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Inclusive and sustainable agricultural value chain development in Oromia and SNNPR




Aid type

Project-type interventions




€ 4,000,000
€ 2,500,000


This initiative aims to contribute to the modernization of agriculture and the development of the agro-industrial sector in Ethiopia by sustainably improving the productivity and the quality standards of selected agricultural value chains in Oromia and Southern Nations, Nationalities, and Peoples' Region (SNNPR).
The initiative targets strategic agricultural value chains in the Agro-Commodities Procurement Zones of two Integrated Agro-Industrial Parks: respectively wheat and processing tomato in Oromia, avocado and pineapple in SNNPR.
These commodities have been prioritized by the Ethiopian Ministry of Agriculture and Natural Resources, in consultation with the regional authorities, the Italian Agency for Development Cooperation, and FAO. The selection is based as well on the Feasibility Studies of the two Integrated Agro-Industrial Parks, which identified the most promising agri-value chains in the two procurement zones of the Parks.
The initiative will be structured along six main components: 1) the capacity building of public and private actors along the value chains; 2) the development of agro-infrastructure and rural connectivity; 3) the improvement of access to credit and financial services for the selected value chains; 4) gender; 5) nutrition-sensitive agriculture; and 6) the sustainable management of natural resources.
The first component will target private and public actors at different levels of the value chains: researchinstitutes, input providers, extension services, producers’ organisations, providers of services like collection, transportation, grading and storage, and agro-processors. These actors will be strengthened in their organisational, technical, and strategic/business orientation capacities.
The second component will focus on rural connectivity and development of agro-infrastructure,in order to improve the aggregation, transport, storage and processing and conservation capacities as well as the information flows along the value chains (roads, bridges, storage facilities, pre-cooling facilities; cold storage units and deep freezers; grading and packing facilities; primary processing machinery and equipment; mobile processing units; refrigerated/specialized transport vehicles; pack-houses; processing equipment; testing centres; training centres; market intelligence cells, and market information systems and information and communication technology).
The third component will focus on the improvement of financial services for agricultural value chains bystrengthening the dialogue between actors representing the supply and demand; by providing technical assistance for the design and implementation of new financial products (namely leasing, commodity collateralised finance, and index-based weather insurance); and by providing selective financial support to index-based weather insurance schemes.
The fourth component will focus on promoting the participation of women in the value chains, especially in the agricultural cooperatives and in the agro-processing sector.
The fifth component will ensure that the diet of producers and their households will be improved and diversified.
Finally, the sixth component, will address sustainable management of natural resources. Specific attention will be given in order to improve soil fertility, to managewater resources, and to conserve biodiversity.
Overall, the actions undertaken will contribute to the modernization of the agricultural sector by creating efficient, effective, inclusive and sustainable agricultural value chains, oriented toward the satisfaction of the requirements of the existing and potential market demand. This in turn will constitute an enabling factor for the establishment of the Integrated Agro-Industrial Parks in Central-Eastern Oromia and in Eastern SNNPR, where the agro-manufacturing enterprises will be located.
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Year Committed Used
2020 € 0 € 1,500,000
2018 € 4,000,000 € 1,000,000


Type Name Channel code
Government AICS - Italian Agency for Cooperation and Development 11000

Channel reported

Type Name Channel code

Project data

  • IATI IdentifierXM-DAC-6-4-011400-02-3
  • AID011400/02/3
  • CRS Activity identifier2018000169
  • Planned start 2018/06/01
  • Planned End 2021/05/31
  • Actual start 2018/10/25
  • Actual end -
  • Bi/Multilateral Bilateral
  • Status Implementation
  • Tied status Untied


  • 31181 - Agricultural education/training 30.0%
  • 31182 - Agricultural research 30.0%
  • 32161 - Agro-industries 40.0%

Policy markers

  • Gender Equality significant objective
  • Disaster Risk Reduction(DRR) not targeted
  • Disability not targeted
  • Nutrition principal objective
  • Aid to Environment significant objective
  • Participatory Development/Good Governance significant objective
  • Trade Development not targeted
  • Aid Targeting the Objectives of the Convention on Biological Diversity significant objective
  • Aid Targeting the Objectives of the Framework Convention on Climate Change - Mitigation significant objective
  • Aid Targeting the Objectives of the Framework Convention on Climate Change - Adaptation significant objective
  • Aid Targeting the Objectives of the Convention to Combat Desertification not targeted
  • Reproductive, Maternal, Newborn and Child Health (RMNCH) not targeted


  • 1.1 - By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
  • 2.2 - By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally agreed targets on stunting and wasting in children under 5 years of age, and address the nutritional needs of adolescent girls, pregnant and lactating women and older persons
  • 5.5 - Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life

Delibera del comitato congiunto (Download)

Language Italian
Format application/pdf

Funding Agreement (Download)

Language English
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Plan of Action (Download)

Language English
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Proposta FAO (Download)

Language English
Format application/pdf

Proposta di finanziamento (Download)

Language Italian
Format application/pdf