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An Assessment of the financial viability and income impact of small scale irrigation in Ethiopia

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  • Makombe, Godswill
  • Hagos, Fitsum
  • Namara, Regassa
  • Awulachew, Seleshi Bekele

Abstract

Recently, there has been very little irrigation development in sub-Saharan Africa. The main reasons cited for this lack of interest in developing irrigation in sub-Saharan Africa is that irrigation projects are expensive and perform poorly compared to projects from other regions. However, when classified into success and failure projects, the sub-Saharan Africa success projects’ investment costs are not significantly higher than from other regions. African countries like Ethiopia, which has embarked on an agricultural led development program, aspire to use irrigation as a development strategy with small scale irrigation playing a key role in rural development. This study evaluates the financial performance of small scale irrigation using O & M and investment recovery, and the ability to replicate the investments. It is concluded that the systems are financially viable and provide a low cost development option for rural areas.

Suggested Citation

  • Makombe, Godswill & Hagos, Fitsum & Namara, Regassa & Awulachew, Seleshi Bekele, 2008. "An Assessment of the financial viability and income impact of small scale irrigation in Ethiopia," IWMI Conference Proceedings 245356, International Water Management Institute.
    • Handle: RePEc:ags:iwmicp:245356
    DOI: 10.22004/ag.econ.245356
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    1. Inocencio, Arlene & Kikuchi, Masao & Tonosaki, Manabu & Maruyama, Atsushi & Merrey, Douglas J. & Sally, Hilmy & de Jong, Ijsbrand, 2007. "Costs and performance of irrigation projects: A comparison of Sub-Saharan Africa and other developing regions," IWMI Research Reports 44516, International Water Management Institute.
    2. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    3. Adams, W. M., 1990. "How beautiful is small? Scale, control and success in Kenyan irrigation," World Development, Elsevier, vol. 18(10), pages 1309-1323, October.
    4. World Bank, 2006. "Ethiopia : Managing Water Resources to Maximize Sustainable Growth," World Bank Publications - Reports 8170, The World Bank Group.
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    1. Hagos, Fitsum & Makombe, Godswill & Namara, Regassa & Awulachew, Seleshi Bekele, 2008. "Importance of irrigated agriculture to the Ethiopian economy: capturing the direct net benefits of irrigation," IWMI Conference Proceedings 246409, International Water Management Institute.

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