UK Firm Asset Green Invests $600M in Ethiopian Dairy Sector
UK private-equity firm Asset Green has committed $600 million in partnership with the Ethiopian government to boost the dairy farming and processing initiatives in Ethiopia, marking a significant investment in the east African country's agricultural sector.
The agreement, facilitated by Ethiopian Investment Holdings (EIH), aims to modernize local agriculture through extensive commercial investment and state-of-the-art technology. The densely populated nation of Ethiopia relies heavily on agriculture, with farming serving as the primary income for over 70% of its population.
The partnership was formalized in Addis Ababa, attended by Ethiopian Deputy Prime Minister Temesgen Tiruneh and UK Deputy Prime Minister Angela Rayner. 'We are strengthening our nation’s food security, creating jobs, and driving economic development,' stated Tiruneh during the signing ceremony.
Brook Taye, CEO of the Ethiopian sovereign fund, emphasized that the collaboration intends to elevate the dairy and broader commercial farming sectors, ensuring food security, job creation, and robust economic growth. The project will be rolled out in two phases: the initial stage will focus on establishing dairy farming and feed production over 15,000 hectares to secure a sustainable supply chain, while the second phase will expand into cotton, oilseed, and rice farming supported by advanced processing facilities.
Asset Green, known for investments targeting food and energy security, is spearheaded by CEO and Chairman Afshin Afsharnejad, who remarked, 'Our shared vision is to develop a vertically integrated agribusiness that leverages cutting-edge technology and best practices to enhance productivity, efficiency, and sustainability.'
This significant investment aligns with broader efforts, such as the $37 million backing from the Climate Investment Funds (CIF) board to protect Ethiopian rural communities from climate-related shocks, with hopes to mobilize further co-financing from global partners like the World Bank and African Development Bank.
