In Ethiopia, inclusive agricultural growth is a major driver of poverty reduction. With three quarters of the population employed by agriculture, there are many who could benefit from the expansion of irrigation and mechanization.
Opportunities
Agriculture accounts for 40% of GDP, 80% of exports, and employs about three quarters of the country’s population. Food security and nutrition are high priorities of the Ethiopian government, which encourages investment and partnerships to strengthen and diversify the agricultural sector. Targeted investments in agriculture-led growth are effective in alleviating poverty, improving nutrition, and boosting resilience.
Challenges
Just over a quarter of the Ethiopian population subsist on less than $2.15 per day. According to the World Bank, gross domestic product (GDP) per capita was $1,294 in 2023. Whilst Ethiopia’s economy is growing at a healthy rate, many small farmers in the country experience underinvestment, low productivity, and high risk from external shocks. Whilst water resources are on average abundant in Ethiopia, access to sufficient water for domestic use and for farming remains difficult. Other challenges to the agricultural sector in Ethiopia include limited investment, difficult terrain, armed conflict, pests and diseases, limited access to fertilizer and modern seed hybrids, and recurrent droughts.
Contributing to Solutions
Capacity Needs Assessment
ILIMS is currently working with the University of Missouri to assess capacity needs in Ethiopia focusing on sustainable irrigation and mechanization, and the market systems necessary to support these. These findings will be used to
Innovative Climate Financing
ILIMS is working with Tetra Tech to understand the potential of innovative finance in the agriculture sector, including carbon-credits as a potential source of funding for irrigation and mechanization.
Publications and Additional Resources
Project Partners
- University of Missouri – Link to University of Missouri Homepage (https://missouri.edu/)
- Tetra Tech - https://www.tetratech.com/
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