Agriculture is a major contributor to climate change,
emitting the three major greenhouse gases (GHGs) –
carbon dioxide (CO2), methane and nitrous oxide – into the
atmosphere. According to the Fifth Assessment Report of
the Intergovernmental Panel on Climate Change (IPCC),
the Agriculture, Forestry and Other Land Use sector “is
This draft model contract was developed on the basis of the drafts “Proclamation to Provide for Agricultural Production and Marketing Contracts in Ethiopia” later modified and renamed as “Proclamation to Provide for the Establishment of the Central and Regional Contract Farming Coordinating bodies and Regulation of Contract Farming Contract Formulation” as well as international best practices.
This draft model lease contract considers international best practices and recommendations, regarding the design of contract for farmland investments. In particular, the IISD Guide to Negotiating Investment Contract for Farmland and Water, were used as a reference while designing this current draft.
Different government institutions in Ethiopia are working on land related issues to tackle and manage data and information independently from each other, even though their activities and mandates are often related or even overlap.
The Ethiopian Growth and Transformation Plan (GTP), targets achieving food security and becoming a middle-income country by 2025. One part of the strategy is encouraging large-scale agricultural investment (LSAI) by domestic and international investor. To that effect, ample arable land in various region is being leased out, Benishangul-Gumuz region being one of them.
To address food insecurity in the country, the Government of Ethiopia envisages a rapid transformation in the agriculture sector to increase production, productivity, markets and employment. It has, therefore, strategically promoted land investments for agricultural development as part of the two successive five-year Growth and Transformation Plans (GTP).
Between 2005 and 2016, the Ethiopian Government leased about 2.4 million hectares of land for commercial agricultural investments to private domestic and foreign investors as a means of economic growth, food security and job creation.
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