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Ethiopia attracts investors in floriculture sector

Ethiopia is using a range of incentives to woo investors to the country. Already, US private equity groups KKR and Blackstone have announced their interest in the country's infrastructure and floriculture sectors.

Ethiopia offers investors in the horticulture sector Customs duty exemptions of up to 100 per cent on imports of capital goods for eligible areas of investment; income tax exemptions for up to nine years; a duty drawback scheme and loss carry forward for businesses that suffer losses during the income tax exemption period for half of the tax exemption period. This has seen several Kenyan-based flower firms diversify their operations into Ethiopia.

Berhanu Ludamo, the head of promotion and information services at the Ethiopian Horticulture Producers Exporters Association, said that with the incentives being offered to investors, it is just a matter of time before the country surpasses Kenya in the horticulture sector.

"Last year, we led in the horticulture market in Africa. We expect to cement that pole position in less than 10 years," said Mr Ludamo, adding that in the past five years, the country's floriculture sector has seen an almost 300 per cent rise in output -- making the country the second fastest-growing flower bouquet exporter behind Lithuania.

Read more at allAfrica.com
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