Ethiopia’s Agricultural Sector: A Pillar of Economic Growth and Investment Opportunity

Addis Ababa, March 3, 2025 (ABN)

Ethiopia’s agricultural sector remains the backbone of its economy, employing approximately 70% of the population and contributing one-third of the nation’s GDP. With vast agricultural diversity, Ethiopia is renowned for its high-quality coffee, which significantly influences global markets, alongside its potential for expanding oilseeds, pulses, fruits, vegetables, and honey production.

As home to Africa’s largest livestock population and ranking among the top ten globally, Ethiopia presents substantial opportunities for investment in livestock production, agro-processing, improved seeds and fertilizers, and agricultural equipment. The government is actively working to enhance agricultural productivity through expanded irrigation, mechanization, and private sector involvement, with a strategic focus on achieving wheat self-sufficiency and reducing annual wheat imports of approximately 1 million metric tons.

Sustainability remains a key priority, as demonstrated by the Green Legacy Initiative, which has resulted in the planting of billions of trees. Additionally, Ethiopia’s participation in the African Continental Free Trade Area (AfCFTA) is opening new market avenues for agricultural exports, further boosting investment potential.

With abundant arable land, diverse agro-ecological zones, and a growing workforce, Ethiopia is positioned for significant agricultural expansion. The Ethiopian Investment Commission (EIC) is actively facilitating investment opportunities in this sector, making it an attractive destination for local and international investors.

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