To expand Ethiopia's agro-industrial sector, generate employment opportunities, and boost agricultural exports. These are the objectives of the 22 million euro aid credit granted to Ethiopia.
The Revolving Fund for International Cooperation & Development Finance managed by CDP on behalf of the Ministry of Economy and Finance, has granted a subsidised loan, with the first tranche of 7 million euro already disbursed.
These funds are allocated to create four pilot agro-industrial parks and rural processing centres in the regions of Oromia, Amara, Tigray, and SNNPR, which will directly benefit consumers, agricultural businesses, and the communities involved.
Indeed, the initiative actively encourages private sector participation in and around agro-industrial parks, aiming to improve food quality, safety, and traceability through socially inclusive and environmentally sustainable management.
In addition to CDP's contributions, the Ministry of Foreign Affairs and International Cooperation has granted 2 million euro to UNIDO, the United Nations Industrial Development Organisation, which will offer technical assistance to Ethiopian entities and oversee the initiative's implementation, as well as 750,000 euro to the government for logistical and personnel support.
This initiative contributes to enhancing food security, strengthening infrastructure and reinforcing the local entrepreneurial system in line with the CDP Sectoral Strategic Guidelines on “International Cooperation and Finance for Development".