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| The Italian Development Cooperation in Ethiopia |
The current financial commitment of the Italian Development Cooperation in Ethiopia is regulated by a country programme that has financed 49.3 million Euros to be employed over a period of three years, 2009, 2010, 2011. The primary sectors and activities the IDC is involved on in Ethiopia are:
Education (24 million Euros) Education is a major sector of intervention of the Italian Cooperation in Ethiopia and it involves the development of primary education and of a technical-professional system (also through the rehabilitation of four technical institutes of national relevance), higher education for the Universities of Addis Ababa and Alemaya. Furthermore the IDC contributes to the multidonor trust fund (together with the World Bank, DfID, the Netherlands and Finland) that finances the General Education Quality Improvement Programme - GEQIP.
Infrastructure: Water and Energy (10 million Euros) After concluding the Gilgel Gibe II project the Italian Development Cooperation’s action has been concentrated on the realization of water distribution systems in five towns and in five rural districts throughout the country. These interventions are associated with dedicated training and complementary actions to ensure environmental health. Thank to these contributions, even if limited when compared to other donors’, and to a continuous participation in bilateral dialogue, the IDC has a key role in the sector and represents ever since 2009 DAG’s WASH Technical Working Group.
Health (18 million Euros) Italy, together with all other major donors, contributes to the MDG Fund managed by the Ministry of Health in order to grant the response to basic needs and the overall strengthening of the health system. Moreover the IDC finances a programme dedicated to regional health in Oromyia and Tigray, having taken up a leading role in the set up of a National Health Information System.
Agriculture and Rural Development (9 million Euros) The IDC operates in the horticulture development, where the potential is much higher both in terms of productivity and profit through a programme run by the Istituto Agronomico Mediterraneo of Bari. As far as small farmers are concerned the IDC, supported by the Istituto Agronomico d’Oltremare, works to increase productivity and profitability of two traditional cultures - durum wheat and coffee from the forest of Harenna – through the strengthening of key institutions and by adopting specific agricultural and post harvesting practices in order to allow production to increase its market value.
Humanitarian Emergency (1,5 million Euros) In order to respond to the major humanitarian emergency currently striking the country a one million dollar programme was established to finance NGO intervention on the field especially in the WASH and health sectors. An extra fund of 500.000 USD has been transferred to OCHA for immediate humanitarian relief.
Debt Cancellation Ethiopian debt has been entirely cancelled through three consequent phases: with the signing of the pre-HIPC Agreement on the 5th of June 2002 Italy has cancelled the first tranche of the debt equal to 10.990.000 Euro; in 2003 the second partial cancellation was achieved, the so called Interim Debt Relief, for an amount of 23.940.000 Euro and, once the completion point was reached in January 2005 the debt has been totally cancelled, the third tranche being equal to 332.353.000 Euro. Over the years Italy cancelled a total debt of 367.280.000 Euro. Art. 2 of the Agreement on the cancellation of the debt, signed by the two Governments in January 2005 reaffirms the need to respect human rights and fundamental freedoms, meanwhile limiting the use of armed forced in conflict resolution. By signing the Agreement the local Government expressed its commitment to invest funds deriving from debt cancellation into the sectors of greates development impact for the country. Along with the final cancellation of the debt, according to the terms agreed upon in the Agreement, the Ethiopian Government through the Ministry of Finance and Economic Development (MoFED) has presented in April 2005 to the Italian Republic a letter of intents in order to express its commitment to use the available resources to push the growth of the four main sectors: basic health services, infrastructures, rural development and education.
FUTURE PERSPECTIVES Italy has started discussing together with two European partners, namely Ireland and Austria, the possibility of a joint strategy for the next country programming in order to maximize aid effectiveness and harmonize the overall aid system.
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