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Export Products
 
Favorable Policies
 
Export Development
 
Major Export Products
 
Major Export Products of Ethiopia
 
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.  

The superior quality of coffee Arabica is unmatched, particularly in its flavor and aroma. Ethiopia also produces several types of coffee beans, which can be used for hot beverages, iced drinks, ice creams and in the confectionary industries. 

With regard to coffee trading, Ethiopia is the oldest coffee exporter in the world and more than 90% of the nation’s coffee is organically produced. New plantations in the country start supplying the domestic market and it will lead to additional exports from the known coffee producing areas.  

The total coffee area in Ethiopia is estimated at 400,000 hectares. The typical coffee production systems in Ethiopia comprise forest, semi-forest garden and modern plantain of coffee. The performance of Ethiopia’s annual coffee export in 2003 was 126,100 tons and earned 165.3 million US Dollars, while in 2004 the annual coffee export was 144,629 tons and the country earned over 208.3 million US Dollars.   

Ethiopia exports washed and sun dried coffee to several countries including the United States, Germany, United Kingdom, Japan, nether lands, Italy, France and Saudi Arabia.  

Ethiopia exported 7,894 tons and 5,345 semi-finished skins in the year 2003 and 2004 respectively. The amount of semi-finished hides exported in 2003 was 2,284 tons while in 2004 increased to 3,935 tons. 

Ethiopia hides and skins are relatively getting high demand in Italy, Canada, France, the Netherlands, united kingdom, USA, Spain Germany, Japan, South and West Africa.  
 

Leather and leather products

The government of Ethiopia has established by promulgation the leather and Leather Products Technology institute. The institute has main objective of producing skilled labour power, conducting research and development activities, rendering consultancy services and providing technical service to stakeholders in the leather sector. The Institute is one of the centers in the continent. There fore, the institute avails its capacity to other sister courtiers in Africa which are also venturing to advance their respective leather and associated industries.  

Not only the volume of production but also the unique qualities of Ethiopian leather, some of which are used as quality standard in the international market, give a competitive edge over other countries. The Ethiopian goatskin named after a place called Bati is known for its dense fiver  texture that makes it ideal for the production of extremely ideal high-class warring apparel. In recognition of this fact, it was named “Bati Genuine” and fetches the highest price in the world market.  

Similarly, the Ethiopian hair sheepskins are known for their unique natural substance of fineness, thickness, flexibility, strength and the compactness of texture and are identified as “ Selallie Genuine” Ethiopian sheepskins are used world wide for extremely high class and high value gloves  often fetching far more unit prices than leather garments. 

The leather and leather products sub-sector occupies a special position in the Ethiopian economy. The sector is considered vital for the growth of the over all economy since it contributes abuts 12% of the total foreign currency earning of the country. The Ethiopian Leather Journal (2004) indicated that the country earned over 60 million USD in 2004 from its leather industry. However, there are only twenty-one tanneries, which mainly produce semi-processed products for export and small quantities of finished leather for domestic leather products industry and very small share only for export

The of finished leather and leather products include;

  • Leather garments
  • Foot wear
  • Gloves
  • Bags and other leather articles
 
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.  
 
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. 

 
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.

 
EXPORT INCENTIVES

The government offers various incentives such as exemption from the payment of an6y 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. 

 
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.  

 
INVESTMENT IN TIGRAI

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INVESTMENT IN AFAR

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INVESTMENT IN AMHARA

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INVESTMENT IN OROMIA

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INVESTMENT IN SOMALIA

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INVESTMENT IN BENISHANGUL

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INVESTMENT IN SNNPRs 

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INVESTMENT IN GAMBELLA

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INVESTMENT IN HARARI 

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INVESTMENT IN DIRE DAWA

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INVESTMENT IN ADDIS ABABA 

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