BY HIZKEL HAILU
Undoubtedly, Ethiopia is the cradle of mankind and the birth place of coffee along with many cultural, natural and historical blessings which have magnificent touristic values. And the aforementioned natural and cultural resources are also playing their crucial role in the economic growth of the nation both through the export and the tourism sectors.
Particularly, coffee has become one of expounding sectors in booming the nation’s economy. On top of that the public private partnership is pivotal for economic prosperity, as it is not possible to transform an economy without coordination. In this regard, the recently formed Sidama Region is working in unison with the investors and the federal government in a way to boom the nation’s economy via exporting quality coffee.
According to some documents, along with Harrar and Yirgacheffe, Sidama is one of Ethiopia’s three trade-marked coffee regions. It’s also the source of most of the country’s grade one and grade two beans, which are its highest quality rankings.
It supplies over 40 percent of washed coffee to the central market. Coffee is the single major export earner for the country. Export earnings from coffee ranges from 60 to 67 percent although the country’s share in the world market is less than 3 percent, the documents stated.
As the export potential of the country has been increasing from time to time, coffee export is among the sectors that the country is being benefited from in booming its economy. In essence Sidama has attracted over 4.6 billion Birr investment and more than 34,000 jobs have been created since its formation as a region.
Speaking to the Ethiopian Press Agency (EPA), Zenebe Legesse, Commissioner General of the Sidama Regional State Investment Commission, said that Sidama has become one of the investors’ destinations in coffee production.
Many industries, especially in the Yirgalem and Hawassa areas are said to be engaged in different shades. However, due to the region›s untapped potential, it has set up more than 190 sheds in Yirgalem and Hawassa alone and is awaiting investors. Of these, 53 are in Hawassa and 152 are in Yirgalem, he noted.
Noting that all the 53 shades in Hawassa Industrial Park and 23 of the 152 in Yirgalem have been fully constructed, he explained that the rest shades in Hawassa will be built according to the needs of the investors. As to him, the industrial parks are expected to attract large number of investors as they are well-equipped, well-mannered and well-secured.
Adding to the point, he mentioned that two banks that have already signed a memorandum of understanding (MoU) with the Industrial Park to facilitate the transfer of loans are also functional in the compound of the industrial parks.
“The area is rich in biodiversity, so that any investor with a plan to invest in the pharmaceutical and medical sectors can take the advantage in addition to the coffee production. Apart from the agricultural sector, there are also many favorable conditions for tourism investment in the region. We are also identifying additional tourist destinations in the state. Hawassa is also a suitable city for investors who want to engage in hotel and tourism, real estate construction, manufacturing industries and various sectors.
The infrastructure, particularly, quality roads which integrates different kebeles and woredas along with the main road to and from Kenya, are also amongst the enabling facilities for the investors,” he added.
According to the commissioner, the region has also carried out different activities in order to develop additional 8.75 hectares of land with a capital of 23 million USD. As to him, this project will also create job opportunity for many unemployed youths.
Cognizant of the regional government’s effort to make the region as a major coffee production hub, coffee growers’ eye has been staring up on the region. Zenebe further elucidated that more than 400 coffee processing industries in the state are supplying coffee to the market through adding value on it.
He said the coffee productions of Sidama State which are supplied for the international market have won the International Coffee Exchanges Competition (Cup of Excellence) several times. The region has created favorable conditions for investors.
Noting that both international and local investors are supplying the region’s coffee to the world market, he accentuated that more than 400 coffee processing industries are adding value to coffee in various parts of the state.
With 23 woredas, over 50 cooperatives, and around 200 washing stations, there is plenty of diversity in this vast state. According to him, flavor profiles can vary from village to village, due to different soil moistures, altitudes, temperatures, and more.
Saying coffee investors are currently flowing to the region, the Commissioner further stated that investors who have recently obtained coffee investment licenses have entered the shades and completed the machine installation. As a result, they are working to add value to the coffee exported to the world and provided to the local market.
Zenebe further said that the coffee is being produced in 23 out of 36 woredas and city administrations in Sidama State. He added Sidama Coffee has won several international coffee quality competitions and sold one cup in the world market for up to 56 USD. Moreover, mentioning that the region has many investment attractions, he said the state has set up industrial parks in various areas to attract investors to other agricultural processing sectors.
He further noted that various activities have been launched to enable farmers to enter the industrial park and add value to their production in order to be competent in the world market and the local market. For instance, he said the factory has imported machinery worth more than 20 million Birr.
“While this has greatly contributed to increase productivity and quality, we still have a long way to go. The relationship with the other regions should be clear in terms of improving coffee production and quality,” he remarked.
Besides, different reform activities are underway by the Bureau to prevent disruptions such as substandard infrastructure, bureaucracy, deficiency of finance, and land supply the investors that have a desire to invest in the region may encounter.
Meanwhile, Head of Sidama Regional State’s Environment, Forest and Climate Change Authority, Shitaye Yimura said that his office is working unceasingly in supporting the green legacy and supporting the economy at once. As to him, the region is more likely to planting coffee seedlings.
Accordingly; among the planted saplings in 2020 and 2021, the local coffee tree development has covered 79 and 82.5 percent respectively. According to a joint assessment with Wendo Genet College of Forestry and Natural Resources, the region’s forest coverage has been increased from 19.3 to 23.4 percent. With the help of satellite data management, the coverage is expected to be higher than the current data.
He further mentioned that it is planned to work with the stakeholders from the regional to the federal level to be involved in raising production and productivity. The goal of the tree-planting program is to increase production and productivity. In the lowlands of Borcha and Loka, the region lost its fertile ground for various reasons. However, as a result of the green development project, the land has been rehabilitated and become productive.
It has helped to increase the productivity of coffee by planting indigenous tree seedlings suitable for the coffee shade. When green development is strengthened, agricultural production and productivity will also increase, which is a backbone of the nation’s economy. Therefore, officials pledged to local and foreign investors to exploit their potential in coffee sector.
The Ethiopian Herald March 23/2022
