Ethiopia: from economic growth to stable economy

The economy in Ethiopia has grown every year in the last decade. With 9% growth, it has the highest average growth rate in Africa. Read the highlights from the Royal FloraHolland report about this African country.

Important export products from Ethiopia are refined oil products and agrarian products like flowers.

In particular, rose nurseries
There are about 50 nurseries, with the majority cultivating roses. Other crops that are grown include:

Gypsophyla
Hypericum
Eryngium
Limonium
Ornithogalum
Solidago
Dianthus
Lilies
Alstroemeria

The production per rose grower in Ethiopia varies widely from 70 stems per m2 in high regions to 250 stems per m2 in low-lying regions, according to Ziway.

The most common colours are:

Pink
White
Yellow
Red

Expansion of production area
The nurseries are established in seven different regions. Most of them are clustered around Addis Abeba because of:

The good climate at the high elevation
Access to the airport
Better infrastructure
Availability of energy
Telecommunications and water

In the last few years, the sector has expanded towards Bahir Dar, an area still undergoing development. A few years ago, an investment was made there to build a local airport with cold-storage facilities. The most profitable production area is Ziway.

Increasing production
The export value in Ethiopia has grown enormously: from €133 million in 2010 to €333 million in 2015. Ethiopia is the most important export country for flowers in Africa after Kenya. Some 91% is exported to the Netherlands, and a large proportion of that is sold via Royal FloraHolland. Many roses find their way to Germany, France and the UK after the flower auction.

Positive prospects
Recently, Ethiopia has been struggling with social unrest and inflation. Despite the recent instability, the economic prospects remain positive. Companies with investment plans are taken an expectant attitude. The government will have to compensate the millions of people affected by poverty to restore political stability.

Source: Royal FloraHolland