Ethiopia’s agricultural sector, the Ethiopian Agricultural Businesses Corporation (EABC), Ethiopian Investment Holdings (EIH), and UK-based private equity firm Asset Green have entered into a shareholders’ agreement to launch a comprehensive dairy and crop farming initiative.
The project, valued at $600 million, is poised to enhance the nation’s food production and stimulate economic growth.
The collaboration delineates clear ownership stakes: Asset Green will hold a majority share of 51%, EABC will possess 25%, and EIH will control the remaining 24%.
This strategic partnership aims to leverage the strengths of each entity to modernize and expand Ethiopia’s agribusiness landscape.
Phased Implementation
The initiative is structured in two distinct phases:
Phase One: This initial stage focuses on the dairy industry, with plans to breed 10,000 dairy cows. It encompasses the development of feed production systems and the establishment of advanced milk processing facilities. This phase aims to meet the growing domestic demand for dairy products and reduce reliance on imports.
Phase Two: Subsequent efforts will shift towards crop cultivation and processing, targeting staples such as rice, cotton, and oilseeds. This phase is designed to diversify Ethiopia’s agricultural output and introduce value-added processing capabilities, thereby enhancing export potential.
Established in December 2015, EABC is a federal public enterprise formed through the merger of five state-owned entities, including the Ethiopian Seed Enterprise and Agricultural Inputs Supply Enterprise.
The corporation is dedicated to supplying agricultural inputs, machinery, and services to enhance productivity across Ethiopia.
EIH, serving as the Ethiopian government’s strategic investment arm, oversees a diverse portfolio of state-owned enterprises.
Its mission is to attract investments and manage assets to foster economic development and improve the quality of life for Ethiopians.
This partnership aligns with Ethiopia’s broader objectives to modernize its agricultural sector, ensure food security, and stimulate economic growth.
By integrating advanced farming techniques and processing technologies, the project is expected to create employment opportunities, enhance export revenues, and contribute to the nation’s sustainable development goals.
The collaboration also reflects a growing trend of international investment in Ethiopia’s agribusiness, signaling confidence in the country’s economic potential and commitment to transformative growth.
“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.
Cairo-based venture capital firm Sawari Ventures has announced a plan to launch a new $150 million investment fund dedicated to supporting Egyptian startups.
Africa Data Centres, a leading provider of data center services in Africa, has secured $108.9 million in funding to expand its capacity in South Africa.
The African Development Bank (AfDB) has pledged $20 million to bolster food security and water access for vulnerable communities in Senegal.
© 2021 Empower Africa. All rights reserved.
