Ethiopia to Benefit from World Bank Support for Social Safety Net

September 30, 2014

WASHINGTON, September 30, 2014 – The World Bank’s Board of Executive Directors today approved a US$600 million International Development Association (IDA*) credit to Ethiopia for the Productive Safety Nets Project 4 (PSNP4). The funds will be used to expand access to safety net and disaster risk management systems, as well as provide nutrition services and income support to food insecure families living in rural Ethiopia

In 2005 the Government of Ethiopia funded with support from other development partners the Productive Safety Nets Program (PSNP). Since it was launched, the program has made notable contributions to reduce household vulnerability and food insecurity, improve resilience to shocks and promote sustainable community development in rural areas of Ethiopia. It focused on important public works resulting in improvements to rural infrastructure and enhanced access to education and health services. To mitigate the risk of economic and climate related shocks, the PSNP introduced soil and water conservation activities, small scale irrigation, and integrated watershed management

Today’s project (PSNP4) builds on the 10 years of the program’s success and contributes to reducing poverty and promoting shared prosperity by providing a safety net for Ethiopia’s food insecure and most vulnerable people. To face the challenges of improving nutrition, PSNP4 will provide support to the nutritional goals of the country and address long-term income challenges. It will support Ethiopia in building systems for social protection and disaster risk management. This will include investments in developing a national registry for social protection interventions and clients, improved management information systems, and efforts to modernize how payments are made

Since its launch nearly a decade ago, the Productive Safety Net Program has made unparalleled contributions not only to food security and Ethiopia's progress in meeting many of the MDG goals, but to reversing land degradation,” said Guang Z. Chen, World Bank Country Director for Ethiopia. “PSNP4 will build on these successes, and also support the development of long-term social protection systems and disaster risk management. I am very pleased that the program will be expanded across the country to eventually reach up to 10 million people each year.”          

The PSNP4 will be implemented in 411 districts in Ethiopia, reaching up to 10 million food insecure people per year and includes a total budget of approximately US$3.6 billion from the government and 11 development partners including the United Kingdom’s Department for International Development, Irish Aid, the European Union, Canadian International Development Agency, Swedish International Development Agency, the Netherlands, Danish International Development Agency, the United States Agency for International Development, UN Children's Fund, the World Food Program and the World Ban

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing zero-interest loans and grants for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 82 poorest countries, 40 of which are in Africa. Resources from IDA bring positive change for 2.5 billion people living on less than $2 a day. Since 1960, IDA has supported development work in 108 countries. Annual commitments have increased steadily and averaged about $16 billion over the last three years, with about 50 percent of commitments going to Africa

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