FAO – Ethiopian Business Review

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The Ministry of Agriculture (MoA) of Ethiopia has signed a Memorandum of Understanding (MoU) with Precision Development (PxD), a global non-profit organization specializing in digital agricultural advisory services. The agreement is backed by a USD 3 million grant from the Bill & Melinda Gates Foundation, aimed at accelerating the implementation of Ethiopia’s Digital Agriculture Roadmap (DAR).

The MoU was signed by Dr. Girma Amente, Minister of Agriculture, and Niriksha Shetty, CEO of PxD, in a move that marks a significant milestone in the country’s transition toward tech-enabled agricultural transformation.

Under the agreement, PxD will lead the establishment and operation of a Project Management Unit (PMU) responsible for the coordinated delivery and oversight of the Digital Agriculture Roadmap. The initiative will be implemented over a two-year period, from December 2025 to February 2027, with PxD serving as the executing agency for the project.

The grant from the Gates Foundation will be channeled directly to PxD, enabling the deployment of targeted digital solutions to support smallholder farmers, enhance data-driven policymaking, and improve agricultural productivity across Ethiopia.

Pula Advisors, an international insurtech company, in partnership with Oromia Insurance S.C. and other local partners, has provided agricultural insurance coverage to 700,000 smallholder farmers as of December 2024. Building on this success, the company aims to reach an additional 3 million farmers by the end of the current fiscal year. This scale-up effort brings together a consortium of local insurers, including Abay Insurance S.C., Africa Insurance S.C., Ethiopian Insurance Company (EIC), Nyala Insurance S.C., and Oromia Insurance S.C.

The announcement was made on Wednesday by Pula’s Ethiopia Country Director, Dagmawi Haileyesus, during the UNDP’s Financial Resilience in Agriculture (FRA) Community of Practice (CoP) 2025 high-level international forum, held at the United Nations Economic Commission for Africa (ECA) headquarters in Addis Ababa. The event brought together over 100 participants from 24 countries.

Held under the theme “Ethiopia’s Two-Decade Pilot Journey: Voices from Partners Implementing Agriculture Insurance”, the forum spotlighted Ethiopia’s evolving landscape in agricultural insurance, highlighting policy gaps, challenges, and future directions.

Solomon Zegeye, Director at Nyala Insurance, pointed out that premium affordability remains a major barrier, particularly for smallholder farmers. “Only large-scale producers can afford current rates,” he noted, adding that without strong policy intervention to enable premium financing, the scale-up of agricultural insurance will remain limited.

Other pressing issues include low awareness among smallholder farmers about the value of insurance, limited distribution channels in rural and remote areas, and the absence of robust policy frameworks to support the sector’s growth.

Also speaking at the forum, Belay Tulu, Director of the Insurance Supervision Directorate at the National Bank of Ethiopia (NBE), shared updates on regulatory reforms under way to address structural bottlenecks.

“We’re working on a new insurance proclamation that expands our mandate beyond supervision to include market development,” said Belay. “Inclusive insurance is broader than microinsurance. It targets unserved populations beyond just the poor.”

Belay added that a Microinsurance Directive is being also drafted to allow member-based institutions, such as cooperatives and community-based groups, to facilitate insurance delivery.

A key highlight of the event was the official launch of the Ethiopia Rural Finance Service Unit (RFSU) under the Ministry of Agriculture. The RFSU announced in the presence of Girma Amente (PhD), Minister of Agriculture and the State Minister of Agriculture, Sofia Kassa is set to play a central role in coordinating and scaling agricultural insurance efforts nationwide, with support from UNDP, JICA, and other development partners, through funding from the Bill & Melinda Gates Foundation.

“The revised Agricultural and Rural Development Policy places strong emphasis on improving access to financial credit for smallholder farmers,” said Dr. Girma. “The government’s focus on the sector has driven inclusive and climate-resilient economic reforms, boosting both production and productivity.”

Pula and its partner insurers are delivering Area Yield Index Insurance (AYII), a comprehensive coverage solution—through the Input Voucher System (IVS). This model links insurance directly to agricultural input purchases, leveraging the existing IVS infrastructure that reaches up to 7 million farmers, in collaboration with the Agricultural Transformation Institute (ATI).

“Pula has long anticipated the establishment of a platform like the RFSU, recognizing the sector’s need for greater coordination. With the RFSU now in place, we are well-positioned to scale our work nationally—with the potential to serve over 7 million farmers across Ethiopia.” said Dagmawi. He also added “We are confident that the RFSU will leverage key learnings from our program and help create an enabling environment that fosters better outcomes for smallholder farmers through expanded, well-coordinated agricultural insurance efforts.”

Pula operates in 20 countries globally, reaching a total of 20+ million farmers. The company entered Ethiopia in November 2022, following the Ministry of Agriculture’s pledge to work with stakeholders to deliver climate risk solutions for Ethiopian farmers and its delegation of responsibility to the Agricultural Transformation Institute (ATI), efforts began to design and pilot a scalable agricultural insurance model.

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Ethiopia’s Council of Ministers has approved a draft proclamation that will allow private companies, non-governmental organizations, cooperatives, and professional associations to participate in agricultural extension services. Historically, these services were solely provided by the government, but growing demand and evolving sector challenges have underscored the need for a more inclusive and multi-stakeholder approach.

The Council of Ministers convened virtually for its 45th regular meeting today, where it unanimously approved the draft proclamation. The document is now set to be forwarded to the House of People’s Representatives for further legislative review. This marks a significant step in reshaping key sectors of Ethiopia’s economy.

Alongside this, the Council also endorsed a draft proclamation aimed at establishing a consistent legal framework for ecosystem service fees. Previously, the lack of clear legislation led to fragmented and inconsistent implementation by various institutions. The new legal framework seeks to clarify the roles of federal and regional authorities, the private sector, and NGOs, promoting sustainable environmental management vital for Ethiopia’s development goals.

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Ethiopia has recorded its highest-ever coffee export revenue, with the sector generating USD 1.868 billion over the past ten months of the current fiscal year — a historic milestone for the nation’s most iconic export.

The Ethiopian Coffee and Tea Authority announced today that 354,302 tonnes of coffee were exported during the period, exceeding the national target by 147% in volume and 142% in revenue. This performance surpasses all previous annual records in the country’s export history.

According to Dr Adugna Debela, Director General of the Authority, the figures represent an increase of 70% in volume and 87% in revenue compared to the same period last fiscal year. The sector exported 145,316.3 more tonnes, generating an additional USD 869.13 million, reflecting both growing global demand and Ethiopia’s enhanced export capacity.

Dr Adugna highlighted that Germany, Saudi Arabia, and the United States ranked as the top three destinations for Ethiopian coffee exports during the reporting period. Germany imported 61,239 tonnes, contributing USD 295 million (17% of total revenue), followed closely by Saudi Arabia with 60,182 tonnes valued at USD 290.7 million (20%), and the United States with 28,299 tonnes accounting for USD 192 million (10%).

“This outstanding achievement is the result of a well-coordinated national effort,” said Dr Adugna. “From farmers and cooperatives to exporters, regional authorities, and federal institutions — all stakeholders played a vital role. We are deeply grateful for their commitment and determination.”

He further expressed optimism that the final two months of the fiscal year will build upon this momentum, reinforcing Ethiopia’s status as a world leader in premium coffee production.

Ethiopia has harvested 1.6 million hectares of wheat from its summer irrigated farming program, with 98 million quintals expected to be produced in the ongoing fall season. The Ministry of Agriculture has already sown 3.5 million hectares of land this year, as part of its efforts to boost national wheat production.

Speaking to ENA, Isayas Lemma, the CEO of Crop Development at the Ministry, highlighted that the country is working to increase both production and productivity by enabling farmers to grow crops throughout the year in the summer, spring, and fall irrigated areas. This strategy is designed to ensure food security and reduce dependence on wheat imports.

The increase in production is attributed to expanding the area covered by seeds, utilizing previously uncultivated land, and applying modern agricultural technology and high-quality seeds. These factors have contributed to higher yields and improved productivity.

This year, Ethiopia plans to produce 172 million quintals of wheat from the summer irrigated cultivation alone, with harvesting already underway for the early-sown crops.

For the fall season, 2 million hectares have been sown out of the 3.7 million hectares planned. The target for fall production is 98 million quintals, in line with Ethiopia’s push for year-round food production and greater agricultural self-sufficiency.

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The Ethiopian Ministry of Agriculture has announced sweeping progress in its nationwide soil and water conservation efforts, with more than 21,000 streams rehabilitated and over 3.7 million hectares of land physically developed as part of a broader strategy to combat climate change and bolster agricultural productivity.

The initiative, which has been underway since the start of the fiscal year, is part of a larger plan to develop 4.6 million hectares through integrated watershed management and sustainable land use practices. The campaign, spearheaded under the slogan “Our Soil Resources for Our Prosperity,” has mobilized millions of Ethiopians in a coordinated push toward environmental resilience and food security.

Speaking at a high-level seminar evaluating this year’s progress, Professor Eyasu Elias, State Minister of Natural Resources Development, emphasized that the program is critical in mitigating the effects of climate change while laying the foundation for a production-led green economy.

“Our integrated watershed development works are being carried out across all regions, engaging communities to protect and restore land while enhancing agricultural productivity,” he stated. “This is not just about conservation—it’s about transforming livelihoods and ensuring sustainable growth.”

The campaign has seen unprecedented public participation, with over 19.9 million citizens contributing 30 to 60 days of labor per year in soil terracing, afforestation, and gully rehabilitation. According to Chief Executive of the Natural Resources at the Ministry of Agriculture, Fanose Mekonnen, the collective effort represents an estimated ETB 16 billion in mobilized manpower, showcasing the scale of Ethiopia’s community-driven development model.

In addition to new developments, the ministry has prioritized renovating and upgrading past conservation projects, rehabilitating an additional 589,000 hectares of previously degraded land. Efforts also include monitoring tree nurseries, identifying new afforestation sites, and preparing millions of planting pits to ensure long-term ecological benefits.

Ethiopia’s Maritime Transit Service has reached a major milestone in its national fertilizer import initiative, with over 1.07 million metric tons of soil fertilizer successfully delivered to Djibouti Port as of April 6, 2025. This achievement represents nearly half of the country’s total planned imports for the 2017/18 agricultural production cycle, which targets 2.4 million metric tons by the April 2025 deadline.

Ethiopia’s claims of wheat self-sufficiency are facing growing scrutiny as new data raises doubts about the government’s figures. Prime Minister Abiy Ahmed has hailed the country’s agricultural reforms, claiming Ethiopia has gone from importing wheat to becoming a major exporter, with production supposedly reaching 23 million tonnes in 2023-24, up from 15.1 million tonnes in 2022-23.

However, The Economist analysis reveals significant discrepancies in the government’s reported figures. Independent estimates from the African Development Bank (AfDB) and the U.S. Department of Agriculture (USDA) suggest Ethiopia’s actual wheat production is far lower—7.5 million tonnes in 2023-24, and 5.8 million tonnes in 2022-23, respectively.

These conflicting numbers raise questions about the accuracy of Ethiopia’s self-sufficiency claims. Despite assertions that the country no longer imports wheat, USDA data shows private traders brought in 1.4 million tonnes in 2023, with a 57% increase in imports during the first five months of 2024.

The Ethiopian government’s agricultural strategy, which includes the promotion of “cluster farms” and increased irrigation, has drawn praise from international bodies. However, critics argue that focusing heavily on wheat monocropping could harm soil quality in the long run.

The controversy over wheat production data also points to potential issues within the country’s statistical agencies. The Ethiopian Statistical Service (ESS) recently removed figures from the central bank’s website that contradicted official estimates, according to The Economist.

While international organizations like the FAO and AfDB have recognized Ethiopia’s agricultural progress, neither has fully endorsed the government’s wheat production numbers. Meanwhile, food aid remains a pressing issue, with 16 million Ethiopians still relying on assistance in 2024, according to the World Food Programme.

Ethiopia Teams Up with Global NGO to Digitize Farming with USD3M Boost

Pula Advisors Eyes 3 Million Ethiopian Farmers Through its Local Insurance Partnerships

Ethiopia Set to Open Agricultural Extension Services to Private Sector and NGOs

Ethiopia Breaks Coffee Export Record, Earning USD 1.87 Billion

Ethiopia Boosts Wheat Production with 1.6 Million Hectares Harvested and 3.5 Million Hectares Sown

Ethiopia Reclaims 3.7 Million Hectares Through Nationwide Soil and Water Campaign

Ethiopia Imports 1.07 Million Tons of Fertilizer, Nears Half of Annual Target

Ethiopia’s Wheat Self-Sufficiency Claims Questioned Amid Discrepancies