$600 million shareholders' agreement for integrated dairy and farming project signed
Large-scale dairy farming and processing operation in Ethiopia
The SHA was signed by Dr. Brook Taye, CEO of EIH, Kifle W/Mariam, CEO of EABC, and Afshin Afsharnejad, CEO and Chairman of Asset Green. The signing ceremony was attended by Temesgen Tiruneh, Deputy Prime Minister of Ethiopia, and Angela Rayner, Deputy Prime Minister of the United Kingdom.
Ethiopian Investment Holdings (EIH), the Ethiopian Agricultural Businesses Corporation (EABC) and Asset Green Ltd, the parent company of Agrium Capital, have signed a Shareholders' Agreement to launch a $600 million Integrated Dairy and Commercial Farming Project in Ethiopia.
Under the agreement, Asset Green holds a 51% majority stake, EABC holds 25% and EIH holds 24%. The project will be delivered in two phases. Phase one establishes a large-scale dairy farming and processing operation, including integrated feed production on 15,000 hectares, with the aim of running over 10,000 milking cows. Phase two expands into cotton, oilseed and rice farming, supported by processing facilities and an out-grower support centre.
The signing ceremony was attended by Ethiopia's Deputy Prime Minister Temesgen Tiruneh and the UK's Deputy Prime Minister Angela Rayner, reflecting the project's role in UK-Ethiopia economic ties. The venture was supported in its early stages by the UK-funded Manufacturing Africa programme, which provided market assessment and advisory support during Agrium Capital's initial market entry.
Dr Brook Taye, Chief Executive Officer of EIH, described the agreement as a significant step toward modernising Ethiopia's agricultural sector, highlighting the project's Environmental, Social and Governance safeguards.
Afshin Afsharnejad, CEO and Chairman of Asset Green, said the partnership was intended to build a vertically integrated agribusiness that improves productivity, efficiency and sustainability.
Sources:
EIH official site: https://eih.et/investment/
Farmers Review Africa: https://farmersreviewafrica.com/usd-600-million-joint-investment-to-boost-integrated-dairy-and-commercial-farming-project-in-ethiopia/