Funding for Economic Transformation in Conflict- and Migration-Prone Regions of Ethiopia

The European Commission is supporting sustainable solutions for forcibly displaced populations and host communities in Ethiopia through a programme focused on socio-economic inclusion and stronger policy and institutional frameworks. The initiative targets conflict- and displacement-affected regions, including Somali, Benishangul-Gumuz, Gambella, and Tigray. It seeks to address both immediate and systemic barriers affecting refugees, internally displaced persons (IDPs), IDP returnees, and host communities. The call has a total indicative allocation of EUR 9,000,000, with each grant required to be exactly EUR 9,000,000. The programme aims to advance sustainable and durable solutions for forcibly displaced populations and affected host communities in Ethiopia. It combines economic inclusion with policy and institutional strengthening to address the challenges associated with conflict and displacement. The initiative focuses on helping displacement-affected populations access economic opportunities while also improving the policy environment needed to support sustainable return, local integration, or settlement elsewhere. The programme focuses on four conflict- and displacement-affected regions: Activities should respond to the needs of displacement-affected populations and host communities in these target areas. The initiative addresses the needs of several groups affected by conflict and displacement, including: The programme recognizes that sustainable solutions require both support for displaced populations and measures that strengthen the communities hosting or receiving them. The call is structured around two specific objectives. The first objective is to enhance economic transformation in conflict- and migration-prone regions through a Market Systems Development approach. This objective focuses on strengthening economic opportunities and creating more inclusive and resilient systems that can benefit displacement-affected populations and host communities.

Priority areas include:

The second objective focuses on strengthening IDP policy and programming to support sustainable solutions.

The intended durable solutions include:

The objective also emphasizes strengthening the systems and institutional conditions needed to make these solutions sustainable. The programme seeks to strengthen market systems and value chains so that they are more inclusive and resilient. Activities can address barriers that prevent displacement-affected populations and host communities from participating effectively in economic systems. The Market Systems Development approach places emphasis on improving the broader systems, relationships, and conditions that influence economic opportunities. Inclusive finance and enterprise development are additional priority areas under the economic transformation objective. Projects can focus on improving access to financial and enterprise opportunities for people affected by displacement and communities hosting them. The aim is to strengthen economic participation and create conditions that support sustainable livelihoods and enterprise development. The call also prioritizes employment systems. Applicants should consider how their proposed actions can contribute to more inclusive employment opportunities and address barriers faced by displacement-affected populations. Employment-related interventions can form part of broader efforts to promote socio-economic inclusion. A central component of the programme is creating conditions that enable sustainable solutions for internally displaced persons. The programme supports policy and programming related to: These solutions require appropriate institutional frameworks, coordination, evidence, data, community capacity, and sustainable financing. The programme seeks to strengthen the enabling policy and institutional environment for durable solutions. These areas are intended to support more effective planning and implementation of durable solutions for displacement-affected populations. Evidence generation and data systems are among the additional priorities of the call. Better evidence and data can support policy development and programming related to displacement and durable solutions. Applicants should consider how their proposed activities can contribute to improved evidence, information, or data systems relevant to the programme’s objectives. The call also places emphasis on strengthening capacity at the community level. Community-level capacity can support the implementation of durable solutions and help displacement-affected communities participate in relevant processes. Projects should consider the role of local communities within the proposed approach. Sustainable financing is another priority under the programme. The initiative recognizes that durable solutions require mechanisms and institutional conditions that can support activities beyond short-term interventions. Applicants should therefore consider the sustainability of their proposed approach and its contribution to longer-term solutions. The total indicative amount available under the call is EUR 9,000,000, approximately $9,720,000 USD. According to the stated call conditions, each grant awarded must be exactly EUR 9,000,000. The contracting authority reserves the right not to award all available funds. Applicants should therefore ensure that their proposed action and budget correspond to the specified grant amount and the objectives of the call. Eligible applicants must meet specific legal, non-profit, and establishment requirements.

Applicants must be:

Eligible applicant categories may include: Applicants must generally be established in an eligible country under the call requirements.

Eligible establishment locations include:

International organizations are exempt from the establishment requirement. Applicants should carefully verify their organizational eligibility under the applicable regulation and call conditions. Applicants must be directly responsible for