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Opportunities for Public Private Partnership in Ethiopia ’s Agriculture
Ethiopia on the move … ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Agriculture as a driver of growth for Ethiopia ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],...yet a number of critical challenges to overcome Agriculture is a key driver for Ethiopia ’s development...  ... with a significant growth potential... ,[object Object],[object Object],[object Object]
A snapshot of the the agricultural production landscape … Source: Ethiopian Central Statistical Authority, 2011 Key Crops Hectares under cultivation Production (quintals) Cereals 9.7m 177.6m Teff 2.8m 34.8m Maize 2.0m 49.9m Wheat 1.6m 28.6m Barley 1.0m 17.0m Pulses 1.4m 19.5m Chick Peas 208.4t 3.2m Lentils 77.3t 809t Oilseeds 774.5t 6.3m Nueg (Niger) 247.6t 1.4m Sesame 384.7t 3.3m Fruits 54.6t 4.8m Bananas 31.9t 2.7m Coffee 498.6t 3.7m
Ethiopia ‘ s vision on agricultural transformation Food security Enhanced environmental conservation Improved gender inclusion and equity  Ethiopia aspires to transform its agriculture into a sustainable market-led sector and achieve : Part of country ‘ s aspiration to achieve middle income status by 2020 SOURCE: Ethiopia ‘ s PIF, ATA team
AGP activities offer potential entry points  for private sector involvement (1/3) potential entry points  for private sector  Strategic  objectives Reduction in degradation and improvement  in productivity of natural resources Achievement of a sustainable increase in agricultural productivity and production Achievement of universal food security and protection of vulnerable households from natural disasters Acceleration of agricultural commercializa-tion and agro-industrial development Natural Resource Management Productivity and Production Disaster Risk Management and Food Security Rural Com-mercialization AGP ATA Potential entry points for pubic private partnerships
... with clear targets for each element Productivity and Production Rural  Commercialization Natural Resource Management Disaster Risk Management and Food Security ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Administrative unit of Ethiopia (equivalent to a district) SOURCE: Ethiopia ‘ s Agricultural Sector Policy and Investment Framework, GTP Agriculture Policy Matrix SELECTED TARGETS
Approach to transformation ,[object Object],Holistic, integrated programme covering  priority focus areas through key levers: ,[object Object],[object Object],[object Object],[object Object],NATIONAL TRANSFORMATION NATIONAL TRANSFORMATION SOURCE: Ethiopia ‘ s PIF, ATA team
Investment platform for increasing agricultural productivity and market access in key value chains in targeted high potential areas Developments so far: key transformational interventions in support of agricultural growth Dedicated independent  unit to support and monitor implementation, reporting to the Prime Minister AGP ATA ECX A first of its kind national multi-commodity exchange that provides low-cost, secure marketplace trading services
Key features of the AGP  Key commodities using a value-chain approach identified for  each cluster  Main beneficiaries small- and medium-scale farmers Focus on selected geographic clusters Bottom up, decentrilized planning approach to identify key interventions at a local level (83 high potential areas)  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Adoption of new technology and changing behaviour and mindsets AGP ATA SOURCE: USAID, ATA team
83  woredas  in 20 clusters in four of the largest regions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
AGP: example of a targeted geographic area ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Southern Tigray AGP area AGP ATA SOURCE: World bank, ATA team
AGP activities offer potential entry points  for public private partnerships (1/3) potential entry points  for private sector  Strategic  objectives ,[object Object],[object Object],[object Object],Agricultural production and commercialization AGP ATA Small-scale rural infrastructure development and management ,[object Object],[object Object]
Market and Agribusiness development Examples PepsiCo has partnered with a local company to source and produce a chickpea based nutritious food  Diageo has expressed readiness to invest in the sourcing and production of barley following its recent acquisition of a major brewery ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],AGP activities offer potential entry points  for public private partnerships (2/3) AGP ATA SOURCE: Ethiopia ‘ s PIF, ATA team
Key goals Example of private partnership in agribusiness development - EthioPEA EthioPEA Omega Farms Produce nutritious products made from local chickpeas for low income consumers in Ethiopia Increase yileds and quality of chickpeas to turn it into a major export crop In collaboration with a number of private and public actors Pilot launched in several regions to evaluate potential of productivity improvement through modern irrigation, better seed quality and transfering best practices SOURCE: ATA team, PepsiCo
An emerging public private partnership …. Ministry of Agriculture
Market and Agribusiness development Institutional strengthening and development ,[object Object],AGP activities offer potential entry points  for public private partnerships (3/3) AGP ATA SOURCE: Ethiopia ‘ s PIF, ATA team
Cold chain supply management ,[object Object],In addition, investment opportunities exist in backbone infrastructure development SOURCE: ATA team Warehousing ,[object Object],Financial services Description Transport ,[object Object]
Overview of potential setups for private sector engagement Benefits Role MNCs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Social VC ,[object Object],Others  ,[object Object],[object Object],[object Object],[object Object],National companies Small local entrepreneurs SOURCE: ATA team
Next steps for engaging the private sector Joint public and private identification  of areas for private sector engagement Establishment of partnership structures (e.g.  projects, committees, industry associations) Development of investment plans for specific initiatives Joint execution and monitoring Focus of today ’ s meeting SOURCE: ATA team

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EGK 2011: Agriculture 03 ATA b

  • 1. Opportunities for Public Private Partnership in Ethiopia ’s Agriculture
  • 2.
  • 3.
  • 4. A snapshot of the the agricultural production landscape … Source: Ethiopian Central Statistical Authority, 2011 Key Crops Hectares under cultivation Production (quintals) Cereals 9.7m 177.6m Teff 2.8m 34.8m Maize 2.0m 49.9m Wheat 1.6m 28.6m Barley 1.0m 17.0m Pulses 1.4m 19.5m Chick Peas 208.4t 3.2m Lentils 77.3t 809t Oilseeds 774.5t 6.3m Nueg (Niger) 247.6t 1.4m Sesame 384.7t 3.3m Fruits 54.6t 4.8m Bananas 31.9t 2.7m Coffee 498.6t 3.7m
  • 5. Ethiopia ‘ s vision on agricultural transformation Food security Enhanced environmental conservation Improved gender inclusion and equity Ethiopia aspires to transform its agriculture into a sustainable market-led sector and achieve : Part of country ‘ s aspiration to achieve middle income status by 2020 SOURCE: Ethiopia ‘ s PIF, ATA team
  • 6. AGP activities offer potential entry points for private sector involvement (1/3) potential entry points for private sector Strategic objectives Reduction in degradation and improvement in productivity of natural resources Achievement of a sustainable increase in agricultural productivity and production Achievement of universal food security and protection of vulnerable households from natural disasters Acceleration of agricultural commercializa-tion and agro-industrial development Natural Resource Management Productivity and Production Disaster Risk Management and Food Security Rural Com-mercialization AGP ATA Potential entry points for pubic private partnerships
  • 7.
  • 8.
  • 9. Investment platform for increasing agricultural productivity and market access in key value chains in targeted high potential areas Developments so far: key transformational interventions in support of agricultural growth Dedicated independent unit to support and monitor implementation, reporting to the Prime Minister AGP ATA ECX A first of its kind national multi-commodity exchange that provides low-cost, secure marketplace trading services
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. Key goals Example of private partnership in agribusiness development - EthioPEA EthioPEA Omega Farms Produce nutritious products made from local chickpeas for low income consumers in Ethiopia Increase yileds and quality of chickpeas to turn it into a major export crop In collaboration with a number of private and public actors Pilot launched in several regions to evaluate potential of productivity improvement through modern irrigation, better seed quality and transfering best practices SOURCE: ATA team, PepsiCo
  • 16. An emerging public private partnership …. Ministry of Agriculture
  • 17.
  • 18.
  • 19.
  • 20. Next steps for engaging the private sector Joint public and private identification of areas for private sector engagement Establishment of partnership structures (e.g. projects, committees, industry associations) Development of investment plans for specific initiatives Joint execution and monitoring Focus of today ’ s meeting SOURCE: ATA team