Ethiopia breaking in to world flower market

By Tesfa-alem Tekle

October 15, 2007 (ADDIS ABABA) — Ethiopian horticulture producers and exporters association (EHPEA) said Ethiopia’s tremendous efforts to boost the horticulture sector has created a break though in to the world flower market competition.

“The government’s attractive policy stretched to investors with the existing peace and stability across the nation together is making foreign investors on the sector flood in to the country” association chair man Tsegay Abebe told Sudan Tribune.

“5-year tax holiday, exemption on imported goods, grace period of tax payment ,swift response of gov’t to set backs on the sector with the continued assistance and incentives provided by the gov’t has enabled flower producers and exporters to be more competitive in the international market ” Tsegay added

According to the association the horn nation is expected to secure a total sum of 125 million US dollars form flower exports by the end of 2007.

The chair man says “90 US dollars is earned over the last 6 months from flower exports to different foreign countries across the world.”

“Over the coming 3 months an additional 35 Million dollars will be collected” he added.

The export income was collected form exports income was collected from exports to central Europe, Netherlands, Norway, England, Japan, Saudi Arabia and Russia.

The association has 80 group members, of which 69 are now engaged in an active flower export.

The few-year old investment sector further has created job opportunity to 75 thousand people of which two-third of them (50.000) are women. The association disclosed.
A study is now under way to expand the investment in the north Tigray region and across the nation.

Ethiopia’s Horticultural Producers and Exporters Association believes that the country could become one of Africa’s leading flower exporters within the next five years.

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.

“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.

Land and labor are also cheap and banks are ready to lend up to 70 percent of the initial investment without collateral.

(ST)