Ethiopia: Ethiopia has called for a significant scale-up in strategic financing for Africa's rural transformation, stressing that strengthening agriculture, climate resilience, and rural finance is vital for continental food security and macroeconomic stability. On the sidelines of the African Development Bank Group Annual Meeting, a two-day high-level International Fund for Agricultural Development 14 (IFAD14) consultation was held in Brazzaville, Congo.
According to Ethiopian News Agency, Ethiopia's Finance State Minister, Semereta Sewasew, emphasized that rising borrowing costs and climate shocks are severely straining African economies. She stressed that rural development must be considered a strategic economic investment rather than a social expenditure. "Africa's future growth will depend on how effectively we mobilize our rural economies," she stated, highlighting that agrifood systems remain the continent's largest employment engine, especially for women and youth.
The state minister outlined several initiatives driving progress, including the Climate and Productivity program, which encompasses the Participatory Agriculture and Climate Transformation (PACT) and the Lowlands Livelihood Resilience Project II (LLRP II). These initiatives aim to enhance sustainable agricultural practices and resilience to climate change.
In the area of rural finance, she noted that Ethiopia is advancing through the Rural Financial Intermediation Programme III (RUFIP III) and plans to establish a credit guarantee facility to attract private investment and foster economic growth in rural areas. She also highlighted Ethiopia's partnership with the International Fund for Agricultural Development (IFAD), which has an active portfolio valued at 900 million USD. This collaboration has transformed the lives of over 13 million people across the country.
Looking forward, the country is focusing on innovative solutions such as the Climate Resilient Irrigation for Sustainable Production (CRISP) and the National Agriculture Finance Implementation Roadmap (NAFIR) Initiative. According to the Ministry of Finance, Semereta stated that these efforts aim to align international support with Ethiopia's national priorities, ensuring that development efforts are both aligned and sustained.
The state minister also welcomed IFAD's quick response to local supply disruptions through the proposed Emergency Agricultural Input Access Facility, which ensures essential inputs for smallholders during periods of external uncertainty. Congo's Finance Minister, Christian Yoka, and senior IFAD leadership echoed these priorities, emphasizing the importance of investing in the "first mile," which includes inputs, irrigation, and rural infrastructure, to unlock productivity.
Roundtable participants concluded that the upcoming IFAD14 replenishment is a critical opportunity to scale these proven investment models and protect the continent from future economic and climate shocks. The meeting concluded with a shared recognition that stronger partnerships and sustained investment in rural communities are essential for advancing food security, economic resilience, and inclusive growth across the continent.