@WFP_Ethiopia – Ethiopian Business Review

Five leading Ethiopian insurance companies, Abay Insurance, Africa Insurance, Ethiopian Insurance Corporation, Nyala Insurance and Oromia Insurance have launched the Agricultural Insurance Consortium of Ethiopia in partnership with Pula Advisors, targeting 3 million farmers in 2026 only. The new platform brings together government institutions, insurers and technology partners in a coordinated effort to protect 12 million smallholder farmers from climate-related risks.

The launch received strong endorsement from key government stakeholders, including Semereta Sewasew, State Minister of Finance for Economic Cooperation, and Belay Tulu, Director of the Insurance Supervision Directorate at the National Bank of Ethiopia, alongside other officials, development partners, and farmer representatives. A major announcement during the event was the commitment to expand index-based insurance coverage to three million farmers by 2026 through joint efforts.

Belay said that the government is frustrated with funding and overseeing “short-lived projects” and stressed that financial inclusion remains a core responsibility of the government.

Despite significant government investments and efforts to expand agricultural insurance through extension services and targeted programs, the sector continues to face three critical challenges: affordability and product design, limited farmer awareness, and underutilization of technology. The Agricultural Insurance Consortium of Ethiopia was launched in light of these major issues. Over recent years, Pula Advisors, in close collaboration with the Agricultural Transformation Institute, regional agriculture bureaus, and key development partners such as World Food Program (WFP) and KfW, has made significant progress in building a more resilient system. Together, they developed effective insurance products, improved distribution channels, and reached nearly one million farmers across multiple regions.

Building on this momentum, the Ministry of Agriculture, supported by UNDP and JICA, established a Rural Financial Services Unit to scale these initiatives nationwide. The newly launched Consortium directly addresses these barriers by uniting insurers, government institutions, and technology partners to develop affordable insurance models, enhance farmer education, and leverage cutting-edge digital tools.

The Consortium has improved affordability by introducing a bundled insurance model linked to the government’s Input Voucher System, significantly lowering premiums through risk pooling and covering over 10 million farmers across more than 200 woredas at a low cost of ETB 200. To raise awareness, it is investing in extensive farmer engagement through training, nationwide roadshows, SMS, IVR messaging, and collaboration with government extension agents to integrate insurance education into existing advisory services.

On the technology front, the Consortium uses Pula Advisors’ advanced digital tools, Mavuno for real-time, AI-powered data collection and PIE for intelligent product design and policy management, supporting efficient, data-driven insurance delivery across members. Additionally, the Consortium promotes collaboration and risk-sharing among insurers, standardizes products, and improves operational efficiency to reduce costs, enhance underwriting accuracy, and build farmer trust, ultimately establishing a modern, inclusive, and resilient agricultural insurance system tailored to farmers’ needs.

“Ethiopia’s insurance sector has limited technical expertise to advance agricultural insurance. We have now partnered with five local insurers who are working together to strengthen agricultural insurance by creating a shared platform,” said Dagmawi Haileyesus, the Country Director for Ethiopia.

As part of today’s event, the consortium launched its first product, “Le-Sebele”-an Area Yield Index Insurance solution. This comprehensive coverage is designed to protect farmers against systemic risks that can lead to reductions in harvests. It covers key perils such as drought, excessive rainfall, pests, and diseases, among others. The model has already been successfully implemented across three regions and over 200 woredas in Ethiopia, demonstrating its effectiveness and scalability in Ethiopia’s diverse agricultural landscape.

Agriculture accounts for one-third of Ethiopia’s GDP and employs 85% of its population, yet over 95% of smallholder farmers lack formal crop insurance. Recurrent droughts and erratic rains force families to sell assets, deplete savings, or rely on aid. The AICE aims to break this cycle by scaling affordable, technology-driven insurance that stabilizes incomes, unlocks credit, and encourages adoption of productivity-enhancing inputs like fertilizers and improved seeds.

Heineken Ethiopia, in partnership with Addis Meter Taxi, the Addis Ababa Traffic Management Agency, and the Addis Ababa Traffic Police, has deployed 50 taxis across the city tagged with a powerful public safety message: “When You Drink, You Don’t Drive.”

The initiative, which spans six months, is expected to reach over two million residents daily, targeting behavioral change at scale. The campaign comes at a time when traffic-related fatalities and alcohol-induced accidents remain a pressing public concern in Ethiopia’s rapidly growing urban centers.

“As a company, we take our responsibility seriously to ensure this message is not only heard but remembered,” said Bart De Keninck, Managing Director of Heineken Ethiopia. “Driving under the influence isn’t just dangerous, it’s deadly. When someone is drunk, they can’t think clearly, and the consequences can be irreversible.”

The initiative extends beyond the city’s streets. In a parallel campaign targeting youth, Heineken has launched an awareness program across 11 Ethiopian universities, educating students under the theme “No for Drinking.” The program emphasizes that alcohol consumption is not appropriate for those under 21, aiming to foster early awareness and responsible behavior.

“This isn’t about promoting our brand, our name isn’t even visible on the taxis,” explained Fekadu Beshah, External Relations and Sustainability Manager at Heineken. “It’s about standing up and taking responsibility as a corporate citizen.”

A newly released 22-year economic assessment by the Ethiopian Economics Association (EEA) has revealed that Ethiopia’s total public debt has surged to USD 62.5 billion, triggering renewed concerns over fiscal sustainability and the country’s broader economic trajectory. The report, which comprehensively reviews the nation’s economic performance and governance from 2001 to 2023, delivers a stark warning about the consequences of weak macroeconomic management, civil conflict, and slowing growth.

The 2025 edition of the assessment marks a turning point in methodology and depth, employing standardized and rigorous analytical tools to examine sectoral performance with greater consistency than previous editions. According to the findings, Ethiopia’s economic expansion has slowed considerably since 2016. Both gross domestic product (GDP) and GDP per capita have declined, signaling a reversal from the high-growth period of the 2000s and early 2010s. Inflation has accelerated during the same period, eroding purchasing power and weakening macroeconomic stability. Investment activity has also contracted, while the country’s productive capacity, which expanded until 2019, has since plateaued—limiting opportunities to enhance output and improve livelihoods.

The agricultural sector, historically the backbone of Ethiopia’s economy, has seen a steady decline in its share of GDP, particularly after 2004/05, as the service sector gained prominence. Despite its critical importance, fertilizer usage in the country remains far below international standards, and only 7.8 percent of total loans issued over the past two decades have supported agriculture. The consequences of this underinvestment have become evident in the nation’s food security. From 2020 to 2022, more than 21 percent of Ethiopians experienced food insecurity, with rural communities bearing the greatest burden.

The report also paints a grim picture of the manufacturing sector. In 2023, industrial output accounted for only 4.48 percent of GDP—well below the global average of 12.33 percent. Its contribution to employment was equally modest, at just 6.47 percent. Although import substitution efforts have yielded limited results, progress remains constrained by persistent shortages of raw materials and unreliable utility services. The report notes that challenges in electricity and water supply continue to limit productivity.

Ethiopia’s financial sector, described as shallow and underdeveloped, is struggling to support structural transformation. Credit allocation remains skewed toward non-productive areas, with key sectors like agriculture and industry often bypassed. While financial inclusion has improved overall, significant disparities remain between urban and rural populations, as well as between men and women.

On the fiscal side, government revenues have grown by over 200 percent in nominal terms between 2002 and 2022. However, these gains have been offset by rising inflation, which has reduced the real value of public spending. The country’s debt burden now equates to USD 575.6 per capita. With high levels of debt stress and an underperforming export sector, the report urges the government to improve revenue mobilization and expand foreign currency earnings.

Poverty trends also reveal troubling setbacks. Although the poverty rate dropped from 30.9 percent in 2018/19 to 26.1 percent in 2021/22, it remains higher than the 24 percent recorded in 2015/16. The poorest households have experienced the sharpest decline in living standards, worsened by inflation and recurring conflict.

Governance issues are another central concern. Since 2020, the report observes a deterioration in public trust and governance, contributing to increased unpredictability, internal conflict, and weak economic oversight. The erosion of investor confidence, rising unemployment, and stagnation in growth are all linked to prolonged instability and institutional weakness.

To address these challenges, the EEA emphasizes the need for consistent, prudent, and well-coordinated development policies. It advocates for stronger governance systems, renewed efforts to restore investor confidence, and the integration of peace-building initiatives into national development planning. In particular, the report recommends reallocating public spending towards long-term capital investment, broadening the tax base in a non-inflationary manner, and designing more inclusive financial policies.

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Heineken Ethiopia, in partnership with Mahibere Hiwot for Social Development (MSD), officially handed over a new ETB 33 million animal fattening and food processing project today. The initiative is designed to uplift impoverished households in Kilinto and Koye Fetche through sustainable, livestock-based, and small-business income generation schemes.

Targeting 75 households—30 in Kilinto and 45 in Koye Fetche—the project aims to bolster grassroots livelihoods by integrating communities into profitable agricultural value chains. Beneficiaries will engage in animal fattening, dairy production, poultry farming, and small-scale agribusinesses, sectors that remain essential for local food security and economic resilience.

Speaking at the launch ceremony, Heineken Ethiopia’s Managing Director, Bart De Keninck emphasized the transformative impact of livestock farming on rural and peri-urban communities. They pledged continued support through technical training, market linkages, and sustainable management practices to ensure the project’s long-term success.

The multi-pronged initiative provides selected households with livestock, feed, veterinary services, training in food processing, and business development skills. It places a strong emphasis on empowering women, female-headed households, and people with disabilities, identified through a collaborative selection process involving Heineken, MSD, community members, and local government representatives.

Beyond economic upliftment, the project seeks to strengthen social cohesion and nurture local entrepreneurship, with Heineken pledging continued support through technical capacity building, market linkages, and the promotion of sustainable farming practices.

Five Ethiopian Insurers Launch Consortium to Protect Millions of Farmers from Climate Risks

Heineken Rolls Out Awareness Taxis in Addis to Promote Sober Driving

Ethiopia’s Public Debt Hits USD 62.5 Billion as New Report Sounds Alarm on Economic Stability

Heineken Ethiopia Launches ETB 33 Million Livelihood Project to Empower Vulnerable Families in Kilinto and Koye Fetche