About Agri Business Support Facility (ABSF)
The Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) promoted a project called Agri-business Support Facility (ABSF) with a financial and technical support by the Embassy of the Kingdom of the Netherlands. The ABSF will promote agribusiness opportunities in Ethiopia to investors foremost in the Netherlands but also in the EU. Both Ethiopian and foreign agribusiness entrepreneurs will have access to its services
Objectives of ABSF:
- Attract foreign direct investment in Ethiopia’s agribusiness sector
- Increase the number of new domestic companies in the agribusiness sector
- Increase trade between Ethiopia and high-value markets
- Hands-on business support services
- Promote agribusiness opportunities
- Support young entrepreneurs to get necessary skills and attitude
- Support specific subsectors (spice, food processing, poultry, potato and aquaculture)
- Finally enable integration of services into AACCSA
The general guiding principles of the project are:
Major Components of ABSF
- Strongly customer driven.
- Focus on practical, dynamic and hands-on approach.
- Seek for contribution from client to cover part of the cost and push for self-sustainability after 2015.
- Clear focus on specific subsectors where the ABSF sees potential for growth.
- Focus on inclusive business models that address corporate social responsibility.
The activities and supports of ABSF include five major components: Information and Services Hub; Technical and Entrepreneurship Support; Subsector Platforms and Partnerships; Business to Business Linkage Support and Private Sector Association support.
I. Information and Service Hub
The agribusiness information and services hub provides information on starting and running agribusiness in Ethiopia.
II. Technical & Entrepreneurship Support
- Provides hands on expertise to agribusiness sector
- ABSF will have a website and portal with specific information on policies, laws and regulations
- Bringing together information from other sources that relate to agribusiness sectors.
- Provides information on investment licenses, land lease, utility supply, tax and revenue, repatriation of foreign exchange, and logistics including exchange of information in an interactive way (electronic forum).
- ABSF’s Financial and legal consultants/advisors will give referral assistance to agribusiness companies when conflicts/disagreements arise.
- Develops business opportunities reports
Technical & Entrepreneurship Support includes business plan competition at eight Universities, internship Program, agribusiness case studies and an on-farm manager support activities.
- The Business Plan Competition aims at motivating BSc and MSc graduates to develop own innovative business ideas and having proper financial/business planning in place.
- Post studies Internship Program especially concerns BSc and MSc graduates in agribusiness, horticulture and other disciplines as appropriate. The host companies increase productivity, reduce recruiting costs, bring fresh innovative perspectives to the organization, gain short term talent and increase diversity by hosting MSc. and BSc. Graduates
III. Subsector Platform &Partnerships
Platforms and Partnerships bring together a wide range of mainly private sector companies to exchange ideas, opportunities and support (mainly) domestic trade deals.
- Sector specific information initially on selected subsectors: spices, soy, aquaculture, poultry and food processing and specific expertise on these sectors will be available.
- In addition, resources are available to provide market and business intelligence and pilot innovations and new technologies.
- Current high potential subsectors don’t have private sector associations and a more informal platform and network approach seems more feasible at this stage.
- ABSF will focus both on chain actors as well as on chain enablers like: service providers, logistics, finance and research institutions.
IV. B 2 B
The services are necessary to establish good relationships between Dutch and Ethiopian companies active in the agribusiness sector and broker trade deals and new Joint Ventures. The facility initially focuses on ETH-NL relations, but this can be expanded to EU and US relations at a later stage.
V. PSA Support
One of the five components of ABSF focuses on demand driven specific support to private sector associations (PSAs)
- A fund is developed to allow PSAs to submit sector-wide proposals twice a year.
- The grant money will help the PSA to enhance production and productivity of the agricultural sector, improve market access and value addition and sector institutional development and strengthening.