Ethiopia has long suffered from an annual outflow of hard currency to import food and beverages despite potentials to produce them locally. Suitable climatic condition, fertile soil, abundant water and productive youth population are the country’s rich resources, making the importation a paradox. The plan is also there to ensure food security and produce crops used for industrial inputs.
Ethiopia has long suffered from an annual outflow of hard currency to import food and beverages despite potentials to produce them locally. Suitable climatic condition, fertile soil, abundant water and productive youth population are the country’s rich resources, making the importation a paradox. The plan is also there to ensure food security and produce crops used for industrial inputs.
The actual performance is, however, far from being enough. This has an obvious repercussion on the social and economic activities. A recent report Chemical and Construction Input Industry Development Institute released states that the country imports starch products worth 2.4 million USD annually. “The main sources of starch are maize (82 percent), wheat (8 percent), potatoes (5 percent), and cassava (5 percent),” Starch: From Food to Medicine, a journal Scientific, Health, and Social Aspects of the Food Industry 2012 stated. A question that rings in the reader’s ears might be: “Where does the problem lie?” In the Growth and Transformation Plan II (GTP II), the country has laid goals to make the agriculture sector the main contributor of the development endeavors.
The structural transformation is also clear, from agricultureled to industry-led economy. We are almost a year away from the conclusion of the GTP II. Thus, the question will keep ringing until such ambitions could be put to practice at least in the year to come and with another viable plan. Ethiopia’s position should be starch products exporter, not importer.
Documents show that 60 percent of the national starch consumption relies on imports. Institute’s Director General Samuel Halala said: “We need investors that funnel finance in starch production to quench the ever growing demands of the country.” To him, maximizing the input and attracting businesspersons to invest in the sector could do the tricks, according to him.
Maize, potato, wheat, Enset and cassava products are the main sources with the latter two being relatively resilient to drought stress. Recently, the Institute organized a forum to industrialists to raise their awareness on starch production and consumption. Presently very few companies produce starch but as compared to the demands the production is so small.
The industrial application of starch is not limited to pharmaceutical and of food and nutrition, it has a wide array of importance in the production process of textiles, construction materials, paper and pulps, glue and adhesive, packaging and printing, beverages, alternative energy sources and many others. Two starch manufacturing firm projects are in the construction phase.
When sees completion, the firms may upsurge the quality and supply of starch. Among the mechanisms devised to stimulate investment in starch production includes cutting subsidies on starch importation and levying 30 percent tariff on imports. Chief Executive Director Yascai Family and PLC Samuel Yitbarek said during the event his company operated for 20 years in the sector, substituting imports.
He said the company produces casein glue and adhesive meeting international standards. Private Business Management Consultant Dr. Erssido Lendebo for his part said four principles ought to be applied to success the effort of import substitution— Import product’s growth potential and competitiveness, product’s poverty reduction potential and their social benefits, as well as prospects of success and outreach.
The Ethiopian Herald April 05/2019
BY MISGANAW ASNAKE
