Because agriculture is the economicbackbone of most countries in Sub-Saharan Africa, includingEthiopia, any meaningful sustainable development program inthe continent must therefore be anchored in the sector. Theconcept for this study on agribusiness indicators was basedon the vital role that agribusiness plays in agriculturaldevelopment. The study focuses on agribusiness indicators(ABI) to identify and isolate the determining factors thatlead private investors and other stakeholders to participatein agribusiness and to engage in discourse regarding itsdevelopment. A more thorough empirical understanding ofthese determinants in turn can usefully inform the types ofpolicy reforms that can promote agribusiness in Africa. InEthiopia, the ABI team focused on the following successfactors: a) access to critical factors of production ofcertified hybrid seeds, fertilizer, and mechanical input; b)enabling environment in terms of access of credit andtransportation; and c) government expenditures onagriculture, and trade and regulatory policies thatcurrently influence the agribusiness environment. Thefactors and indicators that the research team has includedin this study are not exhaustive but rather are intended toserve as a pilot that could be scaled up to include morevariables and countries. The findings of the study revealedthe dominant role of the government in the seed andfertilizer markets. In the seed sub-sector, perennialshortages of both basic and certified seeds have greatlylimited agricultural productivity in Ethiopia.
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