Policies and interventions to promote SDG-aligned investments in dairy in Ethiopia
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This publication was written by the European Centre for Development Policy Management (ECDPM) as part of the project “AgrInvest-Food Systems: Enabling inclusive and efficient private sector investment in agrifood systems” (AgrInvest-FS), implemented by the Food and Agriculture Organization of the United Nations (FAO) in partnership with the ECDPM. The AgrInvest-FS project aims at attracting private investment into agrifood systems aligned with the Sustainable Development Goals (SDGs) by leveraging public funds.
This paper recommends a package of policy improvements and interventions aiming to support SDG-oriented investments in the dairy sector in Oromia in Ethiopia by addressing bottlenecks in the sector and enabling a conducive environment. The paper highlights key challenges and proposes packages of policy interventions that aim to address these key challenges in a coherent and interrelated manner. Building on existing partnerships and processes will increase the feasibility of these recommendations being implemented. Concretely, the recommendations propose i) a gradual and integrated approach to developing, adopting and enforcing milk quality standards for human health; ii) effective ways to improve the access to affordable feed and forage through profitability studies, policy reforms and applied research and innovation and iii) adopting a context-specific approach in addressing finance and credit bottlenecks in the dairy value chain. In the case of Ethiopia, this means acknowledging how the persistent foreign exchange shortage is a major factor, as well as unequal power and gender dynamics. Lessons from past experiences illustrate the potential of multi-stakeholder dialogues to commit to a shared vision, coordinate interventions and improve joint learning and innovation. Spaces for multi-stakeholder dialogue should maximize local embeddedness and have clear benefits for the private sector actors to engage in. Transparent government-owned information management systems, especially at the local level, enable government and development partners, banks and investors to project and track the impact of their investments.