they are operating can participate in the process. This will be determined during the
recertification process.
Being identified for recertification does not mean automatic exit from the programme. Households
within the livelihoods programme will continue to receive non-financial support until they officially
exit the PSNP programme. The recertification process consists of assessing the welfare of a beneficiary
household and involves three steps:
• MIS will flag households that have received livelihood support for at least two years
• The welfare status of the households is validated through application of light Proxy Means
Test (PMT);
• Communities conduct a post-recertification validation led by WFSTF and KFSTF (and NGOs in
NGO operational woredas) which involves referring the cases that are determined to still be
among the poorest back to the community for inclusion in the programme, or cases that are
no longer among the poorest exit the program.

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SECTION 5 LH PROGRAMME IMPLEMENTATION

5.1. Implementation modalities

The livelihoods component is implemented through two primary modalities:

• Direct training and technical assistance to clients. This entails the provision of technical
trainings, business/marketing skills trainings, and employment skills-related trainings by
appropriate institutions. Trainings may be provided at Farmer Training Centres (FTCs) or
Pastoralist Training Centres (PTCs), TVET institutes, private farms or other locations (including
clients’ farms), as appropriate.
• Conditional capacity building of grassroots institutions, which are expected to provide
services to PSNP livelihoods clients. With programme support, these grassroots institutions
(including informal customary institutions) and their contribution to the livelihoods
component are as follows:
o Farmer Training Centres (FTCs) and Pastoralist Training Centres (PTCs): these centres
serve as hubs for demonstrations of new technologies and practices to clients and will
enable learning-by-doing.
o Rural Savings and Credit Cooperatives (RUSACCOs): these kebele-based financial
institutions provide savings and lending services to PSNP clients.
o Financial Service Providers (FSPs): these institutions provide savings and lending
services to PSNP clients.
o Multipurpose Cooperatives: cooperatives provide marketing linkages, agro-
processing, or other services to PSNP clients.
o Other Community Based Organizations (CBOs)

Creation and capacity building of VSLAs/VESAs. The programme will create VSLAs/VESAs, using the
newly created PSNP livelihood groups as a platform. Technical support for the start-up of VSLAs/VESAs
will be provided by specialised service providers such as NGOs and others, DAs and community
facilitators who will follow up on VSLAs/VESAs progress as well as client savings through the livelihoods
checklist. VSLAs/VESAs and RUSACCOs are complementary to each other which help to meet the
financial needs of PSNP households and promoted under the livelihood component. VSLA/VESA
members can also be a member of RUSACCOs or vice versa, which provides diverse access to financial
services. No seed capital will be provided to VSLAs/VESAs by the programme.

Conditional capacity building of RUSACCOs. The programme will build the capacity of these
RUSACCOs to encourage savings and provide services to their members.
PSNP capacity building support to RUSACCOs will include:
• Technical assistance, e.g. training of RUSACCO leadership and technical assistance on financial
product development and linkages to MFIs as appropriate
• Matching funds (e.g. up to 25%) for building construction and safe boxes
• Matching funds for bookkeepers for 1-2 years.

In addition, the programme may provide matching funds for technology investments (e.g. a computer)
for RUSACCO unions, if and when appropriate. However, the programme will not provide seed capital,
nor will it pay for any operational costs besides those listed above.

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PSNP capacity building support will be contingent on the RUSACCO meeting the following three
conditions:
1. Inclusion of at least 30% of the kebele’s PSNP households in the RUSACCO. Newly established
RUSACCOs are exempted from this requirement for the first three years following their
establishment. This will allow the program to strengthen new RUSACCOs and build their
capacity so that they can eventually have a strong PSNP client membership and participate in
savings promotion.
2. Signing of an MOU agreeing to prioritize PSNP clients for loans.
3. RUSACCO participation in savings promotion within the community.

Conditional capacity building of FSPs. The programme will provide conditional capacity building of
FSPs – including private MFIs – and encourage clients to open individual savings accounts at FSPs
where available.

PSNP capacity building support will vary depending on the size and needs of the FSPs, but may include:
• The development of financial products that are acceptable to Muslim clients (i.e. Sharia
compliant)
• Staff training
• Programme support costs, e.g. for the provision of financial literacy training to PSNP clients
and creation of linkages with RUSACCOs
• For FSPs that open a sub-branch in PSNP kebeles:
o Transport
o Matching funds for office furniture
o Matching funds for hardware materials

The criteria for PSNP capacity building support will vary depending on the size of the FSP, but will
include the following general criteria:
1. FSP willingness to accept PSNP clients as savers and borrowers, provided that they fulfil the
FSP’s criteria for creditworthiness
2. FSP willingness to create linkages with RUSACCOs, if appropriate (in the case of larger FSPs)
3. FSP availing of credit to PSNP clients based on approved business plans
4. FSP participation in financial literacy training and savings promotion within the community.
5. A demonstrated capacity for the FSP for collection debts, and repayment percentage and
number of years of lending to PSNP households and/or or a plan with verifiable milestones to
ensure strong repayment rates, approved by the Livelihoods Technical Committee,

Regional governments will be involved in agreements on conditional capacity building with FSPs, as
their allocation of credit and/or credit guarantees (outside of programme funding) to FSPs for on-
lending to PSNP clients will be an important factor in the availability of credit for business plans. Other
actors outside the programme will also be encouraged to set up credit guarantee funds to support
lending to PSNP clients.

5.2. Sequencing and timing of livelihoods interventions

Initial phases. Error! Reference source not found. below illustrates the activities that take place prior
to the implementation of livelihoods interventions. Two parallel processes occur during these initial

16
phases: livelihoods activities identification across each of the three pathways, and client
identification. The following process will be redesigned as part of the assessment and design of the
consulting firm.
• Livelihoods identification: Livelihoods to be supported in each woreda are shortlisted based
on market and value chain analyses, technical analyses, and labour market analyses. The
women and youth specific LH menu is considered as key input in this process. In addition, an
assessment of environmental and social impacts is done to ensure that any potential negative
impacts are mitigated. In woredas NGOs operate, NGO staff support and engage in the on
farm (Crop, livestock), off farm and labour market assessment, analysis and consultation
processes. The shortlisted livelihoods and associated opportunities are then presented to
clients during the community consultation process, which happens at the same time as public
works planning, as outlined in the Annual Planning Operational Annex.
• Client identification: This happens at two levels:
o Identification of livelihoods transfer clients. During the full targeting/ Annual update
process, households that are extreme poor, female-headed, or landless youth are
targeted for a livelihoods transfer. (Priority will be given to households with pregnant
or lactating women (PLW) and mothers of children under the age of 2 who fall within
the poorest bottom 20% category of the PSNP clients). This is determined at kebele
and woreda level base on the regional target which is derived from the overall
programme target (kebeles and woredas will know the quota of livelihoods transfer
available which will help them determine the annual breakdown). This does not
entitle them to receive a livelihoods transfer in that particular year, but it entitles
them to receive a transfer during the year in which they participate in livelihoods
interventions (after they successfully complete their trainings and business plan), and
it puts them on a priority list for participation in livelihoods. In NGO supported
woredas, NGOs facilitate and engage in client identification processes , avail the
livelihood transfers grant for the year in reference, and handle cash transfers to
clients in coordination with woredas and FSPs as appropriate.
o Annual prioritization of clients for participation in the livelihoods component.
Each year, clients are selected through household profiling which involves using a
selection of variables from the HICES 2016 data to profile households and individuals
with potential to maximize the impact of the intervention on consumption
expenditures and household’s self-sufficiency. DAs will lead this process with a
support from woreda level technical experts and NGOs (in woredas NGOs are
operating).

17
 Figure 1. Livelihoods Activities Prior to Implementation

Initial list of
livelihoods
Market/value Short list of activities
Identification
Livelihoods

chain analysis IGA complimented

& technical /Livelihoods by PW
analysis investment

Community Preparation of
Livelihoods annual plan in line
consultation with available
resourses (human
resource, budget
envelope, credit
availability)
Identification

Selection of
client

households
through Community
Targeting of household prioritization of
housholds profiling 1. Livelihood grant
for clients and
livelihood
2. clients ready for
grant
livelihoods credit

Following the annual community consultation and planning process, livelihoods interventions for
selected clients will follow the sequencing described below and illustrated in Figure 2
The implementation phases will be redesigned as part of the assessment and design of the consulting
firm.
Implementation Phase 1: Group formation. This is a key first step to enable consistent support to
households and individual clients by DAs, Community Facilitators and NGOs (in woredas where NGOs
operate), groups will be established, where appropriate, based on clients’ value chain engagement or
settlement (geography) and by-law development. Groups will be used as entry points for clear
messaging and training around using increased income for improving nutrition (e.g. dietary diversity
etc.). These groups will evolve/grow into VSLAs/VESAs.

Implementation Phase 2: Initiation of financial literacy and savings promotion. Financial literacy
training and savings participation will be a key initial element of livelihoods interventions, and will
continue as a cross-cutting activity throughout livelihoods implementation. Trainings will be accessible
to women in terms of time and venue.

Implementation Phase 3: Client consultation for livelihood selection. Following a period of financial
literacy training and participation in savings, DAs/CFs will present detailed information on livelihood
options to clients including LH menus specific to women and youth. In woredas where NGOs operate,
they engage and support the delivery in coordination with the DAs. Following the training and
awareness on LH opportunities, clients will choose a livelihood pathway and, within that pathway, a
specific livelihood option considering their needs and capabilities. Once a livelihood has been selected,
a livelihood checklist will be developed.

18
Implementation Phase 4: Training. Standard and tailored trainings using the revised and improved
products will be provided to livelihood clients. The exact content will be based on the res ults of the
assessment, but may include group governance, technical and skill trainings, business planning,
marketing, Clear nutrition messages to PSNP livelihoods client households will be promoted,
integrated and disseminated through the training.

Implementation Phase 5: Business plan preparation and finance approval and referral. Following the
completion of the livelihoods checklist, clients will be assisted in business plan preparation. Business
plans will then be reviewed by woreda experts and development agents and forwarded to financial
service providers for the provision of credit, or, in the case of clients targeted for livelihoods transfers,
forwarded to WOFED (and NGOs in NGO supported woredas. NGOs provide livelihood transfer to
beneficiaries using their established system as was done in PSNP 4.) for the provision of a livelihoods
transfer. This step will be skipped for clients in the employment pathway.

Implementation Phase 6: Follow-up support. Follow-up support includes facilitation of access to

inputs and linkages to markets as needed, and coaching and mentoring of clients. This support should
continue on an intensive basis through the end of the first year after the client has started participating
in livelihoods interventions, or through the end of the second year for livelihoods transfer clients. For
the employment pathway, this will be the employment linkages phase.

19
Figure 2 . Livelihoods implementation Flow Chart

Although the planning and reporting calendar follows the Ethiopian fiscal year, the implementation of
livelihoods activities will follow a seasonally appropriate and suitable calendar, as crop and livestock
livelihoods as well as wage employment related to large farms, will follow the agricultural season.

Common Livelihoods Support Prior to Business Plan

The activities described below apply to clients who have been selected to participate in the livelihoods
component, and whom the community has prioritized for that year.

5.3.1. Creation of PSNP livelihood groups

Clients who have been prioritized for participation in livelihoods interventions for a given year will be
formed into PSNP Livelihood Groups for the provision of training, mentoring and coaching. Groups
may be adjusted at a later stage, once livelihoods have been selected, to allow for group-based
technical training, i.e. crop and livestock and off-farm pathway. These will be formed at the start of
livelihoods implementation in order to provide the basis for financial literacy training and transforming
groups to VSLAs/VESAs for initial savings activities with appropriate by-laws.
The ratio of livelihoods client households to DAs should not exceed 1 to 50, and the ratio of Community
Facilitator is one (or two) per Kebele. The exception is for clients participating in off-farm and
employment pathways. Given that two clients per household may participate in livelihoods trainings
and estimating a membership of 20-30 members per group, each DA is expected to support 4-6 new

20
livelihood groups each year (and provide follow-up support to these groups for an additional year).
Also as stated above, women are expected to comprise at least 50% of livelihoods clients, and
therefore they should represent at least 50% of livelihood group members on average.
The rationale behind assigning DAs 1 to 50 is that, under PSNP 5 the livelihoods component will
provide more intensive support to clients than it did in the past. Moreover, past programmes have
found it is feasible for one person to provide intensive support to 50 households, particularly if these
households are formed into groups. Past experience has also shown that a higher ratio (for example
100 households to one DA) would compromise the quality of technical assistance and mentoring
support.
This is particularly important given that DAs have a variety of other responsibilities (both PSNP-related
and non-PSNP-related) in addition to implementing PSNP livelihoods activities. Given the average of
3 DAs per kebele, Community Facilitator (and support from NGO staff in woredas NGOs operate) it
must be possible for most kebeles to deliver the required livelihoods support to all interested PSNP
clients while keeping this ratio. Livelihoods interventions will be included in the balanced score card
of DAs.
Although many PSNP households are already part of development groups, these PSNP-specific
livelihood groups whose membership will only include a cohort of clients participating in livelihoods
interventions during the same year will be the primary group through which trainings are given under
the livelihoods component of the PSNP.

5.3.2. Financial literacy training

All households that are selected to participate in livelihoods activities should participate in financial
literacy training. Training for PSNP clients will be provided by a variety of service providers depending
on the woreda: Financial Service Provider agents, cooperative promoters and accountants, and other
specialized service providers such as NGOs.
Training topics: Financial literacy trainings will use a toolkit that will be revised based on the
assessment financial planning and budgeting
• Savings – the importance of savings, and how to save
• Understanding credit and manage business
• Calculating at least gross profits
• Risk management and insurance (tailored to locally available insurance types, e.g. credit life
insurance)
Training location, timing and approach: Financial literacy trainings will be provided at FTCs and PTCs
or other accessible locations within the village. Trainings must go through the whole toolkit, but can
be done either intensively (e.g. for 2 hours per day, over the course of three weeks, for a total of 15
days), or in a more spaced out manner (e.g. for 2 hours every week, over the course of 15 weeks).
Livelihoods clients will be consulted in the development of the schedule.
If a more spaced-out schedule is selected, technical trainings may be provided prior to the completion
of financial literacy training, provided that a DA has engaged in a client consultation, as outlined below.
Regardless of the schedule selected, all trainings will be provided at a time of day that enables women
to attend. If preferred, trainings may be provided separately for women, men and youth in order to
allow sufficient time for each client group to express questions related to their situation and obtain
clarifications.
Trainers should focus on ensuring that participants understand the material by using ba sic language
and encouraging participants to ask questions and suggest answers.

21
Clients who successfully complete the initial financial literacy training course will receive a certificate
of completion.
Follow-up financial literacy training will be given as clients begin investing in livelihoods. These
trainings will be timed with clients’ needs during their livelihood cycle—for example, a refresher
training on credit management as a client receives credit for his or her business plan, etc.
Details of the training curriculum will be developed as part of the assessment and design by the
consulting firm.

5.4. Savings mobilization and support

Participation in savings will be mandatory for participation in livelihoods interventions, as clients will
be required to have regular savings in order to obtain financing from RUSACCO or, FSPs, VSLAs/VESAs
(or any other saving and lending groups) and the programme also requires savings for livelihoods
transfer clients. Clients may choose to save through one (or more) of three mechanisms depending
on their preference and the availability of institutions within their locality:
• MFIs (through individual savings accounts)
• RUSACCOs
• VSLAs/VESAs (similar saving groups)
The savings amount will vary depending on the client’s capacity and interest as well as the
requirements set by the financial institutions. In the case of RUSACCO and VSLAs/VESAs savings is
mandatory for all members including livelihood’s clients without which these FSP will not allow clients
to access credit. Likewise saving is mandatory for clients preparing to receive a livelihoods transfer.

The programme does not avail credit to households or to financial institutions but will provide
(capacity development support to financial institutions (FSPs and RUSACCOs) to provide services,
including training and credit from their own funds, to an agreed number of safety net clients. However,
the regional governments are required to work with financial institutions (both private and public) to
make sure that financial institution are able to avail loanable funds to PSNP clients at the right time
and with appropriate technical supports and follow up to clients. Regions are accountable to create
the necessary and adequate enabling environment for increased investment opportunities for PSNP
clients and encouraged to engage multiple FSPs (including private MFIs). The release of the livelihoods
capacity building budget pends on the fulfilment of the above listed conditions. The PSNP will partner
with regional or private MFIs that demonstrate strong performance in terms of quality service
provision, loan disbursement and timely collection as well as clear communication with clients.
Creation and capacity building of VSLAs/VESAs will evolve and transform into VSLA/VESA group.
Technical support for the start-up of VSLAs/VESAs will be provided by specialized service providers
such as NGOs and others, and DAs will follow up on VSLA progress as well as client savings through
the livelihoods checklist. The programme will not provide seed capital to VSLAs/VESAs
The reason for supporting VSLAs/VESAs is that they play an important role in enabling poor
households to begin participating in savings in an environment of familiarity and trust. Moreover,
VSLAs/VESAs typically includes a social fund, which is easily accessible in case of emergency. This fund
is an important risk mitigating measure for poor households and serve as a stepping stone and
introduction to a formal savings and credit system participation for these households. Once
households are comfortable with the concepts of savings and lending, as they develop their livelihoods
and require larger amounts of credit, they may seek to join a RUSACCO or take their business plan to
FSPs. Finally, since VSLAs/VESAs are informal, they do not require auditing. Hence, the required level
of government support is lower, and it is possible for several VSLAs/VESAs to be created in one kebele.

22
Conditional capacity building of RUSACCOs. The programme will build the capacity of these
RUSACCOs to encourage savings and provide services to their members.
PSNP capacity building support to RUSACCOs will consist of technical assistance, e.g. training of
RUSACCO leadership and technical assistance on financial product development and linkages to MFIs
as appropriate
Conditional capacity building of FSPs. The programme will provide conditional capacity building of
FSPs – including private MFIs – and encourage clients to open individual savings accounts at FSPs
where available.
PSNP capacity building support will vary depending on the size and needs of the FSPs, but may include:
• The development of financial products that are acceptable to Muslim clients (i.e. Sharia
compliant)
• Staff training
• Programme support costs, e.g. for the provision of financial literacy training to PSNP clients
and creation of linkages with RUSACCOs
• PSNP households served by private MFI’s
Regional governments will be involved in agreements on conditional capacity building with FSPs, as
their allocation of credit and/or credit guarantees (outside of programme funding) to FSPs for on-
lending to PSNP clients will be an important factor in the availability of credit for business plans. Other
actors outside the programme will also be encouraged to set up credit guarantee funds to support
lending to PSNP clients.

Household/client livelihoods consultation and livelihood selection

5.4.1. Client consultation for livelihood selection

Once clients have completed financial literacy training 2 and begun saving, DAs and subject matter
specialists including NGOs will present the various livelihood options available to clients based on
household profiling and matching. Representatives from different agencies, including the MSE Agency
and TVET, will be brought into the FTC/PTC to present options for each of the livelihood pathways and
provide clients with a chance to ask questions about the specifics of each livelihood. Representatives
from the Women and Youth Affairs Desk will also participate in this process to ensure that the specific
needs of women and youth are taken into account. DAs will then follow up with each individual
household and consult with clients regarding their livelihoods interests and ideas. These consultations
should not just be with the head of household, but should include all household members who are
members of PSNP livelihood groups and have participated in financial literacy training.
In order to guide clients in the selection of livelihoods that are appropriate to their capacity, client
consultations will cover the following topics for each type of livelihood:
• Resources availability such as land and labour
• Technical difficulty
• Income patterns
• Market opportunities
• Potential for diversification
• Investment requirements (including operating costs, such as feed purchases)

2In communities where financial literacy training is being provided in a spaced -out manner, DAs may initiate client livelihoods
consultations prior to the completion of financial literacy training.

23
 • Potential challenges
Individual household members will then each select their own livelihood pathway, which will be
recorded on the livelihoods checklist.

5.4.2. Development of livelihood checklists

Following the client’s livelihood selection, the DA, supported by community facilitators and NGO staff
(where available), will assist each client in preparing a livelihood checklist. Up to two members of the
same household (for example, a husband and wife, or one adult and one youth, etc.) may be assisted
in completing livelihoods checklists in a given year, provided that both members have completed
financial literacy training. Therefore, household livelihoods checklist may comprise two individual
client checklists, linked through the household’s unique PSNP Client Number. One copy of the checklist
is included in the Client Card (and therefore kept at the household level), while another copy is kept
by the DA or the one-stop service centre/MSE Agent for the off-farm pathway, NGOs also receive
copies in woredas they engage. This will also be indicated and linked in the MIS. NGOs where available
can participate in this process.
For some households, the checklist will reflect one pathway for all members, while for others, the
checklist will reflect two pathways (one for both participating household members . This is possible
especially for the big push plus pilot) and the required trainings for each.
Within the livelihood pathway, clients may opt for multiple livelihood options/investments. However,
for ease of implementation, each individual client will be limited to one livelihood pathway in the
household livelihoods checklist and business plan. Hence, a client may select to receive PSNP
livelihoods technical support for poultry and goats (both of which are within the crop and livestock
pathway), but not for poultry and job training/employment linkages (as these are in different
pathways).
The livelihoods checklist serves two purposes:
• As an implementation and accountability tool, to ensure that clients receive all of the
necessary trainings to fully understand the livelihood prior to developing a business plan and
obtaining financing for their investment
• As an M&E tool, to help the DA (or other training provider) to know what trainings the client
has completed and to track, and report on, their progress
The checklist will outline the support to which each client is entitled – and which he or she must
complete – prior to preparing a business plan. This checklist will comprise the following elements:
• Financial literacy training – in many cases, this should already be completed prior to the
development of the checklist, as evidenced by trainer attendance sheets or the participant’s
certificate of completion
• Participation in savings—the checklist should indicate whether the client is saving through a
VSLA/VESA, a RUSACCO or an MFI, and the monthly amount of savings. Clients should be
encouraged to begin saving prior to the development of a livelihoods checklist.
• Technical training tailored to livelihood pathway
• Business skills/marketing training tailored to livelihood pathway
• Business plan development
• Referrals for financing

24
Crop and Livestock Livelihoods Pathway

Implementation and monitoring of the Crop and Livestock Livelihoods Pathway will be the
responsibility of the Extension Department of Ministry of Agriculture while the oversighting and
reporting role will be retained by Food Security Coordination Directorate.
Further details on off-farm and employment pathway are in the next sections.

5.4.3. Training
Technical trainings

Training provision. DAs and Woreda Subject Matter Specialists will provide a series of technical
trainings to clients on their selected livelihood. The programme will systematize some of the technical
training protocols developed by the Extension Service and the Livestock Development Sector into a
robust training course for participants. Lists of required trainings will be tailored to the product /
business plans and the livelihood investment planned by the household, and will be included in the
Livelihoods Guidelines.
Technical trainings will be substantial and will be provided at FTCs or PTC and/or at the homes of
model farmers where possible in order to facilitate practical knowledge sharing and learning -by-doing.
Linkages with research institutes will be promoted where feasible, in coordination with the Climate
Smart Initiative (CSI). It is expected that technical trainings be provided for a total of at least 10-20
hours over the course of 4-12 weeks, depending on the type of livelihood pathways chosen by the
client. Following the completion of each training session, the DA will ask questions to ensure
comprehension of clients prior to placing a checkmark for completion by that session on their
checklist. Crop-related trainings should be provided sequentially in accordance with the season, while
livestock trainings generally do not need to be completed sequentially (in the order they are listed in
the livelihoods checklist).

Capacity building of FTCs and PTCs. In order for clients to learn effectively, FTCs must provide
appropriate demonstrations of improved practices or technologies. The programme through public
works and nutrition sensitive interventions will build the capacity of FTCs and PTCs through the use of
programme resources for:
• Construction of:
o FTC training halls and other infrastructure, such as fencing and water harvesting
structures (through PSNP public works)
o Construction of demonstration technologies/accessory structures, such as watering
troughs, poultry cages, water lifting technologies
• Purchase of seeds, fertilizer, improved seedlings and other inputs for crop demonstrations
• Purchase of demonstration technologies such as drip irrigation systems, beehives, etc. as part
of enhancing PW’s and livelihoods linkages
• Training of FTC/PTC management
Where appropriate, improved construction materials can be used for livestock stalls and poultry
houses, but a low-technology option (using local materials) should also be provided at FTCs in order
to provide a demonstration that can be more easily replicated by individual PSNP clients.
FTCs and PTCs constructed through public works will be supported through the enhancement of public
works and livelihoods linkage activity. For newly established FTCs and PTCs, the programme will
provide training to management committees as well as material support, as outlined above. For
existing FTCs and PTCs, support will be conditional on their having an established and well-functioning

25
management structure in place. Woreda M&E Officers and livelihoods staff will be responsible for
monitoring the performance of FTCs and PTCs (along with auditors) and determining whether they
will be eligible to receive programme capacity building funds in subsequent years.

Business skills and marketing training

In addition to technical trainings, clients will receive a series of business skills and marketing trainings
tailored to their selected livelihood. These trainings will be provided by Woreda Subject Matter
Specialists, Cooperative Promotion Officers or Marketing Agency specialists and should be developed
in such way that it would be sensitive to adults, women and youth. Topics may cover:
• Calculating input costs (building on initial training provided during the financial literacy
sessions)
• Marketing and market facilitation topics, e.g.:
o Where to find markets
o Optimal marketing timing
o The advantages and disadvantages of collective marketing (based on product)
• Simple risk / sensitivity analysis

5.4.4. Business plan development and finance approval and referral

Business plan preparation

Following the successful completion of financial literacy training and all technical and
business/marketing trainings on the livelihoods checklist, the DA, supervisor / Coordinator will certify
that a client has successfully completed the livelihoods checklist. DAs will then assist clients in
developing business plans. This business plan will follow the format provided in this Manual and will
include the following sections:
• Names of participating clients within the household and profile
• Selected livelihood
• Certification of completed livelihoods checklist
• Labour utilization plan
• Input and technology requirement
• Credit or livelihoods transfer requirement
• Production plan
• Marketing plan
• Planned financial flow
o Expected revenue by quarter
• Expected expenditures by quarter Simple sensitivity analysis
• Loan repayment plan (for credit referral clients only)
• Declaration, signed by each client
Business plans will be developed at the individual level rather than the household level, but will be
linked via the Household PSNP Client ID Number and updated in the MIS.
The development of the business plan has the following objectives:
• To guide clients towards productive and profitable livelihood investments, by helping the
client think through how s/he will earn an income, how s/he will manage his or her cash flow,
and how s/he will repay his or her loan. Therefore, it is critical that client’s/household
representatives (spouse, youth) be directly involved in the development of their business plan
and that they understand all the information that it contains.

26
 • To help clients / households better understand the basics of business planning and
management
• To help the client obtain financing for a specific livelihood investment.
The business plan is not intended to limit the client to one livelihood3 , as clients are expected to have
multiple sources of income throughout the year. Therefore, what DAs need to follow up closely on the
implementation of the business plan as well as the client’s success in increasing his or her income
sources and building a sustainable livelihood.

Finance approval and referral

Following the completion of the livelihoods checklist and business plans, credit committees which
include FSPs representatives and Cooperative Promotion and/or RUSACCO representatives where
possible – will appraise business plans for their viability. Clients will then amend business plans if
needed and, once these are found viable, the credit committee will refer them either to a financial
institution for credit provision or to WOFED for the provision of a livelihoods transfer through
RPASS/MIS, depending on how they have been targeted. In woredas where NGOs operate, they will
participate in these processes.

Referrals to financial service providers for credit. Clients will take their completed checklist and
business plan to FSPs, including MFIs (government and NGO supported / parastatals and private) and
RUSACCOs, in order to access loans. Where necessary, credit committees will provide financial
institutions with lists of clients whose business plans are reviewed and passed viability check. DAs will
also provide additional support to clients in liaising them with financial institutions with their business
plans, as needed particularly for clients who have little experience with credit but did not qualify for
a livelihoods transfer. If one client finishes his or her checklist before another household member, that
client can be referred for financing. When the FSP has a group collateral requirement the client will
have to wait for the group to finish their checklist.
Where credit life insurance available, clients will also be referred to this service.
Credit availability from both FSPs and RUSACCOs will be gauged each year during the planning stage,
as outlined in the Annual Planning Operational Annex; this will help to ensure adequate credit
availability at the time of referral. FSPs and RUSACCOs will benefit from conditional capacity building
under the programme, subject to the conditions outlined in Section above. (However, if there is a
credit constraint following the completion and referral of business plans, the programme may
recommend that women and youth be prioritized, subject to the review and approval processes of
financial institutions.)

Referrals to WOFED and or NGOs (as appropriate) for livelihoods transfer. DAs (in coordination with
NGO staff where available) will prepare lists of clients who successfully completed their livelihoods
checklists and developed business plans in the previous month and who are eligible for the livelihoods
transfer and submit their list to the Woreda Extension Desk. The Extension Desk will then compile this
list and provide it to the Woreda Food Security Desk on a monthly basis, which will forward it to

3 The livelihoods support is meant to provide the necessary technical supports that would help households diversify their
livelihoods, however, when it comes to financing the program will not take the responsibility to fund more than one business
plans per household.

27
WOFED/NGOs monthly, together with the public works attendance sheet if during the public works
period, or immediately if not during the public works period.
In woredas where payments are provided in cash4 , livelihoods transfers will be disbursed by PSNP
cashiers during the regular transfer payments (which will occur year-round as permanent direct
support clients are eligible for 12 months of transfers). Livelihood transfers will be recorded in
RPASS/MIS using the Livelihoods Transfer budget line, which will be distinct from public works
payments.
In woredas where payments are provided in food, livelihoods transfers will be provided by
WOFED/NGOs through a separate payment mechanism and recorded in PASS/MIS using the
Livelihoods Transfer budget line. As much as possible point of livelihoods transfer should be closer to
clients or kebeles. The amount of livelihoods transfer is USD 300 equivalent amount of Birr using the
agreed exchange rate at the beginning of the budget year (July)
If clients are not ready to make a $300 investment, they will be encouraged to make an appropriately
sized investment and to save the remainder of their livelihoods transfer until they are ready to invest
it.

5.4.5. Follow-up support

Following the provision of credit or a livelihoods transfer, DAs, supported by Community Facilitators,
will continue to provide follow-up support to clients as needed during the implementation of their
business plan. This will include three kinds of support:
• Follow-up technical advice to all clients
• Facilitate peer reviews and experience sharing
• Intensive mentoring and coaching to livelihoods transfer clients
• Support in obtaining inputs or marketing, if and when necessary
• Intensive mentoring and coaching and support in obtaining input to all women clients (in order
to define this, the program should do quick assessment to identify their specific challenges)

5.4.6. Follow-up technical advice

DAs and Community Facilitators will check in with clients regularly, using PSNP livelihood groups as a
platform, to provide technical advice. All visits or follow-up meetings will be recorded on the checklist
tracker.

5.4.7. Intensive coaching and mentoring for livelihoods transfer clients

Intensive coaching and mentoring will follow a guideline to be developed during the first year of the
programme (and included in the Livelihoods Guideline/Manual), but will include regular visits to
households receiving livelihoods transfers, coaching on money management, problem solving
assistance, and other support. The DA should interact with the client at least once every two weeks
on top of which community facilitators will closely work with clients. Some of these interactions can
take place during PSNP livelihood group meetings or at the FTC, but at least once a month the DA
should travel to the client’s home for a one-on-one conversation.

28
Where possible, the DAs will be supported in this task by the Social Worker and/or the Health
Extension Worker and community facilitators, who will also visit these households. Representatives
from the Women and Youth Affairs Desk will also support coaching and mentoring to build the
confidence and skills of women.
This support should continue on an intensive basis through the end of second year after the client has
received credit from MFIs for livelihoods interventions, or through the end of the second year for
livelihoods transfer clients. Even after the second year clients will continue receiving technical support
through the regular extension system.

5.4.8. Inputs and marketing facilitation

PSNP will support clients in obtaining difficult-to access inputs and/or marketing by facilitating
linkages with government research institutes, private sector actors, and/or cooperatives, as
appropriate. Multipurpose cooperatives that provide inputs, post-harvest technologies, and
marketing services to PSNP clients will be eligible to receive conditional capacity building support (e.g.
training) from the programme. In addition, in this activity as well as others, the programme may link
clients to NGOs working in similar interventions.

Input supply facilitation. It is expected that many of the local inputs needed by clients for the
implementation of their business plans (for example, seeds, or sheep or oxen for fattening) will be
available locally and will not require much additional support. Where distribution networks for specific
inputs (such as good quality, low-cost chicken coops or beehives, veterinary drugs, or livestock feed)
are poorly developed, the programme – through Cooperative Promotion and private sector actors
where available – will help build the supply chain through the following activities:
• Promotion of input supply and trading as a livelihood. The programme will support clients
who want to become agro dealers, traders or other providers of other inputs and services that
will help build agricultural value chains that reach into chronically food insecure communities.
Support for this activity will be provided through the crop and livestock pathway or the off-
farm pathway, as appropriate.
• Linkages to the private sector. Where appropriate, kebele and woreda offices will support
linkages to private sector suppliers of inputs by communicating demand for inputs by PSNP
clients and referring clients as appropriate.

Marketing. The programme will provide marketing support where necessary, using guidance from the
Extension Facilitation and Market Linkage Manual (2014) developed jointly by HABP and GRAD. For
IGAs such as honey production, it may be profitable for clients to join or form cooperatives for joint
marketing to more lucrative markets. Where support is required, kebele and woreda offices will
provide referrals to suppliers to cooperatives or private sector actors who can support marketing and
provide market information.
• Creation of marketing groups. For livelihoods that can benefit from collective marketing,
households will be formed into marketing groups and will receive training in collective
marketing approaches and strategies. Such collective approach will help strengthen
bargaining position of the group. Appropriate institutions (e.g. Cooperative Promotion Offices
and/or Marketing Agencies, depending on the woreda) will be responsible for support to
these groups, with supplemental support from the programme for the expansion of their

29
 mandate to groups below the cooperative level. When ready, groups may be formalized as
cooperatives with support from Cooperative Promotion.
• Capacity building of cooperatives. Where appropriate, the programme will build the capacity
of cooperatives to provide technical and marketing support needed by safety net clients in
the implementation of their business plans.
Capacity building support may include training and technical assistance, but will not include
financial support, e.g. for operating costs.

Off-Farm Livelihoods Pathway

Implementation of the off-farm livelihoods pathway will be the responsibility of the Livelihoods
Implementation and Coordination Unit (LICU). Monitoring will be conducted jointly by the LICU and
Extension. Off-farm expert placed at woreda level and housed in the SME office or woreda office of
Agriculture; in collaboration with the respective agencies will take the primary responsibility for the
implementation of the pathways. DAs, community facilitators and, where available, social workers
and NGO staff will facilitate the grass root implementation of off farm interventions where
appropriate.
The off-farm pathway includes non-agricultural activities as well as trade and processing of agricultural
products. Off-farm livelihoods are defined as those that are within the mandate of the Agency to
support. These include the following:
• Manufacturing, e.g. textile, woodworking, metalwork, pottery, leather
• Agro-processing
• Construction, e.g. housing, road, cobblestone (ranging from government mega projects to
small local governmental and non-governmental projects)
• Trade (all types, including agricultural trade)
• Services (related to tourism, food, transport, etc.)
• Urban agriculture, e.g. cattle fattening, poultry (Note: in highland areas, urban agriculture is
less relevant, but in lowland areas, PSNP clients in small towns may benefit from this type of
training.)

The provision of skills training that could be used for self-employment as well as wage employment
(e.g. cobblestone) will be considered part of the off-farm livelihoods pathway unless the training is
associated with a specific job opportunity. In addition, higher-level agro-processing, trading, and value
addition for agricultural products will be considered part of the off-farm pathway, while simpler off-
farm income-generating activities (such as ox fattening or petty trading) that can be supported by the
Extension Service and/or the Livestock Development Sector will be considered part of the crop and
livestock pathway. Woredas conduct assessment and analysis to identify and communicate potential
off-farm investment areas, advise and guide clients in this pathway.

5.4.9. Referrals from DA s to one-stop service centres/MSE Office

Following client livelihood consultations, DAs in collaboration with social workers / rural job
opportunity creation staff and NGO staff (where available) will create lists of clients that select off-
farm income generation pathways. The DA will submit these lists to the Woreda Extension
Desk/Process, which will aggregate them and submit them to the MSE office, via one-stop service
centres/Job centers, where available. If clients have selected simple off-farm livelihoods that can be
supported by the Extension Service, there may be no need for this referral. During a tripartite meeting

30
between the Woreda Extension Desk/Process, the MSE Agency and TVET, the three parties will agree
on the number of trainees for each course, and the MSE Agency will transfer PSNP livelihood capacity
building funds to TVET to cover training costs, including:
• Trainer fees
• Training materials
• Participant room and board
In addition, the programme will cover the participants’ transport costs to the TVET, where necessary.

5.4.10. Training
Technical trainings
Clients who select the off-farm livelihoods pathway will select from a variety of livelihood options,
depending on market potential in their locality.
Clients will be formed into trainee groups for easy coaching and follow-up. Training will be provided
by TVET instructors and are expected to last from 7-12 days to approximately 2-4 months depending
on the livelihood. Shorter trainings will be provided at FTCs where possible (in which instance the
programme will cover the cost of the trainer’s transport, lodging, etc.), while longer trainings will be
provided at TVET institutes covering boarding costs for the trainees and trainers.

Business skills and marketing training

In addition to technical training, TVET trainers will provide relevant training on entrepreneurship and
business skills, as appropriate to the livelihood.

5.4.11. Business plan development and finance referral and approval

Business plan preparation

The MSE Agency will certify clients following the completion of their trainings. Following the successful
completion of financial literacy training and all technical and business/marketing trainings on the
livelihoods checklist, MSE agents will assist clients – either individually or in groups – in developing
business plans. This business plan will follow the format provided in the Livelihoods guideline.

Finance approval and referral

Following the completion of the livelihoods checklist and business plans, a Woreda-level Off-farm
expert at the one-stop service centre will appraise business plans for their viability. Clients will amend
business plans if needed and, once these are found viable, clients will be referred by an MFI officer to
a financial institution for credit provision, or by the MSE agent to WOFED for the provision of a
livelihoods transfer through RPASS/MIS, depending on how they have been targeted.

Referrals to financial institutions for credit. Once the business plan is reviewed and verified by the
relevant staff off-farm experts, then clients will take their completed checklist and business plan to
financial institutions, including MFIs (both regional and private) and RUSACCOs, in order to access

31
loans. Where necessary, the one-stop service centre or MSE agents will provide financial institutions
with lists of clients whose business plans are approved. MSE agents will also provide additional
support clients in approaching financial institutions with their business plans, as needed – particularly
for clients who have little experience with credit but did not qualify for a livelihoods transfer.
If one client finishes his or her checklist before another household member, that client can be referred
for financing.
Where credit life insurance available, clients will also be referred to this service.
Credit availability from both FSPs and RUSACCOs will be gauged each year during the planning stage,
as outlined in the Annual Planning Operational Annex; this will help to ensure adequate credit
availability at the time of referral. FSPs and RUSACCOs will benefit from conditional capacity building
under the programme, subject to the conditions outlined in Section above.

Referrals to WOFED for livelihoods transfer. Woreda Extension Desk collaboration with MSE Agents
will compile a list of clients who successfully completed their livelihoods checklists and businesses
plans in the previous month and who are eligible for the livelihoods transfer. They will compile and
forward it to the Woreda Food Security Desk, which will forward it to WOFED and/or to NGOs (in NGO
supported woredas).

5.4.12. Follow-up support

Follow-up technical advice
As clients start their enterprises, MSE agents and/or TVET industrial extension agents, as applicable,
will visit their MSEs and advise them on marketing and business development skills.

Intensive coaching and mentoring for livelihoods transfer clients

Intensive coaching and mentoring for livelihoods transfer clients in the off-farm livelihood pathway
will be provided by MSE agents and/or TVET industrial extension agents if clients have remained near
the one-stop service centre, or by DAs if clients have returned to their communities. In the latter case,
the MSE Agent must provide the client’s livelihoods checklist to the DA for follow-up.

Inputs and marketing

MSE agents and/or TVET industrial extension agents will advise clients on sources of inputs and market
outlets, and facilitate linkages, as appropriate.

Employment Pathway

WEP will not be implemented across the board but in woredas/regions having the potential to provide
wage employment. The Wage Employment Pathway (WEP) will be reshaped and a new approach will
be piloted to link clients to seasonal jobs in nearby small and secondary cities. The WEP will tackle the
main challenges of migrating to nearby cities, by providing access to information, training schemes,
and subsidies to cover migration costs as determined by the design of the pilot. The focus will be on
youth and on high potential areas for wage employment in nearby small and secondary cities.

32
Implementation will be done by the Rural Jobs Opportunities Creation directorate (RJOC) 5 , with
policy/strategy level support from the Jobs Creation Commission (JCC) at federal level and relevant
technical support from the Employment Promotion Directorate of MoLSA. WoLSA in collaboration
with SME and NGOs (where available) will implement the WEP at the woreda level. The approach will
be phased, starting by i) a diagnostic and design phase, ii) a pilot phase, and iii) a scale-up phase to
ensure the effectiveness of the services provided and their alignment with rural labour market
realities. NGOs where available will participate and support WoLSA and SME.
The identification of high potential woredas for the pilot phase, as well as an assessment of existing
infrastructure in these locations, will be undertaken during the diagnostic and design phase. The
assessment will inform the design of the job centers for rural areas, the modalities for the pilot, as
well as determine in detail the process of service delivery and staff requirements. The criteria to
identify high potential areas for wage employment also will be defined during the diagnostic phase.
During the pilot phase, a limited number of Job Centers (up to 10) will be piloted in rural areas and
public work clients will be linked to those services (The Job Centers should be aligned with selected
potential woredas for the WEP). Different modalities and delivery of services will be tested, including
combinations of job matching, training, access to information, and transport subsidies. The staff will
be trained to deliver the services mentioned above and supported by the off-farm expert and social
workers assigned at the woreda level. Rigorous monitoring and evaluation will be implemented during
the pilot phase to inform and improve the design of service delivery before scale-up.
The employment pathway seeks to link PSNP clients to sources of wage employment, for instance at
medium to large-scale businesses such as horticultural farms, sugar plantations, construction
companies, etc. Implementation of the Employment Livelihoods Pathway will be the responsibility of
which ever agency in the region has responsibility for linkages to employment in rural areas. This may
vary from region to region and may include BOLSA, REMSIDA/TEVT or the Rural Job Creation and Food
Security Sector. Monitoring will be conducted jointly by the responsible agency and Extension.
Likewise, NGOs can provide technical support to the respective regional offices. Employment potential
will vary significantly from region to region and zone to zone, and the provision of support for the
employment pathway will be adjusted accordingly, focusing on areas of strong labour demand.
The employment pathway will be designed and redrafted after the job pilot document has been
finalized

5.4.13. Referrals from DAs to RJOC line structure at Woreda and Kebele
Following client livelihood consultations, DAs with support from NGO staff (where available) will
create lists of clients that select employment pathways. The DA will submit these lists to the Woreda
Extension Desk/Process, which will aggregate them and submit them to RJOC line structure (and/or
to one-stop service centres, where available). These lists will be cross-checked against existing labour
market demand for various types of employment opportunities, per information provided by BOLSA
and TVET. Based on market demand, the Woreda Extension Desk/Process, RJOC and TVET will agree
on the number of trainees for each course, and RJOC will transfer PSNP livelihood capacity building
funds to TVET to cover training costs, including:
• Trainer fees
• Training materials

5 RJOC is establishing a structure at lower levels (i.e. RJOC experts are being deployed at every kebele and One Stop Services (OSSs), which
facilitate employment creation, will be established for every three to five kebeles).

33
 • Participant room and board
In addition, the programme will cover the participants’ transport costs to the TVET.

5.4.14. Training
Technical trainings are expected to last from 7-12 days to 2-4 months, and may take place at FTCs/PTCs
for shorter-term trainings (in which case the programme will cover the trainer’s transportation and
lodging costs) or at TVET institutes for longer-term trainings. Trainings will be tailored to available
employment opportunities, with the aim of allowing clients to compete for more secure and better-
remunerated employment. Wherever possible, employers will be involved in the provision of training.
In some instances, employment opportunities will take the form of seasonal casual labour. In this
instance, training requirements may be minimal.

Employment linkages

Unlike the crop and livestock and off-farm livelihood pathways, the employment pathway does not
have a business plan preparation stage or a finance approval and referral stage. Rather, following the
completion of trainings, TVET agents will prepare a list of clients who have successfully completed
training. BOLSA, REMSIDA/TEVT or the Rural Job Creation and Food Security Sector has the
responsibility for linkages to employment in rural areas based on who is responsible in the region.
Trainings will typically include a period of “placement” with potential employers, and agreements will
be made ahead of time so that trainings culminate in a tangible employment opportunity.
Where employment opportunities are in the form of seasonal labour migration, the programme will
facilitate clients’ temporary migration to investment areas demanding labour (e.g. plantation areas,
construction zones, and others), and will provide training on health risks (e.g. HIV/AIDS) along with
other important topics, such as how to do a money transfer. The ESMF for the employment pathway
will focus in particular on the social and environmental impacts of labour migration.

Regional Variations

Agro-ecological characteristics, livelihoods, access to markets, opportunities for employment, and

institutional arrangements vary between and even within regions. Therefore, the implementation of
the livelihoods component will be tailored in each region according to local characteristics.

5.4.15. Pastoral lowland regions

The livelihoods pathways and general implementation activities outlined above are relevant to all
PSNP implementation areas, including the pastoral lowlands. Livelihoods interventions will take into
account the differing agro-ecological and sociocultural characteristics in pastoral lowlands, with
livelihoods tailored to pastoral livelihoods, agro-pastoral livelihoods, riverine agriculture livelihoods,
and ex-pastoral livelihoods.
Pastoral and agro-pastoral livelihoods fall within the crop and livestock pathway, and will be supported
through the extension service. Support provided to clients engaging in pastoral and agro-pastoral
livelihoods will include technical advice on indigenous herd growth and drought cycle management,
while support to those engaging in irrigated agriculture will focus on crop production and marketing.

34
Off-farm livelihoods and employment pathways will be particularly important for ex-pastoralist clients
and those living in small rural towns.
The table below lists possible livelihoods interventions in each of the livelihood areas.

Table 1 . Tailoring of Livelihoods Interventions to Livelihoods Types in Pastoral Lowlands

Livelihood
Illustrative livelihoods interventions
type
Pastoral • Training on animal husbandry, rangeland management, water resource management,
livelihoods herd management, drought cycle management, building on public works where feasible
• Training in livestock marketing
Agro-pastoral • Market assessments to ensure availability of markets for off-farm products and services
livelihoods • Training in crop production and marketing
Riverine • Training in irrigated crop production,
agriculture • Training in marketing
livelihoods
Ex-pastoral • Market assessments to ensure availability of markets for off-farm products and services
livelihoods • Training in business skills and marketing for petty trade
• Technical support to NRM-based income generating activities such as gum and incense
collection and marketing
• Adaptation of training curricula of TVETs, as needed
• Linkages to commercial farms and other employment opportunities

5.4.16. Regional institutional variations

Use of one-stop service centres in some regions
In some regions, REMSEDAs operate one-stop service centres in rural towns, combining the services
of REMSEDA, TVET, and an MFI. Where available, these centres will serve as the locus of interventions
for off-farm livelihood pathway activities.

Support to the off-farm pathway

Coordination of the off-farm pathway will be the responsibility of the LICU with training provided by
TVETs. However, in Amhara, REMSEDA and the TVET Agency have merged; therefore, support will be
provided jointly in that region.

Support to the employment pathway

Implementation will be done by the Rural Jobs Opportunities Creation directorate (RJOC), with
policy/strategy level support from the Jobs Creation Commission (JCC) at federal level and relevant
technical support from the Employment Promotion Directorate of MoLSA.
5.4.17. Livelihood pathways and market demand
Livelihood pathways may be prioritized differently in different regions and woredas depending on
market demand.

35
Clients engaged in the on- and off-farm pathways will be linked to input-output markets to facilitate
their ability to acquire appropriate inputs and to sell their products at the right times.

5.5. Livelihoods ‘Big-Push Plus (BPP) Pilot

In addition to the ‘big push’ on livelihoods, ‘big-push-plus (BPP) will be implemented in selected pilot
woredas of PSNP5 to enable increased chance of graduation or exit from the programme.
A total of 17 woredas are proposed to be targeted for the BPP pilot to enable enhanced programme
exit. Criteria will be employed for the selection of the woredas for the BPP pilot in Afar, Amhara,
Oromia, Sidama, SNNP, Somali, and Tigray regional states. The number of pilot woredas per region
will be proportional to regions’ respective number of PSNP woredas. The following criteria will be
applied to select the woredas having potential for the pilot:
i) accessibility and proximity to towns/markets;
ii) availability of financial service providers/ loanable fund;
iii) capacity to implement; and
iv) availability of other functioning institutions.

A total of 36,006 households or 165,628 beneficiaries are expected to be targeted in the 17 pilot
woredas. Out of these, 32,405 households or 149,065 clients (that would be 90% of the target
households/clients) are expected to exit from the programme within three years of the programme.

‘Big-Push Plus (BPP) Proposal in the pilot woredas:

The level of access to credit, technical support, group investment and approaches used differs the Big
Push Plus Pilot from the Big Push. This is described as follows:
Access to credit
• Engage as many and diversified financial service providers as possible Identify
and provide incentives (including loan guarantee where necessary) for financial
service providers to avail loans to PSNP beneficiary households who are generally
perceived as of higher risk of default
• Target livelihood beneficiary households in the pilot woredas will be supported to
access two or more rounds of credits; This depends on the willingness of FSP to
provide credit as well as household’s ability to repay the loan.
• Remove cap on loan size (to finance business proposals as adequately as possible)
Technical Support
✓ Maintain appropriate DA to BPP beneficiary households’ ratio (no less than 1:43)
✓ DAs commit to dedicate significant portion of their time to livelihood support of
beneficiary households
✓ Educated (10th grade to university degree holders) youth from PSNP households will
be hired and trained to serve as Community Facilitators and provide the level of
support and monitoring required for the livelihood beneficiary households

36
Increase livelihood capacity building budget unit cost to $90 per household. The additional $20 (as
compared to the $70 in BP woredas) will be used to put in place community facilitators 6 and increase
intensity of training.

It is critical to maintain the livelihood grant transfer provided to the bottom quantile of livelihood
beneficiary households. Because of their poverty status, these households are deemed of too much
risk that financial service providers are not interested to provide them loan. The livelihood grant
transfer ($300) is aimed at lifting them up to the level of credit worthiness. In the BPP pilot woredas,
it is proposed that the bottom 20% are provided with livelihood grant transfer. The LH grant transfer
should be made for all livelihood beneficiary households at once to allow sufficient time for post -
transfer follow up and support.

Group Investment: Another 20% of livelihood beneficiary households in each of the pilot woredas will
be supported ($300 per person/household) to engage in group investments that enable rural-urban
linkage, cluster farming and mechanization, and off-farm engagement. Beneficiary selection for the
grant for group investment will be merit based. They will be selected against a set of criteria which
may include:

✓ Landless youth and women or youth members of PSNP households in the pilot
woredas
✓ Willingness and demonstrated motivation to organize and invest in a group busines s
✓ Willingness to bring in matching fund and/or involve in mandatory saving

Additional activities:

✓ Support livelihoods beneficiary households engaged in crop and livestock pathway to

construct water harvesting structures, grow high value fruit trees, etc. and
✓ Establish youth groups from livelihood beneficiary households in the pilot woredas to
operate as agro-dealers supplying animal feed, improved seeds, tools, pesticides,
materials for construction of water harvesting structures, etc., provide service on
post-harvest handling of perishable products, etc.

Approach/Methodology

✓ Introduce the use of digital extension service (i.e. video of best-performing LH

beneficiary households will be used to inspire others)
✓ Introduce group mentoring to help LH beneficiary households become accountable to
each other
✓ Introduce contractual agreement between the program and beneficiary households
to encourage results and enhance accountability. Among other things, the agreement

6 The Community Facilitators will be hired from educated youth of PSNP ho useholds. The CFs will be given customized
training to support DAs and provide much needed assistance/ follow up to the LH beneficiary households.

37
 clearly indicates beneficiaries’ commitment to exit the program within a given period
of time on condition that they received what is promised by the program.

MIS Implementation

PSNP 5 program operations are MIS-based; all program operations involving beneficiary data (e.g.
targeting, PW attendance monitoring, payment, etc.) are carried out by program staff by their
accessing, editing/updating, or viewing the required data through the MIS, which is customized
software developed based on PSNP operational processes.

The MIS can be accessed down to the Woreda level. Data used in current program operations below
the Woreda, at the Community or Kebele level, is returned to the Woreda for entry into the MIS.

However, until the MIS is rolled out woredas will continue to use the RPASS

5.5.1. Livelihoods Module

The Livelihoods module allows Woredas to enrol households in the Livelihoods Component, identify
which livelihood pathway they opt for, and track their progress along this program process. It also
allows Woredas to enrol Livelihood Component beneficiaries into the Livelihoods Transfer in order
that the MIS adds them to the Livelihoods Payment list when it is generated.

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SECTION 6. KEY ROLES AND RESPONSIBILITIES IN LIVELIHOODS
IMPLEMENTATION

This section details the specific roles and responsibilities under the Targeting, Registry and
Enrolment programme implementation (implementers roles and responsibilities are detailed in
their respective manuals and annexes).

• has overall responsibility for delivering the livelihoods

Output. It is responsible for the overall program
oversight, coordination and quality assurance
(program management, resource allocation,
harmonized program planning, establishing
performance standards, and monitoring).
FSCD
• Serve as Co-Chair of the Joint Livelihoods Technical
Committee
• House the Livelihoods Implementation and
Coordination Unit, which brings together all livelihoods
implementing agencies
• Coordinate the implementation of all livelihoods
activities through the LICU

• providing the technical support for the on-farm

livelihood pathways. The Nutrition Coordination Office
will provide technical support in developing and
implementing a nutrition sensitive livelihood menu.
• Oversee crop and livestock pathways
• Responsible to provide proper technical support to the
PSNP5 complementary livelihoods interventions
Agricultural Extension Directorate • Develop directives and guidelines to help ensure
livelihoods interventions are well integrated with
regular extension system
• Provide technical support and check that PSNP clients
are not excluded and are benefiting from the extension
system
• Actively engage in the livelihoods technical committees
• Prepare periodic reports and annual plan

• Responsible for the implementation of the wage

employment pathway of with technical support from the
Employment Promotion Directorate of MoLSA and with
policy/strategy support from the Jobs Creation
Rural Job Opportunity Creation Commission (JCC) at federal level. RJOCC also supports
Directorate the other two livelihoods pathways including
• Support the crops and livestock and off-farm pathways
of the livelihoods component on entrepreneurship and
BDS training
• Participate in PSNP’s governance structures

39
 • Advise clients on the requirements of different types of
each livelihood during the client livelihood consultation
Woreda Subject Matter Specialists • Support technical training in the crop and livestock
pathway,
• Review business plans for feasibility and creditworthiness

• Overall oversight, control and monitoring of the

livelihood component
• Provide technical support to regions
• Provide technical support to regions
Livelihoods Implementation and
• In collaboration with NRMD, AED and SSID will provide
Coordination Unit
technical support for public works on private land. In
terms of mandate FSCD/LICU is responsible for the
delivery of this task.

• Enhance linkages between PW and Livelihoods

Natural Resource Management components
Directorate

Accountable for the overall coordination and implementation of

LH pathways as listed above, including the below but not limited
to:
• Provide technical assistance to PSNP LH clients within the
DAs crop and livestock pathway
• Lead HH identification for LH support
• Support business plan development and finance referrals
• Coordinate efforts with all implementing desks/experts.
• Mentor, supervise and guide Community Facilitators

Labour and Social Affairs • Oversee the implementation of the employment pathway
• Develop capacity of RUSSACCOs
• Prepare livelihood plans and report
Cooperative Promotion Office • Support the livelihood M&E system
• Provide training and support on financial products
tailored to livelihood clients

WOFED • Disburse livelihoods transfer

• Support RJOC on the wage employment livelihoods

Employment Promotion Directorate
pathway

• Provide policy/strategy support to RJOCD on the wage

Job Creation Commission
employment livelihoods pathway

40
 • Mobilise community groups for participation in livelihoods
activities
Women and Youth Affairs Desk for • Ensure prioritisation of women and youth in livelihoods
WAO; Women, Youth and Children activities, and that location and timing enable women to
Affairs attend
• Implement activities to strengthen women’s confidence
levels and negotiation skills

• Provide technical assistance to clients and DAs in livestock-

Livestock Development Sector related interventions
• Serve as Co-Chair of the Livelihoods Technical Committee

• Support RuSACCOs.
• Develop financial products to livelihood clients
• Provide training and technical support on rural finance
Cooperative Promotion Agency related areas to PSNP clients
• Actively engage in the livelihoods technical committees
• Prepare periodic reports and annual plan
• Market promotion

• Allocate credit fund for livelihood component

• Actively engage in the livelihoods technical committees
• Prepare periodic reports and annual plan
FSPs • Provide technical support for livelihood component
• Supervise livelihoods activities and providing technical
backstopping

• Foster linkages between public works and livelihoods;

Natural Resource Desk and
• Facilitate experience sharing among kebeles.

• Responsible for managing crop and livestock pathways

• Provide assistance to Das and communicate in the
planning process
• Consolidate livelihood plans, report and budget
• Implement livelihood ESMF
Agricultural Extension Desk • Supervise livelihood activities and providing technical
backstopping
• Support the livelihood M&E system
• Foster linkages between public works and livelihoods;
and
• Facilitate experience sharing among kebeles

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 • Provide technical training and support on livestock
pathway
• Implement livelihood ESMF
Livestock Desk • Support the livelihood M&E system
• Supervise livelihood activities and providing technical
backstopping
• Prepare livelihood plans and report

• Facilitate and support targeting/profiling of potential

livelihood clients for the big-push.
• Participate in and support identification of on-and off-
farm livelihood options such as value chains and income
generating activities (IGAs).
• Facilitate and support livelihood clients to choose and
engage in viable livelihood options.
• Sensitize households and create demand to engage in
identified livelihood options.
• Organize eligible households in livelihood groups around
preferred value chains and IGAs.
• Identify specific training needs and activities for
livelihood clients targeted for the big push program and
follow up with their implementation.
• Facilitate and assist livelihood clients in preparing good
quality business plans
• Support Environment and Social Management
Framework compliance screening of livelihood business
plans.
Community Facilitators
• Facilitate the creation of linkages between clients and
financial service providers to ensure access to credit
finance to implement their business plans.
• Keep records of relevant technical and socioeconomic
data about each livelihood activity using standard data
collection templates.
• Facilitate discussion sessions of Livelihood Groups on
gender, nutrition, aspiration to exit/graduation, climate
risk and vulnerability analysis and mainstreaming action,
etc.
• Provide/facilitate the provision of tailored LH related
support to women across the different steps required
• Regularly follow-up and support the implementation of
financed business plans.
• Assist livelihood groups in preparing and submitting to
DAs regular progress reports.
• Carry out other relevant duties that may be assigned by
the immediate supervisor.

• Coordinate its lower structures to provide appropriate

TVET/SME technical and vocational training to clients who have
chosen off-farm or employment livelihoods pathways

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 • Support FSCD in oversight for the off-farm of the LH
component
•
Provide technical support on off farm
•
Actively engage in the livelihoods technical committees
•
Prepare periodic reports and annual plan
•
Provide technical support for livelihood component
• Certify training completion
• Support business plan development and finance referrals

• Allocate credit fund for livelihood component

• Actively engage in the livelihoods technical committees
MFI
• Prepare periodic reports and annual plan
• Provide technical support for livelihood component

• Provide training in financial literacy and support savings

through VSLAs and other FSP’s
● Provide other livelihoods support as agreed with woreda
government structures
• Supporting woreda and kebele level institutional
strengthening.
• Supporting experts and community level technical
capacity building trainings, demonstrations, etc. related
to the livelihood pathways
• Strengthening input and output market linkages for on
and off farm pathways.
NGOs and other specialized service • Integrating activities of the livelihood pathways to the
providers NRM/ PW activities.
• Supporting the program with tested and practices
models, approaches, and practices (agriculture,
nutrition, NRM, etc.)
• Complementing the NRM (PW) initiatives with
appropriate NRM models.
• Supporting beneficiaries and impacts of the livelihood
pathways by nutrition, WASH, and gender related
components.

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