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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:

  • Achieve a sustainable increase in agricultural productivity and production

  • Accelerate agricultural commercialisation and agroindustrial development;

  • Reduce degradation and improve productivity of natural resources;

  • Achieve universal food security and protect vulnerable households from natural disasters. As to the thematic area of disaster risk management and food security strategic objective 4 aims at reducing the number of chronically food insecure households, reducing imports of food aid, improving the effectiveness of targeted social safety net programme for vulnerable groups, reducing the prevalence of child malnutrition, and improving the effectiveness of the disaster risk management system