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Opportunities and Government Commitment to Promote Competitiveness of Fruit & Vegetable Investment.

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Presentation on theme: "Opportunities and Government Commitment to Promote Competitiveness of Fruit & Vegetable Investment."— Presentation transcript:

1 Opportunities and Government Commitment to Promote Competitiveness of Fruit & Vegetable Investment

2 1. Sector Profile a)Currently Grown Fruit & Vegetable and Market Destinations Vegetables Different types of vegetables are grown and marketed in different destinations:- – Green Beans, – Snow Peas, – Mange tout, – Broccoli, – Courgettes, – Asparagus, Mainly to European Market 1.1. Where are we Today

3 – Tomatoes (Beef & Cherry) – Bell Peppers, – Chili – Onions – Lettuce – Cabbage – Potato – Etc… Mainly to Middle East & African Countries

4 Fresh Herbs – Chives – Parsley – Rosemary – Basil – Dill – Others To European Market

5 Fruits – Strawberry=> To Europe & Middle East – Banana – Mango – Orange – Papaya – Mandarin – Etc… To Middle East && & African Countries

6 b) Area Coverage (Hectares) Vegetables 1,011, Fruits 10,066, Herbs 34. c) Companies Involved 23 vegetable commercial companies (13 are FDI), 6 herbs commercial companies (4 are FDI), 6 fruits commercial companies (2 are FDI) and many small holders.

7 Vegetables and fruits are produced within a maximum radius of 240km from Addis Ababa. High valued crops Koka, Holeta, Sebeta, Hawassa, Sendafa, Ziway, Upper Awash, Debrezeit (to Europe and Middle East Market) Low valued crops specially fruits (to neighboring countries) in Awash, Dire Dawa, Hararghe.

8 d) Export Volume and Value 110,186 tons of different types of vegetables with export value of 47 million, 493 tons of different types of herbs with export value of 1.5 million USD, 12,859 tons of different types of fruits with export value of 4.5 million USD.

9 1.2. Where are we heading (GTP end of 2014/15) Development Model:- Special focus on commercial nucleus estate and out growers scheme in the identified 5 development corridors. a) Total Area (ha) Flower 3,000 Vegetable 15,000 Herbs 3,000 Fruits 15,000 Total 36,000

10 b) Export Volume (in 000 ton ) Flower Vegetable Herbs 15 Fruit Total 1,138 c) Planned Revenue (million USD) Flower 535, Vegetables, fruits and herbs 948, Total 1,483. d) Employment (Direct) 720 thousand workforce.

11 2. Existing Potential a)Diverse Agro-Climatic Condition Suitable to produce wide range of fruit & vegetables. b)Land and Water Resource 4.3 million hectare of irrigable land (<1% utilized to date), 122 billion m 3 total water available, 2.6 billion m 3 surface water potential,

12 c) Labor Resource Population 83 million, Working force 42.3 million (~50%), Skilled work force 18 million. d) Geographical Location Proximity to Middle East markets, Proximity to European markets,

13 3.1. Provision of land at reasonably low lease rate (ranging from Br 3000 to Br 12,300/ha/annum) in 5 development corridors Development Corridors Horticulture development corridors are those areas demarked with a maximum distance of 200 km from centers (major airports), naturally endowed with potential land to be made accessible for establishment of nucleus commercial estates, existence of potential farmers for the out growers scheme, existence of labor, road and infrastructure that links the products with the external market 3. Government Commitment

14 Total

15 Hawassa-Arbaminch Corridor 6,000 hectares commercial development 20,000 hectares outgrowers holding Modern warehouse under construction Distance to: Djibouti: 903km Port Djibouti: 1008km Total

16 Adiss Ababa& Oromia Corridor 10,000 hectares commercial development 30,000 hectares outgrowers holding International airport and modern warehouse facility Distance to: Djibouti: 662km Port Djibouti: 767km Total

17 Mekele, Raya& Alamata Corridor 4,000 hectares commercial development 40,000 hectares outgrowers holding International airport and modern warehouse facility Distance to: Djibouti: 521km Port Djibouti: 626km Total

18 Awash, Diredawa & Harar Corridor 20,000 hectares commercial development 20,000 hectares outgrowers holding Airport facility and Modern Warehouse Distance to: Djibouti: 309Km Port Djibouti: 414Km Total

19 Bahirdar, Abay Valley& South Gondar Corridor 10,000 hectares commercial development 40,000 hectares out growers holding International airport and modern warehouse Distance to: Djibouti: 687Km Port Djibouti: 792Km Sudan: 348Km Port Sudan: 1282Km Total

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21 3.3. Access to bank loan at a ratio of 70:30, 3.4. High level security and investment guarantee, % tax exemption on capital goods, 3.6. Duty drawback scheme, voucher scheme and bonded manufacturing warehouse scheme, 3.7. Income tax exemption up to 5 years,

22 3.8. EHDA Support:- ̶Transfer of knowledge and technology on production and post harvest, ̶Facilitation of investment and provision of customer services (land, duty free support, utility, roads, etc…) ̶Market diversification and linking out-growers with commercial estates.

23 3.9. Logistic Facilities –Developing the competitiveness of inland hauling (ownership of reefer container/generator mounted trucks by MTS), –Developing the competitiveness of sea transport (ownership of generator set equipped vessels), –Construction of cold stores at each development corridors, –Modernization of palletizing room and cold store at Bole, Bahirdar & Mekelle Cargo Terminals.

24 – Willing and able to work as partner, respecting the constitution of the Federal Democratic Republic of Ethiopia, – Willing to follow and implement commercial law of the country, – Equipped with basic technology, capital & secured external market outlets, – Willing to demonstrate the investment action through provision of business plan, – Willing to work with small commercial and out grower scheme, and – Ready to exercise Good Agricultural Practices (protection of the environment, safety & corporate social responsibility) & dissemination of knowledge and technology. 4. Investors Legibility Criteria


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