Ethiopia could earn $600 mln from flowers in 5 years

March 23, 2007 (ADDIS ABABA) — Ethiopia would become one of Africa’s leading flower exporters, generating over $600 million annually within the next five years, the country’s Horticulture Producers and Exporters Association said on Friday.

The Horn of Africa country generates 60 million euro from flower exports annually, the association’s chairman Tsegaye Abebe said.

“In five years, we expect to be one of Africa’s leading flower growers with more than 3,000 hectares under production and generating over $600 million in foreign currency a year,” Tsegaye said.

“The flower sector in Ethiopia is growing at almost 200 percent annually. New growers come into the business everyday, while existing farms are being expanded,” he added.

Tsegaye said 68 investors had developed 750 hectares under greenhouses and another 150 hectares of tunnel or open field production.

The government is processing land purchase applications by 100 international investors who would like to grow flowers, Tsegaye said during a horticulture exhibition.

Ethiopia’s investment policy provides a five year tax holiday which has been a good attraction for investors. Land and labour are also cheap and banks are ready to lend up to 70 percent of the initial investment without collateral.

Tsegaye said 70 percent of flowers produced in the country are exported to Holland.

(Reuters)