“Since it is difficult to access state banks and state lands easily in the neighboring countries, I don’t think our neighbors will be able to give you the incentive that we are giving you. What we have left to provide you is free land. Now, we are ready to give you 700 hectares of land for free in Bahir-Dar, Amhara Region for you to repeat the success story in the flower sector on vegetables and fruits farms development for export.”
Comparing the incentives that Ethiopia is providing to investors engaged in the horticulture sector,
P.M. Meles

“Our floriculture sector has made great strides in a short span of time and made its own contribution in diversifying the nation’s output of exportables. It has, therefore, been possible to diversify our export earnings from coffee; on which 60 per cent of our earnings were dependent. Today, as direct result of reforms in the export business, we have succeeded in deriving up to 65 per cent of our earnings from products other than coffee.”
In a speech at the inauguration of Ethiopian Export Day
Girma Biru, Minister of Trade and Industry

Exporting Good Taste

Ethiopia’s export trade was virtually synonymous with the nation’s coffee industry for too many years, rendering the country overly dependent on a commodity that has traditionally been associated with severe price instability. The last few years have witnessed a slow but steady departure from the generational fixation on coffee as the country’s sole and main export. Latest figures indicate that coffee’s contribution to the value of all exports dropped to 35% this year (still unsettlingly large) from 65% four years ago.
Meanwhile, the value of coffee exports has increased, thanks to high prices currently, to contribute to the over 1 bln USD earned from exports last fiscal year. The diversification of Ethiopia’s export item is focused largely on agro industrial and semi - processed goods and features cut flowers, oilseeds and derivatives, leather and finished leather products as well as small to medium scale specialized exporters pioneering niche markets.
The Ministry of Trade and Industry, at the first awards ceremony organized by the government last week to honor top performers in the export sector, awarded certificates and medals to three winning companies in various categories.
It was stated on the occasion that the government of Ethiopia is highly committed to encouraging exporters and in this respect has also announced various incentives.
Among the awardees are Sheba Industries plc, a specialty exporter, and Tsegaye Abebe, President of the Ethiopian Horticulture and Flower Growers and Exporters Association (EHFGEA). Capital reporters Addis Mulugeta and Kirubel Tadesse caught up with the busy individuals of the respective companies to bring you this special double interview. Sheba Industries plc was established in the closing months of 2004 with majority shares by Israeli investors. It is based in Gonder town, northwest Ethiopia in the Amhara region. Ashenafi Mulugeta is the commercial manager of this star exporter.
Excerpts follow:

Capital :-Tell us about your sector and your company’s’ activities to date?
Ashenafi:- Sheba Industries plc was founded in 2004 with the objective of utilizing sesame by processing the seeds into a condiment or food ingredient called tahina. Tahina is used widely to add flavor to Arab, Jewish and generally Middle Eastern food. It can be consumed as a salad dressing or added to dishes such as falafel and humus.
Ethiopian sesame seeds, especially of the Humera and Metema varieties, are of very high quality so it has been possible for us, through our exclusive production process, to add up to 125% added value by converting this high quality sesame in to exportable tahina. By the way, China is currently the world’s top producer of sesame. However, Ethiopia has immense potential of tapping into that large market share because of the quality of sesame seeds.
As to performance, as disclosed at the awards ceremony, our annual exports have reached 4.5 million USD from sales to South Africa, Belgium, Israel and the United States. We are very encouraged by this result and were over joyed when we were kindly awarded a medal and a certificate. This award has great symbolic worth as it indicates that our company’s effort and contribution to the overall economic development has been recognized. I would like to appreciate and express my gratitude to the ministries, government officials, private institutions and the wider public that made this possible. Last but not least, I want to thank our hardworking employees for attaining this achievement.

Capital :-What are or have been obstacles in the export process?
Ashenafi :-Well, the current success of Sheba Industries plc; building the infrastructure for the factory, the installation of machinery, and on to production and marketing of the product took much diligent and sustained effort. Some challenges have been in locating the most convenient plots, financing, laboratory testing, pricing, logistics and transportation. I believe these challenges can be overcome by working in close collaboration and consultation with the relevant authorities and stakeholders. One over-riding item I would like to point out is that an assured supply of sesame seed is crucial and will be a factor that could determine the company’s continued success. In addition, as we have a production capacity of as high as 3000 tons per year, and with plans in the pipeline to double or triple production, the issue of reliable transportation is crucial in order to deliver the tahina on time to world markets, according to the particular needs of any given market.