UNIDO pledges continued support for Ethiopia’s agricultural shift

Addis Ababa, November 18, 2024 (FBC) – The United Nations Industrial Development Organization (UNIDO) has reiterated support to Ethiopia’s endeavors in realizing a market-oriented and demand driven agricultural system.

Director of the Division of Agribusiness and Infrastructure Development at UNIDO, Dejene Tezera highlighted the ongoing agricultural initiatives which Ethiopia has been implementing.

Currently, the Government of Ethiopia is highly committed to sustainably increasing agricultural production to meet the growing demand for food, industrial raw materials, and foreign currency earnings.

In this respect, the nation has made significant efforts to increase agricultural production and productivity, ensure food self-sufficiency, and expand integrated agro-industrial parks (AIIPs) as part of its broader development strategy.

UNIDO is supporting those agricultural initiatives to enhance sustainability and strengthen the link between smallholder farmers and industrial sectors, Dejene elaborated.

“We are trying to shift the agricultural system from supply-driven to demand-driven. And that would enable farmers to receive the necessary extension services and agricultural inputs, while supplying quality raw materials to industries.

This creates a win-win situation for both smallholder farmers and industries, accelerating agribusiness investment and transforming agriculture,” the director said.

The development of integrated agro-industrial parks comprise vital infrastructure such as water, power, and storage facilities, he said, noting that these parks would help also overcome key barriers to industrial growth, ensuring that both industries and farmers thrive.

The agro-parks include Rural Transformation Centers that offer farmers access to inputs, technical guidance, and facilities for product aggregation and processing. This enables farmers to add value to their products before supplying to the industries.

UNIDO’s initiative aligns with the Ethiopian Ministry of Agriculture and Ministry of Industry, both of which support creating a favorable environment for agro-industrial growth, the director indicated.

Through this collaboration, around 170,000 farmers now supply raw materials to some few industries, generating 50 million USD in exports last year, according to him.

Tezera highlighted the government’s significant investment in the initiative, noting that 620 million USD has been dedicated to developing agro-park infrastructure.

For him, this underscores Ethiopia’s commitment to industrialization and rural development.

“UNIDO has been working closely with the government, conducting large-scale feasibility studies in 17 agricultural development corridors, together with the Agricultural Transformation Institute. Following these studies, we piloted the project in three regions—Amhara, Oromia, and Sidama. With the government’s investment in infrastructure, the groundwork for transformation is in place,” Tezera explained.

In addition, UNIDO is working to enhance food security by reducing food waste and improving agricultural productivity, adding that 30 percent of food is wasted globally, enough to feed 100 million people.

According to him, expanding irrigation and focusing on agro-processing are key elements to boosting production.

A report shows that Africa currently imports 80 billion USD worth of processed food. And Ethiopia is well-positioned to fill this gap by increasing its agro-processing capacity.

Ethiopia’s experience shows that transforming agriculture into a demand-driven system can lead to higher productivity, stronger industries, and greater exports, Tezera told local newswire service.

The success of Ethiopia’s integrated agro-parks is attracting interest from other African countries, offering a model for industrialization, food security, and economic growth, it was learned.