AfDB Group Awards $84.3 Million Grant to Enhance Wheat Production in Ethiopia

Ethiopia's quest to enhance wheat production and uplift the well-being of its farmers has received a significant boost through a generous grant from the African Development Bank Group (AfDB). Valued at $84.3 million, this funding aims to bolster wheat cultivation while contributing to the improvement of farmers' livelihoods. The critical agreement that paves the way for the execution of the Climate Resilient Wheat Value Chain Development Project (CREW) found its signatories in Ethiopia's Finance Minister, Ahmed Shide, and AfDB Deputy Director General for East Africa, Abdul Kamara.

Grant Composition and Funding Sources

The grant is composed of various funding sources, including:

•$54 million from the African Development Fund, which is the Bank Group's concessional lending window for low-income countries.

$20 million from the Government of the Netherlands.

•$10 million from agribusiness firm OCP Africa.

4. $300,000 from the Global Center on Adaptation.

•$10 million as counterpart funding from the Ethiopian government.

Project Components

The project is structured into three key components:

1. Climate Smart Wheat Productivity and Production.

2. Market Infrastructure, Linkages, and Agri-Finance.

3. Project Coordination and Management.

Continuing Success with TAAT

The African Development Bank Group has been instrumental in fostering agricultural productivity across the continent through its Technologies for African Agricultural Transformation (TAAT) initiative. Ethiopia and several other nations have benefited from this initiative. The Climate Resilient Wheat Value Chain Development Project (CREW) is a continuation and expansion of the successful results achieved by TAAT.

Designed to align with Ethiopia's aspirations for wheat self-sufficiency, the CREW project will unfold over a five-year period. The initiative aims to benefit around 500,000 small-scale farmer households. Ethiopia, the second-largest wheat producer in sub-Saharan Africa, aims to transform into a wheat self-sufficient nation and a net exporter by 2025/26. By employing established technologies and innovative practices like those from TAAT, the country is targeting an additional production of 4.2 million tonnes of irrigated wheat.

The grant further solidifies the African Development Bank Group's commitment to Ethiopia. The Bank's total commitment to the country now stands at $1.23 billion. This funding encompasses various critical sectors, including basic services, energy, transport, water supply and sanitation, agriculture, and the private sector.