[{"bbox": [96, 152, 1136, 233], "category": "Text", "text": "productive uses of renewable energy, the use of digital solutions for – among other – ensuring compliance with relevant regulations (cf. EU Deforestation Regulation (EUDR)), reduction of logistical bottlenecks and improvement of working conditions."}, {"bbox": [96, 244, 1136, 326], "category": "Text", "text": "The Action will be linked to Global Gateway flagships supporting sustainable agro-food value chains and will improve the conditions for mobilising resources via the Africa Investment Platform and EFSD+ financing instruments that support increased access to finance for the agricultural sector as well as to renewable energy."}, {"bbox": [96, 336, 1136, 391], "category": "Text", "text": "The Action will also be supporting the implementation of the Great Green Wall Initiative through activities that will contribute to the implementation of the five pillars of the Great Green Wall Accelerator."}, {"bbox": [96, 402, 1136, 563], "category": "Text", "text": "Team Europe approach will also be strengthened by involving EU MS and seeking complementary funding and/or synergies with MS initiatives for the components 1, 3 and the Twinning Action with the Ethiopian Agriculture Authority (EAA). Specifically, it will contribute to the development of the Team Europe Initiative on Job Creation in Ethiopia. In addition, by integrating digital solutions in the Action, it will also indirectly contribute to the Team Europe Initiative on Digital Transformation and more specifically to its objective of promoting the responsible use of technology in a variety of sectors."}, {"bbox": [96, 573, 1136, 656], "category": "Text", "text": "The action also contributes to the EU Gender Action Plan III (GAP III)² Key thematic areas of “Addressing the challenges and harnessing the opportunities offered by the green transition and the digital transformation” and “Promoting economic and social rights and empowering girls and women”."}, {"bbox": [114, 679, 371, 712], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 727, 329, 756], "category": "Section-header", "text": "### Short problem analysis"}, {"bbox": [96, 765, 1136, 901], "category": "Text", "text": "The Ethiopian economy is heavily reliant on agriculture, which accounts for 40% of the Gross Domestic Product (GDP), 80% of exports and an estimated 75% of the workforce. Despite fertile soils, diversified landscapes and water availability in highland and midland regions and productivity gains in recent years, the sector never succeeded going beyond subsistence level. According to governmental statistics, over 95% of the Ethiopian agricultural production is generated by subsistence rain-fed agriculture."}, {"bbox": [96, 910, 1136, 1099], "category": "Text", "text": "The main binding constraints challenging the sector are insufficient yields due to inefficient provision of inputs (such as improved seeds or fertilisers) and services (currently all provided by the government or informally traded amongst farmers, with hardly any private sector provision), unclear land lease rights, limited investment in research and development, insufficient and unreliable access to sustainable energy and irrigation, general issues related to marketing and logistics as well as a lack of agriculture-specific financial services. Indeed, due to a very risk-adverse and closed to international players banking system, lack of access to finance and FOREX is always mentioned as the key constraint for agricultural business, in particular for SMEs and smallholder farmers."}, {"bbox": [96, 1108, 1136, 1270], "category": "Text", "text": "In addition, agriculture has been affected by widespread ecosystem destruction, land degradation and soil depletion due largely to climate change, overgrazing and poor land management and farming practices. This situation has led to food insecurity and mass rural-urban migration. Therefore, support towards enhanced productivity of smallholder farmers while reversing land degradation are crucial elements to transform the agricultural sector and improve the living standards of the rural population. Equally important is the support to establishment/improving value chains of agro-products all the way from farm-to-fork."}, {"bbox": [96, 1280, 1136, 1496], "category": "Text", "text": "In terms of potential for horticulture, the country has a favourable climate with diverse agro-climatic zones, which offer ideal conditions for year-round production of a wide array of fruits, vegetables, flowers, spices and herbs. Moreover, about 13,000 hectares of suitable land is available for horticulture of which only 11% is currently used and a large workforce is available. Between July 2022 and June 2023, Ethiopia exported more than 292,000 tons of horticulture products (flowers, vegetables and fruits), generating over 660 million USD. The income increased by 5% over the same time period in the previous year, demonstrating the sector's potential for growth. Ethiopia is now the second largest flower exporter from Africa (after Kenya) and there are still opportunities for further development. Except for avocado, most horticultural production for export is grown on large mechanized"}, {"bbox": [85, 1534, 1145, 1648], "category": "Footnote", "text": "² The Gender Action Plan III is a Joint communication by the Commission and the High Representative of the Union for Foreign Affairs and Security Policy which was welcomed through EU Presidency Conclusions of 16 December 2020. Drafting was led by European Commission in close consultation with EU Member States, EEAS, civil society organisations, partner governments, and international organisations (UN entities, International Finance Institutions among others). The different parties contributed to the drafting of the document through meetings and through responses to a survey conducted during the process."}, {"bbox": [1038, 1681, 1145, 1707], "category": "Page-footer", "text": "Page 5 of 34"}]