Digital finance and agri-food value chains: Case studies from Ethiopia

Agriculture is of paramount importance to Ethiopia’s economy. Agriculture accounts for 40 percent of the country's GDP, 80 percent of export earnings, and employs 75 percent of the population (Tamene & Ali, 2022). Crop and livestock production account for roughly 65 percent and 25 percent of agricul...

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Main Author: Wassie, Solomon
Format: Informe técnico
Language:Inglés
Published: International Food Policy Research Institute 2025
Subjects:
Online Access:https://hdl.handle.net/10568/175447
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author Wassie, Solomon
author_browse Wassie, Solomon
author_facet Wassie, Solomon
author_sort Wassie, Solomon
collection Repository of Agricultural Research Outputs (CGSpace)
description Agriculture is of paramount importance to Ethiopia’s economy. Agriculture accounts for 40 percent of the country's GDP, 80 percent of export earnings, and employs 75 percent of the population (Tamene & Ali, 2022). Crop and livestock production account for roughly 65 percent and 25 percent of agricultural GDP, respectively (International Trade Administration, 2024). Cereals account for roughly 90 percent of total grain production. Teff, known for its gluten-free nutritional aspect, takes the leading share of cereals by production area (ESS 2022). Ethiopia is also the second-largest wheat producer in Africa, following South Africa, with an expansion potential of 1.3 million hectares (Senbeta & Worku, 2023). Coffee, a crop with high cultural and economic importance in Ethiopia, accounts for 30 percent of exports and 25 percent of total employment. Ethiopia stands as Africa's leading coffee producer and among the top five coffee producing nations worldwide (Tefera & Torry, 2023). Within Ethiopia’s overall agri-food system, most agricultural value chain activity fits the traditional definition, where subsistence farming dominates, postharvest value addition is minimal, and grain production constitutes the largest share (Barrett et al., 2022). However, some commodities in Ethiopia are progressing from traditional to transitional and modern value chains. The dairy value chain can be considered transitional, as it is characterized by a growing processing and logistics sector and emerging pre-urban supply chains (which disfavor remote regions with high production potential as they need more advanced logistics). The coffee value chain in Ethiopia can be considered as a modern value chain – i.e., characterized by product standardization and quality control aimed at the global market/export (Ambler et al., 2023; Barrett et al., 2022).
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spelling CGSpace1754472025-11-06T05:42:54Z Digital finance and agri-food value chains: Case studies from Ethiopia Wassie, Solomon agriculture digital technology agrifood systems value chains finance Agriculture is of paramount importance to Ethiopia’s economy. Agriculture accounts for 40 percent of the country's GDP, 80 percent of export earnings, and employs 75 percent of the population (Tamene & Ali, 2022). Crop and livestock production account for roughly 65 percent and 25 percent of agricultural GDP, respectively (International Trade Administration, 2024). Cereals account for roughly 90 percent of total grain production. Teff, known for its gluten-free nutritional aspect, takes the leading share of cereals by production area (ESS 2022). Ethiopia is also the second-largest wheat producer in Africa, following South Africa, with an expansion potential of 1.3 million hectares (Senbeta & Worku, 2023). Coffee, a crop with high cultural and economic importance in Ethiopia, accounts for 30 percent of exports and 25 percent of total employment. Ethiopia stands as Africa's leading coffee producer and among the top five coffee producing nations worldwide (Tefera & Torry, 2023). Within Ethiopia’s overall agri-food system, most agricultural value chain activity fits the traditional definition, where subsistence farming dominates, postharvest value addition is minimal, and grain production constitutes the largest share (Barrett et al., 2022). However, some commodities in Ethiopia are progressing from traditional to transitional and modern value chains. The dairy value chain can be considered transitional, as it is characterized by a growing processing and logistics sector and emerging pre-urban supply chains (which disfavor remote regions with high production potential as they need more advanced logistics). The coffee value chain in Ethiopia can be considered as a modern value chain – i.e., characterized by product standardization and quality control aimed at the global market/export (Ambler et al., 2023; Barrett et al., 2022). 2025-07-02 2025-07-02T17:43:50Z 2025-07-02T17:43:50Z Report https://hdl.handle.net/10568/175447 en https://hdl.handle.net/10568/175446 https://hdl.handle.net/10568/175448 Open Access application/pdf International Food Policy Research Institute Wassie, Solomon. 2025. Digital finance and agri-food value chains: Case studies from Ethiopia. IFPRI Project Paper July 2025. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/175447
spellingShingle agriculture
digital technology
agrifood systems
value chains
finance
Wassie, Solomon
Digital finance and agri-food value chains: Case studies from Ethiopia
title Digital finance and agri-food value chains: Case studies from Ethiopia
title_full Digital finance and agri-food value chains: Case studies from Ethiopia
title_fullStr Digital finance and agri-food value chains: Case studies from Ethiopia
title_full_unstemmed Digital finance and agri-food value chains: Case studies from Ethiopia
title_short Digital finance and agri-food value chains: Case studies from Ethiopia
title_sort digital finance and agri food value chains case studies from ethiopia
topic agriculture
digital technology
agrifood systems
value chains
finance
url https://hdl.handle.net/10568/175447
work_keys_str_mv AT wassiesolomon digitalfinanceandagrifoodvaluechainscasestudiesfromethiopia