World Bank announces $340 million initiative to combat climate change effects on Ethiopian livelihoods

The World Bank (WB) has highlighted the profound impact of climate change on Ethiopia, with widespread struggles faced by its populace due to recurring droughts and flash floods.

The country’s pastoralists and agro-pastoralists, in particular, are bearing the brunt of these environmental adversities, with their livelihoods severely affected.

Over the past three years, Ethiopia’s lowlands have experienced consecutive severe droughts, resulting in significant losses in livestock and deeply affecting the lives of millions who rely on these animals for sustenance, according to the World Bank’s assessment. This alarming trend underscores the urgent need for intervention to mitigate the effects of climate change on vulnerable communities.

Michael O’Sullivan, Senior Economist at the World Bank, stressed the importance of Ethiopia’s National Financial Inclusion Strategy in addressing the challenges posed by climate change.

The strategy, revised for the period 2021-2025, aims to foster financial inclusion for millions of Ethiopians through collaborative efforts across both public and private sectors, recognizing its pivotal role in the country’s growth and prosperity.

To address the plight of Ethiopians residing in climate-affected lowlands, the International Development Association (IDA) has approved a credit of $340 million.

The funding is earmarked for enhancing livelihoods and bolstering climate resilience, with a specific focus on benefiting 3 million people, especially pastoralists and agro-pastoralists in drought-prone areas.

Building upon the successes of the Lowlands Livelihood Resilience Project (LLRPI), the newly approved Lowlands Livelihood Resilience Project Phase Two (LLRP II) aims to take a more systematic and comprehensive approach to climate change mitigation and adaptation.

Ousmane Dione, World Bank Country Director for Eritrea, Ethiopia, South Sudan, and Sudan, emphasized the project’s focus on fostering climate-resilient livelihoods and ecosystems.

Furthermore, the project will support the adoption of climate-smart agricultural and livestock production technologies, alongside facilitating access to rural financial services for diversified and alternative livelihood options.