Agriculture has long been a pillar of Ethiopia’s economy, accounting for 40% of the country’s GDP and employing around 75% of the workforce. The sector is dominated by smallholder farmers and is heavily dependent on rain-fed cultivation. Despite challenges such as limited access to inputs, financing, and market linkages, Ethiopia’s agriculture industry shows strong potential for commercial expansion and value addition.
According to market research, the size of Ethiopia’s agriculture sector is currently estimated at USD 5.09 billion and is projected to reach USD 6.65 billion by 2029, growing at an annual rate of 5.5%. This growth will be driven by increasing domestic consumption as Ethiopia’s population rises towards 150 million by 2030. There are also opportunities to tap rising demand from neighboring Middle Eastern markets due to Ethiopia’s strategic location.
One area primed for commercialization is horticulture. Ethiopia’s diverse agro-ecologies allow for the production of a wide variety of fruits and vegetables throughout the year. The country already exports some horticultural products but has ample room to scale up production and processing to meet growing regional demand. With investment in infrastructure, quality control, and market linkages, horticulture could emerge as a major foreign exchange earner.
Another promising sub-sector is floriculture. Ethiopia’s suitable climate and soils make it well-positioned to become a major cut flower supplier to Europe and the Gulf. The government has prioritized developing the industry through initiatives like the Ethiopian Horticulture Development Agency. However, challenges around reliable electricity and air transport infrastructure still need addressing for the industry to realize its full export potential.
As a leading management consulting firm, Ruskin Felix Consulting (RFC) can play an important role in further developing Ethiopia’s agriculture industry. RFC’s expertise in value chain analysis, market research, and business strategy development can help smallholder farmers and agribusinesses commercialize production and access domestic and foreign markets. RFC can also advise the government on policies and programs to strengthen agricultural value chains, attract private sector investment, and build infrastructure to support industry growth. With RFC’s assistance and continued public-private collaboration, Ethiopia’s agriculture sector is well-positioned to drive greater economic growth and prosperity in the coming years.