Ethiopia

Project overview

The project will contribute to Ethiopia’s Food Systems (EFS) transformation by addressing some of the above key challenges faced by crops (wheat/maize) and livestock (beef) food systems. 

The FSIP country project, anchored to IFAD’s larger investment project – the Participatory Agriculture and Climate Transformation Programme (PACT) – will enable 150,000 HHs/direct beneficiaries to sustainably improve incomes, food and nutrition security, manage their ecosystems and natural resources, and build resilience to climate shocks. It will aim to help catalyze a transition to sustainable and inclusive Food Systems that are nature-positive, climate-resilient, pollution-free and nutrition-sensitive through strengthening of: i) enabling environments of policies and institutions, ii) access to finance and markets through mobilized private sector investments, iii) capacity of advisory services, producer organizations and cooperatives for inclusive value chain development; and iv) scaling up of integrated landscape management, soil health, CSA technologies and ecosystem restoration. 

The project intends to achieve the following GEBs: (i) 60, 302 ha area of landscapes under restoration; (ii) 32,335 ha area of landscapes under improved practices; and (iii) 1,333,982 metric tons of CO2e of greenhouse gas emissions mitigated.

Our Approach

The project will catalyze private sector engagement across Ethiopia’s food systems by strengthening agricultural value chains, improving market structures, and fostering business-to-business linkages. It will stimulate investment in agro-processing and agribusiness, creating jobs while enabling farmers and cooperatives to operate competitively in more diversified and nutrition-sensitive markets.

The project will expand access to finance for smallholder farmers, pastoralists, and producer organizations by facilitating tailored financial services and de-risking investments. It will introduce innovative financing mechanisms, including carbon finance and Payment for Ecosystem Services (PES), making sustainable land management economically viable and more attractive to private investors.

Through IFAD’s support and as a scale-up of the PACT Programme, the project will mobilize additional public and private investment into resilient food systems. It will align with national strategies while strengthening market stability, increasing bankability of small-scale producers, and driving inclusive rural economic growth.

Sites

Afar, Amhara, Central Ethiopia, Oromia, Sidama, Somali, Southern Ethiopia, Southwest Ethiopia and Tigray.