Agriculture remains the foundation of Ethiopia’s economy, contributing the highest percentage of the nation’s GDP and employing over 70% of its population.
According to the information obtained from Further Africa.com, as a country where the majority of people rely on farming for their livelihoods, the agricultural sector has become crucial not only for domestic sustenance but also for export revenue.
Ethiopia is known for its agricultural diversity, ranging from staple crops like teff and wheat to coffee, one of its most valuable exports. The success of these crops, particularly in the international market, has made agriculture a key pillar in Ethiopia’s economic development strategy.
The sector has benefited from a series of government-led initiatives aimed at boosting productivity. These measures include the introduction of modern farming techniques and technologies, which have helped farmers, optimize yields and manage resources more efficiently.
Ethiopia aims to enhance agricultural output by focusing on increasing mechanization and the use of improved seeds and fertilizers. This is especially evident in the coffee sector, where improved cultivation methods have not only increased production but also elevated the quality of Ethiopian coffee beans, solidifying the country’s position as a top global coffee exporter.
Horticulture has emerged as another fast-growing area within Ethiopian agriculture. The sector, particularly floriculture, has attracted significant foreign investment, transforming Ethiopia into one of Africa’s leading exporters of flowers.
Government policies promoting investment and the establishment of horticultural clusters have enabled farmers and businesses to tap into this lucrative market. With favorable climate conditions and growing international demand, Ethiopia’s horticultural sector is poised to play an even larger role in the country’s economic growth in the coming years.
Prime Minister Abiy Ahmed (PhD), speaking at the 42nd House of People’s Representatives regular session last week, said that the current generation should work hard to free the country from aid dependency, adding that a country that cannot produce food will have difficulty securing its national interests.
He indicated that the work that has been carried out with the idea that, beyond producing and selling products, comprehensive solutions to issues in the agricultural value chain will help achieve food sovereignty has yielded results.
He recalled that 27 million citizens were dependent on the Safety Net program for years. However, 23 million of them have been freed from the safety net this year, adding that this is a great demonstration of the country’s struggle to overcome poverty and dependency.
The government has been focusing on the agricultural sub-sector to free citizens from food insecurity and farmers have come out of the safety net and are starting to produce on their own.
The Premier said that the belief that Ethiopia should not beg and that its citizens should work hard and free themselves from begging is bearing fruit.
He noted that it will require the joint efforts and cooperation of all Ethiopians to ensure Ethiopia’s food sovereignty in the future.
Concerning inflation, the premier said that the country has been able to significantly reduce inflation this year adding that the comprehensive reform implemented this year has significantly reduced the inflation seen in the country.
The government’s decision not to borrow from the National Bank and nation’s ability to increase productivity are among the reason for the reduction of inflation. In addition to being able to increase productivity, the creation of markets where farmers can sell their products and the creation of market linkages are also cited as reasons.
The Premier said that the inflation rate in the last budget year was 22.8%. However, the number has been reduced to 14.4 percent at this year. He recalled that food inflation in Ethiopia, which was 60 percent in the period before 2000, had been going on for a long time and had been reduced to 12 percent this year through various measures.
As to the Premier, the thousands of tractors deployed to expand mechanization in the agricultural sector have helped the growth of productivity and expanding irrigation development.
Explaining the enabling environment to increase agricultural productivity, the Premier said that Ethiopia is one of the countries with large arable land, adding that 26 million hectares of land have been cultivated and 1.2 billion quintals of agricultural production have been obtained in the 2024/2025 Ethiopian fiscal year due to the attention given to the agricultural sector.
He stated that this year, the country obtained over 300 thousand quintals of wheat product through cultivating over 5.8 million additional hectares of new lands on previously cultivated lands.
He said that thousands of tractors and pumps have been used to mechanize agriculture and increase production, and agricultural extension experts are also working day and night in each farmer’s field.
Explaining the existence of new work practices in the agricultural sector he said that farmers have been working even at night in hot areas.
More than 50,000 hectares of acidic land has been treated and brought into agriculture by producing lime, and that the practice of multiple harvesting like 2 or 3 rounds a year has increased. Especially the introduction of summer irrigation has brought great progress.
He also said that in Lemat Tirufat initiative poultry and dairy productions have increased, and that artificial insemination has increased livestock productivity, and milk consumption per person has increased. He also noted that the significant changes seen in honey and fish are a good start and can replace imported products, noting that this can be effective in many sectors if it continues to strengthen.
Likewise, there has been a change in the development of coffee, tea and rice, the sector has yielded great results and has a significant contribution to overall development of the country.
Ministry of Agriculture (MoA) on its self has announced that Ethiopia’s agricultural export revenue has reached a historic high, exceeding three billion USD over the past ten months.
According to the information obtained from the ministry, coffee remains the top export commodity, with over 400,000 quintals exported, generating more than two billion USD in foreign exchange earnings. The remaining revenue was secured from horticulture and floriculture, livestock and dairy products, and spices.
The Ministry noted that the government is intensifying efforts to boost production and ensure sustainable agricultural development. More than 12 million quintals of fertilizer have been distributed across states.
In response to pest and disease threats, aerial spraying operations are underway using aircraft to combat invasive pests and plant diseases.
In addition to traditional farming, the ministry is advancing agroforestry initiatives. So far, over seven billion seedlings have been cultivated, with 500 million already planted, including around 3.5 million fruit-bearing trees aimed at enhancing food security and income generation.
BY TAMERU REGASA
THE ETHIOPIAN HERALD FRIDAY 18, July 2025
