Local Food Aid Procurement in Ethiopia
This case study was undertaken as part of a research project that aims to develop good practice guidelines for maximising the developmental impact of local and regional food aid procurement. Efficient and effective provision of food aid is recognised as an important element in achieving the International Development Goal of halving the number of people living in extreme poverty by 2015.
Local procurement is cheaper than aid tied to donor country sources, and the food aid agencies estimate the saving at 25 to 30% of the landed cost of imports. Nevertheless, various donors, including the leading donor (USA), continue to tie their aid to home supplies. One conclusion that can be drawn, on the impact of local aid procurement, is that it has had an overall positive impact on rural welfare in Ethiopia, by supporting producer prices, creating employment through the value chain, and multiplier effects within the economy at large.
This case study examines the Ethiopian grain market, the emergency food security reserve administration, local food aid procurement in Africa and the impact of local food aid procurement in Ethiopia. Conclusions and recommendations are also presented.
Local Food Aid Procurement in Ethiopia, Natural Resources Institute, Chatham, UK, 72 pp.