The challenge: From a macroeconomic point of view, Ethiopia presents limited competitiveness, which constrains the development of manufacturing, the creation of jobs and the increase of exports. Ethiopia possesses a considerable competitive advantage within the agriculture sector but due to a challenging business environment and lack of critical infrastructure, value addition and manufacturing face various constraints. This gap among others, limits the private sector’s ability to be competitive and grow, which hinders job creation and export potential.
Our response: Getting around these contextual obstacles requires dynamizing the private sector from the bottom up, for it to act as a self-sustaining engine of Ethiopian development. With a focus on the potential for high value added and job creation, Pharo Ventures conducted a high-level assessment of the potential opportunities in 5 sub-sectors in Ethiopia, and settled on a first Venture in specialty oil processing. In this perspective, Pharo Ventures is in the process of building a processing plant around Debre Birhan and construction began mid-July 2023. The facility is expected to start operating in Q2 2024.