Ethiopia’s vulnerable farmers have been given a US$305.7 million boost to help protect them against the economic effects of climate change.
The Ethiopian government, the UN’s International Fund for Agricultural Development (IFAD) and the Development Bank of Ethiopia are implementing the third phase of the Rural Financial Intermediation programme (RUFIP III), an IFAD initiative aimed at improving farmers’ livelihoods in the East African nation. RUFIP III’s proposed target group includes 50% women and 10% youth.
The programme aims to increase farmers’ access to financial services through a network of rural saving and credit co-operatives and microfinancing institutions, so they are able to diversify their incomes, and improve nutrition in rural areas threatened by climate change. It will also develop insurance products via the rural financing co-operatives and microfinanciers to improve the farmers’ responses to climate change. It builds on the impact of RUFIP I and II, which introduced 5 million customers to microfinancing solutions.
IFAD provided a US$35.1 million grant and US$4.9 million loan to the RUFIP III, the Ethiopian government contributed US$51.9 million, while the rest was provided by international development partners and national financial institutions.
The rural financing co-operatives and microfinanciers have contributed almost US$1 million to the programme
