Support to a Transformative Approach for Resilience through Livelihood and Business Interventions in Ethiopia

Contract partner: FAO - Food and Agriculture Organization of the United Nations Country: Äthiopien Funding amount: € 1.800.000,00 Project start: 01.05.2023 End: 31.10.2024

Short Description:

Overall goal

The project outcome is to improve the food security and resilience capacity of poor households and small and medium enterprises - SMEs (especially women and youth members) and ultimately improve their well-being. The project will focus on economic inclusion, building on the delivery system of the social protection flagship program (Productive Safety Net Programme - PSNP) and on agro-business opportunities.

Expected results

1. Viable climate-smart livelihood options and business plans for targeted PSNP clients and SMEs designed.

2. Enhanced capacity of targeted SMEs and PSNP clients in using climate-smart business plans and investment practices.

3. Learning products generated, capitalized and used for gender sensitive and socially inclusive programming.

Target group / Beneficiaries

Two types of beneficiaries are targeted: bottom-poor livelihood clients from the Productive Safety Net Program Phase 5, and SMEs managed by women and youth. Overall, the project will target 14,580 individuals (2,416 households, 500 youth from SMEs) in the intervention locations.

The PSNP beneficiaries will be selected from the PSNP and refined with specific criteria such as the presence or willingness to work on the identified livelihood options.

FAO will partner with the Regional Bureau of Agriculture in Amhara and business service providers to implement this project.

In consultation with the Regional Bureau of Agriculture, the project will target nine woredas in South Wollo, North Shewa and South Gondar.

The woreda selection considers existing overlaps with non-governmental implementing partners of PSNP and the enabling environment of woredas, such as the number of development agents, the number of available contract staff, and the presence of functional Micro-Finance Institutions, Rural Saving And Credit Cooperatives and Farmer Training Centres.


1. Market assessment of livelihood options and an institutional mapping for business actors and facilitators involved in the selected livelihood options in each woreda, select agri-food SMEs, and identify market systems governance, technologies and good practices for improved productivity.

2. Support the PSNP clients and SMEs to develop climate smart business/investment plans.

3. Training of Trainers (ToT) on good climate smart livestock and agriculture practices, business skills, market linkages, and gender equality for woreda experts and development agents.

4. Conduct management, technical training sessions, demonstration and exchange visits on agriculture and climate smart good practices for PSNP clients and agri-food SMEs (cascading the ToT to the beneficiaries).

5. Promote regular extension and business support to the targeted project beneficiaries and in line with the identified business models (extension, marketing, access to technologies and good practices, gender equality).

6. Investment support to the targeted PSNP clients and SMEs (grant and direct support to beneficiaries and business partners to access infrastructures, capital, technologies, etc.)

7. Gender analysis and baseline survey, quarterly review and an end line survey.

8. Design of a livelihood performance dashboard providing evidence for decision-making.



Food insecurity remains a significant challenge as Ethiopia is one of the world's largest food aid recipients, and the number of beneficiaries and area coverage has increased over the years. Eight million people currently receive food assistance through PSNP. In addition, more than 20.4 million people require emergency food assistance because of conflict and climate change effects including recurring droughts and other natural calamities.

Local communities face a multitude of challenges, like low agriculture and livestock productivity resulting from land degradation, traditional farming practices, lack of access to finance and appropriate technologies. The pandemic amplified socio-economic vulnerabilities in the country and deteriorated the food security of the target communities with tremendous effects on their livelihoods.

Moreover, the conflict in northern Ethiopia has severely affected the food security resulting from displacement, destruction of infrastructure and institutions, and disruption of seasonal agricultural production.

The target areas of Amhara region face severe depletion of household assets and are in need of support to recover livelihoods. Regarding the agri-business in the Amhara region, the most common income-generating activities owned by women in Amhara operate under a buy and sell framework and include fish products trading, raw and processed milk/dairy products collection and trading, production and commercialization of various vegetables, trading of fresh and semi-processed fruits, grilled wheat grains trading, sesame, maize and sorghum products. These businesses are sensitive to shocks, interruptions, sickness and other events. Therefore, investing in availing technologies and facilitating access to sustainable livelihood options will support the poorest and most vulnerable households to generate income and improve their living standards while supporting local economic growth.


project number 2824-00/2023
source of funding OEZA
sector Andere multisektorielle Maßnahmen
modality Project-type interventions
marker Environment: 1, Climate change adaptation: 1, Gender: 1, Poverty: 2
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.