Mercy Corps is to establish a 10 million US dollar private equity fund in Ethiopia to encourage foreign investment, primarily in agriculture, according to Dominic Graham, Country Director. Initial interest has been expressed by several American and British companies he said in a interview.
The non-governmental organization is seeking rapid growth which is why it opted for private equity as opposed to debt financing according to Graham.
This aim is not about incremental change but large steps to move the country from middle and poor income status within a short period of time.
Agriculture employs four-fifths of Ethiopia’s workforce and the government wishes to seek investment in commercial farming and food processing to diversify the economy from small holder farming he explained.Mercy Corps is awaiting for final government approval said Graham. It is typical that investments would range from 7 hundred thousand to 3 hundred thousand into businesses that are not served by banks he said.
It is expected that the focus will on investment in livestock accounting for Ethiopia’s 32 billion US dollar gross domestic product but attracting less than 1 percent of the government budget said Graham.
Source: Walta
