The Ministry of Trade and Regional Integration has reported that Ethiopia earned $285.53 million from the export of oilseeds and pulses over the past six months.
This revenue marks a significant contribution to the country’s economy. Specifically, in the first half of the current fiscal year, $109.66 million was generated from oilseed exports, surpassing the ministry’s expectations by 109 percent, as outlined in its six-month performance report.
This represents a $26 million increase compared to the same period last year, indicating a positive trend in Ethiopia’s export market.
Additionally, the export of cereals contributed substantially to the country’s earnings, amounting to $176 million over the same six-month period, a $77 million increase from the previous year.
The minister highlighted the growth in international demand for sesame seeds, enhanced availability of cereals for export, and the diligent support provided to exporters as key factors driving this improvement.
Ethiopia’s export destinations for oilseeds include Israel, the United Arab Emirates, Singapore, Vietnam, and the United States, while grains find markets in India, Pakistan, Singapore, Vietnam, and Kenya.
Despite these successes, the export sector faces several challenges, including security issues, rising logistics costs, smuggling activities, limited understanding and implementation of marketing laws, and capacity constraints.
In contrast to the positive performance in oilseeds and grain exports, Ethiopia experienced a loss of $200 million from its leather products and mineral trade.
The Ethiopian Leather Industries Association reported a shortfall of $109.2 million in planned revenue from leather product sales, attributing the decline to various factors such as foreign currency shortages, insufficient operating budgets, and inadequate sectoral attention.
Furthermore, the association highlighted the closure of tanneries due to foreign currency shortages, indicating a broader crisis within the leather industry.
Similarly, the mining sector witnessed a decrease in revenue, falling short of the $243 million target to earn only $143 million over the last six months.
Looking ahead, Ethiopia aims to generate $1.7 billion from coffee exports in the current fiscal year, yet the earnings for the first half of the year amounted to only $570 million.
This underscores the need for strategic interventions to bolster key export sectors and address underlying challenges to achieve the country’s economic goals.
