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The flourishing horticulture sector has now entered
a third region, as the Amhara Regional State
parcelled 718hct of land within a 12Km radius of
Bahir Dar for development of flower, fruit and
vegetable farms. Following the land provision, the
regional government has contacted cut flower
developers and is set to hold a consultative meeting
with them in Addis Abeba within a month.
“We have contacted the regional administration, and
will have further discussions following this
commendable start, Tsegaye Abebe, president of the
Ethiopian Floriculture and Horticulture Producers
Association, told Fortune.
A
senior official from the region said the forum for
the forthcoming consultative meeting would be
organised in collaboration with the Horticulture
Association.
Oromia Regional State
was the first to enter flower farm development,
followed by the Southern Nations and Nationalities
and People’s Regional State (SNNPRS).
The Oromia Region initiated the push into
floriculture development with suitable land
connected to Addis Abeba through comparatively more
advanced infrastructure and proximity to Bole
International Airport.
Many of the pioneers in the industry are situated in
the Rift Valley and in the last three months the
Regional State has been preparing plots in Woliso
and Ambo.
Speaking to Fortune, Alemu Seme, commissioner
of the Oromia Investment Commission, said: “since
the region is suitable for horticultural
development, investors do not take long to
capitalise on land made available for the sector.”
SNNPRS is growing in
popularity with investors.
The Gurage Zone has seen more projects starting,
facilitated by the 600 million Br Addis-Jimma road
project by J&P Dragods Construction Company.
“The link to international markets on the road to
the capital’s airport has been a big draw for
investors,” an official from the Southern Investment
Agency told Fortune.
Regions such as Amhara and Tigray were long expected
to enter the budding sector. However, the latter
prioritised fruits and vegetable farming.
The Tigray region has made 1,000hct of land
available for the development of a vineyard by ten
prominent businessmen who are shareholders of Ethio-Grapes
Plc. This company is set to begin grape production
with an investment capital of 200 million Br.
However, according to Moges Mesfin, head of the
Tigray Investment Bureau, floriculture is going to
be the second priority and suitable land will soon
be made available.
The Amhara region has taken the lead though,
starting to resettle and compensate residents whose
houses occupied the land selected for the flower
farm. The land will only be handed over to potential
investors after the consultative meeting takes
place, a Regional State source revealed.
“Land for the development of flower farms would be
granted free of lease along with other incentives to
be determined through discussions with the
developers themselves,” the source told Fortune.
Dereje Haile, head of
the Amhara Region Investment Office, declined to
comment.
Bahir Dar, which hosts
one of only four international airports in the
country, will use Ginbot 20 Airport to transport its
cut flowers.
“The Ethiopian Airports Enterprise (EAE) is making
preliminary studies to install cold storage
facilities to receive flowers at the Airport based
on the request of the government,” sources
disclosed.
During the 2006/07 fiscal year, the country exported
689 million stems of flowers, earning 63.6 million
dollars, up from the 21.9 million dollars in the
previous year. The volume more than doubled in the
same period.
The country has set out to earn 166.7 million
dollars during the current fiscal year from flower
exports. In the first quarter, 94.8pc of its 20.9
million dollar target was met.
An official from the Ministry of Trade and Industry
(MoTI) told Fortune the floriculture sector
is a priority area for its export earning potential,
60pc of which went to the Netherlands last year.
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