Ethiopia Urges Scaled-Up Financing for Africa’s Rural Transformation at IFAD14

Addis Ababa, May 28, 2026 —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.

 Speaking on the occasion, Ethiopia’s Finance State Minister, Semereta Sewasew, said that rising borrowing costs and climate shocks are severely straining African economies and emphasized that rural development must be viewed not as social expenditure, but as a strategic economic investment.

"Africa’s future growth will depend on how effectively we mobilize our rural economies," she stated, noting that agrifood systems remain the continent's largest employment engine, particularly for women and youth.

The state minister also outlined several key initiatives fueling this progress. Among them are the Climate and Productivity program that include the Participatory Agriculture and Climate Transformation (PACT) and the Lowlands Livelihood Resilience Project II (LLRP II), both aimed at boosting sustainable agricultural practices and resilience to climate change.

In the realm of rural finance, she underscored that Ethiopia is advancing through the Rural Financial Intermediation Programme III (RUFIP III), alongside plans to establish a credit guarantee facility designed to attract private investment and foster economic growth in rural areas.

The state minister highlighted Ethiopia's impressive partnership with the International Fund for Agricultural Development (IFAD), which boasts an active portfolio valued at 900 million USD.

 

This collaboration has been instrumental in transforming the lives of over 13 million people across the country.

Looking ahead, the country is also 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 the 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 swift responsiveness to local supply disruptions through the proposed Emergency Agricultural Input Access Facility, which secures essential inputs for smallholders during periods of external uncertainty.

Congo’s of Finance, Budget and Public Portfolio Minister, Christian Yoka and senior IFAD leadership echoed these priorities, emphasizing that investing in the "first mile"—including inputs, irrigation, and rural infrastructure—is essential to unlocking productivity.

Roundtable participants concluded that the upcoming IFAD14 replenishment is a critical opportunity to scale these proven investment models and shield the continent from future economic and climate shocks.

The Roundtable meeting concluded with a shared recognition that stronger partnerships and sustained investment in rural communities will be indispensable to advancing food security, economic resilience, and inclusive growth across the continent.