Increasing income and creating jobs in the agricultural sector

Project description

Title: Strengthening Rural Value Chains in Ethiopia
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Ethiopia
Lead executing agency: Federal Democratic Republic of Ethiopia, Ministry of Agriculture
Overall term: 2021 to 2024



In Ethiopia, over 50 million people are younger than 15 years. As a result, a number equivalent to almost half the population will enter the labour market in the coming years. To match this demand, at least two million jobs need to be created every year. Agriculture has great potential in Ethiopia and a diversified rural economy will play a key role in building up the job market for young Ethiopians.

Moreover, in its reform effort, the Government of Ethiopia is focusing on promoting the private sector to a driving force for economic growth. In the Industrial Development Strategic Plan the private sector is considered an engine for the transformation of the agricultural sector.

This initiative requires a cooperation between the government and the private sector, founded on a sector-specific agricultural policy. The plan must also be complemented by efforts to enhance the capacity of local state actors to promote rural development and improve the access of smallholder farmers to agricultural inputs, services and markets.


The Ethiopian government is promoting economic growth and employment by transforming the agricultural sector.


To increase income and create jobs in the agricultural sector the project is

  • Improving dialogue mechanisms between the government and the private sector in agriculture
  • Offering advice to the Ministry of Agriculture (MoA) to create a private sector oriented agricultural policy
  • Improving agricultural strategies as well as technical and management skills at the ministry, regional bureaus of agriculture and other institutions to promote rural economic development
  • Improving access to agricultural inputs, services and markets for all actors along the avocado, onion and soybean value chains in the Amhara, Oromia and Sidama regions

Last update: April 2022

Additional information