The Ministry of Trade and Regional Integration (MoTRI) reported a significant rise in export revenue during its first-quarter performance review. This growth is attributed to macro-economic reforms launched at the beginning of the fiscal year, with government officials, including Prime Minister Abiy Ahmed (PhD), expressing optimism for continued success despite challenges in aligning GDP and export performance.
A key reform introduced was the shift to a market-oriented foreign currency regime, which now allows foreign investors to enter Ethiopia’s wholesale and retail sectors. This change has boosted foreign direct investment (FDI) by 12% in the first three months compared to the same period last year, according to the Ethiopian Investment Commission.
In the recent training organized for senior officials of prosperity party , Prime Minister Abiy emphasized the sector’s improvement since his administration’s reforms began. “Before the reforms, it took 15 years to raise export revenue by 1 billion USD. Since then, we have seen an increase of 1.4 billion USD in just a few years,” he said. This year, the government targets 5 billion USD in export revenue, with 800 million USD already secured in the first quarter.
The coffee sector, Ethiopia’s top export, played a key role in this success. During the first quarter of the 2024/25 fiscal year, coffee, tea, and spices generated 521.98 million USD from 115,851.77 tons-exceeding the ministry’s initial target of 427.10 million USD from 83,294.25 tons. This represents a 46% increase in revenue and an additional 48,371.16 tons of exports.
If the 5 billion USD target is reached, Ethiopia will double its export revenue within seven years, showcasing the rapid growth achieved through reforms. However, challenges remain in fully harnessing the nation’s export potential.
MoTRI’s report highlighted strong performances from various sectors, including cereal, pulses, livestock, and gold. While these sectors have shown promise, the Minister KasahunGofe (PhD) urged exporters to capitalize on the favorable conditions and government support. To facilitate exports, the government extended operations to a seven-day workweek, reaffirming its commitment to easing export processes.
State Minister Yasmin Wuhabrebi added that new directives, such as streamlined procedures for oilseed and pulse exports, are already yielding positive results. These reforms are set to further enhance efficiency and boost export performance, contributing to the country’s ambitious revenue goals.
As Ethiopia builds momentum, officials remain confident that further incentives and directives will unlock more opportunities and sustain the nation’s export growth trajectory.
Ethiopia’s export sector is rapidly growing, focusing on diverse products like coffee, textiles, and spices. Economic reforms are enhancing trade efficiency and aiming for substantial revenue increases.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD THURSDAY 31 OCTOBER 2024
