Addis Ababa University Libraries Electronic Thesis and Dissertations: AAU-ETD! >
Institute of Regional and Local Development >
Thesis - Regional and Local Development >

Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/4176

Advisors: Issac Paul
Keywords: Export diversification, high- value agricultural
commodities, Horticulture industry
Copyright: Mar-2011
Date Added: 30-Nov-2012
Publisher: AAU
Abstract: The purpose of this study was to assess the challenges and opportunities of horticulture industry focusing on its investment environment; production and export process sand its contribution to Ethiopian export diversification as horizontal export diversification strategy in minimizing an over-reliance on few low value commodities export. It is a case study of Sebeta area farms of fruits, vegetables and flowers. Both qualitative and quantitative approaches were employed in the study. Across-sectional survey though questionnaire, interview, focus group discussions and observation methods were used to collect data from main industry’s development facilitators and farms owners. Secondary data were also gathered from different publications. The data obtained were analyzed though descriptive statistics using SPSS and SWOT analysis by narration. The result of the study reveals that yet the Ethiopian export structure has not been diversified. It is highly dominated by few traditional agricultural commodities. Hence, its export earning was fluctuating both in value and volume. As a result, the overall balance of payment of the country is widening deficit. The currently horizontal export diversification strategy through horticulture industry is minimizing an over reliance on few low-value commodities. Investors from foreign and domestic both in number and amount of capital they invest on horticulture are rapidly increasing. The generated income account from the sector reached for 10% of the nation’s foreign currency earning, which was only 3% before four years ago. The industry is also becoming the 3rd largest source of foreign currency next to coffee and oilseeds. The incremental of export share of horticulture produces is mainly from the rapidly booming of floriculture whose share is 80.67% in average from the industry’s produces export. The reasons for the sector remarkably booming are incentive schemes given and natural comparative advantages the country has such as favorable climate, abundant land (long term leased), varieties soil types, suitable topography, agro-ecology, cheap labour, loans in advantageous terms, location for export (proximity), irrigable lands and rivers, increase demand of horticulture produces, market oriented policy with attractive incentive packages and etc. Moreover, governmental organizations such as EIA, EHDA, MOTI, DBE and the industry’s association EHPEA are working in coordination to enhance development of the industry. Despite these efforts to develop the industry, it is still at nascent stage and not performing at its maximum potential as compared to what would have been achieved. Factors hinder expansion of the industry and the country could hardly benefit from the industry were emerged from failure in realizing the existing opportunities that help in development of the industry. The main bottle necks against further expansion of the industry are categorized in to lack of public infrastructures, weak institutional service delivery, weak market chain and unfair relationship, and lack of skilled manpower in managerial and technical know-how on the industry activities and weak water management. These constraints are serious especially in the rural areas of the country. Because of these problems most horticulture farms in the country are limited to just adjacent to main asphalt roads nearby the capital city-Addis Ababa closeness to Bole airport. Hence, in order to expand the industry and be benefited from the sector, working in coordination of Government, donors and stakeholders and investors to fulfill the problem is very important. The currently work of government by giving high attention for public infrastructure has a good prospect for the future development of the industry.
URI: http://hdl.handle.net/123456789/4176
Appears in:Thesis - Regional and Local Development

Files in This Item:

File Description SizeFormat
Kebede Keno.pdf1.07 MBAdobe PDFView/Open

Items in the AAUL Digital Library are protected by copyright, with all rights reserved, unless otherwise indicated.


  Last updated: May 2010. Copyright © Addis Ababa University Libraries - Feedback