Skip to Content
X

Ethiopia

20

Projects Includes planned, ongoing and closed projects

US$ 2,157.57 million

Total Project Cost

US$ 751.63 million

Total IFAD financing

11,578,750

Households impacted


categoryFilterCountry = true

categoryFilterProject = false

layoutCategory = 39090754

projectCategory = 0

The Context

With 105 million inhabitants, Ethiopia is one of the most populous countries in the world. It is also one of the top performing economies in sub-Saharan Africa.

Agriculture is the mainstay of the economy. Exports rely almost entirely on agricultural commodities such as coffee, seeds, pulses and livestock. The country has experienced strong economic growth in recent years, and substantial progress has also been made in social and human development over the last decade. Yet poverty remains a major challenge.

Around 85 per cent of Ethiopia’s inhabitants live in rural areas. The 2015/16 El Niño induced drought had severe impact on agricultural production (crop and livestock), which left nearly 10 million people in need of food assistance. However, improved weather conditions and measures taken by the government to mitigate the effects of the preceding year’s drought have improved livestock production and productivity during 2016/17.

Many rural areas haven’t seen normal rains in years, leaving the population extremely vulnerable to another crisis.

Ethiopia is also one of the largest refugee-hosting countries in the world. It has over 905,831 registered refugees (as of August 2018), most of them from Eritrea, Somalia, South Sudan and Sudan.

Ethiopia is one of the fastest growing countries in the world, with a population growth rate of 2.6 per cent annually. This is putting great pressure on land resources, worsening environmental degradation and raising the risk of food shortages.

Agricultural productivity is being hampered by land degradation, poor water management, low technology usage and an underdeveloped marketing system, among other factors. The country loses about 2 billion tons of fertile soils annually to land degradation, and the siltation of water bodies is already a major threat to irrigation development.

Ethiopia is also facing a youth bulge. More than 40 per cent of the population is below the age of 15, and 71 per cent is under 30.

In both rural and urban areas, many young people, particularly young women, are unemployed or working in the informal sector. Most young people live in rural areas, where livelihood opportunities are increasingly scarce.

The Strategy

In Ethiopia, IFAD supports rural people in raising their incomes and improving food security, as well as increasing their contribution to the country’s economic development.

IFAD’s loans support programmes that provide smallholder farmers, pastoralists and agro-pastoralists with the assets needed to enhance their productivity and resilience. They help them gain access to natural resources, technology, finance, institutional capacity and markets.

IFAD’s investments target food insecure areas of the country, focussing on the poorest communities. They are intended to benefit particularly women and young people.

The IFAD country programme has two main objectives:

  • improved resilience and productivity of ecosystems and livelihoods through improved management of natural resources, particularly water;
  • expanded linkages with the private sector to ensure increased and sustained access to markets, finance and agricultural technology.

Key areas of investment include:

  • small-scale irrigation development;
  • sustainable natural resource management;
  • rural financial inclusion;
  • community-driven development among pastoral groups;
  • knowledge exchange through partnerships with the private sector, research institutions and other developing countries.

Country Facts

  • Ethiopian smallholder farmers produce 90 to 95 per cent of the country’s agricultural output.
  • Around 85 per cent of the country’s 105 million inhabitants live in rural areas, and inclusive agricultural growth is a major driver of poverty reduction.

categoryFilterCountry = true

categoryFilterProject = false

layoutCategory = 39090754

projectCategory = 0

Country documents

Federal Democratic Republic of Ethiopia Country strategic opportunities programme

Type: Country Strategic Opportunities Programme
Region: East and Southern Africa

Projects and Programmes

PLANNED Under design after concept note approval

APPROVED Approved by the Executive Board or IFAD President

SIGNED Financing agreements signed

ONGOING Under implementation

CLOSED Completed/closed projects

No matching projects were found
No matching projects were found
No matching projects were found

categoryFilterCountry = true

categoryFilterProject = false

layoutCategory = 39090754

projectCategory = 0

Related news

Ethiopia and IFAD to help families adapt to climate shocks in new multi-million dollar project

November 2019 - NEWS
Half a million of Ethiopia’s most vulnerable families are set to benefit from a new US$451 million project to increase their resilience to climate shocks in the country’s poorest regions.

Government of Ethiopia and United Nations agency to discuss future plans for rural development in country

October 2015 - NEWS
The Independent Office of Evaluation of the International Fund for Agricultural Development (IFAD), the UN agency specializing

Ethiopia and IFAD to increase access to financial services in rural areas threatened by climate change

January 2020 - NEWS
A new US$305.7 million programme will help more than 13 million of Ethiopia’s most vulnerable farmers to increase and diversify their incomes, access financial services and build their resilience in rural areas threatened by climate change.

categoryFilterCountry = true

categoryFilterProject = false

layoutCategory = 39090754

projectCategory = 0

Related stories

“Water is critical to development,” says IFAD expert

March 2016 - STORY
Access to water means Lake, a smallholder farmer in Ethiopia, no longer has to rely on food aid to survive. He is making an income and feeding his family.

Ethiopia's youth making their mark in agriculture

November 2014 - STORY
4 November 2014 – Until now, farming has not been an obvious choice for Ethiopia's youth. Barriers to owning land and other assets have fuelled the steady migration of young people to urban centres.

Conservation practices made worthwhile

August 2015 - STORY
Deep ravines and gullies gutting into hillsides define the rolling valleys within the Lake Tana watershed. Soil erosion is a widespread primary factor degrading fertile lands within Ethiopia, causing an estimated loss of two billion tons of fertile soils, and reducing the agricultural GDP but 2.3% a year1.

categoryFilterCountry = true

categoryFilterProject = false

layoutCategory = 39090754

projectCategory = 0

Related publications

Resilient Food Systems 2018-2019 Annual Report

March 2020
Discover how the Resilient Food Systems programme is enhancing long-term sustainability and resilience for food security in sub-Saharan Africa.

Case study: Transformative Household Methodology, Ethiopia

October 2014
This case study illustrates how the Transformative Household Methodology has been used effectively in Ethiopia, highlighting how it has worked in a particular context. Links are provided to resources and online materials.

Fighting poverty with bamboo

July 2019
For millions of poor people in East and Southern Africa, bamboo has huge potential to alleviate poverty, protect the environment and help achieve the SDGs. 

categoryFilterCountry = true

categoryFilterProject = false

layoutCategory = 39090754

projectCategory = 0

Related videos

Joint visit of Heads of UN Rome-Based Agencies to Ethiopia

September 2017 - VIDEO

In September 2017, the heads of the UN food agencies - FAO, IFAD and WFP - travelled together to Ethiopia to assess how to work closer together to eradicate hunger and poverty. With visits to the drought-hit Somali region and the more developed Tigray region, they examined how to narrow the gap between humanitarian and development investments to ensure people are more resilient to droughts and other climate shocks.