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EIC-Opportunities in Agricultural Sector
EIC-Opportunities in Agricultural Sector
Agriculture sector
Ethiopia
January 2021
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One of the fastest growing economies with 9.68% average
growth over the past 10 years.
Pharmaceuticals
Energy Agriculture
Agro-processing
Tourism Textile
Floriculture Leather
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Overview of Ethiopia’s agriculture sector
• Ethiopia is the 9th top producer of • Over the past 15 years, volume of
Sesame globally (FAO, 2019). cow milk production increased
• Ethiopia has an attractive market • Currently consumption of poultry
for animal feed production, with products in Ethiopia is among
Niger seed, Sesame, Ground nuts, modestly from 1 billion to 4 billion
unmet domestic demand the lowest in the world
Linseed and soybeans are the top liters
estimated at USD 150mn and • The average per capita poultry
five products by volume • Total milk production in Ethiopia is
immense export potential consumption of Ethiopia is 0.5k.
• There is 204,000 ha of land 4.3 billion liters and per-capita milk
• An estimate of 91 million tons of It is significantly lower than the
suitable for sesame production consumption is 19 L/Year,
dried feed is annually produced; Sub-Saharan Africa average of
• The sector benefits from a strong compared to required 22 billion
equivalent to 1.3 tons per year for 2.3 kg
support from the GoE that has total production and 200 L per
the estimated 70 million cattle in
set an ambitious target for the capita consumption to meet WHO • Imports of chicken meat
the country (an average weight of
and FAO Standards increased by nearly 60% in a
sector 250 kg)
• There is 2.5mn ha of suitable land period of 10 years and risen by
o Short term to medium term: to • An estimated USD 8M in import-
for dairy production and three 32% between 2008-2013
increase local production of substitution opportunity
public ranches that are soon to be
• Potential to tap into USD 2.9B • There is a shortage of day-old
oilseed for end-to-end privatized chick (DOC) supply
processing, replace imports market in East and North Africa
o Long term: to become a net
exporter of edible oil
Apart from the above areas, there are other lucrative businesses in which foreign investors can get involved such as production
of wheat, floriculture, vegetables and fruits
Ethiopia’s favorable climate, water and land resource all combined makes it an
incredible hub for horticultural investment
Competitive Advantages of Investing in Horticultural Sector in Ethiopia
Strategic location at cross road between Africa, Middle east and Europe.
Availability of land;
• Land area allocated for horticulture is about 12,552 ha, with only 11%
of this land being developed for horticulture
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Allocated land in Ethiopia suitable for organic certification
• Roses are the most widely produced variety of flowers. Other types include gypsophilia, hypericum, Limonium,
• Flowers chrysanthemum, carnations, static and pot plants.
• Supply 9% of global flower market.
• Ginger, hot pepper, fenugreek, turmeric, coriander, cumin, cardamom, and black pepper.
Herbs and • Close to 122,700 hectares with spice production reaching 244,000 tons per year.
Spices
• The total potential for low land spice farming is estimated to be 200,000 ha.
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Proactive business environment – tailored incentives and support
Exemption from income tax Guarantee against All the necessary licenses to Expedited visa procedure -
ranging from 3 to 9 years expropriation get started in Ethiopia are expedited procedure of
depending on the type of issued by the Ethiopian securing entry, work permit
investment within the sector Guarantee for repatriation of investment commission and certificate of residency
funds
Exemption from duties and The Commission provides a Multiple entry visas for share
other taxes on imports of wide range of support services holders and general managers
machinery, equipment, to expedite acquisition of land
construction materials, spare and basic utilities Facilitation of market linkages
parts, and vehicles
One-Stop Shop Service under
Loss-carry forward the EIC - including pre-
establishment licensing and
Full export duty exemption registration and post-
establishment after-care
services