Agriculture (Food & Tea)
Agriculture in Ethiopia is projected to grow at a CAGR of 5.4% during the forecast period (2020-2025). The favorable government policies encouraging the private sector and the favorable agro-climatic conditions are the two major drivers behind the growth of the market studied. Agriculture in Ethiopia is the largest component of its economy and employs the majority of the Ethiopian population. The majority of these are smallholder farmers practicing subsistence farming on less than one hectare of land. These farmers, whose output is predominantly cereal crops, account for 95% of the agricultural production in Ethiopia.
The government of Ethiopia has started working with international partners to enhance agriculture productivity by collaborating with different private sectors in many possible ways. According to export.gov, the government of Ethiopia has established the Agricultural Transformation Agency (ATA) in order to address the problems of the agriculture sector in Ethiopia.
Ethiopia’s Agricultural Sector Policy and Investment Framework (PIF) is a sectoral national policy applicable for the period of 2010-2020. Its main objective is to sustainably increase rural incomes and national food security producing more, selling more, nurturing the environment, eliminating hunger and protecting the vulnerable against shocks. Four main themes, each with its own strategic objective, are identified within the above overall objective. These are: