DILI, 29 June 2026 (TATOLI) – The Asian Development Bank (ADB) has approved $4.95 million in additional financing for the Coffee and Agroforestry Livelihood Improvement Project (CALIP) in Timor-Leste, helping smallholder farmers adopt sustainable coffee-based agroforestry practices that improve coffee production and food security.
The financing comprises a $4 million grant from the Asian Development Fund (ADF) and a $950,000 grant from the Green Climate Fund under the Community Resilience Partnership Program Investment Fund. The project will expand support between 2,000 to 4,000 farming households in Aileu, Ainaro, Bobonaro, Ermera, Liquica, and Manufahi municipalities.
“Coffee is a cornerstone of rural livelihoods in Timor-Leste,” said ADB Country Operations Head and Officer-in-Charge for Timor-Leste Resident Mission Michael Walsh. “The additional financing will help farmers adopt resilient practices, improve coffee quality and productivity, and create livelihood opportunities for women, men, and young people.”
Coffee is Timor-Leste’s largest non-oil export and a major source of income for rural communities. However, productivity remains very low, and rising temperatures, changing rainfall patterns and increasing pests and diseases affect coffee production and threaten livelihoods.
The financing will scale-up farmer training and demonstration of resilient agroforestry systems adopted under the ongoing project, and bolster adaptation to extreme weather events to ensure greater development impact. It will continue to strengthen coffee quality and marketing while helping the government improve planning and coordination. The financing will also expand livelihood support for women and youth in coffee-producing communities.
The project will continue to be led by the Ministry of Agriculture, Livestock, Fisheries and Forestry, in coordination with the Secretary of State for Equality and the Timor Coffee Association. These partnerships will help raise women’s economic participation and boost coffee value chains.
ADB is committed to supporting Timor-Leste’s efforts to build a more productive, resilient, and inclusive agriculture sector while strengthening food security and rural livelihoods.
ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021–2024, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
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