The Ministry of Agriculture has reported that less than 50 percent of the two million hectares of land allocated for agricultural investment is currently being cultivated.
Presenting a six-month performance report to the House of People’s Representatives Standing Committee on Agricultural Affairs, it was revealed that while land provision is not a challenge, much of the allocated land remains undeveloped. Investors who received permits have cited security concerns and infrastructure issues, particularly in lowland areas, as key obstacles to starting development.
Efforts are underway to address these challenges, with discussions held among stakeholders to encourage investment activity. Regional governments have been urged to provide the necessary support to help investors begin utilizing the land.
Despite these challenges, the report highlighted some achievements in land allocation. A total of 117,000 hectares were allocated for agricultural investment in the first half of the fiscal year, exceeding the planned 48,000 hectares. This included 88,000 hectares for crop and horticulture development, surpassing the initial target. However, only 8,000 hectares were allocated for large-scale animal husbandry, falling short of the 20,000-hectare goal.
The report also detailed mixed performance in agricultural exports. Coffee exports reached 204,000 tons, exceeding the planned 133,000 tons. Similarly, exports of tea and spices surpassed expectations, while fruit exports exceeded targets by 13,000 tons. However, vegetable exports fell short, with only 66,000 tons exported out of a planned 113,000 tons. Flower exports also underperformed, reaching 47,000 tons out of a planned 55,000 tons.
The ministry emphasized the need for coordinated efforts between the federal government, regional administrations, and investors to ensure that allocated land is fully utilized, enhancing the sector’s contribution to the economy.
Source: Addis Zemen
