EU, IFAD to support Ethiopian rural financial institutions

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The International Fund for Agricultural Development (IFAD) and the European Union (EU) will provide EUR26.5 million worth of liquidity and debt relief to rural financial institutions to protect jobs and safeguard livelihoods during the COVID-19 pandemic.
In Ethiopia, the agriculture sector and rural people are the most impacted by the COVID-19. The pandemic has reduced agricultural labor, limited access to inputs and production capital, reduced production and productivity, and obstructed access to markets and financial services. This has led to loss of employment, reduced access to food, and increased domestic responsibilities for women.
Micro small and medium enterprises (MSMEs) and cooperatives who play an important role in creating jobs and sustaining livelihoods in rural areas are also facing the challenges due to the pandemic.