This document is intended to serve as a resource for assessing capacity needs in a project or programme. A capacity needs assessment (CNA) is a process for identifying a project’s perceptions (through staff, partners and stakeholders) on various capacity areas that impact the work they do. The process helps identify challenges and opportunities for enhancing key skills thereby enhancing the project’s ability to achieve its objectives. The overall goal of a CNA is to determine the gap between required and existing capacities.

The LIVES project works to increase adoption of value chain interventions through use of improved knowledge and capacity by value chain actors and service providers. Knowledge management and capacity development are important components of the project to fill gaps in knowledge and capacity of value chain actors and service providers. Capacity is defined as the capabilities (knowledge, skills, experience, values, motivations, organizational processes, and linkages) that determine how well value chain actors and service providers utilize resources, market opportunities, and relationships.

The Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project supports the efforts of the GoE to transform the smallholder agriculture sector to a more market-oriented sector. LIVES uses a value chain framework to develop targeted livestock and irrigated agriculture commodities through integrated technical and institutional innovations. Such a framework recognizes that value chain actors add value at different stages of the value chain and that individuals and organizations provide inputs and services to the value chain actors.