Ethiopia Local Economic Development (LED) Pilot Report

A Transformational Approach in Kebri Beyah Woreda We acknowledge funding provided by the Multi Donor Trust Fund for ForcedDisplacement as part of the Prospects Program, which made this report possible. © December 2024 | International Bank for Reconstruction and Development / The World Bank1818 H Street NW, Washington, DC 20433Telephone: 202-473-1000; Internet: www.worldbank.orgSome rights reserved. Rights and Permissions The material in this work is subject to copyright. Because the World Bank encourages disseminationof its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes iffull attribution to this work is given. Any queries on rights and licenses, including subsidiary rights,should be addressed to World Bank Publications, World Bank Group, 1818 H Street NW, Washington,DC 20433, USA; fax: +1-202-522-2625; e-mail: pubrights@worldbank.org. Photo credits: DMI. Ethiopia Local Economic Development(LED) Pilot Report A Transformational Approach in Kebri Beyah Woreda Contents Abbreviations and Acronymsiv Executive Summaryv 1Introduction1 What is an LED Approach?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Why Is a Transformational LED Approach Needed in Ethiopia?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4LED Landscape in Ethiopia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Overview of the Pilot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Woreda-Level Operationalization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13LED Stakeholder Mapping and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13LED Platform Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Development of the Kebri Beyah LED Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Sustainability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Replicability and Scalability Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Cost Considerations and Implementation Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Dissemination Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 5Results Achieved and Lessons Learned from the Kebri Beyah LED Pilot43 OUTPUT 1. Note on Stakeholder Mapping and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44OUTPUT 2. Organization of LED Platform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44OUTPUT 3. Preparation of LED Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45OUTPUT 4. Implement LED Strategy and Enhance Local Government Capacity. . . . . . . . . . . . . .46OUTPUT 5. Results Documentation and Learning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46OUTPUT 6. Knowledge Management and Toolkit Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Innovative Features of the Pilot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 6Lessons and Recommendations48 Lessons Learned. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 References60 Appendix A. Stakeholder Interests and Influence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62Appendix B. Sample Memorandum of Understanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65Appendix C. Results-Based Monitoring System for LED Strategy Implementation. . . . . . . . . . . . .73Appendix D. Value Chain Selection Based on Stakeholder Ranking. . . . . . . . . . . . . . . . . . . . . . . . . . . .74Appendix E. LED Pilot Results Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 Box