top of page
market-entry-2.png

4 Lessons Learned from 5 Years of Introducing Israeli Agritech to Ethiopia

Five years ago we set out on an ambitious mission: to enable Israeli agritech companies to amplify their impact and establish a foothold in the Ethiopian market by tailoring their solutions to the needs of smallholder farmers. The program was led by the American Jewish Joint Distribution Committee (JDC) in partnership with Israel’s Ministry of Economy and Industry, and with the Pears Program for Global Innovation serving as the professional and content partner. The vision was that, despite the challenges inherent in the Ethiopian market, with the right strategy, dedicated support, and unwavering persistence, Israeli technologies could drive meaningful change.

Now, five years later, we’ve concluded the fourth and final cohort of the Innovation Journey program. The results are promising:

  • 33 companies completed a comprehensive process, including market deep dives, product-market fit adaptation, matchmaking with local partners, and securing funds for pilots.

  • 9 partnerships are ongoing.

  • 5 pilots were (or are still)  implemented, aided by four $25K grants secured by JDC.

On September 19th, we celebrated the wrap-up of the fourth and last cohort by showcasing four case studies—each representing a key lesson learned about market entry and scaling in Ethiopia and South Africa (where we shifted due to the conflict in Ethiopia). These lessons offer invaluable insights for any entrepreneur or company looking to expand into low- and middle-income countries.

Five years, four cohorts, and countless insights later, our journey to bring Israeli agritech to Ethiopia has been nothing short of transformative. From unlocking market opportunities to driving innovative pilots, we’ve helped 33 companies navigate challenges and build meaningful impact. This blog shares the hard-earned lessons that every entrepreneur needs to know about patience, adaptability, and forging the right partnerships in emerging markets. Dive in to discover how Israeli innovation is making a difference—and what’s next for agritech in Africa!


Lesson One: Patience is the Key

The story of Chromepay stands as a testament to the power of patience. When the company joined the second cohort of the Innovation Journey, they were already operating in Nigeria, offering mobile payment and money transfer solutions. Ethiopia, with its tightly controlled and monopolistic telecom sector, seemed like a distant, if intriguing, possibility.


Through his participation in the program, CEO Gabriel Sunyama recognized a critical trend—the Ethiopian market was beginning to open up. This shift presented a unique opportunity for Chromepay to pivot to providing digital identities that could unlock access to financial services for the country’s vast population of unbanked and underbanked individuals, particularly smallholder farmers.


Gabriel decided to take the opportunity and committed to making Ethiopia a strategic focus. Through the Innovation Journey, Chromepay formed a strong partnership with the international NGO iDE, secured grant funding for a pilot from the Fuse Blockchain Network and Venture Meda by IceAddiss and Mastercard Foundation, and engaged with multiple local stakeholders. In addition, they secured a collaboration with JDC’s TOV program that brings agritech and seeds to smallholder farmers, which served as an additional leverage to Cromepay’s market engagement. 


Today, despite a devastating civil war and ongoing regional instability, Chromepay is steadily advancing its pilot, with both organizations,  and is now active across 5 regions in Ethiopia.. They are expanding their reach among smallholder farmers and building new partnerships. Their success underscores a critical lesson:


Building a presence in a complex market like Ethiopia is a marathon, not a sprint.


Processes are slow, trust-building with partners takes even longer, and unexpected risks—from regulatory hurdles to geopolitical conflicts—can disrupt progress. Chromepay’s resilience and commitment have positioned them to capitalize on Ethiopia's evolving telecom sector. With ongoing reforms accelerating, Chromepay is now well-placed to reap the rewards of its long-term investment when the market fully opens.


Lesson Two: Listen to the Field

The journey of Lord International highlights the importance of listening to local feedback and adapting accordingly. Initially a legacy company focused on manufacturing, installing, and servicing of vehicle cooling and air conditioning systems, as well as vehicle spare parts, Lord International sought to expand into leading markets in Sub Saharan Africa such as Ethiopia. Their participation in the first cohort of the Innovation Journey provided critical insights into how the cold chain operates in emerging markets.

This experience led to their exposure to the World Bank’s International Finance Corporation (IFC), where they were accepted into the TechEmerge pilot program. Based on feedback from the IFC, they pivoted to focus on solar-powered cold chain solutions, aligning with a global trend of building technological capabilities without increasing greenhouse gas emissions.

Recently, they successfully concluded their pilot within the program, with Farm to Feed, a Kenyan startup focused on aggregating and selling imperfect and surplus produce from farmers, yielding promising prospects for scaling and future investment. To address the technological demands identified during the pilot design, Lord International joined forces with Ofer Green Energy, which specializes in solar energy solutions, and together they established the joint venture Greentech Cooling Solutions. This venture, along with the technology developed specifically to meet the pilot's needs, exemplifies how both Lord International and Greentech Cooling were willing to listen to the field and adapt the product features accordingly—ultimately positioning them at the forefront of a powerful global trend in sustainable cold chain solutions.


The key takeaway? The field knows best, and companies should be ready to listen and adapt accordingly.


While external expertise is valuable, local partners possess deep knowledge of the environment, user behavior, and market dynamics. By remaining open to feedback and making strategic adjustments, Lord International unlocked new opportunities that would have been missed with a rigid, top-down approach.


Lesson Three: Relationships are Critical

For H4Bess, a company offering a feed supplement for bees to enhance honey yields and pollination, the South African market presented both promise and challenge (In 2022 the Innovation journey was focused on South Africa due to the raging war in Ethiopia). While their value proposition was clear and compelling, securing partnerships and implementing solutions in South Africa required more than a logical pitch—it required thorough relationship-building.


During their participation in the third cohort, H4Bess invested significant time and effort into building a partnership with the right local stakeholders, even if at times it wasn’t easy and required going an extra mile to build mutual understanding and trust . This effort resulted in a pilot supported by a JDC grant based on a carefully built relationship with a local partner. As they work tirelessly to conclude their pilot and prove their concept in South Africa, they are already exploring  expansion into additional African markets, which offer an ever expanding promise.

In low- and middle-income countries, personal relationships and chemistry are key in business doing.

Beyond a well-researched business case, business success in countries like South Africa also requires mutual trust, cultural understanding, and personal connection. H4Bess recognized this and took the time to align with their partners, ensuring mutual understanding and shared goals.


Lesson Four: Find the Right Partner

The story of SoliDrip during the third cohort of the Innovation Journey may seem like a standard market entry, but it was anything but ordinary. Originally focused on urban greening and biophilic building solutions for developed markets, SoliDrip saw potential in exploring South Africa through the Innovation Journey program. Their autonomous drip irrigation technology—capable of providing precise irrigation to individual plants without the need for energy or connectivity—offered a promising solution for addressing urban food production challenges.


Through the program, they connected with 10 Million Makers (10MM), a local NGO working in Johannesburg to support residents of underserved urban areas in growing food in the city, thereby addressing food insecurity in what is defined as agricultural deserts, and building sustainable livelihood alternatives. Initially sceptical about the market’s challenges, SoliDrip’s evolving relationship with 10MM prompted them to explore the partnership further, entrusting 10MM to take the lead in designing the local strategy.

This collaboration resulted in SoliDrip securing a grant from JDC and launching a pilot that has been running successfully for over a year and a half. The pilot has validated their technology's potential and opened multiple avenues for deepening their engagement and scaling their solution across South Africa.


The lesson? A traditional distributor might not be the best first partner in emerging markets.


Instead, NGOs and community-based organizations that work directly with target users can provide invaluable support. They offer local expertise, help adapt the product to real-world conditions, and can facilitate capacity-building efforts that enhance the product’s impact.


Looking Ahead: Balancing Risk and Opportunity

These four lessons offer a roadmap for companies looking to engage with low- and middle-income countries. These markets are often seen as "blue oceans"—filled with unmet needs, impact potential, and business opportunities. But success requires more than a great product; it demands patience, adaptability, relationship-building, and strategic partnerships.

The Innovation Journey may have concluded, but the insights and successes it generated will keep serving companies for years to come.

At the Pears Program for Global Innovation, we remain committed to supporting Israeli technologies in their quest to make a meaningful impact in these challenging but promising markets. By learning from the experience of others and building on proven methodologies, we can continue to bring Israeli innovation to the world.


Comments


Frame 41.png
community.png
bottom of page