Launched in 2005, the Productive Safety Net Programme (PSNP) is a flagship initiative of the Government of Ethiopia, supported by Development Partners, to address chronic food insecurity in rural areas. Over the years, PSNP has expanded significantly, becoming one of Africa’s largest national social safety net programmes.

Now in its fifth phase (2021–2025), PSNP combines protective measures—such as regular cash or food transfers—with productive components like public works and livelihood support. The programme targets around 8 million people across Ethiopia, aiming to reduce extreme poverty and build resilience in vulnerable communities exposed to both natural and man-made shocks.

Objectives

Despite steady economic growth, Ethiopia remains one of the world’s poorest countries, with rural populations disproportionately affected by poverty, recurrent droughts, flooding, conflict, and inflation. The poorest 10 percent—mostly in rural areas—have seen little to no improvement in welfare over the past decade.

PSNP Phase 5 seeks to:

• Reduce extreme poverty in targeted rural areas (PSNP woredas).

• Strengthen the resilience of vulnerable households to recurrent shocks.

• Prevent negative coping mechanisms and promote sustainable livelihoods.

• Improve food security and access to basic services among the most at-risk populations.

Project Activities

• Cash or food payments are transferred to approximately 7 million people engaged in Public Works (PW) initiatives. Participants receive transfers for six months per year while engaging in community asset-building activities. An additional 1 million people, identified as chronically poor and labour-constrained, receive unconditional cash or food transfers for 12 months.

• Public Works (PW) are implemented in both pastoral and non-pastoral areas to protect communities and households from asset depletion caused by shocks and poverty. These activities include:

• Rehabilitation and construction of schools and roads.

• Environmental protection initiatives, such as growing seedlings for reforestation.

• Soil and Water Conservation (SWC) activities, including gully control and soil erosion prevention.

• Rangeland management interventions.

• Water development projects and small-scale irrigation rehabilitation or construction.

Mainstreaming climate change adaptation into PW activities helps mitigate the impact of climatic shocks, such as drought. Examples include:

• Watershed rehabilitation and area closures, which promote vegetation growth for livestock feed.

• Reducing risks of landslides, floods, and soil erosion through environmental management practices.

Empowering PSNP clients through livelihood-based initiatives, such as access to grants and loans for farming and off-farming activities, supports graduation and exit from poverty.

Facilitating linkages and referrals to available social services, including nutrition, health, and education programmes, further supports PSNP clients.

The Shock Responsive Safety Net (SRSN) provides timely complementary support to food-insecure PSNP clients, primarily those affected by droughts and other shocks.

• Technical assistance and capacity-building support are provided to implementing Government of Ethiopia (GoE) entities to improve programme management and enhance overall performance.

Expected Results

• Output 1: Timely and adequate transfers are received by the eligible core caseload of PSNP clients.

• Output 2: Shock-responsive transfers are provided to eligible clients when needed.

• Output 3: Public Works respond to community livelihood needs and contribute to disaster risk reduction, climate change adaptation, and mitigation.

• Output 4: Linkages to available social services are facilitated for core PSNP clients, with an emphasis on Permanent Direct Support (PDS) and Temporary Direct Support (TDS).

• Output 5: Tailored livelihood options are accessed by eligible PSNP clients.

• Output 6: PSNP management and capacity are enhanced.