Ethiopia - Productivity Enhancement Support to the Integrated Agro-Industrial Parks and Youth Employment (PESAPYE) - Revised Version

The Productivity Enhancement Support for the Integrated Agro-Industrial Parks and Youth Employment (PESAPYE) project will contribute to poverty reduction, economic growth, greater resilience and social cohesion in Ethiopia through enhanced productivity and commercialization of agriculture. PESAPYE is the second phase of the Bank-financed IAIP-Support Project (IAIP-SP) that was approved in 2018, focusing on development of essential agro-park infrastructure (waste-water treatment plants, rural roads, and markets) and capacity development around the IAIPs. It is complementing the IAIP-SP by establishing irrigation schemes and providing farmers with modern agricultural technologies through the Technologies for African Agriculture Transformation (TAAT) initiative to improve agricultural productivity and production and eventually provide raw materials for agro-processing in the IAIPs. The PESAPYE Project focuses on supporting the 4 IAIPs and the associated Rural Transformation Centres (RTCs), currently being developed by the GoE with support from the Bank and other bilateral and multinational partners. It will develop and rehabilitate 5 irrigation schemes in selected communities in proximity to the existing 4 IAIPs and their associated rural transformation centres. The project will also contribute to cushioning the medium-term effects of COVID-19, in particular through employment and support for youth enterprises in the rural economy, and will complement the Bank’s ongoing Policy Based Operation project to support implementation of the Ethiopia Covid-19 Crisis Response plans. It is co-financed in parallel by the Bank and the Arab Bank for Economic Development in Africa (BADEA). The total cost of PESAPYE is UA 72.26 million with the Bank contributing UA 33.25 million to support three irrigation schemes and youth agripreneur activities.