Baby Food

This profile envisages the establishment of a plant for the production of baby food with a capacity of 2,000 tons per year. Ethiopia is home to about 14 million children under 5 years of age - approximately 16 per cent of the total population of over 110 million, according to UNICEF Ethiopia, 2018. By 2050, Ethiopia will have 58 million children under 18 years (6% of Africa). Currently, the country`s requirement of baby food is met mainly from import and there is a huge gap in meeting the high demands of the product. The principal raw materials required are wheat flour, sweat potato, soya beans, sorghum, chickpeas, fruits and milk powder. All raw materials except milk powder are widely available locally. The total investment cost of the project including working capital is estimated at 800,000 USD. The establishment of such factory will have a foreign exchange saving effect to the country by substituting the current imports. The project will also create backward linkage with the agricultural sector and also generates income for the Government in terms of tax revenue and payroll tax. On top of that, the project can create job opportunities for about 70 people. Since Addis Ababa is center and its total population is over 5 million people, it is advisable to implement the project in the capital city.

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