05 October 2023, Addis Ababa - The Food and Agriculture Organization of the United Nations (FAO) Representation in Ethiopia, along with its partners, convened in Addis Ababa for a Partners Day event to discuss the challenges and opportunities in Ethiopia's agricultural sector. The objective was to enhance coordination among the Ethiopian government, private sector, and development partners to achieve sustainable agricultural development.

During the event, Farayi Zimudzi, FAO Representative in Ethiopia, highlighted the need to reflect on the impact of the Organization's support in Ethiopia over the past forty years and enhance collaboration for transformative change in the sector. Zimudzi indicated that the purpose of bringing together FAO's development partners, NGOs, UN agencies, and colleagues is to align visions and goals. In her welcoming remarks, she stated, "I believe that if you really want to know someone, visit them in their home."

Jacopo Damelio, Programme Officer in FAO Ethiopia, shared a synthesis of the country's agriculture sector. He pointed out on the major favorable conditions for agricultural development, which encompass diverse ecological zones, suitable land for crop and livestock production, and the sector's significant contributions to employment, GDP, and export earnings.

Damelio highlighted several opportunities for sector transformation, encompassing various policies, strategies, and initiatives. These include the Ten-Year Economic Development Plan (2021-2023), home-grown economic reforms (2019), Revised Agricultural Policy (2021), Food and Nutrition Policy and Strategy (2021-2030), Contract Farming (2023), Nutrition Sensitive Agrifood System Strategy (2024-2030), Livestock Master Plan, Youth Employment Strategy, Agricultural Extension Strategy (2017), Ethiopian Food Systems Transformation Pathways (2021-2030), and Food and Nutrition Policy and Strategy (2021-2030).

In addition, commendable incentives such as land reserves for commercial farming of cotton and horticulture development, income tax exemption for investors in selected agriculture investment areas, exemption of import duties and value-added tax for animal feed products, and duty-free importation and export tax exemption for most agricultural products were highlighted.

Key challenges identified in the sector include subsistence-based agriculture, low adoption of technologies, weak market linkages, natural resource management, availability and access to timely and reliable information, land tenure systems, coordination, data gaps, and state-dominated public services.

The discussion shed light on the paradoxical nature of the sub-region, where rapid economic growth in Ethiopia coexists with high poverty rates, high levels of youth unemployment, and the effects of irregular migration among others.

During the event, participants drew attention to the need for policy dialogue to bridge the gap between agricultural intensification and diversification. The importance of considering different agro-ecological zones and conditions, as well as involving lower-level government structures (woreda) and the private sector was highlighted.

Panelists also emphasized that FAO should effectively utilize its role as a knowledge Organization in building a strong evidence base to advise the country on fully utilizing its comparative advantages, enabling environment, and the agricultural sector. As a case in point, the EU's delegation called upon FAO to support the new EU 2024 Programme, which requires transformative investments and alternative financing models to contribute to achieving Sustainable Development Goals (SDGs).

The discussants acknowledged the availability of resources but stressed on the importance of focusing on programme quality. They commended that importing global knowledge and best practices into Ethiopia, increasing private sector involvement, and supporting the country's home-grown economic reform will enable the agricultural sector to perform better and lead to poverty alleviation.

The partners also highlighted the potential transformative impact of Ethiopia's draft agricultural policy reform. He recommended in-depth consultation with all stakeholders, including parliamentarians to ensure buy-in. He also commended Ethiopia's resilience in the face of recent challenges such as COVID-19 and drought, indicating that the country's economy can withstand such shocks is a good lesson.

The participants underscored the strong need for effective knowledge harnessing and advocated for balanced resource allocation between humanitarian assistance and development efforts to strengthen local capacity and build resilience. They also stressed the importance of promoting better coordination between the Ethiopian government, private sector, and development partners as fundamental steps in achieving sustainable agricultural development.

For further information, please contact:

Meseret Abiy
National Communications Specialist
FAO Ethiopia
Email: [email protected]

Nilson Faith
Partnerships and Resource Mobilization Specialist
FAO Ethiopia
Email: [email protected]