Pharo Ventures / Agro-processing

Edible Oil Plant

An oilseed plant in Debre Birhan, Ethiopia, built to keep value at home: crushing sesame for export rather than shipping it raw, and replacing imported sunflower oil with a locally grown and crushed crop.

Edible Oil Plant.

Edible Oil Plant.

Introduction

Crush the seed where it grows.

Ethiopia grows oilseed and exports much of it raw, then imports finished oil. The plant closes both gaps at once: it processes sesame locally to capture the value that otherwise leaves the country in raw seed, and it builds a domestic sunflower value chain to substitute imported sunflower oil.

Sesame is one of Ethiopia’s major oilseed exports, usually shipped raw for others to crush and sell on. We process it in Debre Birhan instead, moving from trader-dependent sourcing toward our own commercial-farm supply and higher-value organic products, so that the crushing margin and the export value stay in the country.

Sunflower runs the other way. Ethiopia imports sunflower oil it could make at home, so producing it locally substitutes those imports. That only works if the crop is grown at scale nearby, which is why part of the venture is building a sunflower value chain with farmers around the plant, from seed supply through to crushing.

2
Oilseed crops, two strategies
Sesame
Crushed locally for export
Sunflower
Substituting imported oil
Debre Birhan
Ethiopia
The problem

Ethiopia exports the seed and imports the oil.

On sesame, the country ships a valuable crop raw and lets others capture the crushing and refining margin. Trader-dependent sourcing, foreign-exchange distortions and long distances pushed raw-material costs up and made quality and organic integrity hard to hold.

On sunflower, the opposite problem: oil that could be produced at home is imported, because there is no local value chain growing and crushing the seed at scale.

Impact

Our impact

2025 figures, reported in the annual report.

Sesame
Crushed for export, capturing value Ethiopia otherwise ships raw.
Sunflower
Import substitution producing local oil to replace imported sunflower oil.
Debre Birhan
Commissioned 2025
Organic
Traceable local supply makes certification and margin achievable.
What we've learnt

What we learnt

01

Process where it grows.

The value in an oilseed crop sits in the crushing and the finished product, not the raw seed. Capturing it at home keeps both margin and jobs in the country.

02

Import substitution needs a value chain.

Replacing imported sunflower oil only works if the crop is grown and crushed locally at scale, so building the value chain is part of the venture, not a precondition for it.

03

Own the supply, secure the quality.

Trader-dependent, long-distance sourcing inflated cost and put organic integrity out of reach. Moving toward our own commercial-farm supply is what makes premium, certified products possible.

Engage

Partner on Ethiopian oilseed value chains.

Partnership, co-funding and operator enquiries start here.