Structural transformation requires long-term investment to expand productive capacities, as well as infrastructure development that underpins industrial activities and reduces systemic bottlenecks. Rapid transformative growth will also require a relevant and context-based development strategy.
Three decades ago, the Ethiopian government devised an agricultural-led industrial development strategy, with the aim to boost economic growth and to foster food security. Although many experts in the field have repeatedly criticized the move stating that it is difficult to realize a sustainable economic development through fragmented land, however, there is no doubt that in the current context of Ethiopia, agricultural policy is a viable option. This is mainly due to the fact that more than three-quarters of the population is living in rural areas and agriculture is a major source of livelihood, foreign exchange earnings are mainly dependent on agricultural product exports.