ADDIS ABABA, May 18- Indian-owened companies operating in Ethiopia have helped to make flowers the country’s third-largest export earner and Ethiopia the world’s fourth largest exporter of fresh cut flowers, said an online edition of an English-language daily based in the Indian state of Karnataka.
A report posted on the website said that in the last five years, the Ethiopian floriculture industry has become the second largest flower exporter in Africa after Kenya and fourth largest flower exporter in the world.
According to one estimate, the export value of flowers earned by the country is expected to rise to US$550 million by 2016.
Revenues from flower exports have grown from US$27.9 million in 2002-03 to US$178.3 million in 2010-11.
Ethiopia has a comparative advantage in the production of roses specifically with its favourable climatic conditions and availability of labour.
The Ethiopian Government also offers incentives to investors. Debre Berhan, located at an elevation of 2,840 metres above sea level about 130 km northeast of here, has the ideal climate to grow flowers.
One Indian company, ASK Flowers and Greens Plc, is in Debre Berhan town in Amhara regional state and exports 1.2 million flowers a year to European, Middle Eastern and African markets.
ASK Flowers and Greens Plc has invested 20 million birr (about US$1 million) and is putting in another 10 million Birr with plans to enter the Russian market.
“The expansion will add 11 hectares and we expect it to grow over 400 percent of the current capacity,” ASK Flowers said.
In 2012, another Indian investor, Sanjay Bengali, had set up Esimo Flowers & Agro Industries Plc in the same area with an investment of 100 million Birr (US$5 million). Esimo plans to harvest to 90,000 or 100,000 stems.
Bengali said his company would be growing roses that are bred locally and are similar to Ecuadorian and Colombian types.
Another Indian firm, Karuturi Global, is also engaged in the production of cut roses across Ethiopia and Kenya.
– BERNAMA
