At the Handing-over Ceremony of Fertilizer to the Ethiopian Government at the Ethiopian Agricultural Inputs Supply Enterprise (AISE) Warehouse on 30 September, 2013

Your Excellency Ato Wondyirad Mandefro, State Minister of Agriculture,
Distinguished Guests,
Ladies and Gentlemen,

Good morning.  Endemen Arefedachehu.

It is a great pleasure for me to be here at the Ethiopian Agricultural Inputs Supply Enterprise warehouse to attend this handing-over ceremony of 9,200 metric tons of urea fertilizer to the Ethiopian Government, based upon the Exchange of Notes signed in December 2012.  This fertilizer has been procured at a cost of 490 million yen [105 million ETB at the exchange rate at the time of signing] through Japan’s grant-in-aid scheme for the food security program for underprivileged farmers, better known as KR II.  This assistance is aimed at helping Ethiopia promote food production with the supply of fertilizer.  This is the third handing-over of fertilizer I attend with Your Excellency during the past three years of my tour of duty in Ethiopia.

Excellency, Ladies and Gentlemen,

As a key sector in Ethiopia, agriculture is featured in the Growth and Transformation Plan (GTP), with a projected average annual growth rate of 8.6% for five years from 2010/11.  In order to facilitate such agricultural growth, a 10-year program named the Agricultural Sector Policy and Investment Framework (PIF) was adopted in August 2010.  Under this PIF, comprehensive and consistent policies for agriculture have been formulated.  These include identifying priority areas for investment, estimating the financial requirements, and elaborating specific objectives, goals to achieve, and means of utilization.

However, this ambitious program requires huge investment, and ensuring financial resources for the PIF is a big challenge for both the Ethiopian Government and its development partners.  In addition, the New Alliance for Food Security and Nutrition was launched in Ethiopia in September 2012.  This is a combined effort by the Ethiopian Government, its development partners and the private sector.  It will review key agricultural policy issues and encourage private sector investment in agriculture and its related industries.

Excellency, Ladies and Gentlemen,

Agriculture has continued to be a priority sector in Japan’s ODA policy toward Ethiopia because of its dominant role in the Ethiopian economy.  Around 77% of the population is engaged in agriculture, and in 2011/12 about 44% of the GDP was created by agriculture.  Food security, which includes agricultural and rural development as well as water supply, is one of the two main pillars of our ODA policy toward Ethiopia.  We will continue to support smallholder farmers so that they can increase productivity in agriculture.

For this purpose, modern agricultural inputs are important, in particular fertilizer.  Data shows that the annual fertilizer requirement has been growing.  This will require additional foreign reserves to import fertilizer due to the limited domestic supply capacity.  Therefore, we are pleased to play a modest role in mitigating the existing supply-demand gap of fertilizer through our Grant-in-aid Scheme, KR II.  By the way, the total amount Japan has provided to Ethiopia through KR II since 1985 amounts to 16.1 billion yen [equivalent to 3.085 billion ETB at the current exchange rate*].  I personally believe that assistance to help increase crop production is more valuable than food assistance itself.

Excellency, Ladies and Gentlemen,

In concluding, I would like to share some of my wishes with you regarding this assistance.  I strongly desire that the fertilizer handed over today will be distributed in an appropriate manner and reach underprivileged farmers so that it will contribute to improving their livelihoods.  I also hope that, overall, the fertilizer will be used effectively so that it will complement the Ethiopian efforts underway to achieve the agricultural targets stipulated in the GTP.  Finally, I would like to remind you that Japan is always with you for the agricultural development of Ethiopia.  If we can be of any help, we are ready to work with you.

Thank you for your attention.  Amesegenalehu.