Agro-processing

Production of edible oils: Ethiopia produces a variety of oilseeds including sesame, soybean, niger seed, ground nuts and linseeds—all with an immense potential for oil processing. Demand for edible oil in Ethiopia is increasing by 12% each year and is currently estimated to reach over 850,000 metric tonnes (MT). Meanwhile, supply—both imported and locally processed—is 550,000 MT, creating a gap of more than 300,000 MT. Currently, 95% of supply is met through imports at an annual cost of over US$650 million—presenting a huge import-substitution opportunity.

Tropical juice and juice concentrate processing: Although Ethiopia’s per capita consumption of fruit is relatively low, an increasing awareness of the nutritional benefits of fruit is changing the landscape. Like edible oil, the packed-juice market is dominated by imports. Ethiopia spends more than $17 million each year to import juice. The current addressable local fruit juice market is estimated to be worth over $100 million, and 40% is left unmet.

Avocado processing and export high-end avocado oil to the European market while supporting the growth of avocado production by working with smallholder farmers in Ethiopia.

Poultry processing: Ethiopia has one of the largest chicken populations in Africa but is lagging in per capita consumption of eggs and chicken meat; its African peer countries often consume two to 10 times more. This is an indication of the considerable potential that the Ethiopian market holds. Urbanization, increasing incomes, and the emerging nutrition-conscious low- and middle-class communities in Ethiopia are expected to significantly increase demand in the short term. Investors in poultry processing can reap the economic benefits resulting from these changes.

Animal feed production: Ethiopia has an attractive market for animal feed production, with an unmet domestic demand estimated at US$150 million. In addition to local supply, Ethiopia-based investors have a strategic locational advantage to compete internationally. Ethiopia is centrally located in the global economy and has proximity to the key markets of Africa, the Middle East, and Europe. The value of the animal feed markets in East and North Africa alone is estimated at over US$3 billion, and the markets are largely import-dependent.

Tomato processing: Demand for processed tomato is increasing by 15% annually, and 55% of supply is imported. The current addressable market for processed tomato (paste + ketchup) is estimated to reach 25,500 MT—creating a demand supply gap of about 14,000 MT on which investors can capitalize.