Ethiopia, IFAD Sign $69.2 Million Grant Agreement to Boost Climate Resilience in Lowland Areas

Addis Ababa, July 29, 2025 (FMC) — The Government of Ethiopia and the International Fund for Agricultural Development (IFAD) have signed a USD 69.2 million grant agreement to launch the second phase of the Lowland Livelihoods Resilience Project (LLRP II), aimed at strengthening the livelihoods and climate resilience of pastoral and agropastoral communities in Ethiopia’s lowland regions.

The agreement was signed by Ethiopia’s Minister of Finance, H.E. Ahmed Shide, and IFAD President, Mr. Alvaro Lario, on the sidelines of the UN Food Systems Summit Stocktaking Moment (UNFSS+4) in Addis Ababa.

LLRP II is co-financed with the World Bank and is expected to directly benefit more than three million people across eight regions. The project will focus on interventions in climate-smart livelihoods, commercialization and diversification, integrated rangeland management, and disaster risk reduction.

Building on the achievements of the first phase, LLRP II will further enhance early warning systems, promote sustainable rangeland practices, and expand the adoption of climate-resilient agriculture to help vulnerable communities better withstand climate shocks.

The new funding agreement reflects Ethiopia’s continued commitment to investing in rural transformation and resilience-building in collaboration with international partners.