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Investment Guide HANDS-ON INVESTMENT GUIDE Amhara Regional State Ethiopia Horticulture Floriculture and Dairy Dear Investor With much pleasure Amhara has not only a favorable I am introducing you this practical climate and good soils but also investment guide of Amhara Regional lots of facilities for investors like an State. international airstrip, a state-of-the-art cargo center and a fast developing We welcome you as investor infrastructure. Above all it has a warmheartedly and are ready to beautiful environment with great receive you, notably when you are potential. active in horticulture, dairy and agro- processing. Come and convince yourself!” Published and commissioned by Embassy of the Kingdom of the Netherlands, Addis Ababa, Ethiopia In cooperation with Amhara National Regional State of Ethiopia Mr. Gedu Andargachew (Ato Gedu), May 2014 President of the Amhara Regional State 3. 18 Floriculture Business Opportunity Floriculture: National Business Overview The Business within Amhara Region Specific Opportunity Areas 4. 24 Dairy Business Opportunity Dairy: National Business Overview The Business within Amhara Region Specific Opportunity Products IN 5. 30 Investment climate 6. THIS 34 Incentives 7. 38 Getting started Scoping and Site selection GUIDE Registration, Licensing and Land acquisition How to get started 8. 1. Checklist Application Investment License Introducing Amhara Regional State 46 04 Entirely owned by foreign investor 2. Joint investment of domestic and foreign investors 08 Horticulture Business Opportunity Horticulture: National Business Overview The Business within Amhara Region 9. Useful contacts Specific Opportunity Products 48 Introducing Amhara Regional State ETHIOPIA INTRO- Gonder Debre Lake Tana Tabor Weldiya DUCING Bahir Dar AMHARA Dessie AMHARA Kombolcha Debre Markos Debre REGIONAL Birhan STATE Addis Ababa Fast facts Geography: Amhara Regional State Economy: Agricultural sector is by area of 170.000 square kilometres; covers an area of 170.000 square far most dominant, accounting 90% Geography twice the size of the Netherlands and kilometres. of the economy. Amhara Regional State is one of Belgium combined. Administratively, it nine regions within the Federal is divided into 19 zones, 167 districts Population: Over 20,2 million Language: Amharic, though English Democratic Republic of Ethiopia. It and 40 urban administrations, of people live in the state, of which 56% is used in schools and international is found to the north and northwest which three are metropolitan cities. is between age of 15-60 years. business communication. of the country bordering with Tigray Its capital city is Bahir Dar, located on in the north, Afar in the east, Oromia the shores of Lake Tana out of which Climate: Mean annual rainfall Political system: the region in the south, Benishangul Gumuz in the Blue Nile flows. varies from 300 mm to 2,000mm and complies with a multi-party the south-west and the Republic of annual mean temperatures mostly democracy system of the country. Sudan in the west. The region has an lies between 15-21°C. 4 5 Introducing Amhara Regional State Introducing Amhara Regional State Population Economy Language Political Over 20,2 million people live in Agriculture, tourism and trade are Amharic is the official language of Amhara Regional State. It is the the major economic endeavours Amhara Regional State. It is also System second most populous region in within Amhara region. The agriculture the official language of the Federal The political landscape of the Ethiopia. Of the total population, sector is by far the dominant one Government of Ethiopia. However, region complies with a multi-party 56% are between the ages of 15 accounting for 90% of the economy. Afan Oromo, Agew, Tigrigna and democracy system of the country. and 60 while 43,1% are below Farming and livestock account for other languages are also spoken The regional house of people the age of 14 - implying a strong 80% and 20% respectively within the in some areas within the region. representative is the law making manpower resource. Nearly 87% of sector. The major crops grown in the English is the medium of instruction body. All laws made at regional the population lives in rural area while region are cereals, oilseeds, pulses, at school and international business level should be aligned with Federal the remaining are urban dwellers. vegetables and fruits. About 27,9% of communication; many people in proclamations and strictly adhere Population density is the highest in the livestock in Ethiopia, 30,7% of the Government offices and major towns to the constitution of the Federal West Gojam zone while is lowest in poultry, and 18,5% of the beehives speak the language. Democratic Republic of Ethiopia. North Gondar. Bahir Dar, Gonder, are found in the Amhara region. The Debre Tabor, Dessie, Kombolcha, region is home to the famous tourist Debre Birhan and Debre Markos are sites of the rock-hewn churches of the most prominent cities and towns Lalibela, Gondar Castle, Siemen with population size of over 50.000 Mountain and Monasteries inside people. Lake Tana. Climate The mean annual rainfall of the region varies from 300 mm to 2,000mm while annual mean temperatures mostly lies between 15-21°C. The region generally receives high rainfall. Areas in north-western part of the region bordering Sudan and the eastern parts bordering Afar are mostly lowland while the majority of the central and south-eastern part of the region is midland or highland. Ethiopia’s largest inland body of water, Lake Tana, as well as the highest peak of the country Mount Ras Dashan are located in Amhara region. Abay (the Blue Nile), Beles, Tekezie, Angereb, Athbara, Mili, Kessem, and Jama are major rivers within the region. 6 7 Horticulture Business Opportunity ETHIOPIA HORTI- Gonder Lake Tana Debre Tabor Bahir Weldiya CULTURE Dar Dessie BUSINESS AMHARA Debre Markos Horticulture OPPOR- corridors Kobo Debre Birhan TUNITY Tana Shewa Robit Addis Ababa Fast facts National business overview: Specific opportunity products: 2013 was estimated to be 4 million Export of vegetable products from garlic, tomato, potato, onion, grapes, Horticulture: metric ton (MT). Smallholder farmers Ethiopia: 170.000 MT (2013). Export cabbage, peppers, beetroot, orange are the principal suppliers of fruits of fruit: 16.000 MT (2013); total and tropical fruits. National and vegetables; accounting for over production was 400.000 MT (2013) 98% of the national production. Fruit and vegetable production in the Business within Amhara: Business smallholders sector is mainly rain fed. 1,2 million ha irrigable land; with Few are using irrigation. three identified horticulture potential Overview corridors: Tana; Kobo; Shewa Robit/ The horticulture sector in Ethiopia Debre Birhan. is growing rapidly. Annual fresh vegetables and fruits production in 8 9 Horticulture Business Opportunity Horticulture Business Opportunity Exports of vegetable products from countries the major importers were ANRS Vegetable Production (2012/13) Ethiopia increased from 66.000 MT the Netherlands and Russia. Most of Vegetable Import in MT Zonal Share in 2009 to 170.000 MT in 2013. Value the fruit currently exported are in the of vegetable exports increased from form of fresh, concentrate or dried. less than US $10 million to more Fruits like guava, banana, and mango 300 than US $300 million. Important are exported in dry form. This type 50 export markets for vegetables are of business has not been exploited 45 the surrounding countries (Djibouti, in Ethiopia but has a high potential 250 Somalia, and Sudan); the main when looking at experience of Asian 40 products were non-graded fresh countries. 35 vegetables. Interestingly high value 200 fresh food products (including graded On the other hand, the country 30 and pre-packed vegetables and fresh imported over 60.000 MT juice during hers) account for only 11% of the total the same year; import has been 150 25 export. Most of these products are increasing by 1900 MT per annum exported to the United Kingdom (UK), since 2009. Tomato juice (35%), 20 United Arab Emirates (UAE) and the mixed juice (18%) and pineapple 100 15 Netherlands. juice (18%) are the top three imported juices to Ethiopia. 10 Ethiopia exported over 16.000 MT of 50 fruit in 2013 from a total production 5 of 400.000 MT. Djibouti, Somalia, 2009 2010 2011 2012 2013 0 0 UAE are the main destinations for West Awi North Easter South Gojjam Gondar Gondar Gondar Ethiopian fruits. From European Vegetable Production (2012/13) Wolo. Given its diverse agro-ecology Regional Share Vegetable Export Volume in 1000 MT The Business and rich water resource it is possible to introduce any type of horticultural within product in the region. 200 A study by the regioal Bureau of 16% Amhara Region Amhara Agricutlture shows a total irrigable land of 1,2 million ha. Three Region distinctive horticultural potential 150 The Amhara Regional State produced corridors are identified during the 16% of the total national horticultural study: Tana, Kobo and Shewa Robit/ 42% Oromiya Region products in 2013. The region is Debre Birhan. suitable for range of vegetables and 100 fruits. Among others the region has Tana corridor encompasses areas ample potential in potato, garlic, onion within the surrounding of the regional and pepper but production of lettuce, capital Bahir Dar city. These include Swiss chart and beetroot are also Fogera, Dumbia, Koga, Beles, 50 increasing. The fruits produced in the Kosober and other pocket areas 43% SNNPR region include orange, lemon, mango, along Lake Tana or Abay River. papaya, banana guava and avocado. A study conducted by Ethiopian Apple is a recent introduction in the Investment Commission (EIC) 2009 2010 2011 2012 2013 highlands of North Shewa and South indicated that there is over 270.000 0 10 11 Horticulture Business Opportunity Horticulture Business Opportunity ha of land suitable for fruit and (Cherry) Tomato Onion and Shallots vegetable only around Lake Tana and Specific Ethiopia exported about 19.000 MT of Ethiopia exported over 13.000 MT Abay River.
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