Importance of Irrigated Agriculture to the Ethiopian Economy: Capturing the Direct Net Benefits of Irrigation

Abstract

This study is an attempt to quantify the actual and expected contribution of
irrigation to the Ethiopian economy for 2005106 and 2009110 cropping
seasons !Ising adjusted net gross margin analysis. After obtaining adjusted
gross margin values for rain fed and irrigatioll systems under different
typologies, irrigation 's contribution was calculated to be about 5.7 and
2.5 percent 10 agricullllral alld overall GDP during the 2005106 cropping
season. By the year 200912010, irrigation's cOlffributiofl to agricultllral
and overall GDP is estimated to grow to about 9 and 3. 7 percetJI,
respectively. After relaxing some of the underlying assumptions, the future
contribution of irrigation to agricullllral GDP will rise to aboul J 2
percent while the contribution to overall CD? will be about 4 percent.
Recommendations for enhancing irrigation's contribution and policy
implications for cost recovery and sustainability of irrigation investment
are drawn.