PS-Ethiopia-Ethiopian Climate Insurance Acceleration Fund (ECIAF)

Ethiopia has an estimated 12 million smallholder farmers, who contribute 90% to the total agricultural output. For Ethiopia to reach its GTP II targets, commercialization of smallholder farmers is a top priority, and the GoE aims to increase the amount of crop production by smallholder farmers by 50% from 2015/16 to 2019/20. 2 However, smallholder farmers are predominantly reliant on rainfed agriculture, making them one of the most vulnerable groups in Ethiopia that are susceptible to various weather-related water risks, such as droughts and floods. To support the productivity of small-holder farmers and realization of the GTP II targets, it is necessary to protect them against such risks and increase the climate resilience of the agriculture sector.