Denmark supports business partnership project in Ethiopia

Denmark’s development cooperation, Danida, has accepted a proposal by GAIN and partner, Arla Food Ingredients Group, to run a project with Ethiopia’s dairy market. Other partners in the consortium are Dan Church Aid and the BoP Learning Lab, who are members of the GAIN Nordic Partnership.

The aim of the project is to increase the productivity and distribution of high quality milk-based nutritious products in Ethiopia. This supports the government’s objective of reducing malnutrition, which is the underlying cause for a loss of 16% of the Ethiopian GDP.

“We place a specific focus on women as producers, entrepreneurs and consumers of nutritious products as well as on their children’s nutritional status in order to enable them all to develop to their full potential, says GAIN’s Senior Adviser, Nordic and Alliances, Charlotte Pedersen.

“In contrast to previous efforts in Ethiopia, the GAIN Nordic Partnership will drive development through a ‘pull approach’.  We will do this by strengthening the market for local dairy products, working closely with local processors on product and process innovation, and supporting smallholder farmers to improve the quality and yields of milk to develop a sustainable business for all actors in the chain”, she says.

This project forms part of the Danida Market Development Partnerships which is aimed at contributing to sustainable economic growth and employment in developing countries. Danida falls under the Ministry of Foreign Affairs of Denmark.

The facility supports partnerships that combine knowledge and resources from several stakeholders and features an innovative approach to the involvement of the private sector by motivating and mobilizing private sector investments, according to Danida. Each partnership must include a private business and a non-commercial partner.

Its aim is to contribute to sustainable market development in developing countries that promotes the achievement of the UN Global Goals with a focus on Sustainable Development Goal 8  – to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

GAIN and Arla Foods Ingredients are one of five partner consortia that were invited to proceed with the development of a full project. According to Danida, it received 53 applications and the other successful applicants and projects are:

  • VedvarendeEnergi with Vestas Wind Systems as key business partner; objective: Supporting sustainable mini-grid development and production of wind turbines in Kenya;
  • CARE Danmark with Christian Hansen A/S as key business partner; objective: Enhancing crop yields and profitability in Kenya through biological plant protection;
  • Landbrug&Fødevarer/SEGES with Arla Foods as key business partner; objective: Market-driven sustainable growth in dairy sector – The Milky Way Partnership in Nigeria;
  • DIEH with Bestseller as key business partner; objective: Improving productivity, quality and working conditions in Myanmar garment industry;

GAIN’s Senior Adviser, Nordic and Alliances, Charlotte Pedersen, says: “Our GAIN Nordic partners are very excited to have been selected to develop this opportunity. We look forward to be working with Danida and the other selected projects to show that this type of innovative partnerships with the private sector and non-commercial partners, can contribute to achieve SDGs. We believe that ventures with a strong business case for local partners in collaboration with Danish organizations can help countries achieve their sustainable development targets”.

Find out more about GAIN’s Nordic Partnership

Published 8 December 2016

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