Climate Investment funds pledge US$500M to boost Ethiopia’s climate resilience 

ETHIOPIA – The Climate Investment Funds (CIF) has approved a US$500 million initiative aimed at protecting rural communities in Ethiopia from climate-related shocks while enhancing food security.

The plan, part of CIF’s Nature, People, and Climate programme, includes a US$37 million investment by CIF and US$492 million in co-financing from partners such as the World Bank and African Development Bank. 

Ethiopia’s Minister of Agriculture, Girma Amente, welcomed the support, emphasizing the country’s vulnerability to climate change and the importance of implementing nature-based solutions.  

“This endorsement underscores Ethiopia’s commitment to building resilience through innovative and transformative actions,” Amente said. 

Ethiopia, with its dense population and heavy reliance on agriculture, particularly in rural areas, stands to benefit significantly from the initiative.  

Over 70 percent of the population resides in rural areas where farming is the primary source of income. The country’s coffee production, which accounts for approximately 45 percent of its exports, is largely sourced from natural forests.  

The initiative seeks to address these challenges by restoring over 320,000 hectares of degraded landscapes, including wild Arabica coffee forests, farmlands, and rangelands, in regions such as Amhara, Oromia, South Ethiopia, and Somali. 

The project also includes the establishment of an online national forest registry to improve forest management and conservation. 

Tariye Gbadegesin, CEO of CIF, explained that the investment in sustainable livelihoods and farming practices would help reduce emissions, protect carbon sinks, and strengthen rural communities against climate-related shocks. 

Key components of the plan involve afforestation, reforestation, and assisted natural regeneration to recover degraded lands and conserve soil and water resources.

To reduce pressure on forests, alternative income opportunities will be developed, including carbon credits for forest conservation and the promotion of non-timber forest products such as honey, bamboo, fruits, and spices. 

The initiative also prioritizes empowering women farmers, who play a vital role in Ethiopia’s agricultural sector.  

Women will benefit from climate-smart farming practices, higher-value activities like ecotourism and honey production, and women-led agricultural cooperatives, enabling them to participate in local decision-making processes. 

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