EXPORT PRODUCTS OF ETHIOPIA- IN ALL REGIONS

The economic liberalization process and the strong commitment of the government to create a supportive environment for the development of the private sector have been instrumental to the growth of export trade. The participation of the private sector in the export activity has gained momentum, since the economic and market liberalization measures introduced in the country in 1992. It is making remarkable progress to wards competitiveness in the world market and in building robust national economy.

Given the limited size of domestic market and the dependence on the import of intermediate and capital goods, the government of FDRE has been taking various measures to expand the export capacity and increase its competitiveness in the global market.

Ethiopia has various advantages for the development of export sector. These include the abundant and capable labour force, low wage levels, a wide-ranging weather and soil conditions, preferential access to some of the major world markets including Europe, USA and the common market for Eastern and Southern African States (COMESA).

The country’s economy is predominantly agricultural, which contributes about 50 percent of the total GDP, accounting for 90 percent of export Ethiopia’s export is mainly dependent on primary products such as coffee, pulses, oilseeds, leather and leather products, live animals, meat, fruits and vegetables, gold and others. The share of manufactured export constitutes only around 10% of the total annual export value. So, the sub-sector has vast opportunities to offer.

The purpose of this brochure is to give a birds-eye-view of the existing favorable environment for export development in Ethiopia.

Welcome to Ethiopia to the land of bonanza!!

FAVORABLE CONDITIONS

Since 1992, Ethiopia has embarked on structural reform programs aimed at reorienting the economy from command to market economy, rationalizing the role of the state, creating legal, institutional and policy environment to enhance private sector development. The overall policy environment focused at liberalization of prices and markets, removal of subsidies, reduction of tariffs and liberalization of external current account convertibility. All these measures have also been supported by favorable fiscal and monetary policies. More

EXPORT DEVELOPMENT STRATEGY

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. More

CONDUCIVE ENVIRONMENT

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. More

EXPORT INCENTIVES

The government offers various incentives such as exemption from the payment of any export tax and other taxes levied on exports through the provision of Duty Drawback Scheme, Bonded Manufacturing Ware house Scheme systems to facilitate the export of goods. More

MAJOR EXPORT PRODUCTS OF ETHIOPIA

Coffee

Ethiopia has long been known as the origin of coffee Arabica. The potential fore coffee production in Ethiopia is very high due to the country’s coffee pro9ducing areas which have suitable altitude and the fertility of the soil is maintained by organic recycling. Coffee is one of Ethiopia’s largest export commodities and it generated 60% of the country’s export earnings. The role that coffee plays in the country’s economy is a major determinant of the economic climate and it has become the most important commercial crop. More

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