Economic Recovery for Conflict Affected Population (ER-CAP)
2023 to 2028
Partner
Mercy Corps, Danish Refugee Council,
FC Development
Sector
Economic Recovery & Livelihoods, Access to Finance, Protection & Psychosocial Support
Target
43,540 participants (8,708 households) from underserved communities
Regions
Tigray, Afar, Amhara regions
The ER-CAP programme, funded by the Swedish International Development Agency (SIDA), is a 5-year initiative aimed at enhancing economic adaptation, protection, and recovery for conflict-affected populations.
The approach is inclusive, innovative, conflict-sensitive, and climate-smart, grounded in market systems development. It focuses on building capacities of market actors, facilitating linkages with service providers, and ensuring vulnerable groups—including IDPs, returnees, and host communities—gain sustainable access to resources, products, and services. Implementation spans three outcomes: resilient livelihoods (Mercy Corps), access to finance (First Consult), and protection and psychosocial support (DRC).
Strategic Focus Areas
Guided by a conflict-sensitive and climate-smart approach, the programme addresses urgent needs while building long-term capacity through the following strategic areas:
- Resilient Livelihoods – Support climate-smart, market-driven income opportunities, skills training, and entrepreneurship for vulnerable groups.
- Inclusive Access to Finance – Expand financial services through MFIs, SACCOs, and tailored products, leveraging additional capital and simplifying loan processes for conflict-affected populations.
- Protection and Psychosocial Support – Provide integrated mental health and protection services, creating safe, inclusive spaces for women, youth, and persons with disabilities.
- Institutional & Capacity Strengthening – Build the skills and systems of financial service providers, local institutions, and community-based organizations for sustainable service delivery.
Target Achievement to date
1128
Formal and informal enterprises, those of IDPs, host communities, and returnees, received ETB 55.6 million in credit.
915
The programme provided finance for 915 informal enterprises, all of which are 100% women owned and host communities.
3,348
FC and partner financial institutions provided ETB 21.8 million in loan for 3348 existing borrowers from host communities and returnees.
156
Customers refinanced, with a total amount of ETB 9,361,680.
12,328
Household members/participants of IDP, returnees, and the host communities received support.
5 Partners
3 Microfinance institutions and 2 Savings, Credit, and Cooperative Organizations (SACCOs).
Knowledge Pieces
Other Publications
Interest-Free Banking in Ethiopia – An Analysis of Product Offerings and Market Adoption
Restoring Resilience: MESMER Programme Concludes First Phase of Psychosocial Support
