Page 16 - final REDFS Annual Newsletter

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4 . Inc lusi v e and S ust ainab le V alue Chain D ev elopment (ISV CD) in Et hiopia
4. Inclusive and Sustainable Value Chain Development (ISVCD) in Ethiopia

The agro-industrial development strategy of the Government of Ethiopia (GoE) envisages the

creation of Integrated Agro Industrial Parks (IAIPs) as one of the key mechanisms for attract-

ing foreign investment, improving competitiveness of businesses through the exploitation of
economies of scales agglomeration and contributing to the structural transformation of the

economy.

Agro-industry development will also contribute to the modernization of the agricultural sec-

tor through the creation of demand for quality raw materials in predetermined quantities and

time. Furthermore, new economic opportunities for small and medium-sized agro-industrial

enterprises will be created. During the GTP-1 an agro-industry strategy was developed. Ac-
cordingly, iiin 2014, four Agro Industries Growth corridors (AIGCs) were selected to pilot IAIPs

in Amhara, Oromia, SNNP, and Tigray regions.

The IAIPs initiative is a core component of the strategy to achieve the targets set in the GTP-

2 for the period 2015-2020. The IAIPs are a form of territorial development that will allow

smallholder farmers to shift to more productive and commercially oriented farming practices

by providing reliable market outlets and access to critical support functions (finances, inputs,
etc.).

The proposed initiative is a three-year program with 30-million-euro fund from the Italian
Agency for Development Cooperation (AICS) that aims at developing selected strategic agri-

cultural value chains in the Agro-Commodity Procurement Zones (ACPZs) of two IAIPs, locat-

ed respectively in Oromia and Sidama regions. The commodities (Soft Wheat, Durum Wheat

and Tomato in Oromia, Avocado and Pineapple in Sidama and Gedeo) have been prioritized
in consultation with MoA, Regional authorities of Oromia, Sidama and SNNP, and with AICS.

Target beneficiaries and partners of the proposed project include value chain actors (produc-
ers‟ organizations, agricultural research centres, SMEs, input and service providers, traders).

The project aims at addressing systemic constraints that hinder the increase in production

and productivity and the marketing of selected products improving the flow of raw mate-

rial supply to the Bulbula and Yergalem IAIPs. The project methodology ensures gender in-
clusiveness, Target beneficiaries and partners of the proposed project include value chain

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