Ethiopia’s agricultural sector is crucial to its economy, contributing significantly to GDP, exports, and employment. While agriculture has seen growth, productivity remains a challenge, particularly in stallholder farms. Factors like climate change, low mechanization, and limited irrigation infrastructure impact yields. However, Ethiopia is making efforts to modernize its agricultural practices and increase productivity through various initiatives.
During the past two decades, the successive governments of Ethiopia have showed their commitment for the enhancement of agricultural productivity through attracting investment on agriculture both from local and foreign investors.
Legal frameworks have been crafted and institutions are established for the provision of land for investors and licensing in addition to incentives provided. In order to attract investors, the government has provided better chances such as duty free importation of goods, tax holidays, access to affordable lease holds of farm land and access to finance from the Development Bank of Ethiopia.
The Ethiopian Investment Commission in this regard, has played crucial role with the collaboration of other stakeholders involved in agribusiness. Regarding land provision, the Ministry of Agriculture and other pertinent authorities delivered their responsibilities up on their respective mandates.
Ethiopia’s Agricultural Sector Policy and Investment Framework is the government strategic road map which identifies priority areas requiring investment to drive the country’s agriculture growth.
According to official sources, in the last five years alone, 20% of FDI has gone to the sector. As it is clearly known, subsistence farming is a dominant feature in the high land parts of the country with different agro- ecological zones. On the other hand, in the low land areas sedentary farming seldom practiced.
The policy stresses agricultural intensification in the high land parts and extensive farming which needs investment is to be practiced in the low land areas which targets foreign markets.
To this purpose, the Ministry of Agriculture secured tracks of land for local and foreign investors from regions such as South Western Ethiopia, Oromia, Beneshangul Gumuz and Gambella.
Investors, based on the agreement, have involved in the production of cash crops such as sugar cane, cotton, palm oil, rubber tree and bio fuels and in their business, they are provided support in terms of connecting value chains, getting consultation from agricultural research centers, processing work and exportation mechanism by regional governments and if dispute arise, it will be settled by local institutions.
Agriculture investment, in addition to engaging in the production and exporting process, has a capacity to create job opportunities for local people and technology transfer. However, there are also some limitations which need remedial actions including benefiting the local people and environment protection.
With regard to ensuring food security so far, the government underlined that the small scale farming will take the lion’s share and to date, it has contributed a lot in supplying food to the local market.
To transform the sector, utilizing agricultural technology and inputs is taken as a viable solution by the government. Planting selected seeds and sawing in line and taking care of the crop in pre and post -harvest helps to enhance productivity. On the other hand, inputs such as fertilizer, pest and herbicides though they have their own demerit on the environment, helped to raise productivity.
In addition to these, organizing farmers in cluster form has brought tremendous result because farmers strictly follow up the seedlings in the earlier time of the crop season and whenever pest or herbs occur, they could provide immediate response and save the crop from destruction. But as it is rain fed, when climate adversity occurs, it is easily shattered with the devastating result.
Currently, the formulated policies stipulate practicing small scale irrigation and harvesting water as alternate mechanism to overcome drought and water scarcity and in some parts of the country, the fruit of irrigation farming have been witnessed and scale upping the practice is essential.
Recently, Minister of Government Communication Service, Leggesse Tulu said that Ethiopia’s path to food self-sufficiency and its agricultural transformation endeavors have been achieving tangible results.
The Minister, along with a delegation of federal and regional officials, visited the thriving summer irrigated wheat and barley farms cultivated on more than 200,000 hectares of land in the North Shewa Zone of the Oromia region. The anticipated wheat and barley harvest in these Jida and Kimbibit districts of the region is expected to be close to 12 million quintals.
Legesse underscored that Ethiopia is embarking on a transformative journey towards food sovereignty, shifting decisively from dependence to robust productivity.
He also said that of the utilization of agricultural inputs such as fertilizer, selected seeds, pest and herbicides is increasing from time to time and such practice has attributed to the gained achievement in raising the sector’s productivity.
He also emphasized the government’s firm commitment to the comprehensive homegrown economic reform policy. Agricultural development, he stressed, stands as the bedrock of Ethiopia’s multi-sectoral growth strategy.
He further said that Ethiopia is achieving remarkable strides in elevating agricultural productivity, particularly across vital crops such as wheat, barley, maize, teff, and rice. “We are witnessing tangible advancements: expanding arable land, significantly boosting yields per hectare, and extending our production seasons.”
The Minister emphasized Ethiopia’s groundbreaking success with summer-irrigated wheat, which has not only eliminated the need for wheat imports but has also paved the way for wheat exports to the global market.
He recalled that Ethiopia used to import a significant amount of wheat previously, expending around 1 billion USD annually. However, the country has made substantial efforts to increase domestic wheat production, and it has now largely meeting its wheat demands.
The Minister characterized the progress observed in North Shewa Zone of Oromia region as exemplary to other parts of the country. Areas that once relied on food aid are now tapping into their local ingenuity, cultivating irrigated crops for the market, he elaborated. He also expressed that farmers who have masterfully employed indigenous knowledge to develop arable land by diverting river water for irrigation.
According to the Minister, this exemplifies the potent impact of the country’s agricultural strategies which aspires to become not only food self- sufficient but also a competing exporter of agricultural products in the global market.
For him, this unequivocally confirms Ethiopia’s trajectory towards achieving genuine food sovereignty and evolving from a dependent economy into a self-sufficient, productive powerhouse.
He further emphasized the critical importance of harnessing agricultural potential nationwide to accelerate national development goals. “The government is assiduously working to fortify irrigation systems and water resource management, enhance essential services, supercharge productivity, and cultivate sustainable peace,” he stated.
The Minister also emphasized that communities must embrace ownership of these initiatives to guarantee enduring peace and development.
Meanwhile, the Minister of Agriculture, Girma Amentie underscored that Ethiopia’s agriculture sector has been immensely contributing to the overall economic growth of the country.
In an interview with local media, the Minister noted that during the past nine months, the agriculture sector has made substantial contributions to the country’s overall economic growth.
He pointed out that 20.5 million hectares of land has been covered with seeds over the past Meher farming season, which has an increment of 3 million hectares compared to the previous year. According to him, the nation has also produced 152 million quintals of wheat this year.
He disclosed that the agriculture sector is expected to contribute 6.1% to the country’s national growth plan, which stands at 8.4%. He stated that the plan set in crop production has successfully been achieved over the past nine months.
He also noted that the efforts made in livestock development, especially through the Bounty of the Basket initiative, have yielded significant successes, highlighting the impressive production levels achieved in milk, eggs, chicken, honey, and fish. The positive achievement being recorded in agriculture sector has been contributing to easing coast of living and inflation.
He further stated that the agriculture sector has contributed to the nation’s export trade by enabling it secure 2.6 billion USD over the past nine months.
BY ABEBE WOLDEGIORGIS
THE ETHIOPIAN HERALD FRIDAY 20 JUNE 2025
