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Yes, agriculture accounts for nearly half of
Ethiopia’s GDP and provides employment for nearly
85pc of the population. Just about every foreign
currency the country earns comes from agricultural
commodities; and the Ministry of Agricultural and
Rural Development (MoARD) asserts an 11pc growth in
the sector during the past five years.
It
all sounds great but there is something to discern.
The successive growth that MoARD states is the
increase in the total output of agriculture from
small-scale farming, not from mechanised commercial
farms. Considering MoARD’s mandate of ensuring the
rural development, it is understandable that its
efforts are targeted at best practices of
small-scale farming throughout the rural area - and
it has achieved quite well in this regard.
Certainly, this had also contributed to Ethiopia’s
ongoing economic expansion. However, the registered
growth of the sector is not dependent on modern
farming practices, which makes it highly susceptible
to maintain its upward trend. That is why it is wise
to solicit whether or not the small-scale farming is
a promising wager on the nation’s sustained
development. Yet, about 5.2 million people are in
need of emergency food aid this year, and the
chances of good crop outputs are still largely
dependent on precipitation.
It
seems it is out of such substantial certitude that
the government is always compelled to emphasise the
development of agriculture as a prime instrument to
fight poverty. It has also deliberated institutional
arrangement to support the private sector through
what it calls the Private Support Team. Absurdly
though, many private investors are still favouring
industries other than agriculture; they are
particularly oriented in the import, construction or
the real estate industry.
Of
the total 2,077 investment projects issued licences
during the first half of the current fiscal year by
the Ethiopian Investment Agency, manufacturing and
real estate, renting and services took 42pc share,
while the agricultural sector took only 17pc.
Why are investors rushing towards industries other
than agriculture?
Again, if we try to attest the reason from our
national development priority, it will only leave us
with a paradox. Because if there is any
developmental programme that the Revolutionary
Democrats are so fervently associated with, it is
the Agriculture Development-Led Industrialization (ADLI).
Observably, this programme is about the proper and
modern utilisation of natural resources that the
country largely possesses. Most of the populace
resides in the countryside and whatever development
stride the government is engaged in, must first
ensure the rural development.
Despite the government’s fondness for agricultural
development, its priority in implementing this
strategy only favours small-scale farming; perhaps
since it requires less capital and so would be
convenient for the general farmer. Yet its side
effect seems to be the abandonment of promotion for
commercial farming and investors not being duly
encouraged to engage in the sector.
On
the other hand, recent developments of leasing large
tracts of farmland to foreign nationals and
corporations is a controversial move, but at least
the same concession ought to be facilitated for
local investors as well.
The only exception is the floriculture industry that
has seen a tremendous support as of late.
Why not the same interest for other agribusinesses
like the crop or livestock trade? Is it not known
that these sectors also have comparative advantage
to the Middle East, Europe and Asia markets?
From the businessman’s point of view, profitability
could be another factor why most prefer other
industries to the agribusiness. This is not to say
that the agribusiness is not profitable, when in
fact it could be more rewarding. It is about the
short-and-long term profitability and the level of
diligence it requires. Some ascribe the agribusiness
as an industry that takes a longer period and
requires a consistent effort and dexterity before it
bears fruit.
Such business and market behaviour is not without
requiring the prudence of Ethiopia’s businessmen.
Given our drawn out impoverishment, it could be
difficult to expect businessmen that could see
beyond temporary advantage. This would mean
businessmen who sacrifice their time, energy and
wealth for the sake of long-term profit. This breed
of businessmen is yet to stroll down the corridors
of Trade and Industry Ministry.
The social mindset might have its own impact too.
Ethiopia has attempted to subsist on traditional
farming for far too long. With 2.5pc of an annual
average growth of its population for the last two
decades and an unpredictable drought, the
subsistence farming had resulted in severe food
shortages. Its repercussion has left a negative
impact on the minds of many about the ‘imperfection
of agriculture,’ and in the meantime might have lent
credence only to the importance of other sectors as
manufacturing or construction.
There is a catch in such an ideal situation. This
shortcoming is associated with the agribusiness in
general, while it should have been only associated
with the traditional, subsistence farming. The cause
of famine is not of the sector but the methods we
have been applying since in days of yore.
Perhaps, the reason the government has started to
celebrate Pastoralists Day or to hail best farming
practitioners as patriots of development might be an
effort to refurbish the images of this false
impression associated with agriculture. Still, these
simply are not enough.
In
essence, the nation should be able to see an
appreciable change in living standards from the
modern transformation of agriculture. Especially in
an agrarian nation like Ethiopia, the effects of
agriculture are more far-reaching, from individuals’
health to the national economy.
It
is necessary to implement the same agricultural
revolution the South-eastern Asians - Ethiopia’s
economic archetypical - went through. MoARD should
provide small-scale farmers the technological and
information support in all its capacity, if any
significant result is expected from the agriculture
sector. Only then would the nation gear up to make
the best of many of its policies, which until now it
did nothing with but simply eulogised. |
