Agriculture has become a priority area for Pharo Ventures Ethiopia in particular, which together addresses the three unmet needs of food security, social sustainability and environmental deterioration. The country benefits from a large supply of arable land, water, suitable weather conditions and labour. Pharo Ventures Ethiopia is developing an agri-business portfolio called Pharo Agro which invests in backward and forward integration across the agricultural value chain. Its first project is a processing facility of speciality oils for the export market. The factory, which we commissioned in December 2024 and will start full production in 2025, is designed to process 50 tons of oilseeds daily, primarily sesame and niger seeds, and has plans to expand capacity. It is located in the Debre Berhan region. The rest of the Pharo Agro portfolio includes a commercial farm and an animal feed business.
The Pharo Agro portfolio is unique in many ways:
1. It is built on direct and continuous engagement with producers
Following the launch of our factory, we have ambitious plans to grow our agri-business portfolio, not least because quality begins at the input and farm level. Our oil processing plant uses the best raw materials, which are sourced ethically from suppliers. In 2024, we signed a Memorandum of Understanding (MoU) with various stakeholdrs which will enable us to reach over 7,000 smallholder farmers, to source quality raw materials. 15% of them are women. We are building a robust supply chain that will prioritize quality and traceability throughout our sourcing work, and are developing a seed multiplication center, supporting local farmers and ensuring sustainability across the supply chain.
Our partnership with smallholder farmers facilitates access to criticalinputs and linkage with financial institutes, which can in turn facilitate affordable credit for our partner small holder farmers. It also facilitates agronomy support, as Ethiopia Ventures has signed an MoU with Gondar University to boost crop productivity and enhance suppliers’ sustainable agricultural practices.
2. Its product satisfies the demands of a growing consumer base
Our seeds are not refined, ultra-processed seeds. They preserve nutrients in an organic and biodiverse environment. We are committed to growing organic with small holder farmers and fully processing only organic products as we scale up operations. This will help farmers improve soil health which increases their productivity and income. Hence our product offering is well-adapted to the growing niche of health-conscious and environment-conscious consumers. In that sense, our profits are intricately tied to our environmental and social impact because our customer demands it. [It would be good to have certification]
3. It includes a regenerative farm
We have secured 1000ha of farmland towards the development of a commercial regenerative farm, which will be the perfect complement to our oil seed product.
Beyond this, we see vast opportunities to grow our Agriculture portfolio through climate-smart agriculture, supply chain solutions including farm management and smart energy solutions to name a few.