ADF funding for rural project

The African Development Fund (ADF) has given Ethiopia nearly US $50 million to enable impoverished rural farmers to boost their incomes. In a statement, it said the funding - in the shape of a loan and grants - aimed to tackle the widespread and deeply engrained poverty in rural parts of the country. Ethiopia has one of the largest and most impoverished rural populations in Africa. Some 85 percent of the 67 million people eek out a hand to mouth existence in the countryside. “The sector goal of the project is to assist in reducing poverty and improving the conditions of rural households,” the statement said. The funding, which also aims to boost government plans to open up credit to farmers, will focus on enhancing the institutional skills of the authorities to offer financial support. The total project, worth in the region of US $112 million, will be run by the Development Bank of Ethiopia.