Signing of an agreement of 8 million euro support from France for the development of the Ethiopian agricultural sector [fr]
The Agence Française de Développement (AFD) and Ministry of Finance sign a 8 million euro grant agreement to support Agriculture MSMEs’ development
A 8 million euros grant agreement has been signed on July 16, 2020 between the Ministry of Finance (MoF) represented by H.E Ato Ahmed SHIDE, Minister of Finance, and the French Development Agency (AFD), represented by Ms. Valerie TEHIO, Country director, in the presence of H.E. Mr Frederic BONTEMS, the Ambassador of France in Ethiopia and for the African Union.
The aim of this grant is to support the Agricultural Transformation Agency (ATA) to develop agribusiness capacities and access to finance in the agriculture sector. This project is part of the Agriculture Commercialization Cluster (ACC) program, supported by other development partners, such as the Danish and Dutch Embassies and the European Union.
Agriculture is the backbone of Ethiopia’s economy and society. The objective of this financing is to develop the investment capacity of smallholder farmers and the small and medium-sized agribusinesses by providing them with inputs and capacity development services and by upgrading and adding value to the commercial chain of their production (processing, marketing and exporting companies).
Within 5 years, it is expected to develop productivity and revenue generation of 1.8 million small farmers and 1,340 agri-SMEs, including them in the value chains from production to marketing, and developing their access to credit and dedicated financial services in order to increase their investment capacity.
Additionally to strengthening Ethiopian Agribusiness, diversifying their economic model, developing their productivity and creating the conditions for a sustainable economic development and jobs creation in rural areas, the objective is also to develop dedicated strategies to support agribusiness among financial institutions, which is the missing link today to sustain the agricultural sector’s development.
This new grant is in line with France willingness to support the Homegrown Economic Reform program and the National Development Plan as the agricultural sector will remain one of the main drivers of growth, inclusive development and wealth in Ethiopian economy.
About Agence Française de Développement :
The Agence Française de Développement (AFD) Group funds, supports and accelerates the transition to a fairer and more sustainable world. Focusing on climate, biodiversity, peace, education, urban development, health and governance, our teams carry out more than 4,000 projects in France’s overseas departments and territories and another 115 countries. In this way, we contribute to the commitment of France and French people to support the Sustainable Development Goals (SDGs).