EXPORT PRODUCTS OF ETHIOPIA- IN ALL REGIONS

The textile industry is the largest manufacturing industry in the country. There are more than fourteen state owned and private major textile and garment factories. The textile export is a very recent phenomenon for Ethiopia. Given the potential of cotton production and improvement of the textile and garment factories, the sector is expected to play a major role in the country’s export.

The textile and garment industry has enormous potentials and opportunities for progress. Although the potential for producing raw materials like cotton and other is very high, the textile and garment industrial sub-sector hasn’t yet developed.

The textile sector includes; the spinning, weaving and finishing of textiles where as garment consists of the manufacturing of clothing by cutting and sewing fabrics. The main textile products manufactured in the country are cotton and nylon fabrics, acrylic yarn, woolen and waste cotton blankets ands sewing trend.

Garment industry is one of the major industries, which consumes huge labor. It has high market demand. The highest potential input for the industry is cotton, which is produced in the country. Important products in the garment sector include: under wear, fur apparel, waterproof garment shirts, trousers, work clothes, sports wear and jackets.

Cotton grown inmost parts other country. The international demand for cotton products is also high and increasing. Targeting cotton for export commodity encourages products to improve the quality and cost of production, which is said to be competitive, the international market. It is the expanding market as its contribution to the over all economic development us quite promising. The domestic cotton production potential as a basic industrial raw material is far more than the demand for the current installed spinning capacity. The availability of cheap labor is one of the major parameter for considering this industrial sector as one of the strategic industries for export development. Therefore, the sector is expected to play a vital role in the country’s export promotion to appropriately utilize the vast potential endowments and activities to increases textile production and the manufacturing of garment goods.

Most of the export items in the sub-sector consists of ;

v Cotton 9grded or combed) precuts		v Woven fabrics of cotton
v Artificaial staple fabrics		v Toilet linen
v Kitchen linen

Realizing the basic needs of giving priority to create skill labor force in the sector eh Ethiopian government has established a textile and Garments Industry support Institute at the Bahir Dar University. The institute has its own mission, of assisting and strengthening the textile industry. Training is also given to develop the capacity of labor force in the sector.

More over, favorable condition such as “African Growth and Opportunity Act” (AGOA) offered by the USA government and the EU opportunity for the duty fee accesses to those markets are additional momentum to go in to the world biggest market especially for textiles.

Mineral Products

Ethiopia offers excellent opportunities for mineral prospecting and development. Geological studies so far undertaken by the Ministry of mines exhibit the existence of rich geological environment in the country. Ethiopia’s green stone belts contain substantial gold despites. So far, more than 500 metric tons of gold deposit has already been identified in various regions of the country.

But mineral development has reminded limited, contributing only 1% to the national economy. Now, the situation has improved a little to crate conducive environment in the sector with the involvement of the private sectors. Although opportunities are very broad, the producers and exporters in this sector are so far very limited. The exporters are only six in number. The country’s export quantity of gold and tantalum was 5 tons in 2003 and 6.03 tones in 2004.

Diversified mineral deposits with the capacity to meet export standards exist in most parts of the country.

Ethiopia’s main exports of mineral resource include:

v Gold		v Granite
v Platinum		v Tantalum
v Marble

The major importing countries of Ethiopia’s mineral products include;

- East and Southern Africa		- Europe
- In Asia/Oceania market		- North America

Other

Some other products, which Ethiopia exports to the world market, include;

Civet		Sugar cane
Beverages		Raw cotton
Bee wax		Cane Molasses
Mineral water		Animal Fodder
Natural Honey		Broom corn

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.

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