WASHINGTON, March 3, 2026 — The World Bank has approved a new phase of support for Ethiopia’s safety nets under the Productive Safety Net Project 6 (PSNP 6), designed to strengthen food security, build climate resilience, create jobs, and support vulnerable households. Ethiopian families are facing mounting pressures from frequent droughts, rising food prices, and scarce employment opportunities, forcing difficult decisions such as skipping meals, selling assets, or pulling children out of school. PSNP 6 aims to address both immediate needs and long-term resilience through sustainable employment, community asset creation, and human capital investments.
Financed with a $200 million International Development Association (IDA) credit, PSNP 6 builds on nearly two decades of partnership between the World Bank, the Government of Ethiopia, and development partners. The program reinforces the World Bank’s commitment to supporting the most vulnerable families while tackling intensifying climate risks. By combining emergency response with economic opportunity creation, PSNP 6 connects communities to better jobs, builds climate-smart infrastructure, and enhances resilience to future shocks.
The project will enable approximately 700,000 people to start or expand small businesses through practical training, mentoring, and financial support, with a particular focus on youth and women. Short-term employment through climate-smart public works will provide income for six million people while rehabilitating critical community assets, including watersheds, degraded lands, and resilient infrastructure. These activities not only deliver immediate economic benefits but also strengthen the foundations for sustainable development in rural communities.
PSNP 6 also invests directly in women and children by expanding access to nutrition, health services, and early childhood development, addressing stunting, and supporting educational outcomes. The program will establish women’s cooperatives, improve access to credit, and link local producers to value chains and markets, complementing other World Bank initiatives to create lasting employment opportunities and economic growth.
The program emphasizes effectiveness, fairness, accountability, and sustainability. Enhanced digital tools, grievance redress mechanisms, and improved monitoring systems will ensure that support reaches beneficiaries transparently and reliably while preserving their dignity. Since 2005, Ethiopia’s PSNP has helped millions move toward self-reliance, restoring land, protecting water sources, rehabilitating social infrastructure, and providing rapid crisis response to over 23 million people, while expanding financial inclusion for 1.45 million households.
