Authority Readies over 7,000 Hectares of Land for Floricultural Dev’t

Addis Ababa May 04/2018 Over 7,000 hectares of land has been readied for floricultural investment, according to Ethiopian Horticulture and Agriculture Investment Authority. Professionals in the sector had repeatedly noted that lack of land for investment in the flower sector   dwarfed the development of Foreign Direct Investment in the sector. They added that lack of land has hampered the country from using its comparative advantage in the sector and curtailed export earnings. In his discussion with stakeholders in the sector a year ago, former Prime Minister Hailemariam Dessalegn had promised that the government will provide enough land for investment in flowers. Accordingly, the Ethiopian Horticulture and Agriculture Investment Authority have been identifying plots of land suitable for investments in the sector. Authority Deputy CEO Dr. Adugna Debela told ENA that the government has readied over 7,000 hectares of land in at least four regional states. He revealed that feasibility studies and business plans as well as previous experiences in the sector will be used as criteria for selecting candidates that qualify to invest in the sector. Adugna said the authority will give priority for self-financing investors, but also added that the government has made arrangements with the Development Bank of Ethiopia so that companies which pay 30 percent down payment can get 70 percent loan from the bank. Local investors who wish to invest in floracultural production will be provided with similar incentives for loan arrangements if they could deposit 25 percent of initial capital requirements. Last week, preliminary discussions were conducted with investors from the Netherlands while investors from the USA, Israel, and India have expressed interest to invest in the sector. The Deputy CEO added that infrastructural facilities are being constructed to support the launching of the projects. The authority is reportedly working with Ethiopian missions and consular offices abroad as well as local stakeholders to promote the flower sector. To date, the sector has provided employment opportunities for 180,000 citizens by utilizing only 2,000 hectares of land.