Ethiopian Investment Holdings (EIH), Ethiopian Agricultural Business Corporation (EABC), and Asset Green have embarked on a significant financial initiative, signing a Shareholders Agreement (SHA) to invest USD 600 million in an Integrated Dairy and Commercial Farming Project. This ambitious move aims to bolster Ethiopia's agricultural sector through large-scale investments and the introduction of cutting-edge agricultural technologies.
The agreement, signed by key figures including EIH's CEO Dr. Brook Taye, EABC's CEO Ato Kifle W/Mariam, and Asset Green's CEO & Chairman Mr. Afshin Afsharnejad, is set to be executed in two phases. The initial phase will focus on establishing large-scale dairy farming alongside integrated feed farming across 15,000 hectares, ensuring a stable supply chain to support operations.
Once the first phase is up and running, the project will expand to include cotton, oilseed, and rice farming—the cornerstone of Ethiopia's agricultural backbone—complemented by advanced processing facilities and the establishment of dedicated out-grower support centers.
Ethiopia's Deputy Prime Minister, H.E. Ato Temesgen Tiruneh, expressed strong governmental support for the initiative, stating, "Ethiopia’s government is committed to agricultural development, as this initiative aligns with our efforts to improve food security, create employment opportunities, and drive economic growth through investment and technology." His emphasis on the significance of public-private partnerships highlights the government’s strategic direction for the economy.
Dr. Brook Taye lauded the agreement, hailing it as a major milestone for the modernization of Ethiopia’s agricultural framework. He stated, "This agreement is a major milestone in modernizing Ethiopia’s agricultural sector," reflecting the commitment of EIH to integrate Environmental, Social, and Governance (ESG) safeguards within the framework of the initiative.
Echoing this sentiment, Mr. Afshin Afsharnejad noted, "Our collaboration seeks to establish a vertically integrated agribusiness," aimed at significantly enhancing productivity, efficiency, and sustainability within the sector. This approach forms part of the larger vision of transforming agriculture through investments not just for economic profit but for sustainable development too.
The Integrated Dairy and Commercial Farming Project is projected not just to bring much-needed jobs but also to attract foreign direct investment—an important aspect of Ethiopia’s long-term economic growth strategy. Aligning with EIH's broader goals, the initiative seeks to solidify Ethiopia’s position as one of Africa's leading agricultural hubs.
The intention behind this significant investment signals both local and international confidence in Ethiopia’s developmental agenda, particularly within agriculture, which is often regarded as the backbone of the country’s economy. It reflects the dynamic interplay between government initiatives and private sector engagement aimed at fostering innovation and growth.
The signing ceremony was attended by distinguished leaders, including Ethiopia’s Deputy Prime Minister H.E. Ato Temesgen Tiruneh and international partners, showcasing the collaborative effort necessary to propel such projects forward.
By leveraging advanced agricultural technology, modern farming practices, and sustainable methodologies, this initiative is poised to mark a transformative era for Ethiopia’s agricultural sector, promising not just economic benefits but also significant social impact through increased food production and security.
It is these kinds of collaborations—between government agencies and innovative private enterprises—that hold the key to unlocking Ethiopia’s full agricultural potential. With multiple phases planned for this project, it promises to bring lasting positive change to the industry, creating strong foundations for future investments.
Through strategic planning and focused execution, the Integrated Dairy and Commercial Farming Project demonstrates Ethiopia's readiness to tackle its agricultural challenges head-on, emphasizing the wills and actions directed toward sustainable economic growth and food security.