Sustainable Agri-Food Value Chains
Ethiopia’s agri-food sector holds immense potential to drive economic growth, reduce poverty, and enhance food security. Through Global Gateway, the EU is partnering with Ethiopia to transform its agri-food systems into market-oriented, sustainable, and resilient value chains that benefit smallholders, women, and youth while meeting EU market standards. By mobilising public and private investment, we focus on four strategic areas.
Building competitive and sustainable agri-food value chains
The EU supports Ethiopia’s shift from subsistence to commercial agriculture, prioritising climate-smart practices, value addition, and market linkages. Key initiative such as the Agricultural Commercial Clusters Programme, support smallholder farmers transition from subsistence to commercial agriculture, by enhancing their production and productivity, while promoting agro-ecological and climate smart agricultural practices and improving market linkages. The EU also supports domestic value addition and entrepreneurship in the agribusiness and agri-tech sector, by providing business with access to finance and business development support.
Strengthening trade links with the EU
Through a Twinning Grant Contract with a consortium formed by the Federal Republic of Germany and the Republic of Lithuania, the EU is strengthening the Sanitary and Phytosanitary (SPS) Quality, Monitoring and Control Compliance Systems of Plant-based Primary and semi- processed Agricultural Products in Ethiopia. The aim is to increase access to the EU markets by improving compliance with EU market requirements and reducing the number of rejections of Ethiopian products at the EU borders. High potential sectors like horticulture and coffee are being targeted with an aim to boost exports to the EU: The Programme “Enhancing the competitiveness of Ethiopia’s horticultural sector” supports Ethiopia’s private sector compliance with EU phytosanitary and environmental requirements. The programme “from Beans to Cups: Strengthening Coffee Value Chains for Ethiopian and EU Markets” will strengthen the coffee value chain by improving quality and ensure compliance with EUDR.
Facilitating access to finance
Access to finance is the main constraint for the agricultural sector in Ethiopia. The EU is championing a number of initiatives to reduce this constraint. The Rural Finance Intermediation Programme, provides credit access to smallholder farmers via microfinance institutions and cooperatives and builds the capacity of rural savings and credit cooperatives, with a focus on women-led business. The AgriFi Country Window provides equity and quasi-equity investments to SMEs in horticulture and coffee, while promoting the inclusion of smallholder farmers and local value addition. The European Investment Bank has established partnerships with Ethiopian private banks to offer tailored financial products for agri-food SMEs exporting to Europe.
Strenghtening agro-logistics
Inefficient logistics and high post-harvest losses (up to 30% for some crops) undermine Ethiopia’s competitiveness. The RAISE-FS LOGIC Programme will provide cold chain and storage solutions reducing food waste and improving product quality; foster sustainability by providing low-carbon logistic practices and enhance digital traceability, thereby strengthening supply-chain transparency for EU exports. The Global Gateway Corridor Action - Green and Digital Action for Trade and Transport Enhancement in the Horn of Africa aims to enhance regional trade integration, economic resilience, and climate-smart connectivity facilitating logistics for export.