Needs assessment to enhance public-private partnerships in smallholder irrigation development and management in Ethiopia

Ethiopia has significant untapped irrigation potential, but progress in the sector remains constrained by sole reliance on public investment, governance challenges, and limited private sector participation. Recognizing these issues, the Government of Ethiopia has prioritized Public-Private Partnerships (PPPs) as a strategy to accelerate irrigation development, enhance agricultural productivity, and improve rural livelihoods. In collaboration with the Ministry of Agriculture and the Ministry of Irrigation and Lowlands, the International Water Management Institute (IWMI) conducted a comprehensive needs assessment to identify stakeholder priorities and guide the development of viable PPP business models for smallholder irrigation. This study, part of the CGIAR Diversification in East and Southern Africa (UU) initiative and Scaling for Impact Science Program, is designed to inform the national guidelines for PPP implementation in Ethiopia’s smallholder irrigation sector. The report presents insights from extensive stakeholder mapping, key informant interviews, and focus group discussions across multiple regions in Ethiopia. Findings reveal strong interest among farmers and private sector actors to engage in irrigation PPPs, provided clear policies, incentives, and institutional support systems are in place. However, challenges remain, including fragmented governance, inadequate infrastructure, limited access to credit, weak market integration, and capacity gaps among farmers and Irrigation Water User Associations (IWUAs). Key recommendations emphasize the need for clear legal frameworks, strengthened institutional capacity, incentives to attract private investment, value chain integration, and targeted capacity building for farmers and IWUAs. The study also highlights the importance of inclusive approaches that engage women and youth, and the need for effective monitoring and regulation to ensure PPPs contribute to social equity and environmental sustainability. By addressing these systemic challenges, PPPs can become a transformative tool for Ethiopia’s smallholder irrigation development, supporting food security, climate resilience, and economic growth. This report serves as a critical reference for policymakers, practitioners, and development partners working to foster sustainable and inclusive irrigation systems in Ethiopia and beyond.