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Ethiopia’s Government Key Policy Commitments Towards G8 Implementation: Current Status and Future challenges

Ethiopia’s Government Key Policy Commitments Towards G8 Implementation: Current Status and Future challenges . Ethiopia’s Country Team Contribution for Agricultural Policy Exchange and Leaning Event King Fahd Hotel Dakar, Senegal May 13-16, 2013 . Outline.

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Ethiopia’s Government Key Policy Commitments Towards G8 Implementation: Current Status and Future challenges

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  1. Ethiopia’s Government Key Policy Commitments Towards G8 Implementation: Current Status and Future challenges

    Ethiopia’s Country Team Contribution for Agricultural Policy Exchange and Leaning Event King Fahd Hotel Dakar, Senegal May 13-16, 2013
  2. Outline G8 Policy matrix and its current status Overarching constraints Private sector constraints Why these issues are important to the country
  3. G8 Policy framework to support the New Alliance Initiatives in Ethiopia Since May 2012, the GoE has made progress on some policy commitments, while others are pending; Responsibility for implementing the New Alliance in Ethiopia was given to the new Private Sector Development Task Force (PSDTF) under the Agricultural Growth Pillar of REDFS
  4. G8 Policy framework (2) Policy issue (#2) Increase ability of the private sector of the to access markets by reducing barriers to competitiveness and increasing transparency of requirement; Policy Actions 3. Establish a one-window service that assists agriculture investors ….. (April 2013) Status of implementation The Ethiopian Investment Agency, has begun preparing an agriculture desk to act as a “one-window service” The ATA has been created a new PPP unit to facilitate private sector investments in the near term
  5. G8 Policy framework (3) 4. Publish and disseminate business licensing procedures through local radio, internet and newspaper … (April 2013) Status … limited progress 5. Implement policy measures, as necessary, that secure ownership and crop trading rights for commercial farms (Dec. 2013); Status … No progress reported in this time 6. Commit not to impose export ban on commercial farm output and processed goods; Status …. export ban for some commodities are still in place;
  6. G8 Policy framework (4) 7. Refine, as necessary, policies regarding agrochemical importation Status: … Limited progress 8. Refine, as necessary, regulatory framework to stimulate private sector engagement in livestock production Status: … The Ministry of Trade, with the assistance of the Ministry of Industry, has drafted two proclamations that address the marketing issues .
  7. G8 Policy framework (5) Policy issue (#3) 9. Support an independent study of the impact to date of the Ethiopia Commodity Exchange Status : IFPRI expected to study 10. Strengthen land use rights to stimulate investment in agriculture Status …. About 9.4 million households (86.3%) have been registered and of these 73.2% (8 million) obtained first level landholding certificates 11. Refine land law, if necessary, to encourage long‐term land leasing and strengthen contract enforcement for commercial farms Status … No progress reported
  8. G8 policy framework (6) 12. Develop and share a land use planning framework Status ….. No progress has been made 13. Enable financial institutions to support smallholder farmers and agribusiness (e.g. warehouse receipts, out‐grower contracts, machinery leasing, etc.) Status: warehouse receipt: The ATA in partnership with the ECX and the USAID AMDe program is working to expand the existing warehouse receipt system to allow smallholder farmers to get access to credit using stored commodities as collateral; Out-growers contract: The ATA has been facilitating contract farming agreements between cooperative unions and private sector processors Input credit : redesigned input credit delivery system that leverages the strengths of the country’s microfinance institutions thus reducing the ris 14. Develop and share a land use planning framework Status …. No progress to report at this time.
  9. G8 Financial Commitments: Progress by Country Committed Vs. disbursement Disbursement as % share of total committed fund
  10. 4: National Institutional Structure to Facilitate Agricultural Investment
  11. 3. Overarching constraints Implementation of policies is one of series problems There are several new and existing policy packages but in most cases not implemented properly For instance: Private investor on agriculture entitled for duty free import of machinery ….. but passing customs requirement so costly Limited capacity both at government and private sector level Lack of clear accountability at different levels of tiers of government machinery
  12. 4. Private sector constraints Access to land Access for agricultural credit Access to basic infrastructure (feeder road network, etc) Governance at different levels Weak private sector capacity Effectiveness of service delivery for private sector at different level is under question.
  13. 5.Why these issues are important to the country Transformation agricultural sector means transformation of lives of millions in Ethiopia; Putting stronger emphasis on private sector development it to be engine of economic growth acceleration market-based agricultural investment sustainable development;
  14. Thank you !!
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