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Enhancing the inclusiveness of agro-commodity procurement zones in Ethiopia – National poverty profile

FAO Agricultural Development Economics Technical Study No. 15












Covarrubias, K.A., de la O Campos, A.P. & Cordonnier, V. 2021. Enhancing the inclusiveness of agro-commodity procurement zones in Ethiopia – National poverty profile. FAO Agricultural Development Economics Technical Study No. 15. Rome, FAO.



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    With the current Second Growth and Transformation Plan (2015-2020), the Government of Ethiopia expects the agro-industrial sector to play key role in economic growth of the Country. Accordingly, the creation of Integrated Agro-Industrial Parks has been identified as one of the key mechanisms for accelerating the development of the sector and the structural transformation of agriculture. Agro-industrial parks will play a significant role in transitioning Ethiopia from an agricultural-led into an industrial-led economy. In view of that, the development of Integrated Agro-Industrial Parks has been prioritized in Ethiopia’s national development strategy and four Agro Industrial Growth Corridors have been selected for piloting the establishment of four Integrated Agro-Industrial Parks. The initiative aims at driving the structural transformation of the Ethiopian economy while reducing rural poverty and creating a better environment for increased investments in agro-processing and allied sectors. Since 1981, FAO has been a strong partner of the Government of Ethiopia towards the achievement of national food security and economic growth goals. FAO is working closely with the Ministry of Agriculture and Natural Resources to empower value chain actors and to promote inclusive, efficient and sustainable agricultural value chains. The present document is the fourth one of a series of detailed analyses of prioritized commodities, which will lead to inclusive, sustainable and stronger agricultural value chains in the Agro-Commodities Procurement Zone of the pilot Integrated Agro-Industrial Park in Central-Eastern Oromia.
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    Enhancing the inclusiveness of Agrocommodity Procurement Zones in Ethiopia
    Baseline territorial poverty profile and analysis
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    As part of the Hand-in-Hand Initiative, whose goal is to help reach Sustainable Development Goals (SDGs) 1 and 2, the Food and Agriculture Organization of the United Nations (FAO) partnered with the Government of Ethiopia to ensure that agricultural investments – namely those linked to a new series of integrated agro-industrial parks (IAIP) in the country – are inclusive of local populations and the poor, as well as environmentally sustainable. Inclusivity, particularly of vulnerable populations, is not a certainty in the development process, and therefore, pointed efforts are required to ensure that they benefit from investments and their livelihoods are oriented away from poverty. This report poses a series of fundamental questions about inclusivity in the context of agrifood systems investments in Ethiopia, seeking to propose answers based on quantitative evidence from a poverty-stratified household survey, designed to be representative of two Agrocommodity Procurement Zones in the new IAIP. Through that analysis, this report characterizes the poor and vulnerable in the ACPZ, the barriers to the enhancement of their agricultural livelihoods; the available institutions that could reach these groups, and highlights opportunities to engage marginal groups in the value chains prioritized by the Government of Ethiopia through the IAIP.
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    With the current Second Growth and Transformation Plan (2015-2020), the Government of Ethiopia expects the agro-industrial sector to play key role in economic growth of the Country. Accordingly, the creation of Integrated Agro-Industrial Parks has been identified as one of the key mechanisms for accelerating the development of the sector and the structural transformation of agriculture. Agro-industrial parks will play a significant role in transitioning Ethiopia from an agricultural-led into an industrial-led economy. In view of that, the development of Integrated Agro-Industrial Parks has been prioritized in Ethiopia’s national development strategy and four Agro Industrial Growth Corridors have been selected for piloting the establishment of four Integrated Agro-Industrial Parks. The initiative aims at driving the structural transformation of the Ethiopian economy while reducing rural poverty and creating a better environment for increased investments in agro-processing and allied sectors. Since 1981, FAO has been a strong partner of the Government of Ethiopia towards the achievement of national food security and economic growth goals. FAO is working closely with the Ministry of Agriculture and Natural Resources to empower value chain actors and to promote inclusive, efficient and sustainable agricultural value chains. The present document is the fourth one of a series of detailed analyses of prioritized commodities, which will lead to inclusive, sustainable and stronger agricultural value chains in the Agro-Commodities Procurement Zone of the pilot Integrated Agro-Industrial Park in Central-Eastern Oromia.

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