Solar Village Ethiopia - Oxfam in Ethiopia

Investing in Impact

P4G has awarded the partnership US $350,00 in grant funding. 

The agricultural sector employs nearly 85% of the work force in Ethiopia with agriculture contributing to around 53% of the country’s GDP. The country has been struggling with low productivity because of recurring drought and the uptake of climate-smart agriculture continues to be low because of technical and financial barriers. 

Solar Village Ethiopia aims to expand the use of solar-powered water pumps with a unique design that changes the direction of the pump to follow the sun so it can capture solar power throughout the day. Another innovation of the pump is that it is made to service the needs of multiple households, allowing for cost-sharing that will make the pumps more affordable. 

In addition, the startup will supply farmers with vermicomposting beds. This method of making compost by using earthworms has numerous agricultural benefits, including reducing organic waste going to landfill, acting as a natural high-quality fertilizer that improves crop yields, improving moisture retention in the soil, and improving soil drainage for healthier roots. Solar Village Ethiopia will also provide farmers with organic seedlings to grow produce with higher nutrition value to increase food security in the country. 

The startup will intentionally seek out partnerships with women and youth-based small and medium enterprises to improve their capacity to practice climate-smart agriculture and open opportunities for them to access capital and earn incomes. 

Oxfam in Ethiopia is committed to fighting inequality to end poverty and injustice with its Enterprise Development Program (EDP). Through this program, Oxfam empowers local social entrepreneurs to develop innovative solutions that address community challenges. EDP offers a mix of recoverable capital and technical assistance, loan support and grants to the businesses to support social activities and business development. 

This approach ensures that entrepreneurs not only receive the resources they need but also gain the skills and expertise necessary to create lasting impact. 

For this partnership with Solar Village – Oxfam in Ethiopia has partnered with Siinqee Bank to provide a loan guarantee fund arrangement that will help small and medium enterprises access finance to install the solar pumps and the accompanying package of vermicompost beds and seedlings. Oxfam also has strong networks with government ministries who are committed to improving the enabling framework for smallholders. The nonprofit will also develop a case study to share learning from the partnership and recommendations on how to increase the adoption of climate-smart agriculture in Ethiopia. 

During the partnership period, Solar Village Ethiopia aims to raise US $100,000 in investment and create more than 100 new jobs. 

The partnership comprises the following partners: Solar Village Ethiopia (lead business partner); Oxfam in Ethiopia (lead administrative partner); Siingee Bank.