This Operation has been modified as per Budget Revision 5 (see below).
Ethiopia’s economy has grown substantially over the last five years but the country remains one of the world’s poorest. The scale of food insecurity and malnutrition remains serious, and 23 million people have insufficient income to meet their food needs. Ethiopia is prone to natural disasters, and weather-related shocks have exacerbated food insecurity. At least half of the highlands are degraded, and pastoral areas are over-grazed. Primary school enrolment rates have increased, but high dropout rates persist: 2.8 million children of primary school age, many of them from pastoralist areas, do not attend school. HIV prevalence is a concern, especially in urban areas: 1 million people are living with HIV and there are 850,000 orphans. Food market systems function poorly, with markets unable to shift surpluses to deficit areas. Despite the critical role of women in marketing and agriculture, gender inequality remains widespread and women farmers have limited access to resources and services.