UK private-equity firm Asset Green has partnered with Ethiopia’s government to invest $600m in dairy farming and processing initiative in the east African country.
Ethiopian Investment Holdings (EIH), the country’s state investment arm, said the deal would support the local agricultural sector “through large-scale commercial investment and the introduction of state-of-the-art technology”.
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Ethiopia, a densely populated nation, relies heavily on agriculture, with over 70% of its citizens living in rural areas where farming is the primary income source.
The agreement was signed in Addis Ababa with Ethiopian Deputy Prime Minister Temesgen Tiruneh and UK Deputy Prime Minister Angela Rayner in attendance.
“We are strengthening our nation’s food security, creating jobs, and driving economic development,” Tiruneh said.
In a statement, Brook Taye, the CEO of the Ethiopian sovereign fund, added: “By combining expertise, resources, and innovation, we aim to create a transformative impact on the dairy and commercial farming sectors, ensuring food security, job creation, and economic growth.”
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By GlobalDataThe project will unfold in two phases. The first stage will focus on establishing a dairy farming and processing operation, alongside feed farming on 15,000ha to “ensure a sustainable supply chain”, EIH said.
The second phase will extend into cotton, oilseed and rice farming, supported by “advanced” processing facilities.
EIH expects the project to generate “significant employment opportunities, attract foreign direct investment, and contribute to Ethiopia’s long-term economic growth”.
Asset Green describes itself as a private-equity firm that “invests in projects aimed at addressing food and energy security issues in economies around the world”
Afshin Afsharnejad, its CEO and chairman, said: “Our shared vision is to develop a vertically integrated agribusiness that leverages cutting-edge technology and best practices to enhance productivity, efficiency and sustainability.”
In December, the Climate Investment Funds (CIF) board backed a plan to protect rural Ethiopian communities from climate-related shocks and enhance food security.
As part of CIF’s Nature, People, and Climate programme, a $37m investment is expected to mobilise $492m in co-financing from partners like the World Bank and African Development Bank.
