Agricultural produces account for about 75 percent of Ethiopia’s export trade. But the export trade accounts for a very small portion of the country’s Gross Domestic Product (GDP). However, reports of the Ministry of Trade and Industry (MoTI) indicate that the country’s export trade has suffered a considerable decline in recent years especially during the last six months. Yet , if the necessary actions are taken, it is not too late to alleviate the problems faced by exporters and enable them boost the country’s export trade both by trade volume and revenue.
Actually the government has been focusing on improving the quality of export items, diversifying export items and encouraging exporters of value added products. Indeed all these measures are likely to assist improve the country’s export.
They can also reap many benefits to the various stakeholders engaged in the sector. Since the diversification of the export items and value addition help to create jobs and maximize revenue, the government should further uphold ongoing efforts in this regard.
But up until export of value added products and takes over the volume of the export trade it is also important to pave the way for the smooth operation of the export of raw cash crops and reap the maximum possible benefit from them. According to some exporters, Ethiopia’s cash crops are highly demanded in the overseas market and can gain as much revenue as possible since they are high quality and organic.
However there are so many man made obstacles that are hampering the process causing them to fail to compete in the export market in terms of price and quality. Therefore the government should be quick enough to take actions against the long supply chain that exists between producers and exporters which causes price hike, quality compromise, erode credibility and spoiling the image of the entire nation.
Furthermore the government should create level playing field for all exporters so that they can operate with a fair and competitive atmosphere. When some of the exporters are owners of big cash crops farms and even licensed suppliers, it is difficult for the genuine exporters to compete with them and put in place a fair system of export trade that can ensure reliable source of economic development for the country.
In general, the government should heed to the concerns of the country’s exporters who were operating under such extortionate situation. If it wants to raise the country’s benefit from the sector, all the solutions are in its hands and must work genuinely to remove all the hurdles that are hampering their activities and caused the recent poor performance.
Herald January 26/2019
