Two separate and well-known variables: First, agriculture is the mainstay of Ethiopia’s economy, as it contributes massively to the country’s GDP, total export, employment and foreign currency earning. The other variable is that Ethiopia has given a priority for creating job opportunities for young people, and those especially vulnerable to migration in recent years.
And the point being, agriculture sector, along with rural development, can address factors that compel people to move by creating job and business opportunities for young people.
There is a tendency to look at agriculture through a very narrow prism of production agriculture, when in fact nowadays, the sector is fast becoming an entrepreneurial and creative aspect of any economy.
The employment potential of Ethiopia’s agriculture sector remains largely untapped, despite providing almost 70% of the country’s employment opportunities. The fact of the matter is, the sector can help provide decent and attractive job opportunities on a commercial and entrepreneurial level.
To this end, in Ethiopia, large-scale commercial farming could unlock the doors of employment, as businesses around farming, including processing, packaging, transportation, distribution, marketing and financial services, could also create huge number of on-farm and non-farm jobs for the country’s growing youth population.
This is according to Getachew Minase, a Consultant by trade. He said that the potential of the country as a whole, and its agriculture sector, in particular, should be explored and studied carefully in order to generate jobs for the youth of the country. For instance, land is not an issue when it comes to agriculture, but rather the use of technology to increase productivity, just as small land countries like Japan do. “Thus, we should also look into on ways to increase the productivity of our animals, crop yields per unit of land, and large-scale commercial farming of cash-crops, as there is tremendous potential there to generate jobs.”
Staying with large-scale commercial farming, Getachew points out that large-scale investment is needed in order to produce cash crops widely, and that in turn will have a measurable positive impact on employment and income. As large-scale farming demands huge amount of labor, it can generate job opportunities for youth living in urban areas as well.
Considering this, there are many investment potentials in Ethiopia that could be turned into a huge investment, and a vehicle to create jobs and income on a commercial level. “All the government has to do, with regards to Awash valley, for instance, is to make it free from malaria, build infrastructures, create access to capital as well as access to experts that gives tractor services and so on.”
Speaking of cotton farming and production, Getachew continues, it creates many jobs, as it involves huge value chain from production to export. Not only that. He also noted that financial officers, accountants, managers and auditors will have to open offices in relation to exporting cash crops, which generate off-farm jobs opportunities. Moreover, as capable professionals in each of these mentioned profession will be employed, it will create jobs even to those unemployed youths living in urban areas, Getachew added.
“To further show the magnitude of job creation potential the valley areas of the country have is to see the effect of investors that used to work at Awash valley farming has on developing the city of Adama.”
As to Getachew, there are a number other export commodities that not only can create jobs and income by being produced and exported, but also serve as huge investment potential for both domestic and foreign investors.
“If you take Awash valley, the lower valley is suited to produce fruits and vegetables, while the upper Awash valley has the potential for maize and food crops. The Middle Awash valley is suitable for animal rearing.” Also, as to him, the agricultural products from these farms can easily be linked to processors and markets, creating jobs and generating income along the value chain.
There are many potential for commercial farming in the country. Similarly, there is huge potential in Abay and Wabi Shebelle valleys that can be developed and be huge investment opportunity with a favorable condition to create jobs and business to the country’s youth, he points out.
All in all, Getachew believes that Ethiopia should look thoroughly into its agriculture sector to pinpoint additional investment potential that can be utilized to increase its overall agricultural productivity and employment generation.
And while the government has been and is working to benefit the youth and women economically from the country’s agricultural sector by raising the productivity of the sector through irrigated and rain-fed agriculture, and assured access to markets for agricultural products through linkages with agro-industries, it is imperative to take entrepreneurship and businesses around farming into account.
Herald December 12/2018
BY ROBEL YOHANNES
