In a ceremony held on 30 September, 2013 at the Ethiopian Agricultural Inputs Supply Enterprise (AISE) warehouse, H.E. Hiroyuki Kishino, Ambassador of Japan to Ethiopia, handed 9200 tons of urea fertilizer to His Excellency Ato Wondeyerad Mandefro, State Minister of Agriculture to complement the Ethiopian efforts underway to increase crop production.

     Based upon the Exchange of Notes signed between the two governments in December 2012, the fertilizer was provided through Japan’s grant-in-aid scheme for the food security program for underprivileged farmers, better known as KR II. It was procured at a cost of 490 million yen, equivalent to 105 million ETB at the exchange rate at the timing of signing. 

     To improve agricultural outputs, modern agricultural inputs are important, in particular fertilizer.  Data shows that the annual fertilizer requirement has been growing in Ethiopia.  This will require additional foreign reserves to import fertilizer due to the limited domestic supply capacity. 

     In his remarks at the ceremony, H.E. Ambassador Kishino said that Japan was pleased to play a modest role in mitigating the existing supply-demand gap of fertilizer through its Grant-in-aid Scheme, KR II.  He said that he hoped the fertilizer would reach underprivileged farmers and be used effectively so that it would contribute to improving their livelihoods and would facilitate the Ethiopian efforts underway to achieve the agricultural targets stipulated in the GTP. 

     In view of the dominant role of agriculture in the Ethiopian economy and the projected average annual growth rate for agriculture of 8.6% for five years from 2010/11 in the GTP, agriculture has continued to be a priority sector in Japan’s ODA policy toward Ethiopia. Food security, which includes agricultural and rural development as well as water supply, is one of the two main pillars of Japan’s ODA policy in Ethiopia together with industrial development.  His Excellency wished to reassure that Japan was a willing partner for the agricultural development of Ethiopia.

     Therefore, Japan would continue to support smallholder farmers so that they can increase productivity in agriculture. Since 1985, the total amount Japan has provided to Ethiopia through KR II amounts to 16.1 billion Japanese Yen, which is equivalent to 3.075 billion ETB at the current exchange rate. 

30 September, 2013
Addis Ababa