Name: INTEGRATED AGRO INDUSTRIAL PARK DEVELOPMENT PROJECT
Approval date: 05-Dec-2018
Task Manager: EZEDINMA Chukwuma Ikechukwu, AHFR2
Total cost: 11000000 Currency: UAC
Source(s) of financing ADF: 11000000
Implementing Agency: MINISTRY OF FINANCE AND ECO. DEVELOPMENT
Using a One Bank approach, the Project will contribute to (i) infrastructure investment in and around the IAIP and 6 supporting RTCs, and rural infrastructure to enhance agricultural productivity; (ii) support to improving business climate, including support to improve access to finance and support for youth entrepreneurship in the agriculture sector.
The project is expected to generate 13,885 jobs in the first year reaching up to 134,274 by year 5 of the project. It will benefit 200,000 smallholder farmers on 163,461 hectares under agricultural cultivation in the SNNP region (Source: Feasibility Study for SNNP IAIP). It is expected to develop 5 MW rural power generation plants, 132 KV transmission lines, 20 collection centers, 4 cold storage units, and 14km of roads within the IAIPs. More than 50% of beneficiaries will be women. Over 5,000 youth are to gain employment through servicing management needs of cooperative enterprises, as small scale agribusinesses and as service providers for infrastructure in IAIPs and RTCs. The project is expected to promote value addition, enhance productivity gains and returns to scale, create jobs and income, enhance international competitiveness and trade, build efficient and effective productive capacity, support economic diversification, and build green industries. It will integrate strategic infrastructure development, technological and agricultural practice innovation, and efficient and sustainable use of natural resources to fast track agro-industrial development of Ethiopia.
Project Objective: To support Ethiopia in establishing world class integrated agro-industrial value chains, linking production to processing to end markets.Project Rationale: Implementation of this project, the Bank will contribute to GTP II, the Ethiopian Agro-Industry Strategy, the AfDB Country Strategy Paper 2016 -2020 for Ethiopia and the Feed Africa: Agricultural Transformation Strategy 2016 - 2025. The Project will contribute to the 7 enablers under Feed Africa. The Bank's support will help drive Ethiopia's export-led industrialization, job creation and inclusive economic development agenda. The project will leverage public sector resources to increase private sector investment in Ethiopia's agro-food and allied sectors. Through its interventions, the project will create increases in productivity for priority value chains, integrate rural producers and SMEs with commercial value chains and markets, encourage the inclusion of informal economic actors into the formal system, promote local value addition, enhance the business climate to mobilize private capital, and integrate youth into agriculture as a business and source of employment.
The Project supports the development of four (4) Integrated Agro-Industrial Parks (IAIPs) in Tigray (North), Amhara (North West), Oromia (Central) and Southern Nations, Nationalities and People (SNNP) (South) Regions by providing part of the infrastructure required for agro-industrial activities on the IAIPs and developing the requisite skills and agricultural value chain capacity to ensure competitiveness, productivity and inclusivity in their operations. The IAIPs will attract private sector investments and enhance a much-desired agricultural transformation of the country, create jobs,...