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Ethiopia cut flower industry blooms wider

The Ethiopian flower industry emerged in the late 1990s, and despite being a late-comer, Ethiopia has become the second largest flower exporter in Africa (after Kenya). Projections are for even further future growth. Exports are expected to reach $550 million by the end of 2016.

The Ethiopian flower industry represents an extraordinarily fast and successful diversification into a non-traditional export product. Climate conditions have made Ethiopia a favourable cultivation site for such products as it is situated in the tropics, with its diverse range of altitudes. Additionally, the Federal Government, the Ethiopian Horticulture Producers and Exporters Association (EHPEA), and international investment played key roles in Ethiopia’s floriculture industry development.

The EHPEA, which included private sector entrepreneurs, has been instrumental in gaining government support in the sector. The organisation’s aim was to promote the sector. Following recent ethnic violence and reduced labour force in Kenya, Africa’s number one global flower exporter, investors and producers needed to diversify and invest in other countries.

With good climate conditions and cheap transportation costs, Ethiopia was a favourable choice, especially for the cultivation of roses. State-owned land was made available for flower farms at affordable prices, especially near the airport. This reduced transportation cost facilitated market entry. The government also offered attractive incentives for investors.

Click here to read the complete article at www.busiweek.com.
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