ADDIS ABABA–Ethiopia is expanding agricultural investment through contract farming, large agro-industrial parks, and various legal frameworks, the Ministry of Agriculture announced.
The Ministry’s Agricultural Investment Product Marketing Lead Executive Officer, DerejeAbebe, told the Ethiopian Press Agency (EPA) that the government is promoting agricultural investment through the implementation of the revised agriculture and rural development policy and its 10 thematic areas.
As part of the legal framework, contract farming has been endorsed, allowing investors to enter into agreements with landowners who have the necessary capacity, capital, experience, and technology, he indicated.
Currently, an organization operates in seven regions, including Southwestern Ethiopia, Central Ethiopia, Somali, Afar, Oromia, and Amhara, contracting around 200hectares of land with 150 investors, he said.
In addition, large agro-industrial parks have been built near processing areas rather than production sites. As a result, these agro-industrial parks now have the opportunity to enter into contracts with investors and farmers, Dereje noted.
The proclamation has created opportunities for investors to engage in agriculture by signing contracts with landowners who lack the necessary capacity, capital, experience, and technology, he stated.
According to the Lead Executive Officer, to address these challenges, the Ministry of Agriculture is working with stakeholders.
The seed proclamation was approved in recent years, creating a significant opportunity for investors. Even though there is a seed shortage in the country, investors have the right to import seeds directly from African countries that are members of COMESA, he mentioned.
To strengthen agricultural investment, Ethiopia plans to cultivate 4.2 million hectares of land by 2030. To achieve this, the government is working to create a favorable investment environment. Moreover, about 6,000 investors are currently engaged in crop production on 2.2 million hectares of land, he noted.
BY ESSEYE MENGISTE
THE ETHIOPIAN HERALD SUNDAY EDITION 6 APRIL 2025
