Ethiopia Secures $49.5 Million from BADEA to Boost Agro-Industrial Productivity and Youth Employment

ADDIS ABABA – In a significant boost to its agricultural sector and youth employment initiatives, Ethiopia, through its Ministry of Finance, has entered into a financing agreement with the Arab Bank for Economic Development in Africa (BADEA). The $49.5 million deal aims to co-finance the Productivity Enhancement Support for the Integrated Agro-Industrial Parks and Youth Employment (PESAPYE) project, a key component of the government’s strategy to enhance productivity and generate employment opportunities within the country.

According to Ethiopian News Agency, the PESAPYE project, which also receives support from the African Development Bank (AfDB) and the Ethiopian government, targets improvements in four Integrated Agro-Industrial Parks. This new funding will facilitate the construction of irrigation infrastructure across 8,000 hectares within the Gidabo project area, spanning the Oromia and Sidama regions. The initiative is designed to boost agricultural productivity and provide essential water resources for sustainable development.

During the agreement signing ceremony, Finance Minister Ahmed Shide extended his gratitude towards BADEA for its support and extended an invitation to BADEA President Dr. Sidi Ould Tah to participate in the Horn of Africa (HoA) initiative. The HoA initiative serves as a regional development platform, chaired by Minister Ahmed, aiming to foster cooperation and development across countries in the Horn of Africa.

The agreement, signed by Minister Ahmed Shide and BADEA President Dr. Sidi Ould Tah, coincided with their attendance at the African Union summit in Addis Ababa. This financial commitment from BADEA is seen as a pivotal contribution towards Ethiopia’s efforts in modernizing its agricultural sector and enhancing employment prospects for its youth, aligning with broader regional development objectives.