British International Investment (BII), the United Kingdom’s official development finance institution, has committed $5 million in growth capital to Lovegrass Ethiopia. This strategic investment is designed to scale the operations of the Ethiopian agri-food innovator, which specializes in transforming teff, a nutrient-dense, gluten-free indigenous super grain, into high-value products for both local consumption and international export.
Teff is not merely a staple crop; it is the backbone of Ethiopia’s agrarian economy. The grain’s importance is underscored by its massive scale:
- Smallholder Impact: Over 6.6 million farmers depend on teff cultivation for their livelihoods.
- Cultural & Nutritional Core: As a resilient, indigenous crop, it remains the primary source of nutrition and food security across the nation’s rural heartlands.
The BII investment is targeted at moving Ethiopia further up the global value chain. The financing will focus on four primary pillars:
- Industrial Scaling: Expanding Lovegrass Ethiopia’s production capacity to meet the rising global demand for “superfoods.”
- Value Addition: Transitioning from the export of raw grains to the manufacturing of finished, branded products within Ethiopia. This ensures that a greater share of the economic value stays within the country.
- Economic Resilience: Generating critical hard-currency inflows through international exports, which is vital for Ethiopia’s macroeconomic stability.
- Job Creation: Developing a more sophisticated workforce by creating skilled positions within the processing and manufacturing stages of the agri-food cycle.
Beyond the factory walls, the partnership aims to create a “multiplier effect” across the Ethiopian countryside. By sourcing directly from a network of thousands of smallholder farmers, Lovegrass Ethiopia provides a stable, reliable market for local growers.
BII stated in its official announcement:
Our $5 million financing will help expand production and create skilled jobs while supporting exports that generate vital hard-currency inflows. Lovegrass Ethiopia is helping drive resilient, inclusive growth across rural communities.
This investment highlights a shift toward impact-driven agribusiness, where private sector success is directly tied to the economic empowerment of millions of small-scale producers.
