Ethiopia pushes private investment to strengthen agribusiness

Ethiopia is increasing its focus on transforming the agribusiness sector, with government leaders encouraging greater private investment to improve food security and reduce dependence on imports.

The move reflects a wider national effort to strengthen domestic production and build a more resilient agricultural system.

Agriculture Minister Addisu Arega highlighted the important role private investors play in driving change across the sector. Speaking at a stakeholder consultation forum in Addis Ababa, he noted that Ethiopia’s Medemer State philosophy places strong emphasis on achieving food self sufficiency and supporting long term growth.

“The concept of Medemer is primarily focused on ensuring that the country achieves sufficient food production and becomes self-sufficient,” Addisu said.

The country is currently rolling out reforms under its updated Agricultural and Rural Development Policy, where agricultural investment has been identified as a key priority. The government is looking to increase both the scale and quality of production by encouraging more participation from private businesses.

At present, around 8,742 investors are active in the sector, with close to 2.3 million hectares of land allocated for agricultural use. However, performance remains uneven, with only a portion of the land being fully utilised.

“Only about 45 percent of the allocated land is currently under active use, which shows the need to strengthen productivity and operational efficiency,” he said.

Addisu also pointed out that Ethiopia still trails behind several countries in agribusiness development, particularly in adopting modern technology and innovative farming methods. He referenced Vietnam, Malaysia and Indonesia as examples where innovation has helped boost productivity and competitiveness.

State Minister of Agriculture Meles Mekonen reinforced the sector’s importance to the national economy, especially in creating jobs and supporting livelihoods.

“Agriculture not only provides a foundation for food security but also creates employment opportunities, particularly for a large number of youths and women,” Meles said.

He added that improving access to modern techniques, better land use and continued government support will be key to unlocking the sector’s full potential and ensuring reliable access to safe and affordable food.