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WEF_GrowAfrica_AnnualReport2014

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2013 in Review 2013 in Review<br />

SPOTLIGHT<br />

EthioSIS – Enhancing smallholder productivity<br />

and sustainable land use<br />

CONSTRAINTS<br />

Catalytic action needed on infrastructure,<br />

trade policy, and partnerships<br />

Soil analysis helps farmers evaluate the productivity of<br />

their land and maximise the efficiency of fertiliser use.<br />

Smallholder farmers in Ethiopia have traditionally relied<br />

on government extension agents to provide them with<br />

information and guidance for these purposes. However,<br />

the country does not have sufficiently current soil<br />

fertility maps to support farmers and policymakers in<br />

their decision-making.<br />

The Ethiopian Soil Information System (EthioSIS)<br />

project was launched in January 2012 to set up a<br />

government-managed system that provides information<br />

on soil conditions by district. Data from EthioSIS<br />

improves and supports local fertiliser processing<br />

capacity with information on relevant blends for<br />

specific regions of the country.<br />

Building on EthioSIS data, four farmer cooperative<br />

unions are soon set to institute and manage fertiliserblending<br />

plants as independent profit-driven<br />

business units. This will be in line with the Ministry<br />

of Agriculture’s identification of the establishment of<br />

fertiliser-blending plants as a priority under its 2011<br />

Soil Fertility Research and Management Roadmap, a<br />

document which is designed to help realise Ethiopia’s<br />

target of doubling 2010 agricultural production levels<br />

by the end of implementation of the GTP in 2015.<br />

Companies highlighted the following constraints faced by their investments. If addressed, they could strengthen the<br />

enabling environment and unlock further investment.<br />

1. Shortage of last-mile infrastructure: Whilst Ethiopia is currently advancing key infrastructure projects, this is often<br />

inaccessible to smallholders. Rural feeder roads are poor, limiting access to markets. Ethiopia’s high reliance on<br />

rain-fed agriculture means improved irrigation capacity for smallholders could greatly enhance their productivity.<br />

Limited storage in turn means that crops need to be sold quickly to avoid wastage.<br />

2. Protectionist trade policies: Certain protectionist trade policies present constraints to domestic and international<br />

companies alike. Specifically, financial regulations limit access to foreign exchange, while national fertiliser<br />

regulations make bringing in fertiliser for commercial development difficult.<br />

3. Limited partnership support for domestic companies: Pre-competitive challenges remain a significant barrier<br />

to investment and growth. Only with greater support from catalytic partners such as donor organisations, MFIs<br />

and NGOs can companies transform value chains to a point of commercial viability and self-sustaining growth.<br />

These problems are particularly acute for domestic companies. The ATA has played a vital role on convening such<br />

partnerships, but mostly for ambitious projects involving multinationals. Domestic companies would welcome<br />

greater engagement with the ATA in facilitating the partnerships and support that could unlock their business<br />

growth.<br />

Ethiosis will ensure farmers across Ethiopia understand the fertiliser that their soil needs.<br />

58<br />

Ethiopia<br />

Ethiopia<br />

59

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