ATI Launches the Second Phase of ACC: Agricultural Commercialization through Climate-smart and Inclusive Innovations (ACCII)

The Ethiopian Agricultural Transformation Institute (ATI), in collaboration with the Ministry of Agriculture (MoA), officially launched the second phase of the Agricultural Commercialization Clusters Program, known as Agricultural Commercialization through Climate-smart and Inclusive Innovations (ACCII). The high-level event, held on November 18, 2025 at the Sheraton Addis Hotel, brought together ministers, regional presidents, ambassadors, regional bureau heads, delegates of development partners, smallholder farmers, and private sector representatives to celebrate the achievements of the first phase of the ACC program and to mark the transition to its ambitious successor, ACCII.

Agriculture remains the backbone of Ethiopia’s economy, contributing nearly 80 percent of export earnings and meeting 95 percent of national food requirements. It provides livelihoods for the majority of Ethiopians and continues to drive economic growth and structural transformation. Despite its centrality, the sector faces persistent challenges—particularly for smallholder farmers, who comprise the largest share of producers. Low productivity, small scale farming, rainfed reliance, limited access to markets, low technology adoption, vulnerability to climate shocks, long value chains dominated by middlemen, and limited access to finance have constrained the potential of Ethiopia’s agriculture to deliver inclusive and sustainable growth.

It was in response to these challenges that the ATI piloted the Agricultural Commercialization Clusters (ACC) program in 2019 as a strategic program to accelerate the transition of smallholder farming toward a more productive, market-oriented, and resilient system. Implemented between December 2019 and June 2025 across 11 strategic commodities, the ACC program significantly enhanced productivity, marketable surplus, and farmer incomes, while also benefiting value chain actors across regions.

Over its five-year implementation, the ACC program reached more than 4.4 million farmers, including ~2.43 million organized into Farmer Production Clusters (FPCs), which strengthened collective marketing and improved access to services. Yields in ACC woredas averaged 32 percent higher than the national average, while yields among FPC members were 44 percent higher. Grain yields rose by 86 percent, reaching 3.18 tons per hectare, and horticultural yields grew six-fold to 33.4 tons per hectare. Overall production increased by 56 percent, with grain commercialization rising from 28 percent in 2019 to 58 percent in 2024. These results have laid a solid foundation for Ethiopia’s ongoing agricultural transformation.

Building on these successes, ACCII has been designed as an ambitious and forward-looking initiative aimed at scaling up agricultural transformation through climate-smart practices, market innovation, and inclusive participation. This second phase aims to transform cluster farmers into dynamic Farmer Production and Agribusiness Companies (FPACs). The program places strong emphasis on climate smart agriculture, private sector engagement, strong farm enterprise, gender equality, youth empowerment, and social inclusion. Besides, program aims to integrate a Humanitarian–Development–Peace (HDP) nexus to support 300,000 Internally Displaced Persons (IDPs) and refugees to become self-reliant and independent of food aid.

ACCII will be implemented across nine regional states: Amhara, Oromia, Tigray, Sidama, Southwest Ethiopia, South Ethiopia, Central Ethiopia, Benishangul-Gumuz, and Somali, to enhance food system resilience and advance Ethiopia’s vision for a climate-smart, inclusive, and market-led agricultural sector that supports rural transformation and national economic growth.

Speaking at the launch, H.E. Ato Addis Arega, Minister of Agriculture, emphasized the national importance of the program:

“ACCII is not just a continuation of past successes; it is a renewed commitment to accelerate Ethiopia’s agricultural transformation through innovation, inclusion, and climate resilience. This program embodies our collective ambition to empower farmers, strengthen value chains, transform smallholder farmers into agribusiness entrepreneur, and make Ethiopia a model for sustainable agricultural growth in Africa.”

In a similar sentiment, Dr. Mandefro Nigussie, Director General of the Ethiopian Agricultural Transformation Institute (ATI), highlighted the program’s transformative vision:

“ACCII represents Ethiopia’s strong commitment to scaling up climate-smart, inclusive, and market-oriented agriculture. By engaging millions of smallholder farmers, empowering women and youth, and promoting sustainable value chains, this program will help unlock agriculture’s potential as a driver of food security and economic transformation.”

High-level representatives from the Government of Ethiopia, development partners, and the private sector reaffirmed their continued support to Ethiopia’s agricultural transformation agenda through collaboration, innovation, and climate-smart solutions. The launch of ACCII marks a major milestone in Ethiopia’s journey toward resilient, inclusive, and sustainable agri-food systems.