COVID-19 has put a tremendous impact on world’s socio-economic condition. Likewise, Ethiopia, being among the countries which are struggling to minimize the consequence of the pandemic, is putting a relentless effort in curbing its effect on the socio-economic aspects.
The nation has put a significant effort to curb the pandemic so as to minimize the crises that could follow. It has put all the possible means to tackle the expansion of the virus including declaring state of emergency.
The country is on the road of transformation. However, challenges such as invasion of desert locust which caused a significant decrease in the crop production of the country and the contention over the utilization of Nile River by constructing a dam for hydroelectric generation purpose are other natural and man-made factors that are affecting the nation’s journey of the transformation.
Due to COVID-19, the country has incurred reduction of over 20 million Dollars from horticulture export income alone, according to Ethiopian Horticulture Producer-Exporters Association (EHPEA).
EHPEA’s Executive Director, Tewodros Zewdie said even if detail appraisals are going on, preliminary assessments show that about 25 million Dollars has been compromised due to COVID-19.
February and March were the months in which better revenue was expected. However, for the flower export has been depicted a significant drop, the expectation was left unfulfilled. Yet, EHPEA is exerting relentless efforts to minimize the impact and not to lay off workers.
A handful of adverse impacts have been observed in the horticulture supply chain after the advent of Coronavirus pandemic, According to the director. Countries have shut down their borders and airlines’ operations have been interrupted. These inhibited the free movement of export products including perishable products that need to be given priority. The products require smart perishable logistics and at the same time free movement of goods from one border to the other, he elaborated.
The executive director said that everything was compromised as the number of end users and customers were all in lockdown and not accessing the products. This had adverse ramifications on companies operating in Ethiopia. It was a kind of existential challenge for them, detailing that they [horticulture companies] had to finance a number of costs like cost of labor, fertilizer, and chemicals without sales proceeds.
The government has taken measurements such as rescheduling bank loans, financing interests on principal loan, and temporary suspension of payment for every kilogram flower exported are among the encouraging measures, as to Tewodros.
Thus, the nation needs to stand in unison to block and overcome these hazards with minimum effort. To this end, Ethiopians dwelling inland and abroad are working to combat against these problems by sharing financial and technical support to the needy in this critical time.
Ethiopian Diasporas residing abroad have contributed over 100 million Birr and equipment to reinforce the efforts against coronavirus containment in Ethiopia.
The support was coordinated by Foreign Resource Mobilization Sub-Committee formed under the National Resource Mobilization Committee, it was indicated.
The committee has been conducting fundraising activities in several countries where Ethiopians are residing.
Furthermore, it is stated that some 60 missionaries in various parts of the world are participating in a range of activities to carry out the plan outlined by the committee.
Accordingly, the committee has collected more than 100 million Birr in financial and equipment support from Ethiopian Diasporas and employees of missions around the world.
The executive director stated that horticulture companies had not been earning income while they paid salaries to workers. Thus, the support extended by the government through the provision of working capital loan is appreciable, he said.
Tewodros stressed that losing the workers would also have an adverse effect on the industry. The workers on payroll are the backbone of the industry as a lot has been invested on their skills.
The concerted efforts are critical to mitigate the adverse ramifications of the pandemic. The sector has been proved successful in Ethiopia over the last 10 years. Hence, the danger looming on the sub-sector should be managed in a prudent and pragmatic manner so as to reduce the economic recession.
The executive director underscored that the sub-sector is bringing hundreds of millions of dollars to the country. On top of that about 80 percent of its workforce is women. Addressing the challenges of the sub-sector is ensuring the wellbeing of those that are benefited directly or indirectly from horticulture. Following new market entrants such as Germany, Switzerland, there will possibly be an increase in terms of amount of export.
EHPEA has 126 member companies, about 99 percent of which are active producer-exporters of cut flowers, fruit and vegetables. Horticulture is one of the top five export earners in Ethiopia.
The Ethiopian Herald May 12/2020
BY GETAHUN LEGESSE
