Importance of Irrigated Agriculture to the Ethiopian Economy: Capturing the direct net benefits of irrigation Fitsum Hagos1, Godswill Makombe1, Regassa E. Namara 2, and Seleshi Bekele Awulachew1 1International Water Management Institute (IWMI) Subregional Office for the Nile Basin and East Africa, Addis Ababa, Ethiopia 2International Water Management Institute (IWMI), Africa Regional Office. Accra, Ghana.
[email protected] Abstract total national GDP was about 5.7 and 2.5 percent during the 2005/06 cropping season. Irrigation development is seen as one of the means to reduce poverty and promote As a result of expansion, by the year economic growth. While a lot of effort is 2009/2010 the expected contribution of exerted towards irrigation development, little attempt is done to quantify the smallholder managed irrigation to national contribution of irrigation to national income economy, assuming that exiting cropping in Ethiopia. This study is an attempt to pattern, and the average gross margin values quantify the actual and expected for different crop categories are still valid, is contribution of irrigation to the Ethiopian expected to increase from USD 262.3 national economy for 2005/06 cropping million in 2005/2006 to about USD 414.2 season and 2009/10 using adjusted net gross million in 2009/2010, which accounts to margin analysis. about 5.5 percent of the agricultural GDP and 2.3 of the overall GDP for the same Our results show that irrigation in the study year. On the other hand, the contribution sites generates an average income of about coming from the large scale sugar growing USD 323/ ha.