Ethiopia's experience in reconciling foreign direct investment with small hold farming

30 Pages·2016·1.36 MB·English

United Nations Conference on Trade and Development

MULTI-YEAR EXPERT MEETING ON COMMODITIES AND DEVELOPMENT

21-22 April 2016, Geneva

Ethiopia’s experience in reconciling foreign direct
investment with small hold farming

By

Mr. Assefa Mulugeta Kondal, Director General, Export
Promotion Directorate General, Adviser to the State Minister,
and Director, Agricultural Outputs Marketing Directorate ,
Ministry of Trade, Ethiopia

The views expressed are those of the author and do not necessarily refle ct
the views of UNCTAD.
Ethiopia’s Experience in Reconciling Foreign
Direct Investment With Small hold Farming
Multi Year Expert Meeting on Commodities
& Development (8th Session)
April 2016
Geneva, Switzerland
CONTENTS
1.Introduction

2. Economic Policy

3.Opportunities for foreign investors

4. Challenges

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1.Introduction: ETHIOPIA at a glance
Population – More than 90 mln.
Area - 1.14 million km2
The economy is growing by more than
11% since 2004
One of the fastest growing economy
in the world.
(the Economist Intelligence Unit)
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 Land:
 74.3 million hectares of land suitable for agriculture
( out of which only about 24% are currently utilized)
 10 million hectares of irrigable land
(only 3% utilized)

 Climate:
 Climate suitable for growing over 146 types of crops
 Young labor force:
 more than 50% trainable young labor force.

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ETHIOPIA’S ECONOMIC POLICIES
 Agricultural Development Led Industrialization
(ADLI)
 Pro-Market (Export)
 Pro-Private Sector
 Pro- Liberalization
 Pro-|Small hold Farming
 Growth and Transformation Plan - (GTP II) as
a central plank of its 5 years development
Programme

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Pro- Small hold Farming
 Extension Support – Extension service is provided by
Government
 60,200 Extension Agents (Agronomy, Husbandry &
Natural Resource)
 12.400 Farmers Training Centers (Training with
Practical Demonstrations
 25 Extension Agents Training Institutions (To train
Extension Agents)
 Extension Package
 Ratio: one Extension Agent for 500 Farmers

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Pro- Small hold Farming …
 Technology Support –
 Ethiopian Agricultural Research Institutes
 ESE and Regional Seed Enterprises
 Availing Fertilizer with competitive bidding
 Availing Credits for Farmers
 Establishing & Strengthening soil testing laboratories
 Irrigation Development
 Natural Resource Conservation
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Pro- Small hold Farming …
 Marketing Support:
 Primary Level Commodities Transaction Centers
 Ethiopian Commodity Exchange
 Modern Marketing System (ECX)
 Quality Grading
 Transparency
 Fast Transaction
 Arbitration in case of disputes
 Marketing Facilities & Infrastructure Development
 Incentives Packages for export
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Rationalities for Investing
in Ethiopia

Let us see!
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