Ethiopia, UK’s Asset Green Partner on $600M Dairy Project
TLDR
- Ethiopia’s sovereign wealth fund has partnered with UK private equity firm Asset Green to develop a large-scale dairy and commercial farming project
- The first phase will establish a dairy farming and processing operation, including integrated feed farming on 15,000 hectares
- The second phase will expand into commercial farming, integrating cotton, oilseed, and rice production
Ethiopia’s sovereign wealth fund, Ethiopian Investment Holdings (EIH), has signed a $600 million shareholder agreement with UK private equity firm Asset Green to develop a large-scale dairy and commercial farming project.
The investment will be implemented in two phases. The first phase will establish a dairy farming and processing operation, including integrated feed farming on 15,000 hectares.
The second phase will expand into commercial farming, integrating cotton, oilseed, and rice production with processing facilities and an outgrower support center. Asset Green will hold a majority stake, with both partners seeking additional investors.
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Key Takeaways
Ethiopia’s dairy project is part of a broader push to modernize its agriculture sector and attract large-scale foreign investment. The partnership with Asset Green aligns with Ethiopia’s goals of increasing productivity, reducing import dependency, and enhancing agricultural value chains. By introducing advanced technology, the project aims to improve efficiency and promote knowledge transfer to local farmers. The second phase’s expansion into cotton, oilseed, and rice farming supports Ethiopia’s push for agricultural diversification and value-added exports. With Ethiopia’s agriculture sector contributing over 30% to GDP and employing 70% of the workforce, large-scale commercial investments like this could reshape the industry. However, implementation challenges, including regulatory risks, infrastructure gaps, and market access, will be key factors in determining long-term success.
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