Addis Ababa, September 30, 2026 (FMC) — Ethiopia and Japan have signed a 360-million-yen grant agreement, equivalent to approximately 375 million birr, to support the modernization of Ethiopia’s rice sector through agricultural mechanization.
The agreement was signed by Minister of Finance Ahmed Shide, Ambassador of Japan to Ethiopia Shibata Hironori, representing the Government of Japan, and Hiroyuki Yakushi, Chief Representative of the Japan International Cooperation Agency (JICA) Ethiopia Office.
The grant will finance the provision of essential agricultural machinery, including combine harvesters, tractors, rice-milling machines and land-preparation equipment.
The support is expected to strengthen land preparation and harvesting operations, improve rice processing and product quality, and reduce post-harvest losses across the value chain.
Speaking at the signing ceremony, Ahmed Shide said agriculture remains central to Ethiopia’s economic transformation, food security and rural prosperity.
He said the government is prioritizing higher agricultural productivity, improved farmer livelihoods and a transition toward modern, technology-driven agriculture.
“By improving mechanization across the rice value chain, we aim to increase productivity, strengthen food security, raise farmers’ incomes, and reduce dependence on imports,” the Minister said.
Ahmed Shide expressed Ethiopia’s appreciation to the Government and people of Japan for the grant and their longstanding friendship and partnership, while acknowledging JICA’s continued contribution to Ethiopia’s agricultural development.
Ethiopia and Japan reaffirmed their commitment to implementing the grant efficiently and transparently, with a strong focus on measurable results.
The agreement underscores the two countries’ shared commitment to deepening bilateral cooperation while advancing Ethiopia’s agricultural transformation, sustainable development and inclusive economic growth.