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The document describes Ethiopia as a landlocked, low-income country in the Horn of Africa characterized by diverse topography and a complex ethnic federal system. It details the country's climatic patterns, including three annual rainfall seasons and projected temperature increases by 2030. The text also outlines Ethiopia's historical role in Pan-Africanism and its current political instability, marked by conflicts with the Tigray People’s Liberation Front and the Oromo Liberation Army.

The project aims to reduce urban climate vulnerabilities in Ethiopia through a combination of national policy frameworks, city-level Nature-based Solutions (NbS), and sustainable financing. In Addis Ababa, interventions focus on the Jemo-Harbu River corridor, including reforestation of Jemo Mountain, riverbank stabilization, and the creation of green canopies to mitigate heat and flood risks. In Jimma, the project targets the Awetu River catchment through reforestation, agroforestry, and wetland rehabilitation. Nationally, it establishes an Inter-Sectoral Coordination Committee and a knowledge portal to mainstream NbS into urban planning. The initiative is supported by a total of USD 47 million, with USD 25 million from the Green Climate Fund and USD 22 million from KOICA, targeting a total of 1,780,947 direct and indirect beneficiaries.

A pilot project in Berbere, Ethiopia, replaced costly and unreliable petrol-powered irrigation with solar pumps, enabling farmers to shift from subsistence staple crops to high-value produce and significantly increasing their seasonal earnings.

Saglan Wajee General Hospital has introduced Efoy, a micro-health insurance product designed for underserved communities in Ethiopia. Supported by FSD Africa's BimaLab Insurtech Accelerator Program, the hospital secured a license from the National Bank of Ethiopia to launch Efoy 1.0, which attracted over 1,200 customers in its first year with annual premiums starting at 400 birr (4 USD) per child and 800 birr (8 USD) per adult. The subsequent Efoy 2.0 version expanded coverage to include chronic patients and services like MRI and medication, reaching an additional 900 clients. The hospital plans to expand its network to 130 health facilities and open a branch in Addis Ababa.

The report evaluates the Nutrition Sensitive Agriculture Capacity and System Strengthening (NSA CASE) project (2019–2024) in Ethiopia's Oromia, Amhara, and Somali regions. Using the Sustainable Asset Valuation (SAVi) methodology, the analysis finds that investing in nature-based infrastructure—such as drought-tolerant crops, perennial fruit trees, and moisture-harvesting technologies—can yield a return of up to USD 2.37 for every USD 1 invested over 26 years. This total benefit is estimated at USD 46 billion (ETB 5,161 billion), encompassing avoided costs from floods and droughts, increased agricultural productivity, carbon storage, and reduced malnutrition.

The report assesses gender-based disparities in Ethiopia, specifically focusing on how climate change disproportionately affects women and female-headed households in the Amhara and Oromia regions. It highlights systemic inequalities in land ownership, education, and decision-making, and recommends gender-responsive strategies for water and irrigation projects to ensure equitable access and empowerment.

The report analyzes the surge of violence in Ethiopia since 2018, attributing it to identity-related contentions, elite rivalry, institutional fragility, and international dynamics. While the 2022 Cessation of Hostilities Agreement (CoHA) ended the Tigray war, the author argues it is insufficient because it excluded key actors like the Amhara Fano and Eritrea. The document recommends utilizing national dialogue and transitional justice to address systemic grievances, provided these processes are inclusive and independent rather than tools for regime consolidation. It calls for deep political reform, including a negotiated vision within the ruling Prosperity Party and the creation of independent non-state oversight.

The report analyses the 'memory wars' in Ethiopia, where political elites use 'invented traditions' and memorialisation to advance competing ideological agendas. It identifies three primary approaches to collective memory: the rejectionist approach, which seeks to deconstruct the 'great tradition' of the Ethiopian state; the revivalist approach, which seeks to restore it; and the moderationist approach, which attempts a selective balance. These approaches operate across four layers of tradition: the pre-1991 great tradition, the post-1991 federal vernacular tradition, regional traditions, and local-level traditions. The author argues that the contradictions between these approaches and the lack of a negotiated, shared collective memory have reinforced political instability and armed conflict.

The report identifies livestock fermentation, rice cultivation, and land-use changes as primary drivers of agri-food methane emissions. It argues that transitioning to plant-rich diets, improving livestock management, and adopting sustainable rice farming can reduce greenhouse gases while improving public health by reducing air pollution and non-communicable diseases.

The report identifies livestock production, rice cultivation, and land use as primary methane sources in agriculture, highlighting that the sector accounts for approximately 42 percent of anthropogenic methane emissions. It argues that mitigating these emissions provides significant health co-benefits, such as reducing tropospheric ozone and respiratory illnesses caused by biomass burning and manure management. Proposed solutions include transitioning to plant-rich diets, implementing alternate wetting and drying (AWD) in rice farming, and adopting regenerative agricultural practices. The document emphasizes the need for systemic policy changes, including the reform of agricultural subsidies and the implementation of mandatory emissions regulations, while noting that livestock remains a critical nutritional and economic resource in the Global South.

The Biftu Beri women’s village savings and loan association (VSLA) in Kumbi Kebele, Ethiopia, integrates forest conservation with economic empowerment to address climate-induced droughts and shrinking water sources. Led by Momina Adam and supported by Farm Africa, the group employs agroforestry, indigenous tree planting, and a weekly savings scheme to build climate resilience and improve household livelihoods.

In 2019/20, Ethiopia's tracked climate finance averaged USD 1.7 billion per year, representing only 7% of its estimated annual needs of USD 25.3 billion. The landscape is heavily dominated by international public finance (92%), with a strong preference for grants (70%) and a focus on adaptation (56%) over mitigation (38%). While the Agriculture, Forestry and Other Land Use (AFOLU) sector received the most sectoral finance (29%), it remains underfunded relative to its 83% contribution to national GHG emissions. Significant barriers to private investment include a highly regulated financial sector, lack of a stock market, and unfavorable collateral policies for SMEs and small-holder farmers.

The report argues that Ethiopia's national dialogue initiative is hindered by a fundamental clash between a 'deliberative' approach favored by the government—which seeks a rational consensus to resolve differences—and the reality of a severely divided society characterized by deep-seated historical injustices. The author contends that the process will only succeed if stakeholders shift toward an 'agonistic' model that focuses on transforming antagonistic relations into adversarial politics and reckoning with the past, rather than attempting to manufacture a final consensus on fundamental national issues.

The document analyzes Ethiopia's struggle with democratization, tracing a cycle of autocratic rule from the imperial era to the present. It argues that the state's historical hegemony, combined with the organizational weakness of social forces, creates a resilient autocracy. While peaceful protests can trigger short-lived liberalizations, they often fail to consolidate democracy because the state can swiftly recuperate power. Conversely, armed insurgency further deepens authoritarianism by destroying material foundations for democracy and creating militaristic rebel groups that transplant autocratic traditions into the state upon victory. The author recommends using a national dialogue to create incentive structures for elites to commit to democratic reforms.

The report argues that Ethiopia's political transition since 2018 has been undermined by escalating inter-ethnic and communal violence. This instability is driven by a combination of militant ethno-nationalism, deep ideological divides between pan-Ethiopianism and ethnonationalism, and rivalries among political elites who mobilise the masses. The document highlights the role of state fragility, where institutional indifference, incompetence, and the complicity of some officials have allowed conflicts to proliferate. Specific regional tensions are detailed, including disputes over autonomy in the SNNP region and racial and economic grievances in Benishangul Gumuz. The report concludes that stability requires a comprehensive political settlement, an inclusive national dialogue, and the professionalisation of security forces to dismantle illicit arms networks.

The report outlines the safeguards framework for the Resilient Landscapes and Livelihoods Project in Ethiopia, categorising it as Category B. It details the disclosure of the Environmental and Social Management Framework (ESMF), Resettlement Policy Framework, and Social Assessment, and specifies the project's implementation across 210 Woredas in six Ethiopian regions.

The report analyzes the drivers of ethnic conflict in contemporary Ethiopia, focusing on the cyclical relationship between political institutions and nationalist mobilizations. It argues that the 'centralised ethno federation' established by the EPRDF created fault lines that, when combined with recent political liberalization and institutional fragility, led to widespread violence. The author examines specific conflicts in the north, west, and south, applying the concepts of the 'security dilemma' and 'invidious comparison' to explain micro-level violence. The document concludes that sustainable stability requires transforming the ruling party, conducting inclusive national dialogue, and reclaiming state autonomy from mob influence.

The report attributes the rise in Ethiopia's ethnic violence, particularly since 2018, to a self-reinforcing cycle of contending ethno-nationalisms and institutional fragility. It argues that the centralized ethno-federal system created paradoxes of empowerment and disempowerment, while the ruling party (EPRDF) became fractured along ethnic lines. The author identifies 'security dilemmas'—where groups arm themselves for protection, thereby increasing the insecurity of others—as a micro-level driver of conflict. The report recommends internal party negotiations, a broad national dialogue to reconstitute the state, professionalization of security forces, and urgent job creation for youth to address economic grievances.

The document analyzes Ethiopia's rapid economic growth and human development progress since 1991, while highlighting persistent gaps in basic service access and agricultural productivity. Using the International Futures (IFs) forecasting system, it compares a 'Current Path' forecast against various intervention scenarios, concluding that an integrated approach across agriculture, education, health, and governance is necessary to reach lower-middle-income status by 2025.

The report examines Ethiopia's high vulnerability to climate change, particularly for pastoralists and smallholder farmers. It analyzes national strategies like the Climate Resilient Green Economy (CRGE) and the Programme of Adaptation on Climate Change (EPACC), noting that while political will is strong, adaptation efforts are heavily skewed toward agriculture and disaster risk management, leaving gaps in health, energy, and transportation. It also details the role of international funding and the lack of robust national knowledge-sharing networks.