1. Future Agriculture Consortium
PSNP Beneficiary Households Livelihood
Profiles and Graduation Pathways Study
First Round Study Report (For Presentation to
Regional BoAs)
(By Dadimos Development Consultants and IDS)
December, 2011

2. 1.1. Introduction
•The GoE has launched the first food security
programme, alternative to crisis responses, in 2005, of which
PSNP, VRSP and OFSP are the components.
•The second phase of food security programme including
PSNP, HABP, CCI and VRSP was launched in 2010 to further
enhance the implementation of existing and new food security
programs
•The second phase Food Security Programme document
issued in August 2009 clearly links the objective the
programme with graduation
•The livelihood strengthening pathway of the programme
envisages first focussing on household asset
stabilization, then asset accumulation followed by access to
sufficient food all round the year and then graduation from
PSNP, then from the FSP.

3. •In this way graduation is formulated as an outcome of
combined supports of PSNP, HABP, CCI and other regular
development interventions to households.
•The experience of the 1st phase I (2005-2010)
implementation of FSP shows that graduation is not as such
a linear and progressive process
•Based on this, this study is designed to track the livelihood
profiles of a range of PSNP beneficiaries over two and half
years in order to learn lessons and provide options for the
future of social protection post- PSNP in Ethiopia
•Accordingly, first round research/field work was conducted
from July-August, 2011 in 8 communities of four woredas of
Tigray and Oromia Regional States through in partnership
with the two Regional States Bureaus of Agriculture (BoA),
Institute of Development Studies and Dadimos Development
Consultants PLC.

4. 1.2. Objective of the Study
•To learn from and reflect on the way households
manage to strengthen their livelihoods and reduce their
vulnerability to modest shocks in different PSNP
scenarios.
•To provide empirical evidence on multiple
administrative and community-based thresholds as
necessary and sufficient conditions for graduation of
households from food insecurity.
•To provide ideas on methods for the application of
combined administrative and community-based
thresholds to simplify the implementation of graduation
process by woreda staff and community.

5. 1.3. Research Methodology
1. 3.1 Methods
•To address to the above-mentioned objective of this
research it requires collection and analysis of qualitative
and quantitative data. Thus it requires to
•Review existing PSNP panel survey data by IFPRI/CSA
and IDS/Dadimos/CSA,
•Secondary data/documents collection and analyses on
different components of PSNP (especially on PSNP, OFSP
and HABP),
• Undertaking household (HH) survey,
•Key informants interview (KII) with Food Security Task
Force (FSTF) at federal, regional, woreda and Kebele
levels, and traders interview at woreda/kebele level. (KII at
federal, regional and traders interview will be conducted in
the next round research),

6. •Focus group discussions with different group of
community members i.e. male and female on upward
and stagnating livelihood trajectory (four groups) and
graduated households,
•Conducting case studies at household level with
graduated, current PSNP beneficiary and none PSNP
beneficiary HHs to further enrich the data from the
perspective of individuals (will be conducted on next
round study), and
•Observation is organized at village level.
•1.3.2. Sampling
•Purposive sampling method was employed to provide
adequate evidence and lessons from PSNP graduation
process,

7. •The research covered 8 communities from 4 woredas of Tigray
and Oromia regions,
•These communities were identified as part of the research
undertaking considering contrasting situations that significantly
affecting graduation
•Moreover, sample communities should align with previous
panel surveys of IFPRI/CSA or IDS/Dadimos/CSA
•HH Sampling
•A total of 75 households were sampled and interviewed in
each woreda using structure survey questionnaire.
•In total 300 households were interviewed from the four
sample communities.
•From these households were 20 graduates, 15 non-
beneficiaries and 40 PSNP PWs beneficiaries.

8. 1.4. Research Schedule
The research is scheduled to be conducted in four
rounds. The followings are schedules for conducting
HH survey and qualitative assessment.
Household survey
First round in June/July 2011
Second round in June/July 2012
Qualitative assessments
First round in June- August 2011
Second round in December 2011-Feb 2012
Third round in June-Aug 2012
Fourth round in Dec- Feb 2012

9. Summary of Findings and Discussion
2.1. Access to PSNP
•The proportion of households getting transfer for each
member has shown much improvement overtime in
Tigary, as described by both current beneficiaries and
graduated households, while it has declined from the initial
status in Oromia.
•The decision of the government to realise full family
targeting in Tigray and increase in family size in Oromia are
found to be important reasons for change in size of transfer
per households.
•Delay in transfer is a common phenomenon in both regions
that compromised the effectiveness of the programme in
providing predictable transfer to support food gap and
protect asset depletion. More than 55% and 45% of current
beneficiary households in Oromia and Tigray respectively
have indicated as the transfer comes delaying for a month or

10. 2.2. Graduation from PSNP
• The majority of both the current beneficiary and graduated
households are informed about graduation from different
sources, mainly from KFSTFs and DAs. Moreover, about
three quarter of the respondents do know the official
graduation criteria in their kebele.
•Outlook of Graduated HHs
•The feeling of graduated households about graduation from
the program is mixed. About half of the graduated
respondents have indicated that they graduated without
readiness. Moreover, a quarter and one-third of the same
respondents in Tigray and Oromia respectively have
indicated as they have no confidence at all about not to need
PSNP in the future.
• Many of the respondents (more than 50% in Tigray and
more than 80% in Oromia) did not appeal to return to PSNP.
expecting no change in Tigray and not knowing whom to
appeal in Oromia are the most important reasons for not

11. •Community FGD also indicated as those who knows the
existence of appeal system do not dare to appeal since they
have no confidence on the system that they will get the right
decision.
•At the same time, however, majority of the graduated
households (around 80%) in both regions have indicated as
they achieved some or much improvements in their food
security situation after graduation.
•KII: FSTF In sampled woredas of Tigray explained that the
status of graduated households has improved after
graduating from PSNP. However, FSTFs in Oromia reported
as graduated households are not showing a major change in
their livelihood. They further indicated as some graduated
HHs even returned to PSNP due to recurrent
draught, erratic rain fall, hailstorms, wild fire and flooding that
occurred in the woredas that made the households to lose
their productive assets.

12. Perspective of Current Beneficiaries
•Majority of the current PSNP beneficiary households (about
65% in Tigray and 90% in Oromia) have confidence (even if
it varies in degree from highly confident to somewhat
confident) to graduate from PSNP. However, there are some
households (34% in Tigray and 8% in Oromia) who have no
confidence at all.
2.3. Constrainers & Enablers of Graduation
•PSNP specific constrainers: according to KII from WFSTF & KFSTF,
very low PW wage rate, delay in transfer payment, cash
transfer instead of food are the key constrainers in
facilitating the graduation process. In addition unable to buy
fertilizer on cash basis, inadequate loan size and limited
coverage, resistance of accepting new agricultural
technology by farmers are also reported to be contributing
factors to retard graduation

13. •Community FGD have also indicated similar constraints, in
addition they pointed as absence of FFT, high interest rate of
credit (in Tigray), inappropriate schedule and extended time of
PW consumes time for private work, and shorter loan repayment
period as PSNP specific constraining factors.
•PSNP specific (potential)Enablers: KII of WFSTF & KFSTF
have indicated list of enablers as follows: timely transfer
payment, strengthening public works activities that are focusing
on soil and water conservation, dependable output markets for
PSNP household products, increased money saving culture by
PSNP beneficiaries (Tigray) and the effective implementation of
HABP.
•Community FGDs have also indicated similar enablers, among
others: environmental protection and infrastructure developed by
PWs, OFSP/HABP credit, PSNP transfer to bridge food gaps are
mentioned.

14. . Beneficiary specific Constrainers: according to KII from
WFSTF & KFSTF unwillingness to graduate, hiding assets
during assessment, low initial asset base (being the poorest
of the poor), dependency mind set on PSNP transfer and
misuse of transfer by some households are mentioned
•Location specific constrainers: absence of large
investment projects( except in Z/Dugda), animal diseases (
in both woredas of Oromia), crop diseases and low
productivity of land ( in S/TS/Emba woreda of Tigray)
•Market specific constrainers: problem of seasonal price
fall for vegetables and fruits, high price of crops,
commodity and transportation are the major constrainers
of graduation that are related to markets

15. 2.4. Access to OFSP/HABP and Extension Support
•The majority (over 78% of current beneficiary and 90%
graduated) of households in Tigray have accessed
OFSP/HABP credit services, while only limited percentage of
(14.6% of current beneficiary and 43.6% of graduated)
households have accessed OFSP/HABP credit in Oromia.
• Moreover, the amount of credit provided per household
from OFSP/HABP is by much higher in Tigray (Birr 7,225 per
household for current beneficiaries and Birr 7,776 per
household for graduated) than in Oromia (Birr 2,036 for
current beneficiaries and Birr 3,256 graduated households).
•KII: However, none of the sampled woredas in both regions
started to provide credit from HABP until this research was
conducted, August 2011

16. •Regarding loan repayment, in Tigray the current
beneficiary, graduated and none beneficiary households
have repaid about 76.4, 55.5 and 74.8 of their credit
respectively when this survey was conducted. The same way
about current beneficiary and graduated households in
Oromia repaid 75% and 46.5% of their original loan amount.
•About 35% of current beneficiary and 37.1% graduated
sample households in Tigray indicated the need for
additional credit. In Oromia woredas about 97% of current
beneficiary and 93% graduated households demanded
similar additional credit.
•Moreover, majority of users of OFSP/HABP (71.3% current
beneficiary and graduated households in Tigray have
prepared business plan on how to utilize credit money they
were provided.

17. •As opposed to this, limited percentage of households (48%
current beneficiary and 36.1% graduated households) in
Oromia reported to have business plans to make use of
OFSP/HABP credit.
•Some FGD participant community have indicated as they
did not get access to credit services; improving women in
ZDugda, Oromia have indicated as priority is given to men in
provision of credit (particularly the in-kind credit); some of
stagnating men in kebbele of S/TS/Emba Woreda, Tigray,
also indicated as they did not get access to credit services.
•KII and community FGD has also indicated as the
effectiveness of credit is affected by various factors.
Accordingly type of loan (cash or in kind), weather the loan is
demand driven or supply side push and follow up, type of
activity/package, and using the credit for the intended
purposes affects the effectiveness of credit provided.

18. Recommendation on credit service (by KII and FGD):
•Timely release of HABP credit, Increasing the loan
size, giving attention to the implementation of
HABP, Strengthening basic cooperatives and credit and
saving associations at kebele level, Expanding community
complementary investment (CCI) projects like large scale
irrigation, Improving marketing services, Extending loan
repayment period, Provision of demand based credit and
others. Increase in loan size has got much attention by the
community.
2.5. Livelihood Trends and Trajectories
•HH Survey: There is no major change in livelihood activities in
both regions over the last five years (from 2005 to 2010), except
the proportion of households engaged on cash crop farming
which showed some increase.
•Improvement in extension services, increase in supply of inputs
and savings of PSNP transfer and access to credit packages were
the main reasons for change in economic activities. In general
about three-quarters of all respondent households in both regions
have reported improvement in aggregate income over the last five

19. •The responses obtained from Community FGD indicated
that graduated households and men FGDs on upward
livelihood trajectory in Z/Dugda and both woredas of Tigray
have better access to irrigation activities than men FGDs on
stagnating livelihood in same woredas.
•The men FGDs on stagnating livelihood trajectory on the
other hand are more engaged in causal labour
works, trading and providing services than these households
•The HH survey result indicates as 68.8/55.6%, 82.5/51.3%
and 70/60% of current beneficiary, graduated and none
beneficiary households do meet their 12 month food need in
Tigray/Oromia.
•Shocks: Drought, crop loss (due to pest and unsuitable
weather) and high food prices are the three most important
risks experienced by sample households in both regions
among others during the past 12 months.

20. •Most of the respondents in study areas of Oromia have
indicated drought happened in the past 12 months as major
shock.
•HHs on Stagnating Livelihood trajectory: low initial asset
base of a household, landlessness and low productivity of
the land , partial family targeting , frequent drought that
affected crop harvest and death of livestock are factors that
holdback improvement of the livelihood of these households.
•HHs on Improving Livelihood trajectory: Access to
irrigation facilities (except in Fedis, Oromia), credit from
household packages, better use of various agricultural
technologies and inputs, technical support from DAs and the
motivation and efforts exerted by households themselves to
change their own life helped them to move upward

21. 2.6. Conclusion and Recommendation
•Access to PSNP: Ensuring FFT (particularly in Oromia) and
timely transfer of payments (in both regions) has to get
attention.
•Most the PSNP beneficiary HHs do have awareness and
understanding on Graduation. However, there is a need to
improve awareness of the community on systems and
functions of appeal mechanisms and make them develop
confidence on the system
•Absence of timely transfer, low wage rate, cash transfer,
insufficient and high interest rate of credit and extended and
inappropriate schedule of PWs are identified as programme
specific constraints of graduation that need to be solved to
attain graduation performance as needed.
•Moreover, beneficiary specific constraints (dependency,
hiding asset and inappropriate use of transfers), location and
weather related constraints ( absence of large investments,
drought, animal and human diseases) and market related
constraints ( like fluctuation in price of produces and soaring
price of goods and services needed by the community, etc)
were mentioned.

22. •Thus it needs to create more awareness to the
beneficiary about the objectives of the FSP, link the
FSP with other regular development interventions i.e.
control animal and plant diseases, expansion of public
and private investments, creating dependable market
for products demanded and supplied by PSNP
beneficiary HHs and the like
•Access to credit services is considered as imperative
by both KI and FGD participant community.
•However, access to credit (both in coverage and
size) is limited in Oromia, while interest rate is an
issue in Tigray.
•Moreover, HABP credit is not provided in both
regions.
•Most of the FGD participants have urged for increase
in loan size, reduce interest rate and demand base
(cash) credit.
•Thus solving these bottlenecks in speedy way is

23. •There has been improvement in livelihood and income of
the community mainly due to expansion in extension
services, increase in supply of inputs and savings of PSNP
transfer and access to credit packages.
•Access to credit by graduated households and current
beneficiries on upward livelihood trajectory in Z/Dugda and
both woredas of Tigray is also reasons for improvement in
livelihood activities and income.
•Contrastingly those households on stagnating livelihood
trajectory are more engaged on causal labour works, trading
and providing services than improving households. This is
mainly due to limitation of access to credit services for inputs
(motor pumps), land and other working capitals.
•Thus expansion of irrigation facilities to the community is
also very important for improvement in livelihood status.

24. The End
Tank You!