Ethiopia: Flowers to generate $1bn in 5 years

http://upload.wikimedia.org/wikipedia/commons/thumb/4/40/LocationEthiopia.svg/250px-LocationEthiopia.svg.png

Ethiopia will collect $1.4bn from export of flowers over the next five years, Ethiopia horticulture producers' and exporters' association disclosed, saying it has planned an expansion over 4,500 hectares of land over the sector from which, $1.4bn income is expected.

Quoting the chairman of the association, Tsegaye Abebe, the Sudan Tribune reports that the projections stretch on the coming five years. Over 100 foreign investors are currently registered and have engaged themselves in the sector since early Dec. 2007.

“By the end of this year, 125 million USD foreign currency is expected from flower exports’’ Tsegaye said adding, “The expected income of the year we are in will be five-folds compared to what was collected last year”.

The favorable ground and incentives government created for foreign investors such as tax free loans, agricultural land provisions with cheap manpower, and the geography of the nation have invited unexpected number of foreign investors flood to Ethiopia.

http://www.africanews.com/documents/21/06/2106184cfb767a70652a4a56a08b601e.article.jpg

Floriculture, the young horticultural investment but promising, is playing a tremendous role in Ethiopia’s efforts to beat up unemployment and poverty across the nation. It is booming and could one day overtake coffee, its main export commodity, a leader of the horticultural sector forecasts.

Tsegaye Abebe, Chairman of the Ethiopian Horticulture Producers’ and Exporters’ Association, says Ethiopia was currently generating 20 million US dollars annually from flower exports, only one tenth of coffee exports.

"But as expansion of farm areas by over 100 existing foreign and local investors is progressing, the total export income from flower is expected to reach 100 million USD by 2007," the chairman says.

Investors from the Netherlands, Germany, India and Israel are mainly engaged over the investment.

http://www.africanews.com/site/list_messages/14097

thank you storm
..thats great news I would say.

Its good that Ethiopia is diversifying its exports away from just coffee;
the horticulture sector is excellent for a nation that is relatively close to Europe.

I hear they are also doing well in leather products and vegtables and fruits also.

Unfortunately, the government is not encouraging industry to develop at all. In fact, existing industries like pharmaceutical companies, shoe factories, etc are closing because of ridiculously cheap imports whereas the local companies are taxed out of their minds.
You can't develop a country without an industrial backbone and this government is not at all supportive of that.
Horticulture is good in terms of income, however it has a lot of negative consequences. For example, the soil where the farms are can never be used for agriculture again because of all the toxins; the workers in those farms experience a lot of health problems due to inadequate protective gear (inhalation of toxic fumes is a big issue as well as skin irritations).
I guess some people have to be sacrificed for the greater good, but it sucks.

- This is not a good industry. Remember that a lot of these companys are coming from Kenya because their government actually has some worker and environmental safeguards.

- Ethiopia is hopeless to industrialize because of the Albanian Communist government that we have. This governmetn owns everything public and private. It makes me laugh when the "privatize" companys and end up owning it among themselves. They have a stupid "agriculturally led industrialization" economic plan that has not worked and will never work, because of the lack of irrigation and dependable raingall in the country. Not to mention that the government is ethno nationalist and rules with the politics of ethnic hatred. They only gives the best land and businesses to people of their own ethnic group( tigrayans). The opposition named CUD is more economically liberal and is popular but the Ruling gov (Woyane) rigged the last elections. Poor Ethiopia, ruled by its literal enemies and its people are taken hostage by poverty.

Here is another article I found Storm...
It was talking about the vegtables and fuits that Ethiopia has begun exporting:



New line of premium strawberries available for the first time from Ethiopia

http://www.freshplaza.com/2007/1122/fruitworld-2.jpg
Publication date: 11/23/2007

Monday 26th November 2007 will see the introduction of a new line of premium strawberries – the very first to come out of Ethiopia. Fruit World Breda (Netherlands) has selected Ethiopia’s only strawberry grower Ilan Tot plc to supply them with premium fruit for their European Black Label line.

The introduction of Ethiopia as a strawberry growing region opens up possibilities for year-round availability of quickly-delivered, exceptionally sweet, high-quality fruit which, due to initiatives implemented by Ilan Tot plc is being produced in a manner that will meet with the approval of socially conscious consumers.

These Ethiopian-grown strawberries benefit from 1700m altitude and strong sunlight concentrations to make them exceptionally sweet, with average of 10% sugar brix. The difference in taste of the Yuval variety (the main offering) is very noticeable compared to when it’s grown in other countries. The same is true of the other available varieties.

http://www.freshplaza.com/news_detail.asp?id=11756

There are also other projects with fruit: there is a company (BGI Ethiopia I think) that is going to grow apples for export. BGI Ethiopia is also planning a grapevine to produce wine.
Ethiopia is blessed in terms of terrain. Anything can grow there thanks to the different altitudes, climates and soils available.

eta: apples are by GTZ.

Here are some articles:

An apple a day…

The humble apple, so much a part of everyday life in most countries, is a status symbol in Ethiopia and accessible only to a privileged few who can afford up to 10 birr in off seasons for a single fruit. The average salaried family can only drool over the luscious apples in the grocers’ display, comforting themselves that after all, it’s an exotic import.
This situation will not continue much longer if the Oromia Regional Government in collaboration with GTZ, has anything to do about it. A unique project to develop large scale apple production has been launched with selected seedlings and freshly imported saplings from Spain.
The Oromia Regional Government’s bold initiative is augmented by expertise provided by GTZ under its SUN program, which aims to develop highland fruit crops scientifically.
Capital’s Mina Yirga attended a seedling and sapling distribution event in Northern Shoa zone and talked to Martin Newman of German Technical Cooperation (GTZ) and an advisor to the Oromia Bureau of Agriculture and Rural Development.

http://www.capitalethiopia.com/archive/2007/april/interview.htm

Castel Gets Ziway Plot for Wine Production




Finally, the Privatisation and Public Enterprises Supervisory Agency (PPESA) has decided to give the 200hct of land that was administrated by Ziway Agricultural Development Enterprise to the French Castel Group.

Castel requires these tracts of land to grow grapes for the production of wine and has projected to invest 10 million dollars in the sector.

Of the 700hct of land managed by Ziway farm, Sher Ethiopia, a Dutch based flower company, had received 300hct from the Enterprise and started operation on July 1, 2007. After this company requested more land, it has been granted an additional 200hct of land.

Sher Ethiopia built greenhouses fitted with complete infrastructure and rents them to flower and vegetable growers for monthly fees. Companies such as Ethio-Rose, Ziway-Rose, A&A Herbs, Meskel Flower are among other companies using the service of Sher Ethiopia.

Ziway Enterprise, before and after it handed over the land, grows selected seeds like corn, beans and grape. The Enterprise has been selling the selected seeds it grows to such clients like the Ethiopian Seed Enterprise and Pioneer Ethiopia.

As the beans are exported to Dubai, the grape goes to the Awash Winery. Castel was established some 50 years ago and has specialised in producing three mainstream products such as wine, mineral water and beer and soft drinks.

Castel has entered in the Ethiopian market with interest in the beer industry while BGI Ethiopia, under its supervision, leads the market in Ethiopia.

Established in Ethiopia in June 2002 with 105.1 million dollars, BGI Ethiopia is an extension of a French interest that has a significant presence in the West African markets with its beverage and brewery industry. Its shareholders are Brasseries Internationales Holding Limited (BIH) and HEBU Properties Ltd. It is also the owner and producer of two beer manufacturing plants and four beer brands in the country.

Mr. Castel, a French national who is said to be a close friend of Zewdinesh Bekele, who owns BIH, an international bottling company that is involved in soft drinks and the beer manufacturing industry in sub-Saharan African countries.

Zewdinesh, owns also the two popular cafes in Addis Abeba, La Notre and Gebre-tensay Pastry.

The annual production of beer in Ethiopia hit 400,000 litres. BGI Ethiopia leads the market share in terms of sale. BGI is set to break the market monopoly of Awash Winery, as the former prepares to enter into the wine business in Ethiopia. Awash Winery produces 14 brands of wine products in the country.

However, an expert on alcoholic drinks told Fortune that there is still unexploited demand locally as Awash’s products are limited to towns.

Esayas Hadar, BGI’s marketing manager, told Fortune that they are in the process of receiving the 200hct of land.

“We would like to invest extensively in the development of wineries and wine products, and in three years, we should be able to bring new products in the market,” Esayas said.

One official from the Ministry of Trade and Industry (MoTI) told Fortune that those employees of Ziway Enterprise would be expected to be incorporated in the new company and, once the handover took shape, the Oromia Investment Commission and the Ministry of Agriculture and Rural Development (MoARD) would continue to support the company.

http://www.addisfortune.com/Vol%208%20No%20379%20Archive/Castel%20Gets%20Ziway%20Plot%20for%20Wine%20Production.htm

Ethiopia has closed the warehouses of its largest coffee exporters and seized thousands of tonnes of their beans after Africa’s largest coffee producer accused them of hoarding when the country is in dire need of export earnings.

The country is the world’s fifth-largest coffee producer, mostly of the high-quality arabica variety, and prides itself as the birthplace of the crop.

In New York, the benchmark high quality ICE May coffee on Wednesday traded at 116.4 cents per pound, slightly down on the day, but 3.9 per cent up so far this year.

Agriculture analysts are forecasting higher prices later this year and next as Brazil, the world’s largest producer, is likely to produce less in 2009-10.

Coffee prices hit a 10-year high of 165 cents per pound in early 2008.

Ethiopia’s drastic move was prompted partly by a foreign reserves crisis that has seen the country’s dollar holdings plummet to critically low levels.

The government has been wary of free markets since it came to power in 1991 and yesterday’s move suggested that it was trying to rein in the consequences of a bold experiment that it embarked on last year when it opened a commodity exchange.

Some exporters have been reluctant to sell stocks through the Ethiopian Commodity Exchange because they said prices were too low.

Others resent the scrapping of the previous auction system.

The government had ordered the coffee houses to export the beans, with Meles Zenawi, prime minister, threatening in January to “cut off the hands” of those holding on to them in the hope that prices would rise.

Tefera Derebew, agriculture minister, told Reuters yesterday that the 17,000 tonnes of seized stocks would be sold on the international market and the proceeds returned to the owners.

One Ethiopian analyst said the plan was equivalent to the “partial nationalisation” of the trade.

Coffee is one of Ethiopia’s main exports alongside tea and leather.

Copyright The Financial Times Limited 2009

How much money does Ethiopia have in their foreign exchange reserves anyway?

Anyway, not a good move and it shows a message that the government is getting desperate.

Expropriation is never a good move and will knock confidence in the country's economic authorities. Many countries are not able to accept the outcome of free markets , the notion that one would like to hold on to their produce is not one that many governments can fathom

Well Ethiopia isn't a free market oriented economy to begin with. So this sort of government "intervention" isn't that surprising. Chavez did the same thing with an American Rice company last week.

Ethiopia = Albanian Maoist State. It wont stop until they are overthrown.

Ethiopia = Albanian Maoist State. It wont stop until they are overthrown.
great...and then what...any bright ideas?

great...and then what...any bright ideas?

Hmm... I don't know perhaps a government that believes in capitalism, private ownership, competition ect. Really one can only go up from having a system that mirrors Albania during the cold war. :lol:

Well Ethiopia isn't a free market oriented economy to begin with. So this sort of government "intervention" isn't that surprising. Chavez did the same thing with an American Rice company last week.

Yep.

After being in power for 19 years, this is where Meles Zenawi has "lead" us to. :bash:

great...and then what...any bright ideas?


So you signed up just to be Meles' apologist? :ohno:

So you signed up just to be Meles' apologist? :ohno:

No but after 2 coup d'etats along with the TEMPORARY landlocked status of the country (assab ;)) in the last 40 years I've learned to look down on anarchistic and emotion-based behaviour.
As any person, I was trying to put the horse before the cart. I was merely asking a question to African Lion.

Even the Djiboutian First Lady invested in the Ethiopian Flower Industry even though in Djibouti the investment news created a debate over where the money came from and generally the investments from the president's family in neighboring Ethiopia are not welcomed by the population.

http://www.ethiopianreview.com/content/3031

APA-Addis Ababa (Ethiopia) Ethiopia and China agreed on Tuesday to increase their trade volume to $ 3 billion in the next six years.

The two countries agreed to strengthen their volume of trade as part of a new Chinese initiative to boost their cooperation.

Accordingly, the two sides agreed to double the volume of trade exchange to three $3 billion by 2015.

It has been reported that Chinese Foreign Direct Investment to Ethiopia has reached $1.5 billion.

Ethiopia and China have also signed an agreement enabling China to offer preferential market access to Ethiopian exports to China.

The Ethiopian Trade and Industry Minister, Girma Birru and the visiting Chinese Commerce Minister, Chen Deming signed the agreement.

According to the agreement, the new agreement covers more than 95 per cent of Ethiopia’s export to China, which is expected to increase the two countries’ volume of trade.

“Trade exchange between the two countries has been growing by 35.6 per cent annually on average in particular over the past eight years,” said Birru.

He also indicated that some 1000 Chinese projects have been registered to invest in Ethiopia.


DT/daj/APA
2010-01-13

Export earnings from Khat during the first six months of the current fiscal year surpassed the target and the income secured from major foreign currency earners including flowers, customs’ latest data indicated.

According to the export data, close to USD 98 million was obtained from the export of khat during the reported period, an amount about ten percent higher than the Ministry of Trade and Industry’s projection.

The income from khat exceeded earnings secured from major exports including flowers and gold, which, respectively, fetched USD 73.5 million and USD 65.4 million during the reported half year. :lol::lol::lol:

Despite the upbeat in the performance of khat exports, major export items including coffee have performed well below target.

The export data indicate that proceeds from coffee and oil seeds exports, the top foreign currency earners, were 38 percent and 12.5 percent below the projection set by the Ministry of Trade and Industry.

Close to USD 163 million and USD 119 million was secured from the export of coffee and oil seeds respectively during the review period while the ministry’s target stood at USD 263.7 million and USD 136.4 million.

The data indicted that earnings secured from most of the main export items were below target, which made the proceeds from obtained from the overall export 40 percent lower than the projection.

Some USD 709 million was secured from the overall export during the stated six months while the target stood at USD 1.19 billion.

The share of industry in the six month export was 67.4 percent.
Export performance, in Ethiopia, habitually falls short of its target. In 2007/08 only one billion dollars was earned, about 33 percent lower than targeted. The following year the performance fell by 40 percent of its target.

Setting ambitious targets is imperative since Ethiopia has a considerable potential, Minister of Trade and Industry Girma Biru says.

Despite this observed gap, however, available data shows that export performance has been growing year on year

http://en.ethiopianreporter.com/content/view/2210/26/

I am predicting that in 10 years half of the arable land will be used for Khat ( chat) cultivation. :ohno::ohno:

This is sad, in the future when everyone is addicted to khat. Everything will run even slower in Ethiopia.:ohno: Even tho i think most importers are Somalis living in UK or Holland (its legal there).

Yemen also imports a whole lot. We need to stop this in Ethiopia. It's absurd that people get routinely high in a country this poor. It's just so nasty as well, they look like freaking goats, with cheeks full of leaves :ohno:

they look like freaking goats
:lol:

abesha,
If you squeez those guys who are chewing Qat, their blood type is G+ (green). The only creature with such a blood type is a grasshopper!
http://photos.jameselliot.co.uk/albums/Alps2006/thumb_2006July10_Grasshoper01.jpg

It is really disgusting for a human to chew Qat!

BTW: Do you know that Qat in Tigray & Gambela region is prohibited? It should be banned for good from the rest of the country as well.

This **** should be banned ASAP.

This is sad, in the future when everyone is addicted to khat. Everything will run even slower in Ethiopia.:ohno: Even tho i think most importers are Somalis living in UK or Holland (its legal there).

No, most Ethiopian khat that is imported ends up in the mouths of Northern Somalis and Djiboutians.

Somalis spend $300,000 per day on khat from Kenya alone, and I know for sure that Somalia imports more of it from Ethiopia!

Most khat that ends up in Western countries is from Yemen.

Tons of the stuff ends up in Heathrow Airport every month, and then they bring it to the US and Canada where khat is 10 times the price.

Only thing that I agree with Al Shabab and other Islamic groups is that they want to ban the stuff! Makes you lazy and irritable!

Khat is an important commodity for farmers in Harar, Gurage and other regions. As a major cash crop, its production, distribution and consumption is vital to those regions as well as to the bottom line of Ethiopian govt. It is stated that Ethiopian Airline was founded to deliver fresh khat in Djibouti and Somalia. So those who are rooting for a total ban should get their facts straght. Millions of farmers, middlemen, traders and the govt alike benefit from this massive trade. As much as i think as a drug its consumption should be regulated and discouraged, it is easier said than done. What the govt should institute is restrictions of its use on certain days of the week, thus streamlining its use during weekends and lay days.

There is a pro and con to the use of this drug. Some of its use is beneftial for considering the massive unemployment in Ethiopia and the region,it is a time consuming endeavour for those without jobs and prospects there of. Any attmept to ban this substance will only make it the instrument of organized criminals.

For now, it is advisable for the govt to insitute 2 or 3 days when the use of it is prohibited.

I will say alkohol is more harmful than chat.I am against all forms of substance but one should weight the cons and pros of banning Chat.Chat is a ery mild stimulant ,chewed in moderate quantity wont have advrse effect but chewing in a big quantity is harmful. but still not as harmful as alkohol.
Banning wont work it will just encourage illicit activity land eads to extra resource wasted in enforcing the ban.
What would help is education, massiv campagin in conditionning the next generation.
And one shouldnt ignor the economical impact , export fc earnings ,farmers ,merchants ,transport companies will be affesct if banned.
Social aspect will be affected adversly if banned etc.....

If we have to ban all stimulant crop tea and coffee are also in this category. There is no scientific evidence to conclude khat as a drug instead it is a very mild stimulant. I think cigarette and alcholo are much more dangerous than khat. Resarches indicate the addiction is mainly psychological rather than chemical, therefore the notion of banning it is ridicules.

More research has to be done to identify the medical property of this crop and flavoring foods and drinks with khat has to be considered. I read an article about khat flavored wine being introduced and how well it was received in that specific display.

But the gov't can do sth to discourage its consumption in the country, put more tax in local consumption and encourage its export by decreasing the export tax on khat.

Moreover we are missing the social value of this substance in the Eastern part of the nation. I lived in Dire Dawa for 2years and i don't have word to explain how close and tolerant this tradition of chewing chat made the people.

Khat is an important commodity for farmers in Harar, Gurage and other regions. As a major cash crop, its production, distribution and consumption is vital to those regions as well as to the bottom line of Ethiopian govt. It is stated that Ethiopian Airline was founded to deliver fresh khat in Djibouti and Somalia. So those who are rooting for a total ban should get their facts straght. Millions of farmers, middlemen, traders and the govt alike benefit from this massive trade. As much as i think as a drug its consumption should be regulated and discouraged, it is easier said than done. What the govt should institute is restrictions of its use on certain days of the week, thus streamlining its use during weekends and lay days.

There is a pro and con to the use of this drug. Some of its use is beneftial for considering the massive unemployment in Ethiopia and the region,it is a time consuming endeavour for those without jobs and prospects there of. Any attmept to ban this substance will only make it the instrument of organized criminals.

For now, it is advisable for the govt to insitute 2 or 3 days when the use of it is prohibited.

You're right, totally banning the khat would be unrealistic in Ethiopia as the country gets millions of dollars from its export. Destining the plant for export rather than local consumption would be, I guess, the best option for Ethiopia to limit its population from chewing it while still encouraging its export.

Djibouti is actually one of the main importer of khat (if not the biggest) from Ethiopia and I'm amazed look at figures and realize we pay more money for khat imports rather than vegetable imports from Ethiopia. Millions of dollars sent away to get high! Besides, the social effects it cause are numerous.

You're right, totally banning the khat would be unrealistic in Ethiopia as the country gets millions of dollars from its export. Destining the plant for export rather than local consumption would be, I guess, the best option for Ethiopia to limit its population from chewing it while still encouraging its export.

Djibouti is actually one of the main importer of khat (if not the biggest) from Ethiopia and I'm amazed look at figures and realize we pay more money for khat imports rather than vegetable imports from Ethiopia. Millions of dollars sent away to get high! Besides, the social effects it cause are numerous.
Then why don't we start exporting cocain while we are at it.:nuts:

The khat consumption is growing in Ethiopia, half of the taxi drivers are high on that shit. I understand the problem with so many people being dependent on khat exports, but the government should try to get them to switch to coffe or something else. Either that, or banning khat use in Ethiopia and only making it available for export.

Djibouti is actually one of the main importer of khat (if not the biggest) from Ethiopia and I'm amazed look at figures and realize we pay more money for khat imports rather than vegetable imports from Ethiopia. Millions of dollars sent away to get high! Besides, the social effects it cause are numerous.

Social and economic. The mass usage of qat wastes untold potential hours of productivity that could help economic growth in these nations that sorely need more. And for many families that have an addict (usually the dad who spends more time chewing and drinking tea with his friends than with his children), it plays an incredibly disproportionate amount of the family budget.
The potential damage that it does with families is like alcoholism in the West.

Ethiopia can do what it wants with qat exports but I don't like the idea of it encouraging addiction in our countries while telling its own residents not to touch the stuff. Djibouti (and Somalia eventually when it gets it's acts together) needs to introduce a tax on qat imports and try to discourage the youth from using it with anti-drug programs, and create drug rehabilitation centers to help former addicts get on with their lives. Don't ban it, but discourage it's use by educating people of the damage that it does within society, this stuff is robbing us.

Of course that is hard to do when it's usage is so ingrained in culture!

Social and economic. The mass usage of qat wastes untold potential hours of productivity that could help economic growth in these nations that sorely need more. And for many families that have an addict (usually the dad who spends more time chewing and drinking tea with his friends than with his children), it plays an incredibly disproportionate amount of the family budget.
The potential damage that it does with families is like alcoholism in the West.

Ethiopia can do what it wants with qat exports but I don't like the idea of it encouraging addiction in our countries while telling its own residents not to touch the stuff. Djibouti (and Somalia eventually when it gets it's acts together) needs to introduce a tax on qat imports and try to discourage the youth from using it with anti-drug programs, and create drug rehabilitation centers to help former addicts get on with their lives. Don't ban it, but discourage it's use by educating people of the damage that it does within society, this stuff is robbing us.

Of course that is hard to do when it's usage is so ingrained in culture!

You're right, khat consuming nations like ours should seriously think about imposing restrictions on it. In Djibouti its negative impacts are felt every day, low productivity, social problems, people with low income still purchasing it (by the way, the khat is most expensive in Djibouti, in the region), family breakdown ect...

Thanks God, the situation is still better than in places like Yemen where it is chewed even in offices, but we need more regulations to reduce its consumption. A significant tax increase could be the first step, less people could afford it. Then sensibilisation campaigns, more leisure for the young to divert them, more working hours so there wouldn't be time to chew it (the average khat session here is around 6 hours), less selling points to make it less available ect...The money sent away could be spent locally, higher productivity, less social problems due to khat ect...

But the khat importer here are well organized and of course opposed to such ideas. They form two companies (where shares are issued) that are very influent. They constently brand the economic argument, sayin they employ a lot, they even play in politics by financing the rulling party's campaigns.

In order to change that, we have a long battle ahead.

You're right, khat consuming nations like ours should seriously think about imposing restrictions on it.
That would be the best for everyone. Less demand will indirectly force the Ethiopian farmers to 'go for something else'.

The current trend in the United States is allowing Marijuanna use for ' medical purpose'. o A number of States has this ' dangerous drug' legalized from California to Colorado. Numerous mom and pop shops are poping up everywhere from Oakland to Denver. The latest reports from Boulder, Colorado is alarming. Marijuanna purveryors have set up shop in university campuses and doing brisk buisness. A visitor from Los Angeles was ecstatic about the ' buisness opportunity' in the college town for numerous sophomores were at the ' clinic' trying to get their medical ' fix'. The Colorado legislator looking for revenues is looking at legalizing Marijuanna and not the one approved by so called medical doctors. My cousin is telling me that the situation in California is getting out of hand as for a fifty bucks or less any doc will write a prescripition for this dangerously adictive drug. Lately, the President has indicated that the DEA wont be enforcing marijuanna laws if those were legal in the respective jurispendence. I think this consititutes enormous problems for all of us as a lot of these junkets will be roaming the highways and byways of these United State. We know how ethical the medical profession is and how corrupt those who practice it. And I was shocked when the Colorado dispensary waiting room was filled by young able bodied individuals and not cancer patients or others with terminal disease. This is troubling at the least. Numerous states like New Jersey and Washington Dc are looking to these to shore up their finance.

We have enough drunks to worry about on our way to and from work and now the Marijuanna junkets will have our lives ever more miserable.

Compare to ganja, khat or chat or qat is a mild stimulant and its effect is very minimal while one is behind the wheels. Drunk driving or driving under the influence is a differnet matter. I tried weed once and couldnt tell whether the sky was blue or dark unlike the time i chewed khat , on limited occasion, in Ethiopia and elsewhere.

I generally agree that folks could sniff, smell or smoke anything their heard desires, provided they dont pose danger to others. If the individual states in the US are allowing wholesale use of illicit drugs under any pretension, it will be a time bomb.

The reasonable approach will be that of Holland where in cities like Amsterdam , any and all drugs are allowed and sold openly in cafes and alike. I think States like California and Colorado and the rest should do the same. Allow limited towns, cities or limited jurisdictions where any drug be it prescribed by a doctor or not is available for all.

I am writing this thread because i just read an article where an Ethiopian was caught chewing dried khat in Memphis. I know of a fellow of Yemeni decent who chews it to curb his appetite and soothe his diabetis. So not all chat chewing is without benefit.

Generally speaking, it is not in the interest of the Ethiopia to ban this mild stimulant. If California is allowing wholesale ganja smoking based on suspicious maladies, the Diabetic patients do have right to get their quat in the US, legally. I think marijuanna is a lot more harmful than khat and allowing weed heads on the freeways will have to be a hundred times more deadly than the poor chat chewing cabbie in Addis who is trying to stay awake while his clients were schmoozing. Speaking about khat addicts, why is drunks allowed to roam the streets while the formers are scrutinized.

Finally, I am neither an expert on matters related to Khat. But, i rather chew it than sip a couple of martinis and get behind the wheel. I am sure there is a consensus to that effect.

Given the massive economic benefit which is derived from khat , more studies are needed before we jump on the band wagon of ' Prohibition'.For now curbing the days when it will be consumed suffices.

Khat is being chemically altered in some parts of the US and changed into a much more potent drug. This is a serious issue. Imagine if that mess comes to Ethiopia??
They're basically starting to do with khat what happened with coca leaves (i.e. cocaine).

Nobody says it should be banned, but the health and psychological risk that comes with the abuse of it should be recognized.

It is a drug, full stop.

Ethiopian exports rose 37 percent to $2 billion in the fiscal year through July 7, Amakele Yimam, communications director at the Ministry of Trade and Industry, said by phone today. Exports exceeded government forecasts by 25 percent, Yimam said.

37% is a lot, I wonder, can we trust the stats we get from our government? Indeed great news if true.

Nice work Ethiopia, go on!

Ethiopia plans to increase Its Garment Export Revenue to One Billion US dollars after five years

ENA

Ethiopia announces plan to increase the annual export revenue it gets from the export of garments to one billion US dollars after five years, its Textile Industry Development Institute announced.

In an exclusive interview with ENA on Sunday, Institute Director, Sileshi Lemma said the country has already launched activities geared towards attaining the one billion US dollar export revenue goal it anticipates to get.

He said the country would try to minimize its local garment consumption which stands at 90 per cent currently and raise export volume during the reported period.

The amount in which the nation planned to get during the reported period will be 40 times that of the sum it got during the just-ended budget year which stands at 25 million US dollars.

He said the country aspires to obtain some 100 million USD from export of textiles in the current Ethiopian budget year.

The sector has shown remarkable development in the last five years, he said. The amount of foreign currency secured from export of garments has reached 25 million US dollars in 2009 from only four million USD some eight years ago.

According to the director, some 42 medium and high-level enterprises in Ethiopia engaged in the textile sector were taking part in the export trade directly or indirectly.

Can they do it?

Great news but I don't know if I can believe these numbers provided by the government. do we have other independent/verifiable sources?

China Taking Steps to Boost Exports From Ethiopia, Ambassador Gu Says

By William Davison - Sep 17, 2010 10:46 AM GMT+0200

China is taking steps to increase the volume of goods it receives from Ethiopia, the state-owned Ethiopian News Agency cited Chinese Ambassador Gu Xiaojie as saying.

China is using policy measures such as zero tariffs on products from developing countries and organizing trade fairs for Ethiopian exporters to improve the balance of trade for the Horn of Africa nation, Gu said in an interview, according to the Addis Ababa-based agency.

Trade between China and Ethiopia totaled $785 million in the first half of 2010, an increase of 27.6 percent from the same period last year, ENA cited Gu as saying.

The ambassador said exports to China from Africa’s largest coffee producer increased 163 percent to $215 million in 2009. The value of 1,230 Chinese investment projects in Ethiopia was $2.5 billion, he said.

Zero tariffs and promoting trade with developing countries.. :applause:

Since when have we been "Africa's largest coffee producer"? And why, then do I see Kenyan coffee often and Ethiopian less than half as much?

Since when have we been "Africa's largest coffee producer"? And why, then do I see Kenyan coffee often and Ethiopian less than half as much?
I have heard that a while back..

Ethiopia has always been the top coffee producer on the continent.

Ethiopia has always been the top coffee producer on the continent.
I think Kenya was ahead of us a while back, Ivory coast is a big producer as well..

African production is just around 10% though, the kings are Brazil, Indonesia and Vietnam.

I've never heard of other African countries producing more than Ethiopia. Even Uganda produces more than Kenya (in fact, it's the 2nd highest producer). Are you sure?

ethiopias coffe production fluctuates, ethiopia was the largest producer in the 90 , 3rd largest in the 00 ect.growth projected to 1,6 per annum , production 3-3,5 million bags (1bag=60 kilo) , half of the production is consumed in ethiopia.

I think Kenya was ahead of us a while back, Ivory coast is a big producer as well..

African production is just around 10% though, the kings are Brazil, Indonesia and Vietnam.

We ought to be one of the kings!

Delegation hails Ethiopia’s flower dev't methods, safety for workers

http://www.waltainfo.com/resource/sw_fl.jpg

Addis Ababa, September 23 (WIC) - The Norwegian and British Parliamentarians delegation has appreciated Ethiopia’s environmental friendly flower development methods and safety being offered to workers engaged in the sector.

After visiting the ET-Highland Flower Farm in Sebeta town, members of the delegation hailed the due attention paid by the government of Ethiopia to the floriculture development sector.

The parliamentarians further said that investors could benefit more if they engage in floriculture in Ethiopia as there is a high demand for Ethiopia’s high quality flowers in various European markets.

They also pledged to do everything possible to promote Ethiopia’s flowers while returning to their respective countries.

Owner of ET-Highland Flower Farm and President of the Ethiopian Horticulture Producers and Exporters Association (EHPEA), Tsegaye Abebe, on the occasion told the parliamentarians about the flower development sector in Ethiopia.

He said the sector is growing vary rapidly following the conducive investment policies put in place and various incentives being given by the government, including loan service.

He further said the rising demand for Ethiopia’s flowers at the international markets is contributing for the sector to grow fast.

According to Tsegaye, Ethiopia is the second largest flower producer in Africa next to Kenya. Currently a total of 1, 550 hectares of land is covered with flower development in Ethiopia.

The nation earned 170 million USD from flower export in the just ended Ethiopian budget year, he noted. - Walta

60bn5XaP8Ic

Ethiopia's flower industry has come along way. Its impresssive to note that the existing potential is still very huge.

BY NEW BUSINESS ETHIOPIA REPORTER (http://www.newbusinessethiopia.com/index.php?option=com_content&view=article&id=302:ethiopias-export-witnessed-rapid-shift-report-&catid=35:trade&Itemid=12)

http://www.newbusinessethiopia.com/plugins/content/fboxbot/thumbs/ethexport1_349x229_c89c7a7e899cff803e623bf5ab719655.jpg

The destination of Ethiopia’s exports is undergoing rapid shifts, with some long-standing markets being replaced by unexpected new destinations, reveals new report.

China, which was the leading importer of Ethiopian goods two years ago has now shifted to Switzerland, according to the ‘Ethiopia’s export performance’ report released by Access Capital, a local firm engaged in research and various investment activities in the country.

“In terms of overall ranking, Switzerland is now at the top of the list having bought 224 million US dollars of goods from Ethiopia compared to the 215 million US dollars bought by China and the 196 million US dollars bought by Germany,” the report released this week noted.

“Each of these top three destinations for Ethiopia’s exports take up roughly 10 percent of the country’s total exports. The unexpected ranking of Switzerland reflects the purchase of gold by Swiss banks and is in line with a common worldwide pattern of trade in gold between commercial and/or central banks.”

Ethiopia’s annual exports recently reached a never-before-seen level of 2 billion US dollars, a growth of 38 percent from the year before. In terms of exports by country of destination, the big surprise—and one with a clear policy message—is the significant role that “South-South” trade linkages can play for Ethiopia’s export prospects.

Only four out of the top ten markets for Ethiopia’s exports were located in the conventional ‘West’ (Switzerland, Germany, Netherlands, and U.S.) while the other six countries are in what might be termed as the ‘South’ (China, Somalia, Saudi Arabia, Sudan, UAE, South Africa), the report stated.

“It is also striking that countries with very low per capita incomes and highly unsettled /dysfunctional domestic political environments (Sudan and Somalia) are now larger markets for Ethiopia’s exports than some of the world’s richest and most stable countries. Thus, without neglecting long-standing historical trade links, Ethiopia’s exporters would be well-served by paying equal attention to increasingly important neighboring and regional markets in the developing world.”

The report further noted that beyond the top three markets, surprising shifts are taking place in the markets for Ethiopian exports. The 4th, 7th, and 10th largest export markets for Ethiopia are now other African countries: Somalia, Sudan, and South Africa, with each buying 172 million UD dollars, 115 million US dollars, and 74 million US dollars in Ethiopian products respectively.

“The growing role of “South-South” trade is also evident in the fact that the 6th and 8th largest markets for Ethiopian exports are now Saudi Arabia and the United Arab Emirates respectively. Indeed, somewhat to our surprise, we find that Somalia, Saudi Arabia, Sudan, UAE are each individually now bigger export markets for Ethiopia than is the United States or Italy or Great Britain or Japan.”

Efforts to improve the diversification of Ethiopia’s export products are certainly working, as seen in the steady drop in the share of coffee exports, according the report. “But the unusual concentration of most non-coffee exports on just a single country market can hold back future growth and warrants a search for supplementary markets."

"Addressing this situation seems to call for a combination of more aggressive market opening efforts (e.g., focusing trade promotion efforts in unexplored markets), upgrading quality, and widening the specific sub-categories of non-coffee exports in which Ethiopia may have specialized to date,” Access Suggested.

With respect to the objective of moving into higher value-added exports, this clearly remains in its very early stages and the limited progress so far indicates that manufacturing sector exports (leather products, processed meat, or clothing) are still facing greater domestic obstacles compared to agricultural and raw material exports (such as coffee and gold), the report also indicated.
Somalia was a surprise. Even though most of it is probably from khat exports, what more is being exported there?

More khat.

Exports are still mainly raw materials or agriculture. I don't think the manufacture business will pop of before the proper infrastructures are in place.

Interview with Japans ambassador..

Q: The government is trying to encourage a lot of foreign direct investment. Are there any plans in the pipeline or steps taken to attract Japanese investors to Ethiopia?

There are no projects in the pipeline. I always encourage my fellow business people to pay more attention to Ethiopia.

Big business in Japan is very cautious and feels that Ethiopia is a difficult market to enter.

That is the impression for which there are several reasons. The banking regulations; the country being landlocked, with so many commodities coming and going through Djibouti, which is far as well as away and where things take time to clear customs; the comparatively high cost of transportation, marketing and transactions are some.

Another is infrastructure. I appreciate that the government has been making enormous efforts to improve infrastructure, and that efforts are still going on. I think infrastructure, particularly communications which is very important to do business, is poor. IT infrastructure should improve.

Exports are still mainly raw materials or agriculture. I don't think the manufacture business will pop of before the proper infrastructures are in place.

Interview with Japans ambassador..

So it seems that being landlocked is itself a problem. It's good to see people noticing this.

It is, but it isn't the main problem. Look at all the landlocked countries in Europe. I don't think the Japanese use that argument against Switzerland for example.

I think the main problems are the lack of effective infrastructure (proper roads, railway), lack of broadband networks and stable, fast, telecom services.

We won't see major investments before those issues are solved.

Do you guys know your own economic markets or is it just stereotypes?:

Food, beverages and tobacco (SITC sections 0+1) and crude materials (excluding fuels), oils, fats (SITC sections 2+4) accounted for a large part of Ethiopia's exports in 2009: respectively 48.9 and 35.4 percent of exported goods (see table 1). In 2009, China, the Netherlands and Somalia were the top three partners for exports (see table 4). Inedible crude materials (except fuels), animal and vegetable oils, fats and waxes (SITC sections 2+4) accounted respectively for 83.7 and 88.4 percent of exports
to China and the Netherlands. Food, live animals, beverages and tobacco (SITC sections 0+1) accounted for 99.9 percent of exports to Somalia. In addition to coffee,whether or not roasted or decaffeinated (HS code 0901), other important exported products were other oil seeds and oleaginous fruits (HS code 1207) and cut flowers and flower buds of a kind suitable for bouquets (HS code 0603) (see table 3).-Link (http://docs.google.com/viewer?a=v&q=cache:4kc0W--GUB0J:comtrade.un.org/pb/FileFetch.aspx%3FdocID%3D3457%26type%3Dcountry%2520pages+ethiopian+exports+to+somalia&hl=en&gl=uk&pid=bl&srcid=ADGEESgfaaXwccO_LvXmIVpNYSjcGfDLIlFDDTmvPmD_Zi37hdwl5P2V8eTyG0MopmdXFNaqvkamkZaCH0CoRYBkLFPgyhtxYlVLYdzyyeeh5yudJWv7reYBVwC66a5-bqKZwR0B-86u&sig=AHIEtbR-4csgMR6xx_S2_7vKsxEwyCYy6g)

We get most of our Khat supplies from Somali farmers in Kenya.

Do you guys know your own economic markets or is it just stereotypes?

LOL, seriously.

There is a strong livestock trade, the Ogaden region is heavily integrated economically with Somalia.

Always good to see more Intra-African trade.

Do you guys know your own economic markets or is it just stereotypes?:
Mainly stereotypes! :D I assumed that the Ethio-khat export would be as strong as in Djibouti. Tobacco is listed, doesn't that include khat? The livestock trade is huge, but most of it is smuggled, I am not sure if that's counted.

So is the khat coming from Kenya being flown in from Nairobi? Because it has to be fresh right? Is there a quality difference between Harar khat and Kenyan khat? (what's the advantage of importing it from Kenya)

I've never tried it, and have no intention to do so either, I think that question would suit Ras Siyan better.:)

:lol:

I've never tried it, and have no intention to do so either, I think that question would suit Ras Siyan better.:)

Sxb, give the brother a break. He's a great ambassador for his nation.:)

Mainly stereotypes! :D I assumed that the Ethio-khat export would be as strong as in Djibouti. Tobacco is listed, doesn't that include khat? The livestock trade is huge, but most of it is smuggled, I am not sure if that's counted.


It's not "smuggled", people are just doing what they have been doing for centuries, as nomads bringing their livestock to market. The Ogaden is inland and closest to Somali ports. Remember, there really is no discernible border between Somalia and Ethiopia, you can easily slip in on both sides.

Personally I find it to be more of a legitimate trade than khat dealing, now THAT'S smuggling. :)


So is the khat coming from Kenya being flown in from Nairobi? Because it has to be fresh right? Is there a quality difference between Harar khat and Kenyan khat? (what's the advantage of importing it from Kenya)

I think the only reason is because flights between Somalia and Kenya are more regular than with Ethiopia.

Also, I believe demand has fallen in recent years.

I've never tried it, and have no intention to do so either, I think that question would suit Ras Siyan better.:)

:bash: Why me????

Anyway, to answer Yoniii's question the Ethiopian khat (Harari) is usually seen as being of better quality. Even Yemen (where the Khat chewing tradition originated) imports Ethiopian Khat. Even here in Malaysia, the Ethiopian khat is brought and not the Kenyan Miraa.

I haven't tried the Miraa, but it is stronger, leaving you with hallucinations. Kinda crazy...

Sxb, give the brother a break. He's a great ambassador for his nation.:)

Jacfar, nin rag ah ayaad tahay yaakh! :wink2:

:bash: Why me????

Anyway, to answer Yoniii's question the Ethiopian khat (Harari) is usually seen as being of better quality. Even Yemen (where the Khat chewing tradition originated) imports Ethiopian Khat. Even here in Malaysia, the Ethiopian khat is brought and not the Kenyan Miraa.

I haven't tried the Miraa, but it is stronger, leaving you with hallucinations. Kinda crazy...
I see, thanks for clearing that out. I guess the hard stuff is preferred in the South! :D

It's not "smuggled", people are just doing what they have been doing for centuries, as nomads bringing their livestock to market. The Ogaden is inland and closest to Somali ports. Remember, there really is no discernible border between Somalia and Ethiopia, you can easily slip in on both sides.

Personally I find it to be more of a legitimate trade than khat dealing, now THAT'S smuggling. :)

Is everything coming from Ogaden? What about the Oromo areas?

I find it strange that the livestock in Ogaden outnumber Somalias by such a large margin (2/3 of Somalias exports).

Is the fact that they are nomads a reason for them to get a "free pass"? "legit" business men must register their products, pay tax, etc. Like in any modern state.

Unregistered khat is smuggling, but as long as it's legal in both countries.. btw. what's Al Shababs stand on khat?

They oppose it.

They oppose it.

True and I hope it stays that way.

Ras Siyan sxb, you misunderstood my comment, it wasn't an insult, I just remembered a comment of yours in the Djibouti thread about Khat and that you tried it, hence why I said; it would be better to ask you since I personally never tried it and so couldn't tell the difference between Kenyan or Ethiopian Khat.

Is everything coming from Ogaden? What about the Oromo areas?

I find it strange that the livestock in Ogaden outnumber Somalias by such a large margin (2/3 of Somalias exports).

Is the fact that they are nomads a reason for them to get a "free pass"? "legit" business men must register their products, pay tax, etc. Like in any modern state.

Unregistered khat is smuggling, but as long as it's legal in both countries.. btw. what's Al Shababs stand on khat?

Khat is a illegimitate trade in my opinion, even if it's legal in both nations. It doesn't add any value to either nations, except for those Ethiopian farmers who find khat farming more profitable than coffee. Personally if I was in charge, I'd tax the hell out of it like cigarettes are here in the West, but I don't expect that anytime soon since the so-called politicians are heavy chewers themselves.

Al Shabab does not like khat. Perhaps since technically khat is haram in Islam (since it is an outside substance that harms the body).

I think export duties are paid at the ports before they are exported the animals to the Arab countries, so it is not an illegitimate trade. It's the Ethiopians who aren't doing their share on this. I'd be surprised if other regions in Ethiopia outside the Ogaden bring in their animals to Somali ports due to distance issues.

Ras Siyan sxb, you misunderstood my comment, it wasn't an insult, I just remembered a comment of yours in the Djibouti thread about Khat and that you tried it, hence why I said; it would be better to ask you since I personally never tried it and so couldn't tell the difference between Kenyan or Ethiopian Khat.

No worries bro, it's all good

Khat is a illegimitate trade in my opinion, even if it's legal in both nations. It doesn't add any value to either nations, except for those Ethiopian farmers who find khat farming more profitable than coffee. Personally if I was in charge, I'd tax the hell out of it like cigarettes are here in the West, but I don't expect that anytime soon since the so-called politicians are heavy chewers themselves.

Al Shabab does not like khat. Perhaps since technically khat is haram in Islam (since it is an outside substance that harms the body).

I think export duties are paid at the ports before they are exported the animals to the Arab countries, so it is not an illegitimate trade. It's the Ethiopians who aren't doing their share on this. I'd be surprised if other regions in Ethiopia outside the Ogaden bring in their animals to Somali ports due to distance issues.
That's the problem, port-countries makes all the profit, the Ethiopian government must enforce some sort of control.

I didn't know that it was forbidden in Islam. I posted a video (http://www.skyscrapercity.com/showpost.php?p=66392163&postcount=76) yesterday where they go to a Muslim settlement in Tigray (the first in Africa according to that video) there they chew khat before prayers. :nuts:

But I am with you on khat, it should be taxed out, last thing we need is people spending time and money on khat.

Khat is a illegimitate trade in my opinion, even if it's legal in both nations. It doesn't add any value to either nations, except for those Ethiopian farmers who find khat farming more profitable than coffee. Personally if I was in charge, I'd tax the hell out of it like cigarettes are here in the West, but I don't expect that anytime soon since the so-called politicians are heavy chewers themselves.

+1

Al Shabab does not like khat. Perhaps since technically khat is haram in Islam (since it is an outside substance that harms the body).

True, just like the cigarettes, weed and all kinda "harmful" substances.

Khat is a illegimitate trade in my opinion, even if it's legal in both nations. It doesn't add any value to either nations, except for those Ethiopian farmers who find khat farming more profitable than coffee. Personally if I was in charge, I'd tax the hell out of it like cigarettes are here in the West, but I don't expect that anytime soon since the so-called politicians are heavy chewers themselves.

Al Shabab does not like khat. Perhaps since technically khat is haram in Islam (since it is an outside substance that harms the body).

I think export duties are paid at the ports before they are exported the animals to the Arab countries, so it is not an illegitimate trade. It's the Ethiopians who aren't doing their share on this. I'd be surprised if other regions in Ethiopia outside the Ogaden bring in their animals to Somali ports due to distance issues.

The Southern Borana are the kings of livestock. I don't know how you find that the Ogadeni have/export more. Perhaps there is some data on it.

Even if they are, do they bring their export eastward? That's my point, not how much livestock they raise.

I'd be surprised if most of the livestock trade from Ethiopia than ended up in Somali ports originated in Oromia and not the Ogaden.

Even if they are, do they bring their export eastward? That's my point, not how much livestock they raise.

I'd be surprised if most of the livestock trade from Ethiopia than ended up in Somali ports originated in Oromia and not the Ogaden.

Most livestocks in Somali ports originated in the Ogaden not Oromia. Not much Oromo businessmen are even found in the Ogaden yet alone Somalia

Even if they are, do they bring their export eastward? That's my point, not how much livestock they raise.

I'd be surprised if most of the livestock trade from Ethiopia than ended up in Somali ports originated in Oromia and not the Ogaden.

I see your point. And I'd be surprised as well in that respect. I'm not privy to that type of info. I don't imagine the Boran would take it there. Kenya would be the most logical route.

Most livestocks in Somali ports originated in the Ogaden not Oromia. Not much Oromo businessmen are even found in the Ogaden yet alone Somalia

I don't think that was the question.

Sesame seeds were traded on the Ethiopian Commodities Exchange (ECX) for the first time on Friday, November 5, 2010, Where officials at ECX where hoping would become the price reference for the international market.

The New York international market is the reference for Arabica coffee and the Chicago market for maize, but there is no global reference for sesame.

“With the start of sesame trading on the ECX, our target is to include sesame from Ethiopia as the global market reference,” Eleni Gabre Madhin (PhD), chief executive officer (CEO) of the ECX, during the first trading.

Although sesame has a significant share in the total items exported from Ethiopia, its export used to be handled by individual exporters or unions. The process to include sesame among the commodities like coffee and maize which are traded by the ECX started in 2006 but the lack of warehouses and quality assurance delayed it.

After Mussie Yacob, (PhD), chairman of the board of directors of Ethiopian Pulse, Oilseeds, and Spice Processor Exporters Association (EPOSPEA), rang the bell to open trading, two types of sesame were traded. Read more (http://addisfortune.com/Open%20Sesame_Commodity%20Exchange%20First.htm)

http://addisfortune.com/Vol_10_No_549_Images/ecx_board.jpg

http://addisfortune.com/Vol_10_No_549_Images/exc_seasam_sale_herald.jpg

China has become number 4 of khat importer following Somalia, Djibouti and England according to Reporter! This is a great opportunity for Ethiopia, any way you look at it. I have heard of numerous Chinese chewing the green stuff and smoking hookah with Ethiopian expatriates in Guanjou and other Chinese cities. I am suspecting that they have found new use for this exotic potent substance. In my previous thread, I mentioned that a diabetic shopkeeper told me that khat was the only remedy he found to fend off the diabetic related complications. Time will tell. If anyone knows why the Chinese are importing so much of the green stuff, enlighten us!

China has become number 4 of khat importer following Somalia, Djibouti and England according to Reporter! This is a great opportunity for Ethiopia, any way you look at it. I have heard of numerous Chinese chewing the green stuff and smoking hookah with Ethiopian expatriates in Guanjou and other Chinese cities. I am suspecting that they have found new use for this exotic potent substance. In my previous thread, I mentioned that a diabetic shopkeeper told me that khat was the only remedy he found to fend off the diabetic related complications. Time will tell. If anyone knows why the Chinese are importing so much of the green stuff, enlighten us!

China! You're serious? That's...uh...great!

26 November 2010

South African consumer goods and foods group Tiger Brands has taken the next step in its African expansion strategy, with the announcement of two investments in Nigeria and one in Ethiopia.

These acquisitions are expected to generate a combined annualised turnover of approximately R500-million in the first year.

Tiger Brands has signed an agreement with the East African Group plc to form a new food, household, personal care and cosmetics joint venture which will operate in the Ethiopian market. Tiger Brands will own 51% of the new company, with East African Group and its associates holding the remainder.

"Ethiopia, which has a population of approximately 85 million, has experienced high GDP growth rates for a number of years," Tiger Brands said in a statement this week. "Most categories in the packaged consumer goods sector are enjoying good growth, stimulated by the fast growing economy."

The principal activities of the joint venture will comprise the manufacture and marketing of various home and personal care products, biscuits, flour and pasta, which categories currently form part of the East African Group's existing operations.

The East African Group is the largest manufacturer of detergents in Ethiopia and this business will also form part of the joint venture. - source (http://www.southafrica.info/africa/tigerbrands-251110.htm)

Tiger Brands is South Africa's biggest food company.
http://www.tigerbrands.co.za/Default.htm

The East African Group PLC:
http://www.eastafricanholdings.com/food_indstry.html

That's good.

Sounds nice, but I want to see Woolworth's in Addis! :lol:

is this just retail or manufacturing?

Simfan, where have you been hiding?

It's manufacturing followed by retail.

The principal activities of the joint venture will comprise the manufacture and marketing of various home and personal care products, biscuits, flour and pasta,

East African Group produces all of the above already, but the quality of the personal care products leaves a lot to be desired so this joint venture is really good news. It'll help them improve their technology, R&D, etc, which ultimately means better quality products.

Simfan, where have you been hiding?

In between massive piles of work. :lol:

Ethiopia’s Trade Deficit with EU Declines to -195 Million Euro


Ethiopia’s trade deficit with EU27 during the first nine months of 2010 has declined to -195 million euro from it was -224 million euros in the same period of 2009.

During the first nine months of 2010 Ethiopia’s import from EU27 has grown to 556 million euro from it was 510 million euro in the same period of 2009. Likewise, the country’s export to EU27 in the first nine months of 2010 has reached 361 million euro from it was 286 million euro in the same period of 2009.

According to an official statistics revealed this week during the third EU-Africa Summit, South Africa, Algeria and Libya are the main African trading partners of the EU27. The leading African exporter to EU27 was Libya (20 billion or 21 percent), followed by Algeria (16 billion euro or 16 percent), South Africa (14 billion euro or 14 percent) and Nigeria (10 billion euro or 10 percent).

http://www.newbusinessethiopia.com/index.php?option=com_content&view=article&id=334:ethiopias-trade-deficit-with-eu-declines-to-195-million-euro-&catid=43:regional&Itemid=41

New Delhi, Dec 2 (IANS) Corporate and Minorities Affairs Minister Salman Khurshid Thursday flagged off a consignment of 16,000 day-old chicks to Ethiopia as part of a programme to introduce and breed superior quality poultry in the African nation.

The consignment from a Gurgaon-based poultry breeding company, Keggfarms, consists of a variety of chicken branded "Kuroiler" that can live and thrive in the resource-poor, foraging village environment and yet produce much more meat and eggs than the existing stocks, the company said in a statement.

Also part of the consignment are 4,000 Kuroiler hatching eggs.

The initiative to supply the Kuroiler chicks came after Keggfarms was approached by Flow Equity, a US-based fund, to introduce the chicken in Ethiopia.

Flow Equity is managed by three young US citizens, who are working for the upliftment of social conditions of the African poor, especially in Ethiopia and Uganda.

"Some months ago at the initiative of Arizona State University and Govt. of Uganda, Keggfarms had supplied a batch of Kuroiler Hatching Eggs to Uganda," said the company.

"Not only did the Kuroiler Hatching Eggs yield a far superior hatchability but in the tests being conducted by Arizona State University and the Govt. of Uganda, they are hugely outperforming the local birds."

This Kuroiler variety is proven to be capable of expressing its genetic potential in a scavenging village habitat. Such chicken can produce up to 150 eggs, compared to 40 from other local varieties.

According to the company, Flow Equity intends to ramp up their requirement to import 100,000 Kuroiler chicks per month within the next few months.

"In the larger sense it represents the potential of an Indian mindset, an Indian approach and an Indian product to play a significant role in the upliftment of the poor in Africa," said a Keggfarms spokesperson.:|

You gotta love the Americans. They'll do things even when it doesn't necessarily benefit them. With all the praise we give to the Chinese for their investments, you'll never see their Universities or citizens taking up an initiative like this.



(btw I know some of y'all were thinking something else when you first read "16,000 Indian chics" lol)

"In the larger sense it represents the potential of an Indian mindset, an Indian approach and an Indian product to play a significant role in the upliftment of the poor in Africa," said a Keggfarms spokesperson.

Really dude?
It amazes me when I hear these Indian commentators sometimes. The average African lives better than the average Indian. They have nothing to teach anyone just yet but they think they're already miles ahead of everyone. :ohno:


Anyway, I actually thought it was going to be a chicken farm that was getting established. Good to see that it's directly going to farmers.

(btw I know some of y'all were thinking something else when you first read "16,000 Indian chics" lol)

lol, I must admit initally the thread title indeed caught me off guard.



Really dude?
It amazes me when I hear these Indian commentators sometimes. The average African lives better than the average Indian. They have nothing to teach anyone just yet but they think they're already miles ahead of everyone. :ohno:



India has the largest poor in the world. I personally think that this whole India is booming talk is manufactured by the west to counter China's rising influence and dominance. the largest part of India's economy is the service sector that depends on foreign investment. which can crumble at anytime in this highly competitive and globalized world economy, much like U.S' manufacturing sector. unlike China, India's economy isn't export oriented nor manufacturing based. Africa has nothing to learn from India, at least not at the moment. India needs to clean out it's trash first. those slums will make anyone vomit at any given moment.

^^ ohhh really all hail the new economist on the bloc....woooahh you know alot about India don't you..!!

Nice to see those super chickens in Ethiopia. I would preferred 16 000 Indian super chicks though. :D

India, sure they have some large slums, but we are down there as well so it's pointless to compete for the "who's really the poorest" thrown. What India has, which we don't, is the knowledge and technology in a lot of sectors. So they will at least be able to pull their people out of poverty without relying on foreign expertise like we have to. They have a big cultural problem though, which is the cast system.

Anyways, it was an ignorant comment made by that spokesperson, but lets not make this into a "bash India" thread. :)

"Ethiopia gets 16,000 Indian chicks" - it's a shame it wasn't just that. :lol:

Really dude?
It amazes me when I hear these Indian commentators sometimes. The average African lives better than the average Indian. They have nothing to teach anyone just yet but they think they're already miles ahead of everyone.


Anyway, I actually thought it was going to be a chicken farm that was getting established. Good to see that it's directly going to farmers.

Tell me about it.

You gotta love the Americans. They'll do things even when it doesn't necessarily benefit them. With all the praise we give to the Chinese for their investments, you'll never see their Universities or citizens taking up an initiative like this.

So true.

Anyways, it was an ignorant comment made by that spokesperson, but lets not make this into a "bash India" thread. :)

+1

"Ethiopia gets 16,000 Indian chicks" - it's a shame it wasn't just that. :lol:


+1

that heading can be misleading especially when its shortened

Hi,I am surprised of your knowledge about East African Holdings as many Ethiopians in the country and outside are not much aware of the activities of this company and only know its products, i am just wondering how you got to know the company??

I previously wanted to post a reply to you and wrongly clicked on the report this post icon, sorry for that.

Thanks

India has the largest poor in the world. I personally think that this whole India is booming talk is manufactured by the west to counter China's rising influence and dominance. the largest part of India's economy is the service sector that depends on foreign investment. which can crumble at anytime in this highly competitive and globalized world economy, much like U.S' manufacturing sector. unlike China, India's economy isn't export oriented nor manufacturing based. Africa has nothing to learn from India, at least not at the moment. India needs to clean out it's trash first. those slums will make anyone vomit at any given moment.

india's economy is dependent on private/domestic consumption... 65% of India's GDP consists of domestic consumption... so with more and more people moving in middle class domestic consumption is growing and therefore you can see the growth story of india.... and the consumption will not crumble anytime soon...

In between massive piles of work. :lol:

dont lie, ive seen the American High School system.:lol:

dont lie, ive seen the American High School system.:lol:

What, you don't think we have it bad?

What, you don't think we have it bad?

No way compared to us!

No way compared to us!

Not when you have APs!

Ethiopia Will Replace Imported Metallic Products with Local Ones

The Metal Engineering Industry Development Institute said Ethiopia would pursue a policy of replacing metallic products which it imports with local products in the next five years.

The Institute Director General, GetahunTadele made the statement while presenting its 1st quarter performance report and five year strategic plan.

Metallic products constitute the bulk of the products in which the country imports from abroad.

For instance, he said, metal products in which the country imports from abroad constitute 30-40 per cent of Ethiopia's total import products. This is estimated to be 33 billion Birr in terms of money.

So, he said, the country will replace the metallic products it imports with local ones in the next five years.

ETV Reports

source (http://www.newsdire.com/news/1521-ethiopia-will-replace-imported-metallic-products-with-local-ones.html)

Imports decline for first time in ten years

By Pawlos Belete
Ethiopia’s import growth rate declined by one percent in the first six months of this fiscal year compared to the same period last year, for the first time in more than a decade.

According to a report released by Access Capital for the first time in more than ten years, Ethiopia’s imports are not showing any growth this year. Total imports in the first six months of the fiscal year (July-December 2010) dropped by 1 percent compared to the same period last year; non-oil imports showed an even larger decline of 3 percent during the same period.

The country’s import-to-GDP ratio is now at a level that is not much different from countries such as Kenya, Uganda, and China. In absolute terms, Ethiopia’s annual import of USD 8 billion ranks it as Sub-Saharan Africa’s 7th largest buyer of foreign goods, hence making the country among the largest markets for exporters around the world seeking business opportunities on the African continent.

Capital Ethiopia (http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=14346:imports-decline-for-first-time-in-ten-years&catid=12:local-news&Itemid=4)



Welcome news. Our balance of trade hasnt been too healthy over the years, maybe this signals a change. Hopefully this decrease in imports is followed by import-substitution so our local industry can start to produce more things that were in demand from external sources previously.

By Kaleyesus Bekele

Members of the Ethiopian business community, in collaboration with the Ethiopian government, is planning to host the World Economic Forum here in Addis Ababa next year.



The World Economic Forum on Africa will be held in Capetown, South Africa, this year. A CEO brainstorming session was held on Tuesday at the Addis Ababa Hilton. The CEO brainstorming meeting was hosted by South-West Energy Ltd, the first Ethiopian oil and gas company. Members of the business community, the civil society and major international organizations participated in the meeting. Representatives of the World Bank and the Addis Ababa Chambers of Commerce and Sectoral Associations were also in attendance.

In his keynote address, Tewodros Ashenafi, CEO of South-West Energy, said that the World Economic Forum was an important forum to market Ethiopia and attract foreign direct investment. However, he said the participation of Ethiopians in the forum was very limited. South-West Energy is the only Ethiopian company that is a member of the World Economic Forum.

The participants deliberated on the need to participate in the upcoming World Economic Forum on Africa. They also discussed the possibilities that Ethiopia could host the forum in 2012. Representatives of the business community said it needs the concerted effort of the Ethiopian business community and the government to host the forum in Addis Ababa. Prime Minister Meles Zenawi, who attended the forum last year in Davos, reportedly expressed his wish to host the meeting in Addis Ababa. The forum was every year held in South Africa in the past ten years except in 2009 when it was held in Dar es Salaam. Nigeria and Ghana are also trying to host the forum in 2012.

Amrote Abdella, community manager with the World Economic Forum, made a presentation on the forum’s activities. Representatives of the forum also conferred with Ethiopian government officials about the upcoming event and the possibility that Ethiopia could host the meeting in 2012.

The annual World Economic Forum on Africa, which this year will take place in Cape Town, South Africa, from 4 to 6 May 2011, is appreciated for its frank and informant exchanges that engage business and political leaders in dialogue and partnerships to improve the state of the continent.

Under the theme From Vision to Action: Africa's Next Chapter, the agenda will focus on managing relations with key economic partners and on harnessing key resources to secure significant future growth and development.

http://www.ethiopianreporter.com/english/index.php?option=com_content&view=article&id=1995:efforts-to-organize-world-economic-forum-under-way&catid=100:business-and-economy&Itemid=517

Ethiopia on Thursday said it had generated US$ 1.1 billion from exports in the last five months.

The Ministry of Trade said the revenue exceeded last year figures by US$ 227.5 million.
State media said 35 types of agricultural and industrial products were exported to more than 120 countries during the period under review.
Coffee, gold, khat, oil seeds and live animals accounted for US$ 817.7 million while industrial and agricultural products accounted for the rest.
The Horn of Africa country has set an ambitious target of raising US$ 4.5 billion from exports during the 2011/2012 financial year.
During the 2009/2010 financial year US$ 2.75 billion was realised from exports.
"The revenue the country obtains from foreign trade has been increasing... showing a 20 percent growth," the ministry said.

http://www.theafricareport.com/index.php/2011122950178310/east-horn-africa/ethiopia-rakes-in-$1.1-billon-from-exports-50178310.html

^^

If they got only 1.1 billion in 5 month, how are they going to raise 4.5 billion in 12 month?

it seems like a bit streching, may be when the minisry gave the 4.5 b target they might considering the textile , leather and mining industries have good promising future of export, among othr things :dunno:

A country of 100 milliion exporting 2 billion dollers, that has got to change.

*****Here is some news from the Hindu Times********

Ethiopia Seeks collaboration in a range of sectors from textiles to automobiles

Ethiopian Ambassador to India, Gennet Zewide, on Tuesday sought investments in the areas of textiles, leather, healthcare, milk and dairy products, tourism and chemicals to catch up with fastest growing countries such as India and China.

Addressing government officials, business leaders and chamber representatives to mark the opening of the Honorary Consulate in Chennai, she said the new office would enable them to attract more Indian businesses and investments in priority sectors such as textile, leather, pharma, chemicals, manufacturing and automobile as these areas were found to be in abundance in Chennai.

“Ethiopia is a power surplus country. However, it has shortage in milk and dairy products. We welcome you. Similarly, investments can be made in the field of healthcare as we are according priority to it. We are building awareness about healthcare. We welcome investment in generic pharma to cater to the needs of 80 million people. Our Tourism Minister will be visiting India from February 7 to 12 to do intensive promotion,” she said.

Quoting World Bank, IMF and Economists forecasts, she said “Ethiopia will be the third fastest growing country following China and India this year. Ours is a developing economy. We are a poor country and working hard to develop Ethiopia to where India is at present. We are planning to transform our economy from agriculture to industry in order to join those nations that enjoy a middle income economy in the next 10 to 15 years.”

Mentioning that several Indian firms were engaged in agriculture, leather and leather products, mining and manufacturing making them as one of the biggest foreign investor in Ethiopia, she said that these investments by Indian firms took Ethiopia to yet another level.

While announcing Manikam Ramaswami, chairman and managing director of Loyal Textiles Mills, as Ethiopia's Honorary Consul in Chennai, she said that he had not only invested in cotton agriculture and ginning, but also had spent his time and resources, experiences and expertise to make Ethiopia's textile industry a thriving one. Ms. Zewide said that very soon Chennai would be connected with Ethiopian cities. Currently, a cargo flight was flying between Chennai and Addis Ababa.

Delivering the welcome speech, Mr. Ramaswami described Ethiopia as the fastest growing country in Africa, very safe with practically zero violence, transparent policies, transaction cost free administration, nice locations and above all it had India friendly people.

Describing Ethiopia as a favourite destination for Indian investors, he said that the key objective of the new initiative was to develop the bilateral relationship by promoting trade and investments from India.

Mayor Saidai S. Duraisamy said that there was interest in co-operation with Ethiopian Government for mutual benefit.

The Office of Honorary Consulate is located at 83, First main Road, R.A. Puram, Chennai -28.

Keywords: Gennet Zewide India visit, Ehiopia-India relations, Ethiopian Ambassador to India

Ethiopia Begins Organic Banana Exports
Friday, 03 February 2012 10:23 Meron Tekleberhan Ethiopian Business News - Latest Business Alerts
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Ethiopia shipped 40 tons of organic banana to Saudi Arabia as the nation begun exporting the fruit for the first time.

International companies have shown an interest to export organic bananas to meet the high demand on the international market.

An agreement is in the process of being negotiated with one of the parties interested in exporting Ethiopian bananas for the export of 200 tons of the fruit to the Jeddah market every week.

Export standard organic bananas are cultivated in the Southern Regional State with more than 3100 hectares of land devoted to the purpose. There are more than 11400 farmers currently engaged in the cultivation of organic bananas in the region.
The Ethiopian Horticulture Development Agency is striving to enhance the quality of bananas cultivated in the country to attract customers on the international market.

With this view in mind the EHDA has imported two different high-yield varieties of South African bananas to distribute among small farmers and private investors in the sector to ensure a supply of organic bananas on the international market.

Presently there is a significant demand for organic bananas in Europe and the Middle East countries which are located in close proximity to Ethiopia.

The first step taken to export organic bananas to Saudi Arabia has been seen as significant development for the horticulture industry.

Source: Ethiopian News Agency

http://www.2merkato.com/20120203853/ethiopia-begins-organic-banana-exports

Ethiopian textile & clothing industry on expansion drive

Ethiopian textile and clothing industry has experienced a major expansion drive and several leading retailers are now sourcing their textile and clothing requirements from the country, allAfrica news agency reported.

The list of retailers sourcing from Ethiopia include, UK retailers like Tesco, Primark and H&M, while the Ethiopian Textile and Garment Manufacturers Association sees still more retailers coming in.

The association President Ato Fassil Tadesse said that presently around 10 percent of Ethiopia’s textile and clothing exports are towards the UK, and around 50 percent are absorbed by other European countries, while the rest 40 percent are destined to the US market.

During last fiscal, Ethiopia’s textiles and clothing exports surged by 28 percent year-on-year to US$ 84.6 million, inspired by which the Government has set a target of taking the industry’s exports to US$ 1 billion by 2016.

The Government has also set a target of attracting around US$ 1.6 billion in foreign direct investment by 2016 to facilitate construction of around 200 new textile and clothing units.

For expansion, the industry would mainly focus on increasing domestic cotton output. Ethiopia has about three million hectares of land suitable for cotton cultivation, but presently cotton cultivation is actually done on only 30,000-40,000 hectares of land.

Mr. Tadesse said the goals set by the Government are very likely to be met as there is an increase in flow of investments from foreign producers, particularly from India, China and Turkey, as well as from domestic firms.

Fibre2fashion News Desk - India
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=118964

CCTV News - Ethiopia's Trading Systen To be Modernized

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