Smallholder agriculture is the most important sector of Ethiopia’s economy. More than 80% of the population lives in rural areas, and their main source of income is agriculture. The agricultural sector accounts for about 45% of GDP, almost 90% of exports, and 85% of employment. Despite recent positive developments in smallholder agriculture, yields remain low, and many geographical areas have unexploited potential for productivity growth. The exposure to climatic risk like extreme weather events is high, especially in light of the low capacity to store water and irrigate.
GAFSP will co-finance the second phase of the Agricultural Growth Project (AGP), to sustainably increase agricultural production and productivity of selected crop and livestock commodities, establish market linkages and accelerate commercialization, increase access to and build the capacity of smallholder farmers for efficient water and crop management, improve dietary diversification for better health, and strengthen the capacity of smallholder farmers to adopt and implement climate change mitigation and adaptation measures.
The project will target 1.6 million smallholder farmers who own one hectare of land on average, in 157 woredas (districts) in Amahara, Oromia, SNNPR, Tigrai, Benshangul-Gumuz, Gambella, Harari, and Dire Dawa City Administration. These woredas were selected for their potential for better rainfall and good soil fertility. The project will also indirectly impact household members and other farmers, including 640,000 women.
- Climate Change