Concept note: Sustainable Agriculture and Rural
Employment Program (SAREP) - PSNP Phase 6
April 24,2025
Concept note: for Sustainable Agriculture and Rural
Employment Program (SAREP)
Background:
• SAREP is a redesigned initiative built upon the experience and successes of
Ethiopia’s Rural Productive Safety Net Program (PSNP).
• As PSNP Phase 6, SAREP will continues to provide essential social protection
services to vulnerable rural populations but with an expanded focus on long-term
rural development.
• It integrates promotion of sustainable livelihoods including, sustainable agricultural
practices, diversified employment opportunities, and strengthens resilience to
climate and economic shocks, addressing the root causes of rural poverty.
• During the designing stage; the designing team will set a strong objectives and clear
indicators to ensure its contribution to applicable government policies and
strategies, alignment with the National Social Protection Policy.
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What is SAREP ?
• It is the next phase of the program which will align with GoE commitments to safety
nets and with PDO’s of the World Bank on maintaining the current caseload (7.9
million),
and expanding the program by 2027, based on evidence of the poverty assessment.
• SAREP as the next generation of the RPSNP, will provide food and cash transfers to
rural households facing food insecurity, while supporting livelihoods diversification, as
much as possible :
Note : (PSNP 5 faced multiple shocks which did not allow the program to fully
implement the livelihoods component) .
• With increased financing from the Government and continued support from partners ,
PSNP Phase 6, will evolve to use a more holistic approach that goes beyond emergency
relief assistance.
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Program Objectives
While maintaining a social safety net system for the poorest in rural Ethiopia,
SAREP will focus on the following core pillars that enhance resilience and
poverty reduction :
Focus on Agricultural Productivity: SAREP will promote climate-smart
agriculture, expand irrigation systems, and strengthen value chains to increase
agricultural output and market access.
Job Creation and Economic Empowerment: The program will prioritize youth and
women, offering tailored livelihood packages, skills training, and financial inclusion
to drive sustainable economic growth in rural areas.
Building Resilient Communities: SAREP will enhance rural resilience by
rehabilitating degraded lands, protecting watersheds, and integrating early warning
systems for disaster response.
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Vision and Mission of SAREP
• Vision : Resilient, productive, and prosperous rural
Ethiopia.
• Mission : To enhance agricultural productivity, create
sustainable employment, and build resilience
across rural communities.
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Core Pillars of SAREP
1. Sustainable Agriculture : (Climate -smart practices, value chain integration)
2. Rural Employment and Livelihoods
- Job creation and enterprise development
- Skills training for youth and women
- Financial inclusion and market access
3. Resilience and Climate Adaptation: focus on Watershed rehabilitation; Disaster
risk management and early warning systems.
4. Adaptive Safety Net System: focus on support to the elderly and severely
disabled people; ; temporary shock response and human capital
development through linkages to community services.
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• R
Key Achievements of the Rural Productive Safety Net Program (RPSNP):
RPSNP, as the name suggests introduced productivity in safety net programming in Africa,
providing the following important elements:
1. Employment Creation : Provided employment opportunities over 2 million beneficiaries through
public works and livelihoods; enhancing household income and community assets.
2. Reduced Poverty and Vulnerability : Through the provision of timely support during extreme
shocks that aided beneficiaries to protect their assets.
3. Strengthened Resilience : Improved food security and increased resilience to shocks, reducing
vulnerability among rural households(, for 7.9 million beneficiaries) , and building community assets
and supporting climate resilience for communities through public works activities.
4 . PSNP also improved financial capabilities of households by transforming from manual to
technology system, including opening bank accounts for over 1.3 million individuals .
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Challenges to be Addressed by the Sustainable Agriculture and Rural
Employment Program (SAREP)
1. Climate Change Impacts: Mitigating the adverse effects of erratic
weather patterns and environmental degradation.
2. Economic Shocks: Building resilience against macroeconomic volatility
and global disruptions.
3. Limited Job Opportunities: Addressing gaps in decent and sustainable
job creation, particularly for youth and women.
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Key Program Features and Strategic Approach
1. Evidence-Based Design and Performance Monitoring:
- SAREP will be grounded in evidence collected through comprehensive impact
evaluations and research studies to ensure effective program delivery.
- Performance will be closely monitored through a combination of quarterly
spot checks, federal and regional monitoring, and independent impact
evaluations.
- This robust monitoring system will allow for timely adjustments and ensure
that the program remains responsive to evolving needs and challenges.
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Key Program Features …
2. Multi-Sectoral Collaboration for Comprehensive Impact:
- The program will continue to follow a multi-sectoral approach, with the
Ministry of Agriculture as the lead implementing agency,
- Continued focus on productivity in rural areas, with agriculture being a main
income generating activity.
- Effective integration and coordination among stakeholders for successful
implementation ofthe program.
- Moreover; a well-structured operating system for smooth communication
between institutions and improves the effectiveness of shared goals.
- Therefore; the design team will consider inclusion of well-structured operating
system in the design 10
document.
Key partners
o Ministry of Finance (MoF): focuses on resource mobilization and financial
management of the program
o Ministry of Women and Social Affairs (MoWSA): Focused on protecting
vulnerable populations, supporting the poorest, and developing a social registry
while facilitating linkages to critical social services.
o Ministry of Labor and Skills (MoLS): Leading the “Jobs for the Poor”
agenda, leveraging its expertise in promoting job creation and skills
development for the rural poor..
o Ministry of Health: Ensuring access to healthcare and supporting the
expansion of community-based health insurance schemes for rural
communities, as well as access to community health centers and ensuring
inclusion of beneficiaries in community health monitoring.
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Key partners …
o Ethiopian Disaster Risk Management Commission (EDRMC): Focusing
on shock-responsive programming, especially for drought and other
climate- related disasters..
o Ethiopian Statistics Service (ESS): Providing monitoring, evaluation, and
research support, ensuring data-driven decision-making throughout the
program’s implementation.
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Local Ownership and Commitment
• SAREP will be designed to foster local ownership across all
levels of government structure.
• Federal, regional, and local governments will not only have a clear
understanding of the program but will be actively engaged in its
planning and implementation.
• Local and regional governments will lead specific program components
within their jurisdictions, ensuring that the program is tailored to local
realities and effectively meets the needs of the target populations.
• This approach will promote sustainability, enhance accountability, and
ensure the program’s success over the long term .
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Implementation Strategy:
• Partnerships: Strong collaboration with government institutions, local
authorities, development partners, private sector actors, and civil society
organizations will be essential to the success of the program.
• Capacity Building: Focused training for youth, farmers, and local leaders
on modern agricultural techniques, climate adaptation, financial literacy,
and entrepreneurship will ensure the program’s sustainability.
• Monitoring and Evaluation: Arobust M&E system will be established
to track progress, measure outcomes, and make data-driven decisions for
continuous program improvement.
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Main Differences Between PSNP 5 and PSNP 6
• The transition from PSNP 5 to PSNP 6 represents an elevation in the current
approach to rural productive safety nets, acknowledging that in the past, because of
the multiple shocks, the focus was shifted to short-term poverty alleviation.
• In this phase, with an increased envelope, the goal is to ensure a more integrated
and transformative model that emphasizes livelihood development, economic
productivity, and long-term resilience and sustainability of beneficiaries and
their communities.
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New changes in PSNP 6 .
1. From the Productive Safety Net to Inclusive Economic Empowerment and
Transformation:
SAREP/RPSNP 6 :
• focused on productive safety net to enhance productivity and elevate productive
and transformational program that builds resilience aimed at enabling households
to transition from dependence to self sufficiency and economic empowerment.
• Greater emphasis on livelihood creation through increased financing and tailored
support packages, such as business development grants, life skills training, and
financial inclusion.
• Scales up the Big Push Plus initiative, offering more intensive and holistic support
to beneficiaries, and ensuring they can sustain themselves beyond the program.
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New changes …
2. Integration of Livelihoods and Value Chains
In SAREP/RPSNP 6:
• Livelihood development becomes a core pillar, with 30% of the program’s budget allocated
to creating sustainable jobs and enterprises, particularly for youth and women.
• Focus on value chain development, linking beneficiaries to markets, cooperatives, and agro-
processing facilities to ensure their products can compete in regional and global markets.
• Strengthens market linkages and promotes agribusiness opportunities to diversify rural
incomes and increase household resilience.
• Identifies other relevant income generating opportunities for rural dwellers (especially women
and youth), such as tourism, small enterprise development, and including linkages to wage
employment.
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New changes..
3. Enhanced Agricultural Productivity and Climate Resilience
SAREP/PSNP6:
• Prioritizes agricultural productivity as a key driver of economic growth, allocating 50% of the
budget to boosting agricultural output through:
o Expansion of small-scale irrigation to ensure year-round farming.
o Adoption of climate-smart agricultural practices, such as drought-tolerant crops and
integrated soil fertility management.
o Collaboration with the Green Legacy Initiative to promote afforestation and carbon
sequestration, directly contributing to Ethiopia’s climate goals.
• Climate resilience becomes a core objective, further intentionally elevating its gains and
integrating disaster risk management and early warning systems to protect rural communities from
shocks.
Additionally, opportunities for leveraging programming for climate finance will be a focus . 18
New changes...
4. Digitization and Financial Inclusion
SAREP/PSNP 6:
• Fully embraces digital transformation, aiming to expand MIS to all 492 woredas and
integrate it with the national Digital ID Program for more efficient targeting and
monitoring.
• Introduce intensive technology training continuously to woredas staff and all frontline
workers, and ensure technology tools for tracking.
• E-payment systems will be scaled up to cover all regions, reducing transaction costs,
enhancing transparency, and promoting financial inclusion.
• Focuses on improving financial literacy and encouraging beneficiaries to save, invest,
and access credit, thereby increasing their financial independence and resilience
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New changes …
5. Improved Targeting and Graduation Mechanisms
SAREP/PSNP 6:
• Will incorporate the new national ID and social registry, when completed, to
improve the accuracy and transparency of beneficiary selection, minimizing
targeting errors and ensuring support reaches the most vulnerable.
• Implements a more structured and time-bound graduation strategy, with
enhanced training from the onset, clear criteria for exiting beneficiaries based
on income, asset accumulation, and economic resilience.
• Enhances follow-up systems to monitor graduates and provide continued support
through linkages to other government and private sector programs.
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New changes...
6. Multi-Sectoral Collaboration and Local Ownership
• In SAREP/RPSNP 6: Implementation will continue to be led by Ministry of
Agriculture. With strong collaboration with partners to ensure a holistic multi-
sectoral approach:
o Ministry of Finance for resource mobilization and financial management
o Ministry of Labor and Skills for job creation and skills development.
o Ministry of Women and Social Affairs for social protection and gender inclusion.
o Ministry of Health for healthcare access and community-based health insurance.
o Ethiopia Disaster Risk Management Commission (EDRMC) for shock response and early warning
systems.
• Emphasizes local ownership by strengthening the capacity of regional and
woreda- level governments to lead program implementation, ensuring that
interventions are tailored to local needs and conditions.
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• Introduces opportunities for private sector involvement.
New changes..
7. Sustainability and Financing
• SAREP /PSNP 6 Seeks to enhance sustainability by:
o Increased financing by the Government of Ethiopia at the federal level
o Encouraging regional governments to provide matching funds and take
greater ownership of program financing.
o Exploring innovative financing mechanisms, such as climate finance,
private sector partnerships, and dedicated social protection funds.
• Aligning program activities with climate adaptation and mitigation goals,
making PSNP 6 eligible for international climate funding
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Expected Impact: Transforming Rural Ethiopia
• Creation of 6 million Sustainable Jobs:
- This initiative will generate jobs across rural Ethiopia,
primarily in the agricultural sector, integrating modern
technologies and practices to boost productivity.
- The focus on inclusivity ensures that marginalized groups-
especially women, youth, and vulnerable populations are
prioritized, creating pathways for equitable access to jobs.
- This will foster upward economic mobility and narrow income
disparities in rural areas.
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Expected Impact: Transforming Rural Ethiopia
.
• 30% Increase in Agricultural Productivity :
- 30% increase in agricultural productivity within the first three years will
significantly strengthen Ethiopia’s agricultural output, a critical sector
employing over 70% of the population.
- Transitioning smallholder farmers from subsistence to market-oriented
production,
- The initiative will improve household incomes, enhance food security, and
integrate rural communities into regional and global value chains,
boosting economic resilience and competitiveness.
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Expected Impact: Transforming Rural Ethiopia
Building Resilience Against Shocks:
• Rural communities will be equipped with the tools, resources, and knowledge
to withstand climate and economic shocks, which have historically undermined
livelihoods in Ethiopia.
• By establishing robust safety nets and social protection mechanisms, the
initiative will reduce the vulnerability of rural populations to crises.
• These measures will prevent poverty traps and promote adaptive capacity,
aligning with Ethiopia’s climate-resilient green economy objectives.
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Expected Impact: Transforming Rural Ethiopia
Graduation from Poverty to Economic Self-Sufficiency:
• A key outcome of the program is the graduation of vulnerable households from poverty
to economic self-sufficiency.
• By combining job creation, increased agricultural productivity, and social protections,
the initiative will enable households to build sustainable livelihoods, accumulate assets,
and achieve financial independence.
• This integrated approach will ensure long-term impact, moving rural communities from
dependency on aid to self-reliance and economic empowerment.
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