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Reaching a Milestone, Ethiopia Hits $1 Billion in Exports

 
     
 
 















 

   

Ethiopia's revenues from exported items surpassed the threshold of one billion dollars for the first time, thereby creating much excitement within the government circles.

"There was so much calling and sharing of the news last week," said a senior minister, describing the mood among the Ethiopian officialdom.

On Friday afternoon, State Minister of Trade and Industry, Ahmed Tusa, had called the state media for a press conference, where he announced the result, and credited the rural population for the result. He said at the press conference, that what has been registered from the just ended fiscal year represented a 23pc growth when compared to last year.

According to a document prepared by the Export Promotion Department of the Ministry, not only did Ethiopia's export grow by volume and value, it has also been diversified, keeping itself away from what it had once been, a "hostage of coffee". Coffees share in the national export earnings dropped from 70pc in the mid 1990s to 36pc last year.

Coffee's historical place in the Ethiopian economy is being rivaled by oilseeds, and particularly sesame. So are Ethiopia's trading partners shifting in their priorities, with China claiming the number one position, buying 134.6 million dollars worth of primary goods, from the 1.01 billion dollars government said was exported.

 

 
 
 

Experts see the emerging economies factor playing the trick here: aggressive demand to satisfy their growing needs is a pulling factor for third world countries such as Ethiopia, shifting the balance of trade away from their traditional western trading partners, according to an economist.

China is a big actor in this: of the 793,511tn exported to over 100 countries during the last Ethiopian fiscal year, 120,701tn of it was sesame bought by China, earning Ethiopian exporters a total of 105.1 million dollars. It was followed by Germany (99 million dollars) and Japan (79 million dollars).

China uses sesame for cooking oil, whose consumption is increasing by 10pc a year, and represents 16.4pc of the world's total, according to the Chinese Vice Minister of Agriculture.

Yet, Ethiopia's exportable items are still primary products, although the past couple of years have shown a little more diversification from that, according to an economist.  

 

By Tamrat G. Giorgis
Fortune Staff Writer
 
 

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