Skip to main content
Knowledge4Policy
Knowledge for policy

Supporting policy with scientific evidence

We mobilise people and resources to create, curate, make sense of and use knowledge to inform policymaking across Europe.

  • Publication | 2025

Ethiopia: Cost effective options for inclusive and sustainable development

Global Food and Nutrition Security

In this policy brief, we present findings of a systematic evaluation and ranking of investment options for Ethiopia’s agrifood system based on their cost-effectiveness in achieving multiple development outcomes, including agrifood gross domestic product (GDP) growth, agrifood job creation, poverty reduction, declining undernourishment, and lowering diet deprivation. Additionally, the study assesses their environmental footprint, focusing on water consumption, land use, and emissions. Investments in small and medium enterprise (SME) traders and processors are shown to be the most cost effective at driving improvements in social outcomes, like poverty and undernourishment. They are also highly ranked in terms of expanding agrifood GDP and employment. Extension services for livestock, credit for farmers, R&D (agronomy), and safety nets also rank high. However, many costeffective investments have relatively high environmental footprints, which highlights potential tradeoffs. The study further reveals shifts in the cost-effectiveness ranking of investment options overtime and when extreme production shocks occur.