The Ethiopian Investment Holdings (EIH), in collaboration with the Ethiopian Agricultural Business Corporation (EABC) and UK-based private equity firm Asset Green, have signed a $600 million agreement aimed at revolutionizing the nation’s dairy industry.
The agreement, inked in the capital city of Addis Ababa, promises to bring substantial changes to Ethiopia’s dairy sector by focusing on both large-scale dairy farming and advanced processing techniques.
The deal is also seen as a significant step to enhance agricultural productivity in a country that boasts one of Africa’s largest livestock populations.
Details of the Agreement
- Investment: The venture is backed by a hefty $600 million investment, with Asset Green positioned as the primary shareholder.
- Phases: The project will unfold in two phases. Initially, it will establish a state-of-the-art dairy farming and processing facility, complemented by an integrated feed production system on 15,000 hectares to support a self-sustaining supply chain.
- Stakeholders: Alongside EIH and EABC, the door is open for additional investors in subsequent funding rounds.
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Economic and Social Impact
- Employment: The initiative is projected to generate hundreds of jobs, contributing to local economic development in both farming and processing areas.
- Export Potential: With the adoption of cutting-edge technology, the project aspires to produce dairy products capable of competing on the global stage, potentially increasing Ethiopia’s foreign exchange earnings.
- Nutritional Security: Enhanced local milk production is expected to address domestic demand, thereby improving nutritional security for the Ethiopian populace.
The involvement of Asset Green, renowned for its sustainable and profitable agricultural ventures, shows the international confidence in Ethiopia’s agricultural sector.Â
