Ethiopia and IFAD Launch $424M Project to Boost Climate Resilience in Lowlands

In a transformative step toward combating climate vulnerability and building long-term resilience in Ethiopia’s lowland regions, the International Fund for Agricultural Development (IFAD) and the Federal Democratic Republic of Ethiopia have signed a major financing agreement to launch Phase II of the Lowlands Livelihood Resilience Project (LLRP II). With a total investment of US$424 million, the initiative aims to support over three million pastoral and agro-pastoral households, while indirectly benefiting another two million people affected by recurring climate shocks.

The agreement was formally signed by IFAD President Alvaro Lario and Ethiopia’s Minister of Finance Ahmed Shide during the UN Food Systems Summit +4 Stocktake in Addis Ababa, Ethiopia, underscoring the alignment of the project with global and national strategies for food security, sustainable agriculture, and climate adaptation.

Scaling Proven Solutions for a More Secure Future

Phase II builds on the impressive success of the first phase of the LLRP, which exceeded its original targets by 27%, ultimately reaching nearly two million beneficiaries across the lowlands. This new phase substantially scales up the initiative, incorporating both expanded geographic coverage and an enhanced suite of interventions aimed at improving livelihoods, reducing vulnerability, and promoting sustainable economic development.

“Investing in the long-term resilience of Ethiopia’s pastoralists and agro-pastoralists enables communities not only to withstand climate shocks but to build a more sustainable and secure future,” said President Lario. “This partnership will scale up proven solutions that improve livelihoods, strengthen local economies, and reduce the need for emergency aid.”

Financing Breakdown and Strategic Alignment

The total financing envelope includes:

• US$69 million in grant funding from IFAD

• US$340 million from the World Bank, signifying strong multilateral support

• Additional contributions from the Government of Ethiopia and implementing partners

LLRP II is strategically aligned with Ethiopia’s 2030 Development Plan, supporting national priorities in resilience-building, climate adaptation, and rural transformation. The program targets 18 million pastoral and agro-pastoralists in the lowlands, a demographic that faces heightened vulnerability due to increasingly frequent and severe droughts.

Responding to a Changing Climate in Ethiopia’s Lowlands

Ethiopia’s lowland regions, home to millions of pastoralist communities, are among the most climate-vulnerable zones in the Horn of Africa. The country has endured eight major droughts over the past 15 years, with each episode triggering humanitarian emergencies, eroding livelihoods, and reversing development gains.

The country’s GDP per capita was US$1,028 in 2022, and food insecurity has worsened due to cumulative environmental and economic shocks. Although Ethiopia halved extreme poverty between 2000 and 2016, these achievements are under threat as increasing climate variability forces the government to divert scarce resources from development initiatives to emergency response.

LLRP II addresses this challenge head-on by focusing on long-term resilience rather than short-term relief.

What LLRP II Will Deliver

The second phase of the Lowlands Livelihood Resilience Project is comprehensive in scope, covering a range of interventions designed to make rural livelihoods more secure, adaptive, and sustainable. Key components include:

• Improved climate risk management

  • Early warning systems for drought and climate events

  • Strengthened disaster preparedness and response

  • Conflict mitigation over natural resources

• Climate-smart agriculture and animal husbandry

  • Improved livestock productivity through better breeding and feeding

  • Strengthened veterinary and animal health services

  • Adoption of nutrition-smart, gender-responsive technologies

• Sustainable rangeland and water management

  • Restoration of degraded grazing lands

  • Community-based water harvesting and irrigation infrastructure

• Strengthened local governance and institutions

  • Capacity-building for pastoralist institutions

  • Integration of climate resilience in local development plans

The program’s integrated approach will help communities shift from a state of fragility to long-term stability and growth. By empowering women and youth, promoting nutrition-sensitive practices, and increasing access to critical services, LLRP II supports Ethiopia’s broader objectives of inclusive development.

A Regional and Global Model for Resilience

LLRP II comes at a time when climate adaptation in agriculture is an urgent global priority. The program offers a scalable model for climate resilience in fragile, arid ecosystems, demonstrating how coordinated investment from international financial institutions can produce real, lasting change on the ground.

The IFAD–Ethiopia partnership also serves as a powerful example of how collaboration across governments and development agencies can create systems-level change, reduce dependency on humanitarian aid, and unlock the potential of vulnerable communities.

By targeting the structural causes of food insecurity and vulnerability, the initiative is expected to not only save lives but also open new pathways for sustainable development and economic transformation in one of Africa’s most climate-challenged regions.