Ethiopia earned more than $390 million from the flower export trade in the past ten months.
The Ministry of Agriculture announced that the horticulture investment sector, particularly flower exports, significantly contributes to Ethiopia’s foreign exchange earnings.
Dereje Abebe, Chief Executive Officer of Agricultural Investment and Product Marketing at the Ministry of Agriculture, reported that Ethiopia earned $392 million by supplying 79,819 tons of flower products to international markets over the past ten months.
He highlighted that most of Ethiopia’s flower production is exported to European and Asian countries, with the Netherlands being the largest recipient.
Although the sector’s performance over the ten-month period has been commendable from a planning perspective, it is still considered insufficient given Ethiopia’s potential and favorable ecosystem.
Despite generating substantial foreign currency income, the horticulture export trade faces challenges due to both internal and external factors.
Dereje Abebe pointed out that issues such as inadequate infrastructure and improper handling of land expansion requests, coupled with security problems in certain regions, have hindered the sector from achieving its full potential.
The Ministry of Agriculture is now prioritizing the sector more than ever, working to address these and other challenges. A technical team has been established to provide appropriate solutions to the problems faced by the industry.
Since April 2024, the United Kingdom has allowed five African countries, including Ethiopia, to export flowers duty-free.
The British Trade Commission announced the removal of the shadow tax on flower imports, which previously required an 8 percent tax. This change, effective from April 11, 2024, is expected to benefit both East African flower producers and British consumers.
British Trade Commissioner John Humphrey stated that duty-free flower imports would not only benefit East African flower producers and traders but also ensure a good supply of flowers in Britain.
The East African countries benefiting from this tax relief include Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
These countries will not pay income tax on flowers imported to Britain, either directly or through a third country, for the next two years. This decision is part of Britain’s efforts to strengthen its relations with Africa.
In 2023 alone, Ethiopia exported flowers worth 12.6 million pounds to Britain.
As the second-largest flower producer in Africa, Ethiopia accounts for 23 percent of the continent’s total flower production.
Kenya leads the continent in flower production and ranks as the fourth-largest flower producer globally, with a 6 percent share.
