Environmental and social impact assessment (ESIA) report for

existing Ayehu coffee Farm project

Project Name- Ayehu coffee farm project

Location- Awi zone, Ayehu guagusa District, Ayehu kebele

Amhara Region, Ethiopia

Client- Ayehu Farm Development

Submission to- Environment and forest protection office (Ayehu Guagusa District)

Prepared by- Consultant on Infrastructure development and Project management

(Gedefaw Yismaw) and partnership with Ayehu Coffee farm project.

Date August 2025

Acronyms

AFDB- Africa Development Bank

EIA- Environmental Impact Assessment

EPA- Environmental protection Authority

ESF- Environmental and Social Frameworks

ESIA- Environmental and Social Impact Assessment

ESMP- Environmental and Social Management Plan

GIS-Geographical Information System

GRM-Grievance Redress Mechanism

IFC-International Finance Corporation

N/A- Not Applicable

NGO-Non Governmental Organization

WB-World Bank

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Table of Contents
Acronyms ......................................................................................................................................... i
Executive summary......................................................................................................................... v
1. Introduction ............................................................................................................................. 1
1.1. Background .......................................................................................................................... 1
1.2. Purpose of ESIA ............................................................................................................... 3
1.3. Objectives of the ESIA ..................................................................................................... 4
1.3.1. General objectives ..................................................................................................... 4
1.3.2. Specific objectives .................................................................................................... 4
1.4. Scope of ESIA .................................................................................................................. 4
A. Spatial scope..................................................................................................................... 4
B. Temporal scope ................................................................................................................ 4
C. Thematic scope ................................................................................................................. 4
1.5. Methodology .................................................................................................................... 4
Literature review...................................................................................................................... 5
Field observations .................................................................................................................... 5
Stakeholder engagement .......................................................................................................... 5
Impact assessment ................................................................................................................... 5
Mitigation planning ................................................................................................................. 5
2. Project Description .................................................................................................................. 8
2.1. Project overview .............................................................................................................. 8
2.2. Project location ..................................................................................................................... 9
The Ayehu coffee farm project is located in ............................................................................... 9
2.3. Project components ............................................................................................................ 10
1. Land development and plantation establishment ........................................................... 10
2. Nursery Development .................................................................................................... 10
3. Irrigation and water management ................................................................................... 11
4. Processing facilities ........................................................................................................ 11
5. Storage and packaging ................................................................................................... 11
6. Transport and logistics infrastructure ............................................................................. 11
7. Social and community facilities ..................................................................................... 11

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 8. Environmental management and conservation .............................................................. 11
9. Out-Grower and smallholder integration ....................................................................... 11
3. Legal and Regulatory (Institutional) Framework .................................................................. 12
3.1. Legal frameworks ........................................................................................................... 12
3.1.1. Environmental impact assessment proclamation no.299/2002 ............................... 12
3.1.2. Environmental pollution control proclamation no. 300/2002 ................................. 12
3.1.3. Solid waste management proclamation no. 513/2007 ............................................ 12
3.1.4. Labor proclamation No. 1156/2019 ........................................................................ 13
3.1.5. Proclamation on public health No. 200/2000 ......................................................... 13
3.1.6. Ethiopian water resources management proclamation NO.197/2000..................... 13
3.2. Institutional Framework ................................................................................................. 13
3.2.1. Federal level ............................................................................................................ 13
3.2.2. Regional level ......................................................................................................... 13
3.2.3. Woreda level ........................................................................................................... 13
3.3. International Guidelines ................................................................................................. 13
1. World Bank (WB) and IFC environmental health, and safety (EHS) guidelines .......... 13
2. ILO conventions ............................................................................................................. 14
3. Sustainable Development goals (SDG;s) ....................................................................... 14
4. Baseline Environmental Conditions ......................................................................................... 14
4.1. Physical Environment ........................................................................................................ 14
4.1.1. Topography.................................................................................................................. 14
4.1.2. Altitude ........................................................................................................................ 15
4.1.3. Climate and Meteorology ............................................................................................ 15
4.1.4. Soil and Land Use........................................................................................................ 15
4.1.5. Water resources ........................................................................................................... 17
4.2. Biological environment ...................................................................................................... 17
4.2.1. Flora ........................................................................................................................... 17
4.2.2. Fauna ........................................................................................................................... 17
4.3. Socio-Economic Conditions............................................................................................... 17
4.3.1. Demographics ......................................................................................................... 18
5. Potential Environmental and social Impacts ......................................................................... 19

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 5.1. Potential positive Environmental & Social Impacts .......................................................... 19
5.2. Potential Negative Environmental & Social Impacts ......................................................... 21
6. Mitigation Measures for Negative Environmental and Social Impacts ................................. 24
8. Stakeholder Engagement and Public Participation ................................................................ 26
9. Monitoring and Evaluation ....................................................................................................... 28
Types of Monitoring.................................................................................................................. 28
12. References ............................................................................................................................... 33
13. Appendices .............................................................................................................................. 35

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Executive summary
Coffee is Ethiopia’s most significant export commodity, contributing substantially to national
GDP, foreign exchange earnings, and rural livelihoods. The Ayehu Coffee Farm (ACF) Owned
by our partners Ethio AgriCeft is 466 hectares in size and sits at an altitude of 1,600 – 1,800
m.a.s.l. Ayehu presents a unique coffee by virtue of it being situated outside of Ethiopia’s
traditionally famous coffee producing regions such as Oromia and SNNPR (Southern Region).

The project aims to introduce high-yield, diseases-resistance coffee varieties, modern agronomic
practices, and sustainable processing methods to produce premium-quality coffee for domestic
consumption and export markets. By integrating environmentally responsible farming with social
development initiatives, the project seeks to enhance the livelihoods of local communities while
contributing to Ethiopia’s position as a leader coffee supply.

Along with the rotating irrigator, the Ayehu Coffee Farm utilizes machinery to pulp, dry and
hulls their coffee. The pulping station sits on approximately 4 hectares of land and is comprised
of several washing tanks, a pulping machine (demucilager), an artificial dryer and a huller.

As part of the study methodology, Environmental and social impacts due to the proposed Ayehu
coffee farm project were surveyed and identified during the fieldwork and from the reviewed
reports of the previous studies of the related project. Consultations with the experts of project
client, Woreda Agricultural office, public consultations with local stakeholders and local
authorities were made to obtain local interests and existing problems.

Monitoring and evaluation (M&E) is essential for tracking the environmental and social
performance of the Ayehu coffee farm project. The purpose of the monitoring and evaluation
plan is to ensure that mitigation measures are effectively implemented, unforeseen impacts are
identified early, and corrective actions are taken in a timely manner.

Key words: Coffee, hard currency, environment, impact, agriculture, plan.

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 1. Introduction

1.1. Background

The Ethiopian economy is dominated by agriculture that accounts for about 50 per cent of total
Gross Domestic Product (GDP) and 85 percent of export and total employment. The country's
export is highly dependent on coffee, generating nearly 53 per cent of the foreign exchange
earnings. Agriculture is supplemented by manufacturing, mining, trade, tourism,
construction and services that have a combined share of about 50 per cent of GDP.
Coffee is Ethiopia’s most significant export commodity, contributing substantially to national
GDP, foreign exchange earnings, and rural livelihoods. The Ayehu coffee production project
represents a strategic private investment in large scale cultivation of coffee Arabica leveraging
the favorable agro ecological conditions of Ayehu guagusa District in the Awi zone of the
Amhara region. The location benefits from moderate altitude, fertile soils, and a climate well-
suited to coffee cultivation, with rain fall patterns that support both rain-fed and supplementary
irrigation systems.

Coffee production is important to the Ethiopian economy with about 15 million people directly
or indirectly deriving their livelihoods from coffee. Coffee is also a major Ethiopian export
commodity generating about 25% of Ethiopia’s total export earnings. Ethiopia is the largest
producer of coffee in Sub-Saharan Africa and is the fifth largest coffee producer in the world
next to Brazil, Vietnam, Colombia, and Indonesia, contributing about 7 to 10% of total world
coffee production. Coffee has economic, environmental as well as social significance to the
country.

The Ayehu Coffee Farm (ACF) Owned by our partners Ethio AgriCeft is 466 hectares in size
and sits at an altitude of 1,600 – 1,800 m.a.s.l. Ayehu presents a unique coffee by virtue of it
being situated outside of Ethiopia’s traditionally famous coffee producing regions such as
Oromia and SNNPR (Southern Region). Coming from the fertile highlands of the Amhara
Region in Northwestern Ethiopia, it did not take long for Ayehu to make it to the league of

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premium coffees. This is a testament to the great potential in the region to become one of the
main coffee producing areas in all of Ethiopia.

The project aims to introduce high-yield, diseases-resistance coffee varieties, modern agronomic
practices, and sustainable processing methods to produce premium-quality coffee for domestic
consumption and export markets. By integrating environmentally responsible farming with social
development initiatives, the project seeks to enhance the livelihoods of local communities while
contributing to Ethiopia’s position as a leader coffee supply.

Approximately 160KM south of Bahir Dar is where you will find the ACF. The land here is
actually lower than Addis, and is therefore warmer with temperatures ranging between 18 – 22°C
year round. The rainy season runs from early June to September with precipitation levels as high
as 430mm before tapering off to 10mm. The dry season runs from November to April and brings
very little rainfall; however, this is where the Ayehu Coffee farm shines as they have invested in
a rotating irrigator which keeps the coffee trees hydrated from November – April. The farm is
reportedly the only one in the country that uses this type of technology.

Along with the rotating irrigator, the Ayehu Coffee Farm utilizes machinery to pulp, dry and
hulls their coffee. The pulping station sits on approximately 4 hectares of land and is comprised
of several washing tanks, a pulping machine (demucilager), an artificial dryer and a huller.

Once the coffee cherries begin to turn dark red, they are carefully hand-picked and taken to the
pulping station. For washed processed Ayehu, the cherries are loaded into the demucilager which
pulps the beans to remove the skin before being washed in the fermentation tanks for 1.5 days.
After which they are either laid out on traditional drying beds for 10-15 days, or placed into their
new artificial air dryer which can get the job done in as little as 24 hours. These guys are serious
about their machines!

Cherries processed naturally (sundried) are handpicked and immediately laid out to dry on the
drying beds before being pulped to remove the mucilage. Once these coffees have been pulped &
dried they are ready to be bagged and transported to Addis Ababa where they will be hulled to
remove the parchment!

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The Environmental and Social Impact Assessment (ESIA) is a critical process undertaken to
evaluate the likely environmental and social impacts of the Ayehu coffee farm project. This
assessment is designed to identify, predict, and mitigate adverse effects while enhancing positive
outcomes. The ESIA ensures that the project is implemented in a sustainable and
environmentally responsible manner. The Ayehu coffee farm is designed to cultivate coffee,
contributing to local and international market for economic growth. The project encompasses
land preparation, seedling, planting, maintenance, and harvesting activities.

1.2. Purpose of ESIA

The Environmental and Social Impact Assessment (ESIA) serves as a critical tool to:-

 Identify potential positive and negative environmental and social impacts of the proposed
project
 Recommended practical mitigation measures to minimize or eliminate adverse effects.
 Enhance potential benefits to the environment, economy, and community.
 Ensure compliance with the Environmental impact assessment proclamation
NO.299/2002 and relevant international guidelines such as the IFC performance
standards and the FAO coffee sustainability guidelines.

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 1.3. Objectives of the ESIA

1.3.1. General objectives

 To assess the environmental and social impact assessment of ayehu coffee
farm project.

1.3.2. Specific objectives

 To describe the project in detail, including its components, location, and socio-
economic conditions of the project area.
 Predict and evaluate the likely environmental and social impacts- beneficial and
adverse- arising from project implementation.
 To develop an environmental and social management plan (ESMP) with clearly
defined mitigation and enhancement measures.
 Outline monitoring and evaluation mechanisms to ensure compliance and
continuous improvement in environmental and social performance.

1.4. Scope of ESIA

The scope of this environmental and social assessment covers:-

A. Spatial scope- All project facilities (plantation area, nurseries, irrigation infrastructure,
processing plants, pulping plants, storage facilities access roads) and adjacent areas
potentially affected by project activities.
B. Temporal scope-The entire project lifecycle from pre-construction site preparation
through operational phases to decommissioning or transition to sustainable management.
C. Thematic scope- Environmental aspects (soil, water, air quality, biodiversity) and social
aspects (employment, land use, livelihoods, cultural heritage, community health and
safety).

1.5. Methodology
As part of the study methodology, Environmental and social impacts due to the proposed Ayehu
coffee farm project were surveyed and identified during the fieldwork and from the reviewed
reports of the previous studies of the related project. Consultations with the experts of project

4
client, Woreda Agricultural office, public consultations with local stakeholders and local
authorities were made to obtain local interests and existing problems. Review of pertinent
policies, regulations and guidelines were made to harmonize the impact assessment with the
accepted guidelines and policy frame work of the country. Environmental impact assessment
guidelines of EFPA and International Finance Corporations (IFC) were followed and utilized for
the analysis of the impact. Finally the collected data and information as well as data generated by
other sector studies were analyzed and this partial environmental and social impact assessment
report has been prepared. And also Africa Development Bank’s Environmental and social
screening form or checklist was used to conduct site assessment. In general data collection
methods used were transecting walk site observation, community consultation, and review of
draft design report.

The ESIA was conducted using a combination of desk based study, field survey, stakeholder
consultation, and expert assessment. The methodology included

Literature review: - analysis of existing environmental, socio-economic, and agricultural data

for the Ayehu guagusa District.

Field observations: - site visits to assess land use, vegetation cover, soil type, and nearby water
bodies.

Stakeholder engagement: - meetings and focus group discussion with local communities,
farmers associations, women’s group, and local government officials.

Impact assessment: - application of recognized environmental assessment tools such as the

IFC’S Risk Categorization framework.

Mitigation planning: - development of practical measures in consultation with technical experts

and local stakeholders.

Standard Recommended checklists for screening of ESIA

EIA checklists are tools used to systematically evaluate potential environmental impacts of
projects, such as the Ayehu coffee farm project. These checklists help in screening and
identifying significant environmental risks, ensuring that projects comply with environmental

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laws and regulations, and guide decision-makers in mitigating adverse effects. The checklists
included to evaluate potential impacts are-

1. Soil Quality- assessing potential impacts on soil health and erosion.

2. Water Resources- evaluating water usage and effects on local water bodies or ground
water.
3. Biodiversity- checking impacts on local flora and fauna, including potential habitat
disruption.
4. Air Quality- Assessing emissions related to farming practices.
5. Climate Change- considering contribution to greenhouse gas emissions and climate
resilience.
6. Pesticides and fertilizers- Evaluating the use and impacts of chemicals on the
environment and human health.
7. Socio-Economic Factors- looking at impacts on local communities, employment, and
land use patterns.

The checklist ensures comprehensive environmental evaluation, aiding in proactive decision-

making for sustainable farming practices.

Standard Recommended tools for Scoping of ESIA

For scoping an environmental and social assessment of Ayehu coffee farm, several standard tools
and methodologies are recommended as follows.

1. Baseline studies- Gathering existing environmental and social data to understand the
current conditions.
2. Stakeholder engagement- Engage with local communities, authorities, and other
stakeholders to understand their concerns and expectations.
3. GIS and Mapping Tools- use Geographic information systems to map and analyze land
use, topography, and other spatial data.
4. Checklists and Matrices- utilize structured guidelines to identify potential impacts on
environmental and social factors.
5. Impact prediction tools- models that predict potential impacts on air quality, water
resources, and soil.

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 6. Cost-Benefit Analysis- Evaluate the economic feasibility and social benefits versus
environmental costs.
7. Risk assessment tools- Identify and assess potential environmental and social risks.
8. Mitigation measures framework- developed strategies to minimize or manage identified
impacts.

All those tools are helping out line the scope of the ESIA, ensuring that significant
environmental and social impacts are thoroughly assessed and managed.

Generally Customized ESIA Tools for Ayehu coffee Farm Projects are summarized in the
following table as

ESIA tools Standard Recommended How it Applies to Ayehu coffee

and Stage tools farm Project
Screening EPA EIA checklists, WB Determines need for EIA based on
guidelines farms >50ha
Scoping Stakeholder Mapping, scoping Identify key issues such as water use
Matrix, PRA from rivers, deforestation, labor
conditions, pesticide use
Baseline study Field Surveys, GIS land use Describe current conditions of
survey environmental and social data in
project area
Impact GIS ,CBA, IFC, risk Evaluates effects of land clearing,
prediction assessment matrix pesticide use, water extraction, and
socio-economic changes on
smallholders and the environment
Mitigation Environmental Management Suggests practical solutions like
planning plan (EMP),Integrated pest planting cover crops, water
Management(IPM), Buffer conservation, and community training
zones, Drainage Design in sustainable practices
Public Focus group Ensure Stakeholder involvement and
Participation discussions((FGDs), concerns of local farmers
community meetings,
Grievance mechanisms
Monitoring and Monitoring indicators, field Track outcomes and performance such
Evaluation Audits, remote sensing as soil fertility, pesticide residues,
employment levels, and grievances
over time.
Reporting Format aligned with Ethiopian Submit EIA report
ESIA template and agri-
investment guides

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 2. Project Description

The Ayehu Coffee Farm, owned by Ethio Agri Ceft, is located in the Amhara Region of
Ethiopia, specifically in the Awi Zone, Ayehu Guagusa district about 500 km from Addis
Ababa. It's known for producing a unique, high-quality coffee from a region not traditionally
associated with Ethiopian coffee production. The Ayehu Coffee Farm (ACF) Owned by our
partners Ethio AgriCeft is 518 hectares in size. The farm operates at an altitude between 1,600 –
1,800 meters above sea level.

2.1. Project overview

Ayehu coffee farm project is large scale commercial coffee production with integrated value
chain components:-

 Land preparation and irrigation

 planting
 Cultivation
 Harvesting
 Processing
 Packaging
 Local and international market linkages

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2.2. Project location

The Ayehu coffee farm project is located in

 Region- Amhara
 Zone –Awi
 District –Ayehu guagusa
 Kebele- Ayehu
 Distance from Addis Ababa 500kilometer

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2.3. Project components
Ayehu coffee farm project is designed as an integrated large-scale coffee production and
processing enterprise. The main components are:-

1. Land development and plantation establishment

 Land preparation: - cleaning of designated farm land while conserving
ecological sensitive areas.
 Soil conservation measures: - terracing, contour plowing, cover cropping, and
mulching to prevent erosion.
 Coffee planting: -Arabica coffee cultivated in higher elevations(1600-1800a.s.l.)
under shade tree systems
 Shade tree integration: - planting of native trees for biodiversity, soil fertility
improvement, and microclimate regulation.

2. Nursery Development
 Establishment of modern coffee seedling nurseries with irrigation facilities.
 Production of disease-resistant and high-yield seedlings.

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  Distribution of seedlings for both the project plantation and out-grower schemes.

3. Irrigation and water management

 Irrigation systems: - drip and sprinkler systems for water efficiencies.
 Water sources: -rivers and rain water harvesting.
 Drainage systems: -to prevent waterlogging and soil degradation.

4. Processing facilities
 Wet processing plant: - for washed coffee production.
 Dry processing plant: -for natural and semi-washed coffee
 Drying infrastructure: -raised drying beds and mechanical dryers for consistent
quality
 Quality control: -for grading cupping, and moisture content analysis

5. Storage and packaging

 Construction of warehouses for raw and processed coffee.
 Packaging unit for export-ready coffee beans.

6. Transport and logistics infrastructure

 Internal farm roads to connect production zones with processing areas.
 Access roads linking the farm to main district and regional transport networks.

7. Social and community facilities

 Housing units for seasonal and permanent workers
 Health post and basic medical facilities.
 Training and capacity- building centers for workers and local farmers.

8. Environmental management and conservation

 Riparian buffer zones along rivers and streams
 Biodiversity conservation areas within the farm.
 Organic waste composing and recycling of processing by-products.

9. Out-Grower and smallholder integration

 Partnership with local farmers through contract farming schemes.
 Provision of seedlings, training, and access to processing facilities

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  Guaranteed purchase agreements at fair market prices.

Project component Diagram of Ayehu coffee farm project

Irrigation & water Nursery development
Land development &plantation
management
establishment

Processing facility

Storage & packaging c Ayehu coffee farm project Out grower & smallholder
integration

Transport &logistics Environmental conservation &

Social & community facility
infrastructure management

3. Legal and Regulatory (Institutional) Framework

3.1. Legal frameworks

3.1.1. Environmental impact assessment proclamation no.299/2002

 Requires any project or existing facility that has potential environmental and social
impacts to undergo an environmental social impact assessment.
 The proponent (Ayehu flour factory) must submit an ESIA report to the environmental
and forest protection office.

3.1.2. Environmental pollution control proclamation no. 300/2002

 Prohibits discharge of untreated waste, air pollutants, or hazardous substances in to the
environment.
 Requires industries to implement pollution prevention and control measures.

3.1.3. Solid waste management proclamation no. 513/2007

 Requires industries to manage solid waste in a manner that does not harm the
environment or public health.
 Encourages reuse, recycling and safe disposal.

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 3.1.4. Labor proclamation No. 1156/2019
 Provides for occupational health and safety standards, working conditions, and workers’
rights.
 The factory must ensure PPE (personal protective Equipment) and safe working
environments.

3.1.5. Proclamation on public health No. 200/2000

 Requires prevention of activities that may pose risks to public health, including dust
emissions, noise, and improper waste management.

3.1.6. Ethiopian water resources management proclamation NO.197/2000

 Protects water resources from pollution and requires proper wastewater disposal
practices.

3.2. Institutional Framework

3.2.1. Federal level

 Environmental protection authority (EPA)
 Responsible for national environmental policies, EIA approvals for large scale projects,
and monitoring compliance.

3.2.2. Regional level

Amhara regional environment and forest protection at regional level and ensures compliance
with EIA and pollution control laws.

3.2.3. Woreda level

Ayehu guagusa wereda environment and forest protection office:

 Supervises local environmental monitoring, public consultation, and grievance handling.

3.3. International Guidelines

1. World Bank (WB) and IFC environmental health, and safety (EHS) guidelines
These provide standards for air quality, noise, waste management and occupational safety
for flour mills.

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 2. ILO conventions
Ethiopia is a signatory to several ILO conventions promoting safe and healthy working
environments.

3. Sustainable Development goals (SDG;s)

The project contributes to SDG2 (zero hunger), SDG 8 (Decent work & economic growth) and
SDG 12(responsible consumption and production).

In general EIA adheres to national and local environmental regulations, including the
Environmental Protection Act and agricultural guidelines. Compliance with these regulations is
essential for project approval and sustainable operation. Those legal and regulations are
addressed as follows.

 Environmental Impact Assessment proclamation No. 299/2002

 Environmental pollution control proclamation no.300/2002
 EPA, 2000. Environmental impact assessment guideline document; Federal
democratic republic of Ethiopia.
 EPLAUA, 2007. Environmental impact assessment guideline, Amhara national
regional state.
 World Bank, 1991. Environmental Assessment Source Book. Vol. I, Policies,
Procedures and Cross-Sectional Issues, Environmental Department, World Bank
Technical Paper 139. The World Bank, Washington, D.C.

4. Baseline Environmental Conditions

4.1. Physical Environment

4.1.1. Topography
The proposed Ayehu coffee farm project is characterized with gentle slope having an average
slope value of less than 3% which is suitable for crop production activities. The project area is
positive for farming purpose. Availability water is the main not limiting factor to increase
irrigation production in the project area.

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4.1.2. Altitude
The farm sits at an altitude between 1600 and 1800 meters above sea level (m.a.s.l).

4.1.3. Climate and Meteorology

The site is generally found in Kola agro climatic zone. The rainfall pattern of the project area is
uni-modal type in which one main rainy season is occurred during the summer season which
starts in late first of June and ends on October up to November.

Climate has an important influence on the nature of the natural vegetation, the characteristics of
the soil, the crops that can be grown and the types of farming that can be practiced in any region.

The climate of an area is highly correlated with its vegetation and, by extension, the types of
crops that can be cultivated. The major elements of climate are: rain fall, temperature, wind
speed, relative humidity, and sunshine hour.

The region experiences a sub humid, 1200-1500mm rainfall annually and average temperatures
ranging from a minimum of 130c to a maximum of 280c

4.1.4. Soil and Land Use

The predominant soil types in the area include vertisols and luvisols, high fertility but erosion-
prone.

Soil properties (physical, chemical, etc.) greatly influence the growth and there by yield of crops
which is grow. The project area has predominantly clay and loam textured soils which can be
classified as moderately drained soil.
Most of the study areas categorized as deep soil that 100-150 m. Soils of farm land areas are
suitable for selected coffee varieties to be grown.

Soil Type pH Level Organic Matter (%) Texture

Clay 6.5 3.2 clay
Loam 6.8 4 loam
Sandy 7 2 sand

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Ayehu crop farm, part of Ethio Agri-CEFT PLC, primarily cultivates Arabica coffee. The farm is
known for producing high-quality highland coffee, comparable to Sidamo and Yirgacheffe. The
farming and agronomic practice of coffee farm project are

A. Land preparation and cultivation

 Environmental aspect: use of manual and mechanized land preparation
with minimized soil disturbance.
 ESIA consideration: risk of soil erosion and biodiversity loss is managed
by maintaining buffer zones, agroforestry belts, and cover crops.
B. Irrigation practice
 Method: unique rotating irrigation during dry season.
 Environmental impact: supports tree survival but may affect ground
water.
 Mitigation: adoption of water-efficient irrigation scheduling and
monitoring of water sources.
C. Agroforestry practice: keeping the existing forest trees in farm land.
D. Coffee processing
 Washed processing: uses demucilagers, fermentation, and drying by
using sun.
 Natural processing: sun-drying cherries before pulping.
E. Chemical use(fertilizers & pesticides)
 Current practice: limited chemical inputs, preference for organic enrichment.
 ESIA consideration: monitoring for contamination risks, training workers
in safe handling and integrated pest management(IPM)
F. Harvesting and post harvesting handling
 Method: Hand-picking ripe cherries, seasonal labor employment up to 250
workers.

 Social impact: provides jobs and fair wages, risk of labor exploitation.
 Mitigation: compliance with labor laws, provision of housing, meals, and
medical services.
G. Sustainability and certification

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  Rainforest Alliance Certification- ensures compliance with
environmental stewardship, biodiversity protection, and fair labor
conditions.
 ESIA Relevance: certification strengthens environmental and social
safeguards.

4.1.5. Water resources

Water resources in the area consist of suri, zingini, ayehu, gumara, sizat and ground water. The
quality of water is good, and the availability is some are seasonal and more are year-round.

4.2. Biological environment

4.2.1. Flora

The dominant forestry activity in the area is Natural and man-made forest in ayehu coffee farm
project plantations, roadside plantations or woodlots. There is also indigenous agro forestry
practice of keeping naturally regenerated trees on farmland is a common moderate practices. The
dominant multipurpose tree species found in the sub-project areas includes Juniperous procera,
Olia Africana, Traducer, Acacia Abyssinica and Rossa Abyssinica, Embacho, etc. Eucalyptus
woodlot for commercial purpose is highly practiced in the area and surrounding kebeles.

4.2.2. Fauna

Fauna species like common bird species locally known i.e. Qoqi, Jigra, Dinbite, Elba, Soreni and
other wild animals like Hyena, Fox, Jarte , dikula, monkey and apps mostly are found in the
project command area of the farm project. The scheme doesn’t affect any endangered species of
fauna in the area.

4.3. Socio-Economic Conditions

The Ayehu cereal crop farm project is located in Ayehu Guagusa District, within the Awi zone
of the Amhara region. The area is predominantly rural and agricultural based, with high
dependency on rain fed and small-scale irrigated farming. The project site covers multiple
kebeles and is situated near local farming communities who rely on natural resources for their
livelihoods.

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 4.3.1. Demographics

[Link]. Population
The district has an estimated based on the 2007 national census conducted by the
Central statistics Agency of Ethiopia (CSA), total Population of the Woreda is estimated to be
132,360 of which 51.5% are female and 48.5% are male, and 92.5% of the total population is
living in rural area. The total number of households in the Woreda is 18,979, and the average
household size being 5-6. The average land size holding of the Woreda per households is 1 ha.

[Link]. Land use and Tenure

Land is state-owned, farmers have usufruct rights under Ethiopia policy and most smallholders
operate on plots of less than 1 hectare. Land conflicts disputes over boundaries and communal
grazing areas are occasionally grazing areas are occasionally reported.

Socio-economic tables are as follows:

Category Description
Population Approximately 132,360 people in Ayehu Guagusa
District
Household Size 5-6 persons per household
Main livelihoods Smallholder agriculture, livestock rearing petty trade
Average Farm Size Less than 1 hectare per household
Land Tenure System State-owned land with usufruct rights
Education access Primary schools available, few secondary schools
Health services Health posts available no hospital
Water access Public tabs, rivers, seasonal shortages and contamination
Electric access Available in towns, rural areas have poor or no access
Road Infrastructure Mostly dirt roads, difficult access during rainy season,
no asphalt
Vulnerable Groups Female-headed households, land less youth elderly,
migrants
Gender issues Women have limited land rights, high unpaid labor
burden

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5. Potential Environmental and social Impacts
This section identifies and analyzes the potential positive and negative impacts the Ayehu coffee
farm project may have on the physical, biological, and socio-economic environments during all
phases: pre-construction, construction, operation, and closure.

Impact identification was conducted through

 Site visits and baseline studies

 Stakeholder consultations
 Use of Leopold matrix, GIS overlays, and expert judgment

5.1. Potential positive Environmental & Social Impacts

 Job creation and employment opportunities for those who will be employed by the project, either in
the construction phase or the operation phase;
 New opportunities for income generation for many individuals who will be cultivating coffee
in some parts of the country and sell it as raw material.
 Generation of foreign exchange through exportation of quality coffee bean;
 Improvement of general welfare for the local population as a result of increased income;
 Increased economic activities directly or indirectly related to the project;
 Increase in the income of the population working on the site and development of small
businesses that will serve the employee of the construction site;
 Possibility of meeting the fundamental social needs for the employees and their families (health
care, schooling children etc.)
 Payment of taxes to the local and central government

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Generally the potential positive environmental and social impacts are expressed as table bellow

Impact Area Positive Impacts Significance

Soil resources Recycling of coffee pulp and Medium
husks into organic compost
improves soil fertility
Water Resources Efficient use of irrigation High
water
Biodiversity & Ecosystems Agroforestry practice with High
shade trees
-Rainforest alliance
certification promotes forest
conservation and sustainable
land use
Air quality & Climate Coffee and shade trees act as Medium
carbon sinks, mitigating
climate change
-Shade-grown coffee regulates
microclimate and soil
moisture
Waste management Coffee residues/pulp, husk are Medium
reused for composting and
biogas
Employment & Livelihoods Provides over 250 seasonal High
and permanent jobs;
-support local economy
through wages, food demand,
and services.
Community development CSR initiatives: support for High
schools, vulnerable groups,
health awareness, and
contributions to local
infrastructure
Knowledge transfer & Distribution of improved Medium
capacity building coffee seedlings and training
on modern farming practices
-improved local farmers
productivity and skills

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5.2. Potential Negative Environmental & Social Impacts

5.2.1. Dust Emissions

During plowing, the project will generate substantial quantities of dust at the farm site and its
surrounding. The sources of dust emissions will include site preparation and leveling works, and to
a small extent, transport vehicles delivering building materials. Emission of large quantities of dust
may lead to significant impacts on construction workers and the local residents, which will be
accentuated during dry weather conditions.

5.2.2. Occupational health effects

Because of the intensive engineering and construction activities including erection and fastening of roofing
materials, metal grinding and cutting, concrete work, steel erection and welding among others,
construction workers will be exposed to risks of accidents and injuries. Such injuries can result
from accidental falls from high elevations, injuries from hand tools and construction equipment cuts
from sharp edges of metal sheets and collapse of building sections among others. Moreover, there will also
health effect due to poor provision of sanitary facilities and drinking water.

5.2.3. Solid Waste Generation

Large quantities of solid waste (soil) will be generated as a result of excavation of the site. In addition,
additional solid waste will be generated at the site during construction of the building and related
infrastructure. Such waste will consist of rejected materials, surplus materials and excavated materials are
among others. Such solid waste materials can be injurious to the environment through blockage of
drainage systems, choking of water bodies and negative impacts on human and animal health.

5.2.4. Energy Consumption

The project will consume fossil fuels (mainly diesel) to produce and run transport vehicles and
construction machinery. Fossil energy is non-renewable and its excessive use may have serious
environmental implications on its availability, price and sustainability.

The project will also use electricity supplied by Ethiopian Power. Electricity in Ethiopia is
generated mainly through natural resources, namely, thermal and water resource. In this regard,
there will be need to use electricity sparingly since high consumption of electricity negatively
impacts on these natural resource and their sustainability.
21
5.2.5. Water Use

The construction activities will require large quantities of water for construction. Water will
mainly be used for concrete mixing, sanitary and washing purposes. Excessive water use may
negatively impact on the water source and its sustainability.

5.2.6. Soil erosion

Vegetation clearance and excavation works related to construction of the project will expose
soils in the affected areas which could leave them vulnerable to erosion by surface run-off and
create the threat of water turbidity and sediment deposition in drains and the river water. The flat
topography of the site and the pervious nature of the soils would help to reduce erosive surface
flows and the potential situation should exist only for the duration of the construction works.
After rehabilitation for the project area such as construction of drainage system and cover the
area with trees/ grasses that can reduce the susceptibility to soil erosion. There are no other
significant surface features such as gullies, streams or rivers in close proximity to the site that
could be affected by soil erosion.

5.2.7. Water use conflict

Water resource is essential to the overall implementation of the farm at all stages of the Project
activities. The main source of irrigation water to the farm is Ayehu River which was used by the
residents of the area but now totally annexed by coffee farm the area. There is no droplet of
water that flow to downstream both for ecology and users

22
Impact Area Negative Impacts Significance
Soil resources -Soil erosion during land preparation Medium
- Nutrient depletion from mono cropping
Water resources -Over-abstraction of ground water High
- Streams coffee waste water pollution
Biodiversity & -Habitat loss from land cleaning High
ecosystem -Reduced diversity due to monoculture
Air quality & climate Dust during land preparation and pulping Low-medium
machine
Waste management Odor and pollution from un managed Medium
pulp/husks
Employment -Seasonal job insecurity Medium
&livelihoods -Risk of labor exploitation
Community relations Potential conflict over land and water resources None
Cultural & social -Reduced land availability for smallholders None
structure

23
 6. Mitigation Measures for Negative Environmental and Social
Impacts
Impact Area Negative Impacts Mitigation measures Responsibility body
Soil resources Soil erosion and -maintain buffer strips Farm agronomy
nutrient depletion and cover crops team/environmental
-organic compost, officer
terracing
Water resources over –abstraction of Use water-efficient Water harvesting and
ground water and irrigation technology expert
streams -monitor water use
regularly
Biodiversity & Habitat loss and -Maintain forest Farm environmental
ecosystem reduced species buffer zones officer
diversity -agroforestry practice
Air quality & climate Dust during land Maintain vegetative Farm manager
preparation and covers
pulping machine
Waste management Odor and pollution Compost residue, Waste management
from un managed convert to biogas, team
pulp/husks manage solid waste
properly
Employment & Seasonal job Provide fair wages HR officer/ farm
Livelihoods insecurity, labor Risk manager
Community relations Use of water Make community Farm manager
resources consultation team to
ensure equitable water
access.
Health & Safety Workers exposure to Cloth safety protector Health officer of farm
chemicals and poor -create awareness of
sanitation in worker hygiene
house
Cultural & social Reduced land Develop out grower Farm manager
structure availability for schemes
smallholder

7. Environmental and Social Management Plan (ESMP)

The ESMP provides the framework for implementing mitigation, monitoring, and management
measures for environmental and social impacts identified in the ESIA of the Ayehu coffee farm
project.

24
Impact Mitigation Responsible Monitoring frequency Est. annual
category measures body indicator budget
Deforestation -Maintain Environmentalist Area of annually 150,000
& buffer zones, expert of farm conserved
biodiversity -agroforestry land 60 ha
loss practice trees planted
Soil erosion -terracing, Agronomy team 300ha land annually 100,000
and land mulching, under soil
degradation conservation
practice
Water Efficient Farm manager Spring killer At dry 250,000
resource irrigation irrigation season
depletion system and
water
monitoring
Waste -Composting -Farm manager 80% waste quarterly 100,000
management -recycling environmentalist recycled
Labor Fair wages HR-Dept. 50 contracts annually 150,000
conditions &
rights
Health & Emergency OHS officer Rate of As level of 300,000
safety response plan workers can occurrence
used
Community Community Liaison officer NO. of quarterly 55,000
relation engagement grievance
resolved
Gender Right to HR-Dept. 50% annually 200,000
&youth equal employ female/youth
inclusion and training employed
Cultural Consultation Social worker 75% As required 65,000
heritage with elders officer consultations
protection conducted
Capacity Work shop, Different experts NO. of Semi annual 300,000
building and training as they workshop as
training disciplines wanted
Monitoring & ESMP EIA expert NO. quarterly 100.000
Reporting reporting monitoring
reports
submitted
Contingency For Project manager N/A N/A 215,000
(10%) unforeseen
costs
Total Budget 1,985,000

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 8. Stakeholder Engagement and Public Participation
These are essential parts of environmental and social management, especially in projects like
agriculture, infrastructure, mining, and energy, they ensure that those affected by or interested in
a project are informed, consulted, and involved in decisions.

Stakeholder engagement is the process of identifying, consulting, and involving people or

organizations that have a stake in the projects outcomes-either positively or negatively.
Stakeholders may be Internal those who are project staffs, investors, partners and External
those who are local communities, farmers, government agencies, NGOs, indigenous groups,
vulnerable populations

Public participation is a specific form of stakeholder engagement that focuses on involving the
general public, particularly local communities’, in the decision-making process of a project.

Public participation matters

 Builds trust and transparency

 Improves project design and sustainability
 Helps identify and reduce conflicts or risks early.
 Ensures compliance with legal and international standards (e.g., World Bank, IFC,
national EIA laws)
 Empowers local communities and protects vulnerable groups.

Stakeholder engagement and community participation are critical components of the

Environmental and Social Impact Assessment (ESIA) process, particularly for projects like the
Ayehu coffee farm. Engaging stakeholders and involving the community helps ensure that the
project is socially acceptable, environmentally sustainable, and economically viable. Below is a
detailed section on stakeholder engagement and community participation.

26
Key steps in stakeholder Engagement and public participation

Activity Purpose
Steps
Map individuals and group Ensure no one is left out
1. Stakeholder
affected by or interested in the
identification
project
Assess influence, interest, and Prioritize and tailor
2. Stakeholder analysis
potential impact on each engagement
stakeholder group
Develop a stakeholder Define who to engage, how,
3. Engagement planning
engagement plan(SEP) and when
Share key documents (ESIA, Ensure transparency
4. Information disclosure
ESMP, plans) in accessible
way
Host meetings, surveys, Gather feedback, improve
5. Consultation
workshops, focus groups decision-making
Include communities in Promote ownership and trust
6. Participation in decision
environmental/social decisions
making
Close the loop-show how Build accountability
7. Feedback & follow-up
feedback was used
Offer safe, confidential Resolve issues early and
8. Grievance Redress
channels for complaints fairly
Mechanism (GRM)

For a project like Ayehu coffee farm, stakeholder engagement and community participation
includes

 Community meetings with farmers in nearby villages.

 Informing about water use, pesticide safety, or employment opportunities.
 Surveys to understand concerns or cultural sensitivities.
 Involving local leaders in monitoring and communication.

27
9. Monitoring and Evaluation
Monitoring and evaluation (M&E) is essential for tracking the environmental and social
performance of the Ayehu coffee farm project. The purpose of the monitoring and evaluation
plan is to ensure that mitigation measures are effectively implemented, unforeseen impacts are
identified early, and corrective actions are taken in a timely manner. This section outlines the
methodology, responsibility, indicators, and schedules for monitoring and evaluating the
project’s environmental and social impacts.

The main objectives of monitoring and evaluation are

 To ensure compliance with the Environmental and social management plan (ESMP)
 To assess the effectiveness of mitigation measures
 To detect any unforeseen adverse impacts
 To promote adaptive environmental management
 To support decision-making through periodic reporting

Types of Monitoring
Types Description
Compliance Monitoring Ensures adherence to environmental laws,
permits, and ESMP
Impact monitoring Measures environmental and social changes
resulting from project activities
Effectiveness monitoring Evaluates how well mitigation and
management measures are working
Community monitoring Involves local stakeholders in reporting
grievances and tracking socio-economic
changes
A comprehensive monitoring plan will be established to track environmental impacts and
compliance with mitigation measures.

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Ongoing monitoring will involve

 Quarterly soil and water sampling

 Annual biodiversity checks
 Remote sensing (drone) monitoring for land degradation
 Socio-economic surveys to assess income and employment effect
Key Indicators and Monitoring Plan

Impact area Monitoring Method/Tool frequency Responsible

Indicator Entity
Soil Erosion rates, Field sampling, Bi-annually Farm soil expert
organic matter % visual assessment
Water Quality PH, turbidity, Laboratory testing Quarterly Water and
nitrates of water sampling drainage officer
Pesticide use Quantity and Chemical monthly Farm chemical
type used inventory, site and Safety officer
audits
Air and Dust Dust levels Visual seasonally Site supervisor
during plowing/ monitoring,
harvesting complaints
Biodiversity Species count in Transect walks, annually Environment and
buffer zones photo monitoring forest protection
office
Employment Numbers of gobs Employment quarterly HR department
created for locals records, payroll
Grievance s Number and type Grievance monthly Liaison officer
of complaints logbook
filed
• Indicators of Success: Key performance indicators will include soil health metrics, water
quality assessments, and community satisfaction surveys.

29
Evaluation

Evaluation will involve assessing the effectiveness of the project in achieving its objectives and
the success of mitigation measures. This will include

• Mid-Term Evaluation

Conducting an evaluation halfway through the project implementation to assess progress and
make necessary adjustments.

• Final Evaluation

A comprehensive evaluation at the end of the project to assess overall impacts, lessons learned,
and recommendations for future projects.

30
10. Conclusion

The ESIA for the Ayehu coffee farm highlights the importance of balancing agricultural
development with environmental sustainability. By implementing recommended mitigation
measures, the project can contribute positively to local communities while minimizing adverse
environmental impacts. The Ayehu coffee farm project represents a vital opportunity for
enhancing hard currency, promoting economic development, and improving rural livelihoods in
the region.

However, the environmental and social implication of such a large-scale agricultural operation
requires structured management and continuous oversight. This ESMP has identified potential
impacts such as soil erosion and nutrient depletion, water overuse and agrochemical runoff,
impacts on local biodiversity, community concerns regarding land use, employment, and access
to resources.

The ESMP proposes a series of mitigation and enhancement measures, including adoption of
conservation agriculture techniques, implementation of integrated pest management (IPM), use
of water-efficient irrigation systems, establishment of a functioning grievance redress
mechanism (GRM), and active engagement of stakeholders throughout the project lifecycle.

With proper implementation, monitoring, and community collaboration, the project can operate
in an environmentally sustainable and socially inclusive manner.

11. Recommendations

Institutional commitment

 Assign dedicated environmental and social officers to oversee ESIA

implementation.
 Ensure alignment with Ethiopian legal frameworks and international good
practice.

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 Capacity building

 Conduct regular training for farm staff and professions on environmental safeguards,
health and safety and stakeholder engagement

Effective monitoring and evaluation

 Implement a structured monitoring plan with clearly defined indicators

 Engage third-party experts or auditors where needed for transparency

Operationalize the GRM

 Establish accessible, culturally appropriate channels for grievance submission.

 Ensure timely resolution and documentation of complaints.

Strengthen stakeholder engagement

 Maintain open communication with local communities, government agencies,

and NGOs
 Hold regular consultations, especially before introducing new practices or
expanding operations.

Resource allocation

 Allocate a sufficient and realistic budget to cover all ESMP activities

including emergency responses and environmental monitoring.

Periodic Review and Adaptive Management

 Review and update the ESMP based on field experience, monitoring results,
and community feedback.
 Adapt strategies to emerging risks or changes in environmental and social
conditions.

32
12. References
Federal Democratic Republic of Ethiopia. (2002). Environmental impact Assessment
proclamation No.299/2002. Addis Ababa.
Amhara National Regional State Environmental Protection Athority. (2002). Regional
Environmental Impact Assessment [Link] Dar, Ethiopia.
Convention on Biodaversity (CBD). (1992). United Nations Treaty series.
Environmental protection Authority (EPA). (2004). Environmental impact Assessment
Guideline document. Addis Ababa.
EPA, 2000. Environmental impact assessment guideline document; Federal democratic republic
of Ethiopia.

EPLAUA, 2007. Environmental impact assessment guideline, Amhara national regional state.

Ethio Agri-CEFT PLC documents about Ayehu farm projects

Federal Democratic Republic of Ethiopia. (1995). Constitution of Federal Democratic Republic

of Ethiopia. Addis Ababa.
Federal Democratic Republic of Ethiopia. (2002). Environmental pollution control proclamation
No. 300/2002. Addis Ababa.
Food and Agriculture Organization (FAO). (2016).Environmental and Social standards for
Agro-Industrial projects. Rome, Italy.
International Finance Corporation. (2012). Environmental, Health, and safety Guideline for food
and Beverage processing. Washington D.C. World Bank Group.
International Labor Organization (ILO).(1981). Occupational Health and Safety convention
(C155). Geneva, Switzerland.
Sustainable Land Management Project II, September 2013, Environmental and social
management framework, The Federal Democratic Republic of Ethiopia. Environmental
protection Authority (EPA). (2003). Environmental impact Assessment Procedural Guideline
Series. Addis Ababa, Ethiopia.
United Nations Environment Programmed. (2002). Environmental impact Assessment training
resources Manual. Geneva, Switzerland.
World Bank Group. (2017). Environmental and social Framework (ESF).washington D.C.

33
World Bank, 1991. Environmental Assessment Source Book. Vol. I, Policies, Procedures and
Cross-Sectional Issues, Environmental Department, World Bank Technical Paper 139. The
World Bank, Washington, D.C.

34
13. Appendices
Annex.1 Customized ESIA Tools for Ayehu coffee Farm Project

Annex 2. The Socio-Economic Environment activity

Annex 3. Potential positive impacts

Annex.4. potential negative impacts

Annex 5. Mitigation Measures for Negative Environmental and Social Impacts

Annex 6. Environmental and Social Management Plan (ESMP)

Annex 7. Key steps in stakeholder Engagement and public participation

Annex 8. Key Indicators and Monitoring Plan

35