ETHIOPIA - Productivity Enhancement Support to the Integrated Agro-Industrial Parks and Youth Employment (PESAPYE) - Revised Version

Project Summary

Approval Date 07 Jul 2021
Signature Date 21 Jul 2021
Planned Completion Date 30 Jun 2026
Last Disbursement Planned Date 30 Jun 2026
Sovereign / Non-Sovereign Sovereign
Sector Agriculture and Rural Development
DAC Sector Code 31110
Environmental Category 1
Commitment U.A 33,250,000
Status Implementation

Project General Description

The Productivity Enhancement Support for the Integrated Agro-Industrial Parks and Youth Employment (PESAPYE) project will contribute to poverty reduction, economic growth, greater resilience and social cohesion in Ethiopia through enhanced productivity and commercialization of agriculture. PESAPYE is the second phase of the Bank-financed IAIP-Support Project (IAIP-SP) that was approved in 2018, focusing on development of essential agro-park infrastructure (waste-water treatment plants, rural roads, and markets) and capacity development around the IAIPs. It is complementing the IAIP-SP by establishing irrigation schemes and providing farmers with modern agricultural technologies through the Technologies for African Agriculture Transformation (TAAT) initiative to improve agricultural productivity and production and eventually provide raw materials for agro-processing in the IAIPs. The PESAPYE Project focuses on supporting the 4 IAIPs and the associated Rural Transformation Centres (RTCs), currently being developed by the GoE with support from the Bank and other bilateral and multinational partners. It will develop and rehabilitate 5 irrigation schemes in selected communities in proximity to the existing 4 IAIPs and their associated rural transformation centres. The project will also contribute to cushioning the medium-term effects of COVID-19, in particular through employment and support for youth enterprises in the rural economy, and will complement the Bank’s ongoing Policy Based Operation project to support implementation of the Ethiopia Covid-19 Crisis Response plans. It is co-financed in parallel by the Bank and the Arab Bank for Economic Development in Africa (BADEA). The total cost of PESAPYE is UA 72.26 million with the Bank contributing UA 33.25 million to support three irrigation schemes and youth agripreneur activities.

Project Objectives

The goal of the Project is to contribute to poverty reduction, economic growth and strengthened social cohesion in Ethiopia through enhanced productivity and commercialization of agriculture, focusing on the four Integrated Agro-Industrial Parks (IAIPs) areas; in Bure (Amhara Region), Bulbula (Oromia Region), Yirgalem (the Sidama Region), and Baeker (Tigray Region). The project objective is to increase agricultural production by developing irrigation and water management infrastructure in the Rural Transformation Centres (RTCs) of the selected IAIPs. The Project will develop the capacity of and empower graduate youth agripreneurs to setup commercial agro-enterprises and provide them access to finance to spearhead the transformation and commercialization of profit-oriented agribusiness enterprises. This contributes to enhanced socio-economic inclusiveness and resilience.


Main target beneficiaries are farmers and youths SMEs in the irrigation areas. According to the socio-economic gender disaggregated profile conducted by the feasibility study, a total of about 30,000 households from the irrigation schemes will benefit directly as well as 3,000 educated youth farmers. The direct beneficiaries are 2,000 households (hh) in Awobel/Dejene Woredas in Amhara Regional State; 16,000 hhs in the Gidabo scheme for both Oromia and Sidama regions and 12,000 hhs in the Tekeze Humera Irrigation Scheme. The project will support 3,000 graduate youth agripreneurs who will further provide employment to approximately 20,000 non graduate youth. All project activities targeting youth will aim for a 50:50 representation between men and women, in line with the Bank’s Jobs for Youth in Africa Strategy. The total number of jobs expected from the Project is approximately 25,000 direct and 75,000 indirect jobs including in the IAIPs (50% being women). This directly contributes to efforts to prevent radicalization and reduce marginalization via decent jobs and enhanced livelihoods. This reinforces hope and trust in public administration, thereby also strengthening social cohesion.

Participating Organization

African Development Fund


IATI identifier 46002-P-ET-AA0-018
Last Update 25 Mar 2023


Contact Details

Name Duncan MWESIGE

Geographic Location

Country Ethiopia
Coordinates Location Name
8 39 Oromiya Region
11.5 38.5 Amhara Region
9.98333 38.5 Gidabo
6.718 38.448 Sidama zone