Gov’t Provides 1.2 Billion USD Loan to Private Sector Engaged in Agriculture: PM Abiy


June 14, 2022 (ENA) Prime Minister Abiy Ahmed said the government of Ethiopia has provided 1.2 billion USD loans during this fiscal year to the private sector engaged in agriculture.

Addressing questions raised by members of the parliament; Abiy said the government is working to enhance agricultural productivity of the country.

The Premier stated that the government has given the utmost priority to agricultural development in order to ensure food self-sufficiency and enhance economic growth.

In this regard, he described the reforms being undertaken to ensure the nation’s aspiration to realizing agricultural productivity.

According to him, more than 5,000 tractors have been deployed to enhance the agricultural activities during this Ethiopian budget year.

He also said that currently, 28 percent of the land is being  cultivated by using machines.

The cluster farming method has been registering remarkable achievements over the past years, he said noting that 45 percent of the total farm land is currently included in the cluster farming approach.  

Out of the 267 billion Birr loan the government has provided to the private sector this year, more than 34 percent was allocated to those engaged in the agriculture sector, he said.

According to him, the private sectors engaged in agriculture have been provided with a 1.2 billion USD loan.  

The federal government has also allocated 15 billion Birr subsidy to purchase fertilizer in order to help enhance agricultural productivity.

Some 336.6 million quintals of various crops have been harvested nationwide during the 2021/22 “Meher” season; he said adding that about 24 million quintal of wheat is expected from the second round of summer irrigation schemes.

The efforts will be intensified with a view to strengthen the sector in order to realizing food sufficiency by increasing agricultural productivity

According to the PM, Ethiopia has now been reaching a stage where it will be able to export wheat production after ensuring the domestic demands.

He further said the nation has earned 82.9 million USD from the export of fruits and vegetables this Ethiopian fiscal year.

The nation has registered historical revenues from the export of coffee by obtaining more than 1 billion USD during the year.

The premier stated that the reform carried out on the sector helped the nation to increase annual export earnings to 4 billion USD in two years from less than 3 billion USD before the reform.

Abiy elaborated the remarkable achievements being registered during the reform years in various areas including economic and social developments.

"Despite security challenges in some areas, we have managed during the reforms to increase what was 200,000ton production capacity to 360,000tons of sugar production following efforts to bring into productivity all the factories," the PM said.

Ethiopian News Agency