Gates Foundation Grants $11.8 Million for Agricultural Development in Ethiopia

Addis Ababa, July 1, 2011 – Following its receipt of a $11.8 million grant from the Bill & Melinda Gates Foundation, the United Nations Development Programme announced today it will partner with the Ministry of Agriculture to support the Ethiopian Agricultural Transformation Agency (ATA), according to press release sent to Ezega.com. The Agricultural Transformation Agency was officially established in December 2010 to support the country’s efforts to double agricultural productivity in the coming years as it implements its five-year national Growth and Transformation Plan (GTP).  The Ethiopian Ministry of Agriculture led the broad-based, multi-stakeholder effort to launch the initiative. “We launched the ATA with the aim of accelerating agricultural growth and supporting smallholder farmers who are key to national food security,” said Tefera Derbew, Ethiopia’s Minister of Agriculture. “The effort will help contribute to Ethiopia’s efforts to grow more food and raise farmers’ incomes.” The Agency is the first of its kind in Africa. It is designed to accelerate growth in Ethiopia’s agricultural sector by supporting existing structures of government, private-sector and other non-governmental partners to address systemic bottlenecks and deliver on a priority national agenda to achieve growth and food security.  UNDP and the Ministry of Agriculture have come together through their mutual interests and commitment to poverty reduction and food security by addressing the challenge of sustainable productivity growth of Ethiopia’s smallholder farmers.   “Our support to the ATA falls within UNDP’s strategic pillars aimed at enhancing economic growth in Ethiopia,” Mr Eugene Owusu, UNDP Resident Representative for Ethiopia noted, adding, “ we are delighted that this partnership helps us deliver effectively on UNDP’s mandate for capacity development and policy engagement.”    Other donors and development partners are also in the process of mobilizing funds to support the ATA. Resources from Ethiopia’s development partners will provide funding to initiate a range of programmatic activities. These funds will complement the operating resources being provided by the Government of Ethiopia. “Agriculture is a key driver of Ethiopia’s economy and when small farmers are able to increase their productivity, it has tremendous potential to reduce poverty and hunger,” said Roy Steiner, deputy director in Agricultural Development at the Bill & Melinda Gates Foundation. “The Agricultural Transformation Agency will enable the country use agriculture to its fullest and help deliver on Ethiopia’s priority of achieving agricultural growth and food security.”  Agriculture is the bedrock of Ethiopia’s economy. It employs over 80% of Ethiopia’s labor force and accounts for over 40% of GDP. Smallholder farms account for nearly 90% of agricultural production. Ethiopia has invested over 10% of its public sector budget in the sector over the last decade, leading to an average growth of 8% per annum and nearly 12.5% last year. Still, there is significant potential to improve agricultural productivity through increased use of crop and livestock yield enhancing inputs and reducing pre and post-harvest losses, balanced with the sustainable use of natural resources.