1) Executive Summary

Samanu is one of Ethiopia’s largest fast-moving consumer goods manufacturers. We produce edible oils, oil cake for animal feed, detergents and personal care products—substituting reliance on imported good with reliable, affordable local products. The support we received from the UK Foreign, Commonwealth & Development Office (FCDO) Manufacturing Africa (MA) programme, prepared us in our fundraising efforts. With MA support, we have now secured USD 21 million from Norfund and partners to expand our refinery and strengthen our production capacity. The investment has resulted in an increase of edible oil production by 130%, created hundreds of jobs, and enabled export of by-products that earn scarce foreign exchange for Ethiopia. 

We are now expanding to deliver hybrid oilseeds at scale, boost farmer productivity, and stabilise our inputs through buy-back contracts. This project will create an additional 420+ direct jobs and improved livelihoods for an estimated 350,000 farmers, while strengthening climate-smart, regenerative practices across 200,000 hectares. 

Our experience has shown that the UK’s ODA investor approach works. Neutral, expert advisory can help de-risk a viable business, mobilise private capital, and anchor local supply chains that will endure beyond aid.

2) Company Background

Samanu was established to strengthen Ethiopia’s self-reliance on essential consumer goods through local value addition. Backed by growth investment, we built a modern refinery and solvent extraction plant in Dukem, Oromia, producing refined edible oils (Tena brand) and high-protein oil cake for the animal feed industry. Today we are a leading player in Ethiopia’s edible oil market, recognised for consistent quality and reliability. 

We work directly with thousands of smallholder farmers and are expanding through structured, traceable contracts supported by partners. Commissioning our extraction plant allowed us to shift from imported crude oil toward local oilseeds; we now source roughly 70% of inputs domestically - reducing exposure to foreign exchange shortages and global freight volatility. 

People and inclusion matter to us. We employ 230 full-time staff, of which 40% are women. Our total employment numbers are projected to reach ~652 by 2030 (+422 jobs). We also invest in training: environmental, health and safety (EHS), quality assurance, farm operations, and farmer training on climate-smart, regenerative agriculture. 

MA’s role has been essential and catalytic to our growth. Earlier MA support helped us design and implement a local sourcing strategy (Implementation of the strategy allowed Samanu to work directly with over 2,000 farmers, with plans to scale up to 5,000–7,000 farmers under contractual arrangements). The current support focuses on commercial due diligence and financial modelling for our seed multiplication project, which in turn accelerates our ability to engage with investors. This combination—UK-funded expertise plus private capital—has enabled us to achieve long term and durable outcomes that align with the UK’s shift from grants to investable solutions. 

3) How the UK Adds Value

a) Enhancing access to investment and finance

Ethiopia’s edible oil market is large but historically import-dependent. It is also perceived as high risk by foreign investors, due to FX scarcity, logistics bottlenecks, regulatory uncertainty and thin local capital markets. Within this context, we were faced with high transaction costs because we needed specialised advisory services to translate the strong local demand into bankable, and risk-mitigated projects.

MA’s support helped us articulate a credible plan to localise inputs, manage FX risk via exports of oil-cake by-products, and deliver reliable volumes to the market. On the back of this work, we mobilised USD 21 million from Norfund and partners—financing our extraction plant, lifting output by 130%, and creating hundreds of jobs. This clearly demonstrates effective private capital crowd-in, not grant dependency—which presents clear value for UK taxpayers. 

b) Strengthening the enabling environment

There are multiple systemic constraints that have impacted our growth including FX shortages, customs delays, and transport bottlenecks which inflate costs and strain working capital. Additionally, underdeveloped seed systems limit yields and constrain raw material supply.

The UK is well placed to offer market and regulatory system support:

• FX and trade logistics: Support policy dialogue and technical assistance to streamline customs, improve corridor performance, and pilot FX-earning hedges (e.g., export-linked working capital) that stabilise cash cycles for manufacturers.
• Standards and certification: Co-finance seed certification capacity and quality labs; support traceability that meets buyer requirements without overburdening smallholders.
• Seed system reform: Back private and public partnerships for breeder, foundation, and certified seed multiplication—where our project can act as an anchor off-taker.

These actions help Ethiopia build reliable market and regulatory systems that outlast individual projects. 

c) Local partnerships and capacity

Our model links smallholders to modern processing through transparent contracts and buy-back arrangements. The new seed project will multiply sunflower, soybean, and canola seeds on ~1,000 irrigated hectares and distribute hybrid seeds to farmers, then buy back produce for processing. We aim to strengthen livelihoods for ~350,000 farmers across ~200,000 hectares through improved seed and agronomy. 

UK support can scale local agronomy services, out-grower management, and financial intermediation (e.g., input credit tied to off-take). Investment in local processors, cooperatives, and service providers ensures capability sits in-country.

4) Recommendations

Based on our experience of receiving MA support, we have the following recommendations for UK OKA:

• Expand investment advisory (such as MA) that prepares firms for investment through rigorous due diligence, modelling and investor matchmaking – prioritising high job creating, and high resilience sectors
• Deepen blended finance and aftercare. Pair advisory support with catalytic, risk-sharing capital and post-deal support for standards, exports, and productivity.
• Tackle FX/logistics frictions. Provide Technical Assistance for customs reform, corridor performance, and export-linked working capital options.
• Invest in local intermediaries. Build seed systems, labs, farmer services, and inclusive off-take finance so value stays local and scalable.