@RuralDevelopment – Ethiopian Business Review

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The House of People’s Representatives has reviewed two landmark draft proclamations—one proposing payments for ecosystem services and the other reforming agricultural extension systems. These initiatives could reshape how natural resources and farming support systems function in Ethiopia.

During its 32nd regular session, the House referred both draft proclamations to their respective standing committees for in-depth review and stakeholder consultation, following their unanimous endorsement by the Council of Ministers in its 45th regular meeting earlier this week.

The draft proclamation on ecosystem services fees, presented by Chief Government Whip, Tesfaye Beljige (PhD), highlights Ethiopia’s untapped ecological capital and the urgent need to protect it. Stressing that Ethiopia’s diverse ecosystems are under mounting pressure due to unsustainable practices, he noted the proposal aims to create a legal structure that allows federal and regional governments, NGOs, and the private sector to contribute to and benefit from ecosystem service payments.

The draft law on multi-stakeholder agricultural extension services, also presented by Tesfaye, seeks to overhaul Ethiopia’s decades-old, government-only approach. The reform would open the door for private actors, NGOs, cooperatives, and professional associations to deliver agricultural support services. The goal is to improve quality, accessibility, and efficiency—backed by digital tools and accountability mechanisms.

These legislative proposals follow the Council of Ministers’ 45th regular session, held earlier this week, which approved both drafts and forwarded them to the House. The Council emphasized the growing demand for resilient agricultural systems and sustainable resource management, endorsing the proposed frameworks as essential for long-term development.

The ecosystem services proclamation (No. 18/2017) has been assigned to the Standing Committee on Water, Irrigation, Lowland Areas, and Environmental Development—working in collaboration with the Standing Committee on Planning, Budget, and Finance. The agricultural extension proclamation (No. 19/2017) has been forwarded to the Standing Committee on Agricultural Affairs.

If passed into law, the bills could introduce new financing models for conservation, boost farmer productivity, and diversify participation in key sectors of the economy.

In what industry observers are calling a watershed moment for Ethiopia’s agricultural sector, three powerhouse organizations have joined forces to reshape the nation’s food production and processing landscape. The Ethiopian Trading and Business Corporation (ETBC), Soy Afric, and Kazana Group have inked a comprehensive Memorandum of Understanding that promises to revolutionize the entire agricultural value chain – from seed to export.

The Oromia Regional Government has taken a significant step toward modernizing agriculture with the official handover of 1,402 tractors to local farmers and agricultural organizations. The distribution ceremony, held today in Shashemene, marks one of the region’s largest single deployments of farming equipment to date.

Regional President Shimelis Abdisa presided over the event alongside other senior government officials. The tractors were allocated to a mix of individual farmers, cooperatives, and unions that had previously gone through a formal application and registration process with regional authorities.

This initiative represents a concrete effort by the Oromia administration to advance its agricultural mechanization program. By providing modern farming equipment directly to beneficiaries, the regional government aims to transform traditional farming practices across Ethiopia’s most populous region.

The Shashemene distribution follows established protocols, with all recipients having met official eligibility requirements. While the ceremony focused on the current handover, observers note this likely signals the beginning of broader mechanization efforts across Oromia’s agricultural zones.

This tractor distribution aligns with Ethiopia’s national priorities for agricultural development and food security. As the country’s primary crop-producing region, Oromia’s farming modernization efforts could have significant implications for both local livelihoods and national agricultural output.

The handover ceremony concluded with demonstrations of the new equipment, though operational challenges and training needs may emerge as farmers begin implementing the machinery in their fields. Government monitoring of the program’s implementation and impact is expected in the coming agricultural seasons.

House Reviews Landmark Bills to Monetize Ecosystems and Modernize Agriculture

Three Giants Join Forces to Reshape Ethiopia’s Agricultural Future

Oromia Region Distributes Over 1,400 Tractors to Boost Farm Mechanization