Ethiopia has earned 318 million USD from the export of flowers and other horticulture products in the concluded fiscal year, which ended July 7, 2019.
Ethiopian Investment Commission (EIC) Public Relations Director, Mekonnen Hailu said that the east African nation generated $261 million USD form the export of flowers and the remaining $57 million USD was secured from vegetables, fruit and herbs export.
The export of Ethiopia’s horticulture products has been increasing steadily from time to time and especially the flower sector takes the lion’s share in generating huge amount of the foreign currency, he added.
Netherlands, Saudi Arabia, UK, USA, Japan, Norway, Germany, UAE, Belgium and Italy were the main export destinations of Ethiopian horticulture products.
More than 100 companies have been engaged in cultivation of flowers, fruit and vegetables as well as herbs and supplying high quality products to the international market, according to the Public Relations director.
So far, the horticulture export industry has created job opportunities for over 100,000 citizens in different parts of the country, it was indicated.
Ethiopia has huge investment potential in the horticulture sector and thus, the east African nation has managed to attract a number of foreign companies from the Netherlands, India, USA, Israel, Saudi Arabia, German, UK, France, Ecuador, Belgium, among others.
The east Africa nation is endowed with abundant agricultural resources and favorable climate and vast water resource that make the country suitable for horticulture development, he said, adding that five foreign companies from Netherland have recently shown interest to engage in the floriculture sector.
It also has encouraging investment policies and incentives packages that are attracting investors from all corners of the world, it was learned.
Ethiopia’s investment incentives have been giving include:
• A 100% exemption from the payment of import customs duties and other taxes levied on imports is granted to investors to cover the importation of investment capital goods such as plant machinery and equipment.
• Investment capital goods imported without the payment of import customs duties and other taxes levied on imports may be transferred to another investor enjoying similar privileges.
• Exemptions from customs duties or other taxes levied on imports are granted for raw materials necessary to produce export goods.
• Ethiopian products and services destined for export are exempted from paying any export tax and other taxes levied on exports.
• Any income derived from an approved new manufacturing and agro-industry investment or investment made in agriculture will be exempt from the payment of income tax for different periods of time, depending upon the area of investment selected, the volume of exports and the location in which the investment is undertaken.
• Any remittance made by a foreign investor from the proceeds of the sale or transfer of shares of assets upon liquidation or winding up of an enterprise is exempted from the payment of any tax.
• Business enterprises that suffer losses during the tax holiday period can carry forward such losses for half of the income tax exemption period, following the expiration of the exemption period.