Ethiopia

                         Strengthen Ethiopia's Adaptive Safety Net Project

                                      Second Additional Financing

                                           Chair Summary*

                                           September 20, 2022


Executive Directors approved the Second Additional Financing for Strengthening Ethiopia's Adaptive
Safety Net for a total IDA financing of US$350 million, of which $50 million equivalent is from the
Crisis Response Window Early Response Financing facility, on the terms and conditions set out in the
President’s Memorandum. Ms. Kugler wished to be recorded as abstaining on this operation.

Directors noted that the engagement of the World Bank Group in Ethiopia aligns well with the WBG’s
FCV Strategy (2020-2025). They appreciated the update provided by staff on how this approach is
being implemented in operations, including in the design of this project, considering recent events in
Northern Ethiopia.

Directors underscored the importance of the project to complement humanitarian efforts and mitigate
the worsening food insecurity situation due to multiple shocks, including drought, conflict, desert
locust infestation, floods, inflation, and the impact of the war in Ukraine, and welcomed the
government’s commitment to reach all Ethiopians.

Directors agreed to the project’s approach of building upon the government’s experience of effectively
responding to shocks through its adaptive shock response mechanism and using national safety net
programs, such as the Productive Safety Net Program (PSNP), to cushion poor households from shocks
and protect human capital gains in an inclusive manner. They encouraged greater efforts in supporting
the capacity building of local agencies and looked forward to the replication of experiences and lessons
drawn from this operation. Directors also inquired about the sustainability of the program and the
communication strategy for this operation.

While recognizing the significant challenges to implementation in areas of high risk of ongoing conflict
(HROC), Directors appreciated the project’s adaptive approach to address implementation risks,
including the use of a third-party implementer in HROC along with the re-establishment of critical
safety net implementation capacity in districts affected by recent conflicts across different regions.
They emphasized the need for close monitoring of progress particularly on the fiduciary and
Environmental and Social Framework (ESF) aspects, as well as close coordination with humanitarian
and development partners in the country.

Finally, Directors stressed the need for close monitoring of conflict developments and asked for
information on the strategy and pipelines for Ethiopia and regular updates on implementation progress.



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*This Summary is not an approved record.