Strengthening Climate Resilience of Ethiopia’s Smallholder Farmers: Bundled Climate-Smart Solutions for Agricultural Commercialization Clusters (ACCs)
Blog
On October 14, 2024, the Alliance of Bioversity International and CIAT, ATI and Lersha held a workshop in Ethiopia to update progress on their initiative to de-risk smallholder farmers from climate-induced challenges in the Agricultural Commercialization Clusters (ACC).
By: Sintayehu Alemayehu, Sintayehu Workeneh, Lidya Tesfaye, Yodit Yaregal Seyoum, Tadesse Terefe
Edited by Joseline Kiogora
To boost Ethiopia's agricultural sector, the government launched the Agricultural Commercialization Cluster (ACC) initiative in 2019. This initiative aims to raise farmers' incomes, expand market opportunities, enhance agro-processing, increase product volumes, and create more jobs. Smallholder farmers, however, face major challenges due to climate change. Unpredictable rainfall, frequent droughts and extreme weather events are causing crop failures, reducing incomes, and threatening the livelihoods of smallholder farmers, leading to increased food insecurity.
To build resilience against climate variability, it is essential to integrate bundled climate-smart agricultural solutions across the ACC. In response, the Alliance of Bioversity International and CIAT and the Agricultural Transformation Institute (ATI), have been developing tailored climate-smart solutions for the maize value-chain across the ACC. This effort is part of the Ukama Ustawi (UU) Initiative, aimed at addressing the specific challenges faced by smallholder farmers. It is within this context that, on October 14, 2024, the Alliance, ATI and Lersha jointly organized a progress update workshop for the de-risking smallholder farmers from climate-induced risks across the ACC using bundled climate-smart agricultural solutions initiative. The event presented the latest findings on climate risk and climate-smart agriculture solutions to manage risks across the maize value chain in four ACC pilot zones, and a climate-smart credit scoring tool.
Dr. Sintayehu Alemayehu - Scientist and Research Team Leader at the Alliance - opened the workshop. He outlined the workshop's objectives and highlighted the critical need for developing context-specific climate-smart solutions to help smallholder farmers in Agricultural Commercialization Clusters (ACC) to build resilience against climate variability.

Dr. Dagnachew Lule, Agricultural Commercialization Cluster (ACC) Senior Director of ATI, addressing opening remark for the invited participants.
“Access to credit and insurance for smallholder farmers in Ethiopia has failed time and time again, despite the numerous efforts aimed at improving access,” said Dr. Dagnachew Lule, Senior Director of the Agricultural Commercialization Cluster Program from ATI in his opening remark.
Dr. Dagnachew highlighted the success of the pilot initiative for developing bundled climate-smart agricultural solutions within the maize cluster. He emphasized the need to scale these solutions to other maize clusters and commodities across ACC and ACC II. Additionally, he expressed interest in forming partnerships with the private sector. Dr. Dagnachew also underscored the importance of identifying climate risks to implement proper adaptation mechanisms during ACC II. He highlighted the role of ATI's newly developed ACC manual in standardizing practices and emphasized the need for effective resource management to maximize community impact at the local level.
Climate Change Impacts on Maize: Challenges and Solutions

Tadesse Terefe presenting the overview of the project findings.
Dr. Tadesse Terefe - Research Coordinator at the Alliance - presented a comprehensive analysis of climate risks associated with maize cultivation in selected ACC clusters across four southern Ethiopian zones: Wolaita, Sidama, Gofa, and South Omo. This in-depth study examined the climatology of various climate variables, identified climate hazards, assessed their impacts and sensitivity, and explored the overarching effects on maize production.
Utilizing a robust methodology that included statistical analysis of climate observational data, field observations, and climate data modeling from 1981 to 2023, and 2020-2050, the study identified four primary hazards affecting maize production: drought, flooding, heat stress, and the proliferation of pests and diseases. The finding indicated that temperature and precipitation variability have significant implications, directly affecting growing degree days and the length of the growing season. These findings underscore the urgent need for targeted strategies to mitigate climate risks and safeguard maize yields in these vulnerable regions.
Dr. Sintayehu Workneh - Research Management Coordinator at the Alliance - presented an overview of the existing climate-smart agriculture (CSA) practices used by the maize farmers to adapt to the climate variability and change-induced risks as well as increase maize yield across four zones. The study identified 17 practices under 6 categories including conservation agriculture, integrated soil fertility management, soil and water management, agroforestry, water harvesting and irrigation and small/micro-scale irrigation. His presentation further mapped CSA practices in the four zones and proposed a set of unexplored CSA practices for each zone.
The presentation highlighted several barriers to adopting CSA across four zones. These include a lack of knowledge and practical skills among farmers, limited access to timely and relevant climate information, and inadequate agro-climate advisory services. Additionally, the inconsistent transfer of climate-resilient technologies, widespread capacity limitations among stakeholders and restricted access to reliable climate information services were also identified as challenges.
To address these challenges, the presentation proposed the need for a suitability analysis for maize and other crops under current and future scenarios, inclusive digital solutions, bundled climate advisory, credit and insurance services and capacity building of all stakeholders as solutions.

Sintayehu Workeneh presenting on climate-smart agricultural solutions for enhancing the resilience of maize producer smallholder farmers.
Climate-Smart Scoring Tool for Smallholder Farmers

Shambachew presenting the climate-smart credit scoring tool.
Mr. Shambachew Oumer from Lersha shared insights on our exciting collaboration with the Alliance. This joint effort is focused on developing a climate-smart credit scoring tool designed to support smallholder farmers in Ethiopia. This tool aims to address the critical challenge of limited access to financial resources (a key barrier to building farmers’ climate resilience). In his presentation, he highlighted key gaps in the agri-finance landscape including limited information, high perceived risks, and climate-induced threats to productivity. He also emphasized the urgent need for improved financial services to help farmers become more bankable and secure the resources they need.
Highlighting the limitations of business-as-usual credit assessments, Shambachew presented the 'Data-Driven Climate-Smart Credit Assessment and Scoring' tool as a solution to the identified challenges. This innovative tool employs a hybrid approach that combines expert opinions with various climate data and socio-economic points to create a comprehensive score card, aimed at providing lenders with a clearer understanding of farmers' creditworthiness. Packaged as a digital platform, this service seeks to deliver a blend of solutions, including finance, inputs, insurance, agro-climate advisory and market linkage. Ultimately, this integrated approach is designed to empower smallholder farmers and enhance their financial opportunities, contributing to their climate resilience.
Reflections and Way forward
Professor Nigussie Dechassa emphasized the value of climate information services (CIS) as a key climate-smart agriculture (CSA) approach for all ACC clusters and commodities. He highlighted CIS as a promising area for exploration and stressed the importance of integrating Indigenous knowledge with modern scientific methods to develop innovative climate risk management solutions.
Professor Nigussie also emphasized the crucial role of smallholder farmers, stating: “Smallholder farmers are the basis of the CSA system; therefore, we need to ensure access to finance to implement the CSA practices effectively.
Finally, he praised the progress made, adding: “This is a promising start. Building a strong working relationship and exploring synergies will be key to achieving successful results.”
Dr. Aweke Mulualem, Director for Natural Resource and Climate Change of ATI, reflected:
“We need to understand what policymakers need to make the right decisions, and how research institutions such as CGIAR can support in the assessment of the existing challenges in adopting and scaling CSA practices and the science-to-policy development process.”
He further emphasized the need to engage private sector actors such as Lersha in addressing the challenges. He applauded “ACC II will be implemented with these advanced CSA tools at hand, which is an enormous achievement.”
The workshop concluded by reaffirming the project's substantial contribution to the ACCs program, particularly through the successful pilot of maize climate risk profiling and the development of a climate-smart credit scoring tool. These tools are designed to strengthen the ACCs' decision-making processes and will be integrated with ATI’s digital platform for wider impact. Participants praised the positive outcomes and the collaborative efforts of the Alliance, ATI and Lersha. A follow-up validation workshop is planned to gather feedback from key regional stakeholders and ensure broad support for scaling the initiative across other zones.

Prof. Nigussie Dechassa delivering way forward

The Team

Sintayehu Alemayehu
Project Leader
Sintayehu Workeneh Dejene
Research Management Coordinator
Tadesse Terefe Zeleke
Research Project Coordinator - Climate Change and Water Resources Management
Lidya Tesfaye
Research OfficerFurther Reading


