A Study of Problems of Foreign Investors in Ethiopia in Floriculture Sector

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title




The economy of Ethiopia is based on agriculture, which accounts for half of gross domestic product (GOP), 60% of exports, and 80% of total employment. Dependent on a few varieties of crops like coffee and oil seeds for its foreign exchange earnings and reliant on imported oil, Ethiopia lacks sufficient foreign exchange. Now days, business is changing fast in Ethiopia. About 10 years ago, there were virtually no foreign private companies in the country. Today, foreign investors are embraced, a gesture of the goodwill and openness of the current profuseness regime. Attracting foreign direct investment (FDI) is a major priority of the government. Ethiopia's comparative advantage lies primarily in its abundant, low-cost, disciplined and trainable labor force, the size of its domestic market, and the numerous river basins affording great potential for irrigation and hydropower generation. Ethiopia's climate and proximity to the Middle East, Europe and other markets provide opportunities for investment in cut flowers and high-value fruit and vegetable production. A number of cut flower and horticultural enterprises have started exporting successfully over the past few years. This study will see the prospects Ethiopia has to offer foreign investors on the floriculture field but will mainly focus on the problems, such as the quality of the infrastructure, especially means of transportation, electricity and telephone services as well as cumbersome administrative procedures. More emphasis is given on the assessment of the problems, which if not timely solved might hinder the country from being competitive on the global market of the sector which is dominated by Netherlands, Colombia and Ecuador as well as Kenya Zimbabwe and Zambia the African forerunners, which have realized tremendous achievements in the sector lately.



Floriculture Sector, Foreign Investors