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The purpose of formulating and export development strategy
is to identify key areas of focus in export development, which are
crucial for long term economic growth. It also has the objective to
ensure sustainable agricultural development, which is the main stay
of the Ethiopian economy as it involves more than 85% of the
population, contributes about 50% to the GDP and more than 85% to
the total export and competitive industrial development to earn more
foreign exchange.
The scope of export development strategy is to focus on
sectors and products that the reliable markets and thus, contribute
to foreign exchange earnings of the country, which have tangible
impact on the over all economic development of the country.
The strategy for export development is conceived to
maximize productivity through improvement and cultivation of unused
land. More over, it utilizes the advantage of natural resources for
exports of high-value agricultural products, establishes new basis
for exports of manufactured goods based on the country’s comparative
advantage of labor and discover exportable mineral and fuel
deposits.
High value agricultural products comprise horticultural
products including vegetables, flowers and fruits as well as fresh
and chilled meat.
There is plenty of scope for expansion of exports based on
surplus venting by opening-up hither to unused land for agricultural
cultivation.
The greatest potential for the growth of export
manufactures specifically lies in clothing, textile, leather and
leather products. The world market for these products is huge.
Conducive Environment for Export development
Access to land
In Ethiopia, the public owns land and its administration is
in the hand of the federal Government or the regional states. New
investors or those who want to expand operations can get plots on a
leasehold basis. A party from this, various incentives can be given
to the entrepreneurs based on the areas of investment that the
regions have set for a priority demand.
Infrastructure
Development
The government is asking efforts to improve transport
facilities and transit service deliveries. Improvement in market
infrastructure especially road transport is taking place in the
country since it is a bride that links the exportable items from the
production area to the center.
Water
Ethiopia is also
endowed with water resources, which could be easily tapped and used
for irrigation. The total surface area of lakes in the country is
about 7,500km2. Seven out of the eight major lakes are found in the
rift valley system, lying in the dry land area. Ethiopia’s estimated
irrigation pot4ential is high, but so far only 5% has been utilized.
With abundant water resources available in the country, exploiting
potentials of irrigation has indispensable contribution for
cultivating those export items.
Private-public
sector Partnership Forum
Public-private sector partnership forums with tasks of
assessing competitive strength and weaknesses formulate and
implement competitive strategies based on incentives and structural
policies monitor the ach8evements. Besides, the forums exert efforts
to correct policy gaps and solve problems, develop future strategies
based on best international practices, facilitating in three
strategic industries namely, Horticulture, textile and garments,
livestock and livestock products. The forum members include
producer-exporters, representatives from the research and higher
learning institutions, representatives from national Bank and other
service rendering institutions and government officials.
Institutional
support
There are specific export support institutions like the
Ministry of Agriculture and Rural Development. Leather and Leather
Products technology Institute and the Ethiopian Export promotion
Department with the ministry of trade and Industry. They are engaged
in the provision of market information, business match making,
export promotion, training on export marketing and export procedures
and product development.
Tackling Bureaucratic Obstacles
To minimize bureaucratic bottlenecks associated with
private investment activities, the federal government and regional
states have introduced one-stop-sopping system of investment
approval and implementation services. Corruption, bribery,
expropriation and bureaucratic hurdles have dramatically been
reduced. The government currently has broadened and strengthened the
civil service reform programme under way in the country.
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