UNCDF in Ethiopia




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The Challenge

Ethiopia ranks below the sub-Saharan African average in the 2012 Human Development Index, number 173 out of 187 countries. Over 39 percent of Ethiopians live below the poverty line, and development indicators drop significantly in the country’s least developed regions.

How We Are Helping?

UNCDF has been helping Ethiopia meet its development challenges by supporting local development finance and inclusive finance initiatives. In local development finance, UNCDF is a partner in the new UN Joint Programme Enhancing Public Service Delivery for Accelerating  Outcomes in Ethiopia’s four Developing Regional States, which started in July 2011. UNCDF provides support to strengthen local governance, improve basic services, promote environmentally sustainable livelihoods, and develop a national strategy on gender. Specifically on gender, UNCDF’s Gender Equitable Local Development (GELD) programme is also active in Ethiopia.

In inclusive finance, UNCDF is piloting a joint programme with ILO to support the development of microinsurance services  in association with microfinance savings and credit services. In addition, two UNCDF global inclusive finance programmes are operational in Ethiopia: the Least Developed Countries Fund for savings-led market leaders for inclusive finance (MicroLead), which aims to increase access to financial services for low-income populations in LDCs; and YouthStart, which aims to increase access to financial services for young people.

In Detail

Project

UN Joint Programme Enhancing Public Service Delivery for Accelerating  Outcomes in Ethiopia’s four Developing Regional States
Goal To strengthen local governance, improve basic social services and promote environmentally sustainable livelihoods and develop a national gender strategy.
How
  • Building the capacities of private and public institutions;
  • Analyzing and improving market opportunities. 
Period 2010-2015
Partners UNCDF, UNDP, UNICEF, WFP, FAO, WHO, UN Women, Government of Ethiopia.
Total project cost and UNCDF contribution USD 20,200,000
USD 1,200,000
Project

Gender Equitable Local Development (GELD)
Goal To support gender-responsive planning, programming and budgeting at the local level.
How
  • Offering capital investment grants for gender-responsive development;
  • Empowering women and men to engage in a gender-sensitive way on development issues;
  • Supporting local governance authorities and institutions to deliver services in a gender-responsive way.
Period 2009-2012
Partners UNCDF, UN Women, Governments of Belgium and Austria.
Total project cost and UNCDF contribution USD 8,123,953
USD 7,848,000
Project

Support to microinsurance services
Goal To promote access to microinsurance services.
How
  • Supporting development of microinsurance services;
  • Working to improve financial literacy among microfinance clients.
Period 2010-2013
Partners UNCDF, ILO, Luxembourg.
Total project cost and UNCDF contribution USD 1,486,500
USD 1,296,319
Project

MicroLead
Goal To increase sustainable access to client-centric financial services, particularly savings services, for low-income populations.
How
  • Providing grants and loans to savings-led Financial Service Providers and Technical Service Providers.
Period 2008-2017
Partners UNCDF, Bill & Melinda Gates Foundation,The MasterCard Foundation, Governments of South Sudan, Liberia, Bhutan, Timor-Leste, Sierra Leone, Dem. Rep. of Congo, Rwanda, Ethiopia, Lao PDR, Vanuatu, Solomon Islands, Samoa
Total project cost and UNCDF contribution USD 51,531,079
USD 7,871,850
Project

Youthstart
Goal To increase access of Youth to financial services.
How
  • Providing funds and training in youth microfinance to Financial Service Providers.
Period 2010-2014
Partners UNCDF, The Mastercard Foundation.
Total project cost and UNCDF contribution USD 12,000,000
USD 200,000