UK Private Equity and Ethiopia Sovereign Wealth Fund Ink 600M Deal to Boost Milk Production
UK private equity firm Asset Green, the sovereign wealth fund Ethiopian Investment Holdings (EIH) and the Ethiopian Agricultural Business Corporation (EABC) have signed a tripartite agreement to develop cow milk production and commercial farming in Ethiopia. Ethiopian Deputy PM Temesgen Tiruneh and UK Deputy PM Angela Rayner witnessed the signing in Addis Ababa on 17 February 2025, right after the 38th African Union Summit.
Ethiopia boasts the biggest bovine population in Africa with a cattle count of over 70 millions heads. The current cow headcount on Ethiopian soil is wholly sufficient to achieve self-sufficiency in milk if developed to its full potential.
“Asset Green is a private-equity firm focused on opportunities with a green energy or food security component in emerging economies. This investment will allow the realization of the largest milk production base in Africa.”
Asset Green Chief Investment Officer Albrecht Frischenfchlager
The Integrated Day and Commercial Farming Project will be carried out in phases. Initially, a dairy farm of 15,000 hectares will be set up with land also allocated for to grow food for the livestock. In a subsequent phase, the farm will introduce advanced milk processing facilities and also intends to expand into rice, cotton, oilseed, and other crops.
In 2023, Ethiopia’s import bill for dairy products reached nearly USD 24 million. Thanks to the significant #FDI, Ethiopia will not only receive foreign currency but will also be able to save its foreign reserves. The project ambitions to produce at least 28 million tonnes of milk by 2031, compared to only 7 tonnes in 2022.
“We are strengthening our nation’s #FoodSecurity, creating jobs, and driving economic development.”
Ethiopian Deputy PM Temesgen Tiruneh
In addition, Ethiopia is very much an agriculture-based society with 70% of its citizens still live in rural areas. The villagers depend largely on farming as their primary source of income.
Eventually, the plan is to develop a vertically integrated agribusiness venture that leverages cutting-edge technologies and apply global best practices to enhance productivity, efficiency and sustainability.