• The World Bank approved $200 million to finance the sixth phase of Ethiopia’s Productive Safety Net Program (PSNP 6).
• The program aims to support vulnerable households and help 700,000 people create or expand small businesses.
• Ethiopia recorded 8.1% growth in 2023/24, but gross national income per capita remains at $1,020.

The World Bank approved $200 million in financing for a new phase of social safety net support in Ethiopia under the Productive Safety Net Project (PSNP 6).

The institution announced the decision in a statement published on March 3. The project aims to create jobs, improve food security, strengthen climate resilience and support vulnerable households.

“The PSNP 6 will help families meet their immediate needs and build resilience by enabling them to access better and more sustainable jobs, create community assets and invest in human capital to address challenges such as stunting,” said Maryam Salim, World Bank Director for Ethiopia, Eritrea, South Sudan and Sudan.

Maryam Salim

The World Bank said the program will enable 700,000 people to create or expand small businesses through practical training, mentoring and basic financial support.

Ethiopia faces severe social challenges linked to ethnic and political conflicts, human rights violations, humanitarian crises and economic inequality. These factors weaken national cohesion and constrain development. At the same time, repeated droughts, rising food prices and limited job opportunities make it difficult for families to meet essential needs.

Widespread poverty remains a key driver of these difficulties. Although Ethiopia recorded 8.1% economic growth in 2023/24, the country remains among the poorest globally. The World Bank estimates gross national income per capita at $1,020.

Ethiopia adopted a comprehensive national social protection policy that sets clear principles to shield citizens from economic and social vulnerability.

Since 2025, the Ethiopian government, in partnership with the World Bank, has implemented the Productive Safety Net Program, which has helped millions of food-insecure households strengthen their self-reliance.

Through the program, communities have restored degraded land, preserved water resources and rehabilitated social infrastructure such as schools, early childhood development centers and health clinics. The initiative has also supported job creation and new income-generating activities.

Lydie Mobio