Agribusiness Wilts Under Weathering Hurdles

Jun 15 , 2024

The agribusiness sector is struggling, with a cascade of conflict, infrastructure deficiencies, and input shortages that led to a decline in investment. The sector's share fell to a two-decade low below one percent. A shocking 41pc of the 2.3 million hectares of land transferred to agricultural investors have undergone development. The data from the Ministry of Agriculture was revealed last week at the Skylight Hotel on Bole Rd. It has prompted members of the agribusiness investment community, officials from the Ministry and senior management of the Development Bank of Ethiopia (DBE) to engage in a lively session outlining the difficulties. According to Getachew Waqe, vice president of the DBE, interest rates for agriculture had dropped to as little as seven percent for five years despite a drop in bankable projects. State Minister Sofia Kassa (PhD) acknowledged shortcomings from investors and authorities regarding the massive underdevelopment of projects by the country's 5,773 agri-investors. She said investors developed a mere 200hct after acquiring land nearly 50 times as much due to poor farm management, inadequate use of agrotechnology, and underfinancing. The investors attributed the underperformance to difficulties arising from conflict, unpredictable weather and lack of adequate professionals.