Asset Green to invest US$600M in Ethiopia’s dairy, commercial farming

ETHIOPIA – UK-based private-equity firm Asset Green has signed a deal with the Ethiopian government to invest US$600 million in a dairy farming and processing initiative. 

The agreement was signed in Addis Ababa in the presence of Ethiopian Deputy Prime Minister Temesgen Tiruneh and UK Deputy Prime Minister Angela Rayner.

A report by Ethiopian Investment Holdings (EIH), the country’s state investment arm, stated that the investment will support Ethiopia’s agricultural sector through large-scale commercial investment and the introduction of advanced technology. 

Ethiopia remains a heavily agrarian economy, with more than 70% of its population residing in rural areas and dependent on farming for their livelihoods.

EIH outlined that the investment will be executed in two phases. 

The first phase will involve the establishment of a dairy farming and processing operation, complemented by feed farming on 15,000 hectares to ensure a sustainable supply chain. 

The second phase will extend into cotton, oilseed, and rice farming, incorporating advanced processing facilities to enhance productivity. 

EIH expects the project to create substantial employment opportunities, attract foreign direct investment, and contribute to the country’s long-term economic growth.

Temesgen Tiruneh remarked that the investment marks a significant milestone for Ethiopia’s agricultural sector, emphasizing that the partnership will help strengthen food security, create jobs, and stimulate economic development. 

Brook Taye, CEO of EIH, noted that the collaboration between Ethiopia and Asset Green will bring expertise, resources, and innovation to transform the country’s dairy and commercial farming sectors. 

“By combining expertise, resources, and innovation, we aim to create a transformative impact on the dairy and commercial farming sectors, ensuring food security, job creation, and economic growth,” he said.

Asset Green describes itself as an investment firm dedicated to addressing food and energy security challenges globally. 

Afshin Afsharnejad, CEO and chairman of the firm, stated that the initiative aligns with the company’s strategy of developing vertically integrated agribusinesses that incorporate modern technology and best practices to boost efficiency and sustainability.

Ethiopia’s agricultural sector has been the focus of various international investments aimed at enhancing productivity and resilience. 

In December, the Climate Investment Funds (CIF) board approved a plan to support rural Ethiopian communities against climate-related shocks while enhancing food security. 

The initiative, part of CIF’s Nature, People, and Climate programme, is set to receive a US$37 million investment, with an additional US$492 million expected from partners including the World Bank and the African Development Bank.

The Ethiopian government continues to prioritize agricultural development as a key pillar of economic growth, with initiatives such as the Asset Green partnership seen as essential in advancing the sector’s modernization and sustainability.