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Agricultural Growth Project II (AGP-II)

$30 million in additional financing to the Agricultural Growth Project (AGP) in Ethiopia to increase agricultural productivity and commercialization of smallholder farmers.
Photo: World Bank


Smallholder agriculture is the most important sector of Ethiopia’s economy. More than 80% of the population lives in rural areas, and their main source of income is agriculture. The agricultural sector accounts for about 45% of GDP, almost 90% of exports, and 85% of employment. Despite recent positive developments in smallholder agriculture, yields remain low, and many geographical areas have unexploited potential for productivity growth. The exposure to climatic risk like extreme weather events is high, especially in light of the low capacity to store water and irrigate.


AGP's second phase aims to sustainably increase agricultural production and productivity of selected crop and livestock commodities, establish market linkages and accelerate commercialization, increase access to agricultural public services, build smallholder farmers’ capacities in efficient water and crop management to adopt and implement climate change mitigation and adaptation measures, and improve dietary diversification for better health. AGP-II expands on AGP’s approaches by establishing a capacity development support facility that provides TA using a consistent and uniform approach and expanding private sector participation in SSI work.

Project Status



  • Ethiopia



Focus area

  • Climate Change

Supervising entity

  • FAO
  • World Bank


As of December 2020, AGP-II has benefitted 2,324,396 people (37 percent women), surpassing the end of project target of 1,597,530. The project has provided 23,290 hectares of land area with improved production support and has constructed or rehabilitated 90 kilometers of roads and 191 post-harvest facilities constructed and/or rehabilitated. Further, to date, 22,080 hectares (2,712 new, 13,181.3 rehabilitated/upgraded, and 6,187.31 micro and household) of irrigation sub-projects are complete. These developed schemes cover about 40 percent of the life of project target and have benefited 77,554 smallholder farmers (17,766 women). Construction for another 21,539.51 hectares (10,486 new, 10,548.26 rehabilitated/upgraded, and 505.25 micro and household) is ongoing, and procurement for 11,502.55 hectares is at different stages. From the total area provided with irrigation and drainage services in the four AGP regions, SNNPR’s performance in terms of reaching the life of project target is highest (60 percent), while Oromia’s is lowest (22 percent). 

The project also has provided 2,324,396 smallholders with productivity enhancement support, 9,164 producer-based organizations with support, 2,324,396 people with improved nutrition services and products, and 121,855 with direct employment. To date, 1,321 farmer training centers (FTCs) (71 percent of the life of project target), 505 from new and 816 from existing woredas, upgraded to intermediate level of functionality through the project’s inputs. To transfer new technologies to small-scale farmers, the project demonstrated 126 new agricultural technologies (159 percent of the target) on FTCs, including 39 that are gender sensitive, 47 that are nutrition sensitive, and 40 that are climate smart. The project also has equipped 11 regional laboratories, 163 animal health clinics, and 1,324 animal health posts with laboratory, clinical, and field equipment. As part of the project’s Technology Generation objective to increase the supply of demand-driven agricultural technologies, AGP-II identified 467 proposals for further research and development and promoted 149 different technologies to public extension services after the research system successfully validated and approved them, including 36 that are gender smart, 47 that are nutrition sensitive, 34 that are climates friendly, and 32 that are multi-purpose.