ADDIS ABABA – The Ethiopian Enterprise Development (EEP) reports a steady improvement in livestock exports, primarily attributed to the narrowing of the gap between formal and parallel markets following the implementation of macroeconomic reforms.
During a recent presentation on “illicit livestock export trade practices in Ethiopia” at the 3rd National Illicit Trade Summit, EEP Director General Alebachew Nigussie (PhD) highlighted the positive impact of these reforms. Livestock exports have witnessed a surge in both animal numbers and foreign exchange earnings.
Prior to the reforms, the foreign exchange rate disparity between formal and parallel markets was substantial, incentivizing illegal livestock trade. The narrowing of this gap has significantly boosted foreign exchange earnings and overall export performance.
Despite possessing significant livestock potential, the sector’s economic contribution has historically been underwhelming. It currently accounts for 16-20% of the country’s foreign exchange earnings and 35-40% of agricultural production. A majority of livestock exports are channeled through Somaliland and Djibouti ports or trade zones due to superior quarantine and other facilities.
The export trade necessitates the dissemination of up-to-date market information to all stakeholders, empowering them to make informed decisions.
Challenges facing the livestock sector include lack of awareness, weak exporters’ associations, limited financial capacity, undeveloped and traditional marketing systems, payments at checkpoints, illegal traders in local and illicit export markets, shortage of inputs, inadequate controlling mechanisms and poor livestock standards and marketing systems
Addressing these challenges requires building a strong and sustainable livestock supply chain, as to the director general.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD THURSDAY 16 JANUARY 2025
