Ethiopian Flower Export

Ethiopia earns 133.7 mln. USD revenue from export of horticultural products

admin — Sat, 18 Feb 2012 18:35:56 +0000

Addis Ababa, February 18, 2012 (Addis Ababa) – Ethiopia has secured 133.7 million US dollars in revenue from the export of horticultural products during the first seven months of this Ethiopian fiscal year, the Ethiopian Horticulture Development Agency (EHDA) said.

Agency Director General, Haileselassie Tekie told ENA on Saturday that the stated amount was secured from the export of flowers, fruits, vegetables and herbs.

He said the country has exported 1.1 billion flower stems and over 72,000 tons of fruits, vegetables and herbs during the reported period.

Of the total revenue obtained during the reported period, flower accounts for over 107.5 million US dollars while fruits, vegetables and herb constirtute the balance, he said.

The foreign currency the country earned during the reported period has increased by 22.7 million US dollars compared to that of last year’s same period.

According to the Director, the Netherlands, Germany, England, Belgium, Russia, Japan and Middle East counties are among the major recipients of the products.

The demand for the horticultural products of Ethiopia is getting high in the global market, he said and adding, the Agency is undertaking market promotion and diversification activities to utilize this opportunity.

Because of the incentives and the support being provided by the government, the number of foreign and local investors engaged in the sector is on the increase, the Director said.

Over 120 horticulture producer and exporter companies are operating in the country, of which majority of them are foreign and joint venture.(ENA)

Bad weather affects Ethiopia’s flower export for valentine

admin — Thu, 16 Feb 2012 21:45:05 +0000

A recent spell of inclement weather in some of the main horticultural areas proved devastating for Ethiopia’s Valentine’s Day flower exports.

Officials at the Ethiopian Flowers and Vegetables Exporters Association say that cold weather saw the late cutting of flowers, affecting exports to European market for Valentine’s Day.

The association said that the country failed to reach an expected 30 percent increase in exports, as the bad weather delayed flower cutting by up to 15 days.

Horticultural products have, in recent years become one of Ethiopia’s major export products along with traditional coffee.

Flower growers are benefitting from financial incentives as they mount a challenge to Kenya – the current African leader in flower exports.

“This year, the flower price was up in Europe and we were expecting to get more income from the sector. But we are unable to achieve the goal,” the association said in a statement.

Prices of flowers in Europe have risen significantly, with some flowers fetching 0.60 euro, up from 0.25 euro.

Ethiopia began exporting flowers in 2001-02, earning US$159 000, exports soared to US$2.9 million the following year.

In the past six months, Ethiopia has earned US$156 million and is expecting to get more than US$300 million from annual exports.

Last year, the country made US$220 million from the horticulture industry, making it one of Ethiopia’s biggest foreign currency earners.

Source: The Africa Report

Ethiopias Spices Export Show Significant Rise

admin — Thu, 16 Feb 2012 10:01:40 +0000

The Ethiopian spices sub-sector is showing a steady growth in foreign currency earnings and volume of export.

The sub-sector’s six months export performance (July – December 2011) reveals that 6,800 tons of spices were exported to international market generating 16 million USD in foreign currency.

In 2009/10 fiscal year, the country obtained 18.5 million dollars from 12 months export of spices.

The country, whose annual export earnings from spices sub-sector stood a little over 9.8 million USD in the 2005/6 budget year, almost quadrupled its earnings during the 2010/11 budget year.

“Last budget year’s export performance of the country for the sub-sector reveals an unprecedented 33.2 million USD income; surpassing our projection by 224 per cent,” Bereket Meseret, Spices Market Expert at the Ministry of Trade (MoT), told WIC.

The six months export performance of the sub sector for the 2011/12 budget year is an achievement of 74% in terms of amount and 72% in revenue.

However, the ministry projects a better market in the second half of the budget year as supply usually increases from the month of January.

“Already there are indications to that because we have managed to achieve 100% of our target for the month of January,” Bereket told WIC.

Over 50 % of Ethiopian spices export is destined to its western neighbor Sudan. India, Yemen, UAE, Saudi Arabia and Morocco are the other major export destinations of Ethiopian spices.

The country grows a variety of spices, including long red pepper, Black cumin, white cumin/Bishops weed, coriander, fenugreek, turmeric, sage, cinnamon, and ginger.

“The sector was not given due attention previously,” concedes Bereket. “We can not say that the country harnessed the full potential of the spices sub-sector.”

The MoT targets total revenue to the tune of 43 million USD at the end of this budget year, seven million US dollars short of the government’s target at the end of the GTP period.

The government has envisaged supplying over 34,000 tons of spices for export market by 2014/15 under the five-year Growth and Transformation Plan (GTP). It targets 50 million dollars annual revenue at the end of the GTP period.

source: WIC

Ethiopia moves to diversify exports

admin — Thu, 16 Feb 2012 09:49:48 +0000

Castel's vineyard in southern Ethiopia, which plans to produce 750,000 bottles of wine, mostly for export. Wine is just one of many premium exports - including flowers, vegetables, leather goods, and coffee - bolstering Ethiopia's economy, one of the fastest growing in Africa. Ethiopia is looking to diversify its economy by exporting premium products in addition to raw goods. Jenny Vaughan

About three hours south of the Ethiopian capital, Addis Ababa, lays a sprawling, 120,000-hectare field planted with hundreds of thousands of grape vines in tightly packed rows. Workers in blue coveralls cultivate the vines, looking for pesky diseases, while men stand atop ladders with slingshots in tow to fend off hungry birds.

It’s a scene more commonly associated with France’s Bordeaux region or America’s Napa Valley than Ethiopia, which typically conjures notions of famine, poverty, and repression.

The vineyard is owned by French beverage company Castel, which plans to export half of its 750,000-thousand bottle production this year, making it Ethiopia’s first major wine exporter.

Wine is the newest in a series of premium exports bolstering Ethiopia’s economy, one of the fastest-growing in Africa, according to the African Economic Outlook Report. From leather and textiles to coffee, the diversification of Ethiopia’s economy is boosting development and transforming the country into an economic powerhouse.

“This is one of the first times that we’ve actually started adding value to our natural resources,” says Addis Alemayehou, former director of a USAID-funded project to boost value-added exports. “We’re a pioneer in regards with what we’ve been able to do.”

Evidence of booming industry is hard to ignore: textile and leather manufacturing factories are popping up across the country, the roads leading out of the capital are lined with large-scale plantations growing roses or strawberries for export, and advertisements for trade shows are more ubiquitous than ever before. And the numbers don’t lie: According to the Ministry of Industry, exports of leather and textiles, increasingly processed, have increased by 50 percent in the last decade.

In 2010, Ethiopia boasted an 11.4 percent overall growth rate (a number disputed by the International Monetary Fund, which estimates growth to be closer to 7.5 percent). The boost is part of an ambitious government-led strategy to achieve middle-income status by 2015.

Bolstering the export economy is a major part of the target, specifically increasing value-added exports to Ethiopia’s main markets – the Middle East, America, and Europe – that attract foreign currency, create jobs and encourage investment in public infrastructure, according to State Minister for Industry, Tadesse Haile.

“It’s a chain effect,” he says. “Value addition will give you capital and capital will give you growth.”

To attract investment for the production of premium commodities, the government offers a bevy of incentives, including five-year tax holidays, duty-free privileges, and a “70/30” scheme, where the government agrees to loan 70 percent of startup costs for companies looking to invest in the export sector.

“I don’t think there’s any government giving the kind of incentives that this government is giving in regards to encouraging firms, be it foreign or local, to get into the export sector,” says Addis.

These lures, along with a massive cheap labor pool (Ethiopia is Africa’s second-largest country with a population of 82 million, according to the World Bank) have boosted investment and caused exports to soar by 25 percent each year since 2002, says Mr. Tadesse.

“In the last 10 years, overall exports have been steadily growing,” says Tadesse. “It’s one of the bright futures for this country.”

source: csmonitor

Foreign Nationals Employment and Work Permit in Ethiopia: Requirements and procedures

admin — Mon, 13 Feb 2012 17:56:27 +0000

Ethiopian law allows a foreigner to be employed in Ethiopia, provided that they acquire work permit. The work permit is issued by the Ministry of Labour and Social Affairs. A work permit is given for a foreign employee in a specific type of work for three years and must be renewed every year.

A foreign investor is allowed to employ qualified expatriate experts for the operation of his business, but it is required that, such expatriate personnel must be replaced within a limited period of time by Ethiopians, by arranging the necessary training. Expatriate employees on top management positions can also be recruited without any restriction with prior consent of the Ethiopian Investment Agency. Work permit for expatriates working for a foreign investor in issued by the Ethiopian Investment Agency.

Foreign nationals may also be appointed by a government office on temporary basis, where the vacant post requires a high level professional and it is proved impossible to find an Ethiopian.

A foreign national of Ethiopian origin and members of a diplomatic mission do not need a work permit.
Requirements and procedures to obtain work permit

For Governmental Organizations

Four copies of an application form from the employing organization;
Support letter from the immediate project supervising government organizations;
Photocopy of passport of the employee and valid business visa;
Five passport size recent photos of the employee;
Support letter from the Ministry of Health or Education, if the employee is going to work in Health or Education sector;
Educational certificate and work experience;
Work permit service fee, Birr 600.00 (Six Hundred Birr)

For Private Organizations

Four copies of an application form from the employing organization;
Investment Certificate issued by the Investment Agency, or Business Licence issued by the Ministry of Trade, or Trade License of the organization if the Head Office is located outside of Ethiopia;
Photocopy of passport of the employee and valid Business Visa;
Support letter from the Ministry of Health or Education, if the employee is going to work in Health or Education Sector;
Support letter from appropriate organization;
Five passport size recent photos of the employee;
Educational certificate and work experience;
Work permit service fee, Birr 600.00 (six Hundred Birr)

For Non-Governmental organizations

Four copies of an application form from the employing organization;
Registration certificate from Charities and Societies Agency;

Support letters:

From the Ministry of Agriculture and Rural Development, Disaster Prevention and Preparedness, if the applicant is going to work in those specific sectors;
Support letter for the Ministry of Health or Education, if the employee is going to work in Health or Education sector respectively;
Support letter from appropriate organization for the employee of Association;
Educational certificate and work experience;
Photocopy of passport of the employee and valid Business Visa;
Five passport size recent photos of the employee;
Work permit service fee, Birr 600.00 (six Hundred Birr)

Requirements for Renewal

For governmental Organizations

Two copies of work permit renewal application form;
Support letter from project implementing governmental organization
Support letter from the Ministry of Health or Education, if the employee is working in the Health or Education sector, respectively;
Photocopy of the employee’s Residential Permit;
Work Permit Card of the employee, (if there is no extra page of work permit card, one passport size photo of the employee);
Work permit service fee, Birr 500.00 (Five Hundred Birr)

For Private Organizations

Two copies of work permit renewal application form;
Investment Certificate issued by the Investment Agency, or Business License issued by the Ministry of Trade, or Trade License of the organization if the Head Office is located outside Ethiopia;
Support letter from the Ministry of Health or Education, if the employee is working in the Health or Education sector, respectively;
Support letter from the appropriate organization;
Photocopy of the employee’s Residential Permit;
Work Permit Card of the employee, (if there is no extra page of work permit card, one passport size photo of the employee;
Work permit service fee, Birr 500.00 (Five Hundred Birr)

For Non-Governmental Organizations

Registration certificate from Charities and Societies Agency

Support Letters

From the Ministry of Agriculture and Rural Development, Disaster Prevention and Preparedness is the applicant is going to work in those specific sectors;
from the Ministry of Health or Education, if the employee is going to work in Health or Education sector respectively;
Support letter from appropriate organization for the employee of Association;
Photocopy of the employee’s Residential Permit;
Work Permit Card of the employee, (if there is no extra page of work permit card, one passport size photo of the employee;
Work permit service fee, Birr 500.00 (Five Hundred Birr)

Requirements for Clearance

A letter of application for clearance from the employing organization;
The work permit card of the employee;
For expired work permits, work permit service fee of Birr 500 (Five Hundred Birr)

Requirements for Replacement of work permit card

Application letter for replacement of work permit card from the employing organization.
Evidence from police about the loss of work permit card;
Replacement fee Birr 400 (Four Hundred Birr).

Source: Ministry of Labour and Social Affairs (MoLSA), Kazanchis ,Kirkos Kifle Ketema, Kebele 18
Tel: +251 115 537971
Fax: +251-11-551-8396
Molsa.gove.et

Percentage of Duty, taxes on major imported goods to Ethiopia

admin — Mon, 13 Feb 2012 17:53:15 +0000

All imported goods to Ethiopia are subjected to customs duties and taxes, unless exempted by law. Taxes applicable on imported goods are; Excise Tax, Value Added Tax, Sur Tax and withholding tax. The rates differ according to the type of the good.

Duty is tariff collected on the value of the good calculated on the basis of its actual total costs. It is levied in accordance with the rules of the international convention on the harmonized customs description and coding system. Sur-tax applies on all imported goods, except those exempted by the Council of Ministers Regulation No. 133/2007 at 10 percent rate. Excise tax is paid on imported goods with a percentage rate ranging from 0 to as high as 100. VAT on imported goods is a flat rate of 15 %. A 3 percent withholding tax applies also on imported goods. These taxes are calculated based on the cost and freight rate. But the Ethiopian Revenues and Customs Authority provides its own CD with details on prices on various goods. The rate is usually calculated as per the price on the CD.This CD is to be updated every three months.

Some imported goods are restricted and require the importer to secure permission from the competent authority.

Here is Duty and taxes applicable on some of major import goods in Ethiopia:
Vehicles, Chemicals, Steel, Petroleum and its products

Vehicles

Vehicles with spark–ignition engine of cylinder capacity of 1000-1300cc

Unit of measurement: unit
Duty Rate: 35%
Excise Tax: 30%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%

Vehicles with spark–ignition engine of cylinder capacity of 1300-1800cc

Duty Rate: 35%
Excise Tax: 60%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%

Vehicles with spark–ignition engine of cylinder capacity greater than 3000cc

Duty Rate: 35%
Excise Tax: 100%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%

Diesel vehicles with cylinder capacity not exceeding 1300cc

Duty Rate: 35%
Excise Tax: 30%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%

Diesel vehicles with cylinder capacity of 1300-1500cc

Duty Rate: 35%
Excise Tax: 60%
VAT: 15%
Sur Tax: 10%
Withholding tax: 3%

Motor vehicles for the transport of goods

Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding tax: 3%

Public transport type vehicles (diesel/semi-d) seat capacity greater than or equal to 15 passengers

Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding tax: 3%

Chemicals

Chemical fertilizers of nitrogenous, phospatic, photassic, phosphates and chemical fertilizers with nitrogen, phosphorous and potassium are exempt from Duty, Excise Tax and Sur tax. But they are subject to 15% VAT and 3% withholding tax. Importation of chemical fertilizers require permission from Ministry of Agriculture and Quality & Standards Authority of Ethiopia

Chemical preparations for photographic use

Unit of measurement: Kg
Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Unbleached coniferous chemicals, wood pulp, soda or sulphate

Duty Rate: 0%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%

Other chemical products and residuals

Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%

Steel (manufacturers get a better duty rate than importers and surtax on certain raw materials (Billets, Hot Rolled Coils, Wire Rod in coils) is 0%.

Unit of measurement: Kg

Flat/hot rolled iron/steel in coils, width >=600mm, with pattern in relief
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Rolled iron/steel plated with chromium oxides, width >600mm

Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Hot rolled iron/steel, on 4 faces, width >150mm but <600mm, >=4mm in thickness, not in coils.

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Hot rolled iron/steel bars/rods, rectangular (other than square, x-section)

Duty Rate: 20%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Hot rolled U, I or H sections of iron/steel, <80mm high

Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Hot rolled Angles/shapes/sections of iron/steel not further worked

Duty Rate: 10%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Hot rolled stainless steel in coils >=600mm by >10mm

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Plates, sheets and strip of refined cooper in coils, >0.15mm thick

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Aluminium foil rolled not backed
Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Petroleum and its products

Petroleum oils and oils obtained from bituminous minerals, crude

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 10%
Withholding Tax: 3%

Other petroleum oils and oils obtained from bituminous minerals

Duty Rate: 0%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%

Petroleum coke

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%

Petroleum bitumen

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%

Other residues of petroleum

Duty Rate: 5%
Excise Tax: 0%
VAT: 15%
Sur Tax: 0%
Withholding Tax: 3%

References
Customs Proclamation, No. 622/2009
Council of Ministers Regulation No. 133/2007
Ethiopian Revenue and Customs Authority Database.
Web: erca.gov.et

Ethiopia records its first banana exports

admin — Mon, 06 Feb 2012 17:39:22 +0000

DIRE DAWA – The Ethiopian Horticulture Development Agency (EHDA) this week celebrated a key milestone as the east African nation began exporting bananas for the first time ever.

In a nation where agriculture is the foundation, Ethiopia’s economy has long heavily relied on thriving coffee yields as its main cash crop. In recent years the EHDA has been encouraging Ethiopian farmers to acquire new farming techniques and new crops.

This week the country recorded its first shipment of 40 tons of organic banana to Saudi Arabia to meet growing demands for the produce in that market.

According to the EHDA, at least 11,400 farmers are involved in the project in a land covering 3100ha in the Southern Nations, Nationalities, and People’s Region. It added Ethiopia was in the process of exporting 200 tons of bananas per week for the Jeddah market following an agreement with a foreign company interested in exporting.

Ethiopia has expressed great optimism in this development and other agricultural advancements it has achieved in recent years. It says by 2014, the country will generate more than US$530 million in revenue from flower exports alone.

Two decades after the collapse of Somalia, which was renowned for its thriving banana industry Ethiopia welcomed its first ever banana exports. Somalia was also the largest exporter of the crop in East Africa which reached the Middle East and EU markets. According to a recent survey, the Somali banana is still preferred in places such as the United Arab Emirates and Iran.

At its peak of production, Somalia used about 12,000ha of land to produce the crop and it employed roughly 120,000 people. Researchers also claimed that the Somali bananas do not experience major pests or diseases and that the riverine soil was rich in nutrients. Currently, the country grows bananas in 3,000ha for local markets.

source: Somalilandpress

Ethiopia earns US$ 1.1 billion from exports

admin — Fri, 30 Dec 2011 20:25:35 +0000

Ethiopia on Thursday said it had generated US$ 1.1 billion from exports in the last five months.

The Ministry of Trade said the revenue exceeded last year figures by US$ 227.5 million.

State media said 35 types of agricultural and industrial products were exported to more than 120 countries during the period under review.

Coffee, gold, khat, oil seeds and live animals accounted for US$ 817.7 million while industrial and agricultural products accounted for the rest.

The Horn of Africa country has set an ambitious target of raising US$ 4.5 billion from exports during the 2011/2012 financial year.

During the 2009/2010 financial year US$ 2.75 billion was realised from exports.

“The revenue the country obtains from foreign trade has been increasing… showing a 20 percent growth,” the ministry said.

Training manual prepared for Ethiopian floriculture industry

admin — Fri, 23 Dec 2011 19:06:22 +0000

Addis Ababa, December 23, 2011 (Addis Ababa) – The Ethiopian Horticulture Development Agency said a training manual has been designed to help investors engaged in floriculture industry become competitive at the global market.

Speaking at the closing of a joint consultative workshop organized for horticulture producers, Agency Director-General, Haileselassie Tekie said the manual will be implemented beginning from the current Ethiopian fiscal year .

The manual will be amended from time to time, the director said, adding, it will enable the investors to be competitive at the global market.

Haileselassie said the agency is designing a 10-month project based on 36 floriculture companies.

The project is being designed by a team comprising the agency’s professionals and external expertise to boom productivity of the sector and ensure the quality of products supplied to the world, he said.

Some 48 stakeholders engaged in floriculture and horticulture development, Ethio-Netherlands Partnership, the Ethiopian Airlines and Jimma University, among others, attended the workshop.

Karuturi sets sight on sugarcane crushing factory

admin — Mon, 19 Dec 2011 13:08:08 +0000

Addis Ababa, December 19 (WIC) – Karuturi Agro Products Plc, the Indian Agro company, sets its sight on erecting a sugarcane factory with a capacity to crush 7,000 tons of cane per day (tcd) in Gambella Regional State.

The company, which operates on 100,000ha plot in Gambella leased in 2009 from the Ministry of Agriculture (MoA), started a sugarcane nursery on 65ha in 2010/11 season and expects the crushing plant to be ready in time for harvest.

“In three years, 15,000ha will be covered with sugarcane plantation,” Assefa Arega, manager of Karuturi’s sugarcane plantation, told WIC. “This [sugarcane plantation] requires a crushing factory with a capacity to crush 7,000 tcd.”

The company is currently undertaking a feasibility study. According to the farm manager, site identification, procurements and installation works for sugarcane crushing factory will begin in early 2012.

Ethiopia aims to increase sugar production fourfold within the coming four years to 1.3 million metric tons from 300,000 tons per year. In a bid to achieve the plan the country will spend 1.4 billion dollars to build new and expand existing sugar plants.

Current sugar supply from the three sugar factories does not meet the domestic sugar demand, which is around 440,000 tons per year according to some studies.

“Erecting a sugar factory in Ethiopia will have a huge economic benefit not only for domestic consumption but also if you consider the sugar consumption of neighboring South Sudan, Kenya, Djibouti and Somalia who rely on imports.”

Karaturi says it is conducting the sugarcane plantation adjacent to the sugarcane factory establishment. The sugarcane nursery, located some 20 km from the camp site, will expand to 1,000 ha net area, according to the farm manager.

“Sugarcane takes an average of 17 months to mature but here due to the high temperature we only need 12 months,” said Assefa who predicts sugarcane crushing to being in two years.