With the current Second Growth and Transformation Plan (2015-2020), the Government of Ethiopia expects the agro-industrial sector to play key role in economic growth of the Country. Accordingly, the creation of Integrated Agro-Industrial Parks has been identified as one of the key mechanisms for accelerating the development of the sector and the structural transformation of agriculture. Agro-industrial parks will play a significant role in transitioning Ethiopia from an agricultural-led into an industrial-led economy. In view of that, the development of Integrated Agro-Industrial Parks has been prioritized in Ethiopia’s national development strategy and four Agro-Industrial Growth Corridors have been selected for piloting the establishment of four Integrated Agro-Industrial Parks. The initiative aims at driving the structural transformation of the Ethiopian economy while reducing rural poverty and creating a better environment for increased investments in agro-processing and allied sectors. Since 1981, FAO has been a strong partner of the Government of Ethiopia towards the achievement of national food security and economic growth goals. FAO is working closely with the Ministry of Agriculture and Natural Resources to empower value chain actors and to promote inclusive, efficient and sustainable agricultural value chains. The present document is the first one of a series of detailed analyses of prioritized commodities, which will lead to inclusive, sustainable and stronger agricultural value chains in the Agro-Commodities Procurement Zone of the pilot Integrated Agro-Industrial Park in Central-Eastern Oromia.

This study of the dairy value chain in the Oromia region of Ethiopia was conducted as part of the AgrInvest-Food Systems Project, a collaboration between the Food and Agriculture Organization of the United Nations (FAO) and the European Centre for Development Policy Management (ECDPM) to promote private investments in African food systems that contribute to local economic, social and environmental sustainability.

This technical note was written by the European Centre for Development Policy Management (ECDPM) as part of the project “AgrInvest-Food Systems: Enabling inclusive and efficient private sector investment in agri-food systems”, implemented by the Food and Agriculture Organization of the United Nations (FAO) in partnership with the ECDPM. The AgrInvest-Food Systems Project (AgrInvest-FS) aims at attracting private investment into agrifood systems aligned with the Sustainable Development Goals (SDGs) by leveraging public funds. The note applies a systematic approach to the five agrivalue chains over the four countries covered in the AgrInvest-FS project, to identify relevant financing instruments and relevant types of financing institutions, which could potentially be interested in financing a segment of the value chain.

With the current Second Growth and Transformation Plan (2015-2020), the Government of Ethiopia expects the agro-industrial sector to play key role in economic growth of the Country. Accordingly, the creation of Integrated Agro-Industrial Parks has been identified as one of the key mechanisms for accelerating the development of the sector and the structural transformation of agriculture. Agro-industrial parks will play a significant role in transitioning Ethiopia from an agricultural-led into an industrial-led economy. In view of that, the development of Integrated Agro-Industrial Parks has been prioritized in Ethiopia’s national development strategy and four Agro-Industrial Growth Corridors have been selected for piloting the establishment of four Integrated Agro-Industrial Parks. The initiative aims at driving the structural transformation of the Ethiopian economy while reducing rural poverty and creating a better environment for increased investments in agro-processing and allied sectors. Since 1981, FAO has been a strong partner of the Government of Ethiopia towards the achievement of national food security and economic growth goals. FAO is working closely with the Ministry of Agriculture and Natural Resources to empower value chain actors and to promote inclusive, efficient and sustainable agricultural value chains. The present document is the second one of a series of detailed analyses of prioritized commodities, which will lead to inclusive, sustainable and stronger agricultural value chains in the Agro-Commodities Procurement Zone of the pilot Integrated Agro-Industrial Park in Central-Eastern Oromia.