Ethiopia: A New Phase of Support for Safety Nets will Foster Resilience and Create Pathways to Decent Jobs

WASHINGTON, March 3, 2026 - The World Bank's Board of Executive Directors approved a new phase of support for safety nets in Ethiopia under the Productive Safety Net Project 6 (PSNP 6), a project designed to create jobs, enhance food security, build climate resilience, and support vulnerable households. Across Ethiopia, families are working hard to make ends meet as droughts become more frequent, food prices climb, and jobs remain scarce.

"These pressures force parents to make impossible choices: skip meals, sell precious assets, or pull children out of school. The PSNP 6 will help families meet immediate needs and strengthen their resilience by connecting people to better, more sustainable jobs, creating community assets, and investing in human capital to tackle challenges like stunting," said Maryam Salim, World Bank Division Director for Ethiopia, Eritrea, South Sudan and Sudan.

The project is financed through an International Development Association (IDA) credit of $200 million and builds on nearly two decades of partnership with the Government of Ethiopia and development partners. PSNP 6 reaffirms the World Bank's commitment to protecting Ethiopia's most vulnerable families, delivering meaningful, lasting change by addressing immediate crises while building the foundations for long-term resilience, even as climate risks intensify.

Beyond providing an emergency response, PSNP 6 creates genuine pathways to economic opportunities. The project will help 700,000 people start or grow small businesses through practical training, mentoring, and basic financial support, with youth and women placed at the center of this effort. At the same time, short-term employment through climate-smart public works will provide income for six million people, while improving the community assets they depend on, including restoring watersheds, rehabilitating degraded land, and building infrastructure that can withstand future shocks.

The project also makes a direct investment in the women and the next generation. By expanding access to nutrition, health services, and early childhood development, PSNP 6 aims to contribute towards reducing stunting and gives children the conditions they need to grow, learn, and reach their full potential. It also establishes women's cooperatives and expands access to credit, linking local producers with value chains and markets. In addition, it will work alongside complementary World Bank initiatives to amplify job creation.

"PSNP 6 is a critical investment in jobs and livelihoods for rural Ethiopians. It represents a vital step forward in our national effort to protect vulnerable families and build resilient rural livelihoods," said Sintayehu Demissie, Head of Ethiopia's Food Security Coordination Office at the Ministry of Agriculture. "By expanding job opportunities, supporting women and youth, and investing in nutrition and climate-smart community assets, this program will strengthen our social protection systems and help ensure sustainable, inclusive growth across Ethiopia. We are committed to working closely with the World Bank and our development partners to deliver results that improve lives and secure a brighter future for our communities."

Underpinning all of this is a commitment to promoting effectiveness, fairness, accountability, and sustainability. Stronger digital tools, clear grievance redress channels, and improved monitoring will help ensure that assistance reaches people reliably, transparently, and with the dignity they deserve.

*Since 2005, Ethiopia's Productive Safety Net Program has helped millions of food-insecure households move toward self-reliance. Communities have restored land, protected water sources, and rehabilitated social infrastructure-schools, Early Childhood Development centers, and health posts, while creating pathways to jobs and income. Under PSNP 5, communities treated 1.2 million hectares across 11,800 watersheds and completed or rehabilitated nearly 2,600 social infrastructure projects. The program also built a platform for rapid crisis response, reaching over 23 million people with shock-responsive support, and expanded financial inclusion, with 1.45 million households gaining access to bank accounts.