Cabinet Approves Agribusiness Companies Proclamation To Modernize Farming Sector | The Reporter Ethiopia

-Proposed legislation seeks to shift agriculture toward market-oriented production, strengthen smallholder competitiveness

Ethiopia’s Council of Ministers has approved a draft proclamation aimed at transforming the country’s agricultural sector from traditional farming practices into a more market-driven agribusiness system.

The proposed law, endorsed during the Cabinet’s 55th regular session, was forwarded to the House of Peoples’ Representatives after ministers held what the government described as extensive deliberations.

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According to a statement from the Office of the Prime Minister, the legislation is designed to strengthen the bargaining power of small-scale producers in the marketplace, promote value addition and improve linkages between agriculture and industry.

Officials said the draft law would also create a legal framework to support farmers and agricultural producers seeking to transition into medium-scale commercial operations.

The government added that the reform is intended to improve food security, expand employment opportunities and encourage a more business-oriented agricultural economy.

Agriculture remains the backbone of Ethiopia’s economy, employing a majority of the population and accounting for a significant share of export earnings. Authorities have increasingly emphasized commercialization and agro-industrial development as part of broader economic reform efforts.