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 is expanding 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 is supplying 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 is also providing farmers with organic seedlings to grow produce with higher nutrition value to increase food security in the country. 

The startup is seeking out partnerships with women and youth-based small and medium enterprises (SMEs) to improve their capacity to practice climate-smart agriculture and open opportunities for them to access capital and earn incomes. 

By December 2025, the startup had partnered with a total of twelve micro and small enterprises, reaching more than 260 enterprise members across project locations. Capacity building support, demonstration sites, and farmer to farmer learning activities have strengthened technical and business skills and increased awareness and demand for solar powered irrigation and organic agricultural inputs. 

Gender equality and social inclusion are central to the partnership’s approach. Women represent the majority of participants including women led and women dominated producer groups engaged in home garden vegetable production and vermicomposting. In several supported associations, women account for up to 81 percent of total members, reflecting the partnership’s contribution to women’s economic empowerment and inclusive urban food systems. 

To address access to finance constraints faced by early stage climate businesses and enterprises, the partnership collaborates with Siinqee Bank under a loan guarantee arrangement aimed at improving access to credit for solar irrigation systems and organic inputs. Implementation experience shows the limitations of traditional collateral based lending for micro and small enterprises and the importance of blended finance approaches and close coordination with financial institutions to enable effective loan uptake and scale up of climate smart technologies. 

To build the knowledge and capacity of farmers in climate-smart farming tools and techniques, Solar Village held a series of Farmers’ Field Day at a demonstration farms. The field days introduced farmers to optimal nursery practices and financing options for climate-smart farming tools, and facilitated linkages between farmers, SMEs, banks and Solar Village. Other awareness raising and capacity building events included marketing campaigns at high traffic, central markets and national trade fairs. 

Solar Village also participated in high profile events such as the Pre-Africa Climate Summit Exhibition and the Africa Climate Summit 2. These events drew attention to the startup from relevant stakeholders, such as policymakers, investors and international organizations. As a result of this engagement, Solar Village established a strategic partnership with the Ministry of Labor and Skills designed to create employment opportunities for youth and women and expand smallholder farmers’ access to climate-smart technologies. 

Oxfam in Ethiopia supports Solar Village through 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 these businesses to support social activities and business development. 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); Siinqee Bank.