Analysis of donor investment in Ethiopian Institute of Agricultural Research

Abstract

The study examines the impact of foreign aid on agricultural research in Ethiopia over the period 2011-2020. According to the study, donor allocations averaged 23% of the total amount of funds received by the institution in the form of loans and grants in 2020. Donors' investment in Ethiopian agricultural research is decreasing and negative growth has been recorded, from 33% in 2016 to 23% in 2020. Donor aid funding decreased by 51.3% in 2019 and 84.6% in 2020 compared to 2018. In addition to joint research and financial investment, 65% of improved germplasm comes from donors directly through adaptation research or parent material. Furthermore, for which information is collected and available, 7.3% of trained scientists and 57% of fixed assets were financed by donors. The majority of the donor-funded projects focused on short-term goals that did not align with national priorities or focused on commodities of relatively low economic value to the country. Therefore, a new financial framework is needed for the government to set strategic priorities for donors to contribute to the country.