The International Fund for Agricultural Development (IFAD) and the Government of Ethiopia have signed a financing agreement to launch Phase II of the Lowlands Livelihood Resilience Project (LLRP II). With total funding of US$424 million, this phase aims to support three million livestock herders in Ethiopia’s drought-prone lowlands to adapt to climate change, while indirectly benefiting an additional two million people. The funding includes a US$69 million grant from IFAD and US$340 million from the World Bank. The agreement was signed during the UN Food Systems Summit +4 Stocktake in Addis Ababa, highlighting a continuation of the successful first phase that surpassed its reach targets by 27%.
Despite significant progress in development, Ethiopia still faces considerable challenges. The country reduced extreme poverty by more than half between 2000 and 2016, but by 2022, GDP per capita was US$1,028, and food insecurity had increased due to climate shocks and economic strains. Recurrent droughts and extreme weather events have slowed development and forced the diversion of resources toward emergency relief efforts. The impact has been particularly severe for the 18 million people living in the lowlands who rely on pastoral and agropastoral livelihoods.
In response, LLRP II is aligned with Ethiopia’s 2030 Development Plan and is designed to strengthen long-term resilience in these vulnerable regions. The project includes components such as enhanced early warning and disaster response systems, conflict mitigation over natural resources, and better disaster preparedness. It also focuses on boosting agricultural productivity by promoting climate-smart agriculture, improved animal husbandry, strengthened veterinary services, and gender-sensitive and nutrition-focused technologies. These measures aim to create more sustainable, climate-resilient communities in Ethiopia’s lowlands.
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