Preparing for extreme weather: KfW bolsters Ethiopian agricultural sector with protective measures against climate risks

Frankfurt (ots) -

- EUR 20 million to expand Rural Resilience Initiative (R4) of the
World Food Programme
- Drought insurance, erosion prevention and microloans benefit
130,000 households in northern Ethiopia
- A secure food supply for the rural Population

On behalf of the German Federal Ministry for Economic Cooperation
and Development (BMZ) and together with the World Food Programme of
the United Nations (WFP), KfW today signed a financing agreement
worth EUR 20 million. Financed by the special initiative "ONE WORLD -
No Hunger", this constitutes an extension of the Rural Resilience
Initiative (R4) founded by WFP and Oxfam and supports the Ethiopian
agricultural sector in those regions that are especially exposed to
extreme weather conditions. The project is part of the G7
InsuResilience initiative that pursues the goal of protecting the
rural population worldwide against climate risks, thus making a
substantial contribution to securing the food supply in rural
regions.

"Agriculture in Ethiopia, on which over 85% of the population
directly or indirectly depend, is particularly vulnerable to climate
risks. In rural areas, agriculture is generally the only sector that
provides a source of employment and income. Thus is it all the more
important to equip the rural population for climate risks and the
associated crop failure, and in this way safeguard the food supply in
affected regions," says Prof. Dr Joachim Nagel, Member of the KfW
Group Executive Board.

The holistic R4 approach comprises four measures for better
handling of weather risks: residents are offered both economically
and financially sustainable drought insurances; and protection
measures are being introduced to prevent erosion and retain water
during heavy rains, all of which work together to reduce the target
group's vulnerability to weather risks. Above and beyond this, small
farmers can invest in the diversification of their income with
microloans, for example, by purchasing a bee colony for honey
production and sale. Farmers are also given special training to
encourage them to save when possible, thereby creating a nest egg in
the event their crop fails.

Currently around 30,000 households in northern Ethiopia are
benefiting from the resilience programme. The target group will be
increased to a total of 130,000 households through the extension made
possible by this Financial Cooperation project.

More information on KfW Development Bank is available at:
http://ots.de/NCbX3U

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM)
Tel. +49 (0)69 7431 4400, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de

Original-Content von: KfW, übermittelt durch news aktuell