Green Legacy Initiative, Private Capital Drive Ethiopia’s Agricultural Transformation, Ministry Says

Addis Ababa, August 17, 2026 (ENA) — Ethiopia is accelerating the transformation of its agricultural sector by combining large-scale land restoration with private investment, cluster farming, and expanded mechanization, according to the Ministry of Agriculture.

Sofiya Kassa, State Minister of Agriculture, highlighted that increased private sector involvement brings essential capital, technology, and expertise to agriculture while strengthening cooperation with pastoralists and local farming communities.

“When we say the private sector is entering agriculture, we mean first that it brings capital, and second, that it provides advanced technologies,” Sofiya said, adding that private investment also fosters "the sharing of knowledge and skills with pastoralists and indigenous farmers."

According to Sofiya, the approach is expected to increase agricultural production, strengthen local markets and create employment while improving farmers’ access to modern technologies.

She said the government has also made significant progress in promoting agricultural mechanization, including through tax free imports.

“Over 555 pieces of agricultural mechanization are currently imported tax free,” she said, noting that the measure is aimed at encouraging the adoption of modern farming equipment and technologies.

Sofiya further emphasized that Ethiopia’s Green Legacy Initiative goes beyond tree planting by linking environmental restoration with food security, agricultural productivity and economic development.

“Green Legacy in the agriculture sector entails more than just planting trees,” she said, explaining that fruit tree seedlings now account for a significant share of plantings, alongside efforts to restore degraded land.

“Once the land is restored, it must start bringing in money. It must produce food, supply goods for the market, and create jobs,” she said. “All of these elements are linked by Green Legacy.”

Agricultural Transformation Institute Chief Executive Officer Mandefro Nigussie said cluster farming has also contributed significantly to improving agricultural productivity.

“Everyone’s productivity has increased by at least 29% when farming is conducted in clusters,” he told ENA.

Mandefro said livestock development has recorded even stronger growth following increased investment and policy attention.

“Over the last five years, livestock has seen at least 200 percent growth,” he said.

He also highlighted the environmental benefits of restoring degraded land, saying such efforts help stabilize local microenvironments and improve water retention.

“By continuing to cover the degraded land, we aid in stabilizing the local microenvironment,” Mandefro said, adding that restored land can function more effectively as a water sink and contribute to replenishing surrounding water resources.

The combined focus on private investment, mechanization, cluster farming and land restoration reflects Ethiopia’s broader effort to shift agriculture from subsistence-oriented production toward a more productive, market oriented and technology driven sector.