Ethiopian Review

(By Muluken Yewondwossen) – Though the price of flower and horticulture products has declined by 15-20 per cent, Ethiopia managed to generate 90 million dollars from export of these products in the last nine months, Alemseged Assefa, vice governor of the National Bank Ethiopia has disclosed.
Now, owing to the ever increasing effect the global economic crisis is having in the ‘flamboyant’ sector of the country, the price reduction hit 40 per cent in recent months.
In the global market, Ethiopian flower exports have increased five-fold between 2006 and 2008.
Tsegaye Abebe, president of the Ethiopian Flower Producers’ and Exporters’ Association (EFPEA) told Capital this budget year the new firms engaged in the production of vegetables have contributed to the increased revenue from the sector.
He said: “We expected the exports to grow since the new companies have started exporting new vegetable varieties.
“Last year the country earned 114 million dollars from the sector, which was the highest income ever recorded in that sector.”
According to Tsegaye, this month the reduced prices, which were the result of the global crisis, have shown improvement, and hopefully within the coming four months the export volume will increase again.
Recently, members of the association discussed with Prime Minister Meles Zenawi the possibilities of extending loan payment periods from the Development Bank of Ethiopia. Negotiations between government officials and representatives of the association are ongoing as to whether the borrowers’ request should be met.