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Importance of irrigated agriculture to the Ethiopian economy: Capturing the direct net benefits of irrigation

Author

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  • Hagos, Fitsum
  • Makombe, Godswill
  • Namara, Regassa E.
  • Awulachew, Seleshi Bekele

Abstract

Irrigation development has been identified as a means to stimulate economic growth and rural development in Ethiopia. However, little attempt has been made to quantify the contribution of irrigation to national income. Using data from selected irrigation schemes, representing small, medium and large-scale schemes of modern or traditional typologies; the present coverage and planned growth of irrigation, actual and expected contributions of irrigation to the national economy were quantified following the approach of adjusted gross margin analysis. Our results show that irrigation yields 219.7% higher income compared to the rainfed system while its current and future contribution to agricultural GDP is estimated to be about 5.7 and 12% although irrigation covers about 5 and 9% of the total cultivated land area, respectively.

Suggested Citation

  • Hagos, Fitsum & Makombe, Godswill & Namara, Regassa E. & Awulachew, Seleshi Bekele, 2009. "Importance of irrigated agriculture to the Ethiopian economy: Capturing the direct net benefits of irrigation," IWMI Research Reports 61100, International Water Management Institute.
    • Handle: RePEc:ags:iwmirr:61100
    DOI: 10.22004/ag.econ.61100
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    Cited by:

    1. Zewdie Habte Shikur, 2020. "Agricultural policies, agricultural production and rural households’ welfare in Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-21, December.
    2. Haris Abdullah & Hafiz Umar Farid & Maira Naeem & Nadeem Zubair & Zahid Mahmood Khan & Huzaifa Shahzad & Pervaiz Sikandar & Muhammad Abrar & Aamir Shakoor & Muhammad Mubeen, 2023. "Investigating On-Site Energy Consumption Patterns Using Vertical Electrical Sounding (VES) and Geographic Information System (GIS) Techniques," Sustainability, MDPI, vol. 15(24), pages 1-18, December.
    3. Demiss, Mulugeta & Sanabira, Joaquin & Singh, Upendra, . "Long-run Spatial and Temporal Yield Variability Analysis of Three Major Crops Affected by Fertilizer Use and Rainfall in Ethiopia over the Past 15 Years (2004/05–2018/19)," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 10(3).
    4. Amjath-Babu, T.S. & Krupnik, Timothy J. & Kaechele, Harald & Aravindakshan, Sreejith & Sietz, Diana, 2016. "Transitioning to groundwater irrigated intensified agriculture in Sub-Saharan Africa: An indicator based assessment," Agricultural Water Management, Elsevier, vol. 168(C), pages 125-135.
    5. Welde, Kidane & Gebremariam, Hintsa Libsekal, 2016. "Effect of different furrow and plant spacing on yield and water use efficiency of maize," Agricultural Water Management, Elsevier, vol. 177(C), pages 215-220.
    6. Emerta Aragie & Jean Balié, 2021. "Public spending on agricultural productivity and rural commercialization: A comparison of impacts using an economy‐wide approach," Development Policy Review, Overseas Development Institute, vol. 39(S1), pages 21-41, August.
    7. World Bank, 2017. "Ethiopia Country Environmental Analysis," World Bank Publications - Reports 33947, The World Bank Group.
    8. Luckmann, Jonas Jens & Elnour, Zuhal & Kinkpe, Agossoussi Thierry & Aballo, Codjo Serge & Mailu, Stephen, 2024. "Irrigation expansion in Africa – A comparative economy-wide study on Benin and Kenya," GEWISOLA 64th Annual Conference, Giessen, Germany, September 25–27, 2024 364722, GEWISOLA.
    9. Bachewe, Fantu Nisrane & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu Seyoum, 2015. "Agricultural growth in Ethiopia (2004-2014): Evidence and drivers," ESSP working papers 81, International Food Policy Research Institute (IFPRI).
    10. Unknown, 2012. "Investing in agricultural water management to benefit smallholder farmers in Ethiopia. AgWater Solutions Project country synthesis report," IWMI Research Reports 158354, International Water Management Institute.
    11. Mengistu Assefa Wendimu & Peter Gibbon, 2014. "Labour markets for irrigated agriculture in central Ethiopia: Wage premiums and segmentation," IFRO Working Paper 2014/06, University of Copenhagen, Department of Food and Resource Economics.
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    13. Nigus, Halefom & Nillesen, Eleonora & Mohnen, Pierre, 2018. "The effect of weather index insurance on social capital: Experimental evidence from Ethiopia," MERIT Working Papers 2018-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Gebru, Menasbo & Tadesse, Tewodros & Berhe, Melaku, 2025. "Reliability of irrigation water and farm-level productivity: Evidence from semi-arid farming systems in northern Ethiopia," Agricultural Systems, Elsevier, vol. 223(C).
    15. Belete, Belainew & Melak, Surafel, 2018. "Impacts of Small-Scale Irrigation Technology on the Nutritional Wellbeing of Children in the Amhara National Region of Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 27(01), April.
    16. Ambachew, Sissay & Alamirew, Tena & Melese, Assefa, 2014. "Performance of mungbean under deficit irrigation application in the semi-arid highlands of Ethiopia," Agricultural Water Management, Elsevier, vol. 136(C), pages 68-74.
    17. Asres, Sisay B., 2016. "Evaluating and enhancing irrigation water management in the upper Blue Nile basin, Ethiopia: The case of Koga large scale irrigation scheme," Agricultural Water Management, Elsevier, vol. 170(C), pages 26-35.
    18. Descheemaeker, K. & Bunting, S. W. & Bindraban, P. & Muthuri, C. & Molden, D. & Beveridge, M. & van Brakel, Martin & Herrero, M. & Clement, Floriane & Boelee, Eline & Jarvis, D. I., 2013. "Increasing water productivity in Agriculture," Book Chapters,, International Water Management Institute.
    19. Desale Kidane Asmamaw & Pieter Janssens & Mekete Dessie & Seifu A. Tilahun & Enyew Adgo & Jan Nyssen & Kristine Walraevens & Derbew Fentie & Wim M. Cornelis, 2021. "Soil and Irrigation Water Management: Farmer’s Practice, Insight, and Major Constraints in Upper Blue Nile Basin, Ethiopia," Agriculture, MDPI, vol. 11(5), pages 1-19, April.
    20. U. Chipfupa & E. Wale, 2020. "Linking earned income, psychological capital and social grant dependency: empirical evidence from rural KwaZulu-Natal (South Africa) and implications for policy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-18, December.
    21. Bachewe, Fantu N. & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu S., 2018. "Agricultural Transformation in Africa? Assessing the Evidence in Ethiopia," World Development, Elsevier, vol. 105(C), pages 286-298.
    22. Shimelis Beyene & Teshome H. Regassa & Belaineh Legesse & Martha Mamo & Tsegaye Tadesse, 2018. "Empowerment and Tech Adoption: Introducing the Treadle Pump Triggers Farmers’ Innovation in Eastern Ethiopia," Sustainability, MDPI, vol. 10(9), pages 1-12, September.
    23. Mourad, Khaldoon A. & Yimer, Sadame Mohammed, 2017. "Socio-economic Potential of Rainwater Harvesting in Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 6(01), February.

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