Investing in agriculture in a food insecure Ethiopia

Ethiopia, like many countries in Africa, is currently facing a hunger crisis, with 20 million of its citizens at risk due to conflict, pests, droughts, and dwindling aid. The nation is also grappling with inflation across all consumer goods, prompting a need to draw investments into its agricultural industry. CNBC Africa had a conversation with Agnes Kalibata, the President of AGRA, to shed light on Ethiopia's agro investment plans and the strategies being implemented to address the country's food insecurity. One of the key factors essential for advancing the agriculture sector is the type of investments the government makes. It has been noted that despite commitments to invest 10% of budgets in agriculture, many governments are falling short in this area. However, history has shown that countries that have successfully invested close to 10% in the agriculture sector have experienced significant growth, propelling the continent towards agricultural sector-led development. Ethiopia, in collaboration with AGRA, has identified key areas for investment to drive the sector forward, focusing on sectors that offer the most potential for impact and growth. The analysis conducted helps to determine the best areas to invest in, such as wheat production, poverty reduction, and increasing export earnings. By allocating resources to these prioritized projects, the government aims to mobilize public investments effectively. Ethiopia's strategy encompasses investment in four critical areas: seed selection, processing, resource mobilization, and extension services. By emphasizing each stage in the value chain and addressing the need for innovative seeds, efficient processing, and productivity-enhancing technologies, the country aims to create a thriving agriculture ecosystem. Public extension services play a vital role in supporting farmers and ensuring the overall success of the agriculture sector. While private sector investments are crucial in driving growth, government funding plays a significant role in creating an enabling environment for businesses to thrive. Ethiopia is setting an example for other countries by focusing on comprehensive investments in key agricultural areas, aiming to boost production for export and job creation while enhancing food security and poverty alleviation. Despite the challenges posed by conflicts, natural disasters, and government policies, Ethiopia remains steadfast in its efforts to improve its agricultural industry and combat food insecurity. By aligning investments with development priorities and leveraging agricultural potential, Ethiopia seeks to not only feed its population but also contribute to regional food security and reduce its reliance on food imports. Agnes Kalibata's insights highlight the importance of sustainable agricultural investments in driving economic growth, fostering food security, and building resilience against crises. Ethiopia's proactive approach to agro investment serves as a model for other nations facing similar challenges, demonstrating the potential for agricultural transformation and sustainable development in the region.