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HANDS-ON INVESTMENT GUIDE Oromia Regional State Ethiopia

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HANDS-ON INVESTMENT GUIDE Oromia Regional State Ethiopia Horticulture Floriculture and Dairy Dear Investor It is an honour to introduce Our region has not only vast fertile this practical investment guide of land and favourable agro-ecology but Oromia Regional State. also has comparatively good logistical facilities spanning from the centre to Though this guide focuses on different corners of the country. Being horticulture, floriculture and dairy, the leading foreign direct investment Oromia offers enormous opportunities destination among all regions in in other related areas such as poultry, Ethiopia, we have learned how to aquaculture, spices/herbs/aromatics, serve international investors. Above apiculture and agro-processing. all, we are always eager to improve. Come and take part in the big Published and commissioned by opportunity!” Embassy of the Kingdom of the Netherlands, Addis Ababa, Ethiopia In cooperation with Oromia National Regional State of Ethiopia Mr. Muktar Kedir, July 2015 President of Oromia Regional State 3. 22 Floriculture Business Opportunity National business overview Business within Oromia Specific opportunity areas 4. 28 Dairy and Livestock Business Opportunity National business overview Business within Oromia IN Specific opportunity products 36 Investment5. climate 6. THIS 42 Incentives 7. 46 Getting started Scoping and site selection GUIDE Registration, licensing and land acquisition How to get started 8. 1. Checklist Application Investment License Introducing Oromia Regional State 04 54 Entirely owned by a foreign investor 2. Joint Investment between domestic and foreign investors 08 Horticulture Business Opportunity National business overview Business within Oromia 9. Useful contacts Specific opportunity products 56 Introducing Oromia Regional State INTRO- ETHIOPIA DUCING Addis Ababa Nekemet Hareri OROMIA Bishoftu Mojo Adama Meki Jimma Assela Ziway REGIONAL OROMIA STATE Shashemene Fast facts Geography: Oromia Regional State covers an area of 363.346 square Economy: Agriculture is the kilometres. It is the largest region dominant sector in the region - with covering over one-third of the nation. 55,8% share of the regional GDP. Population: Oromia is the most Language: Afan Oromo is the populous region in Ethiopia with 33,9 official language while Amharic boundaries with Kenya in the South million people. Of this population 49% and other local languages are Geography and South Sudan in the West. The is between 15-60 years old while widely spoken. English is used in Oromia National Regional State is region occupies vast and fertile areas another 48% is below the age of 15 schools and international business one of nine regions within the Federal in the East, South East, Central showing strong current and future communication. Democratic Republic of Ethiopia. It is and Western parts of Ethiopia. manpower base. the largest region covering an area Administratively, it is divided into 18 Political system: The political of 363.346 square kilometres, more zones, 309 districts and 39 urban Climate: Mean annual rainfall varies landscape of the region complies with than the size of Germany. Oromia administrative. The national capital from 200 up to 2.400mm and annual a multi-party democracy system of borders all national regional states Addis Ababa, known as Finfinne in mean temperature lies between 7,5- the country. of Ethiopia except Tigray in different Afan Oromo, is also the capital city of 27,5°C. directions. It also shares international the region. 4 5 Introducing Oromia Regional State Introducing Oromia Regional State Population Economy Language Political Over 33,9 million people live in Agriculture, services and industry Afan Oromo is the official language Oromia Regional State. It is the most are the major economic endeavours of Oromia National Regional State. System populous region in Ethiopia. Of this within Oromia region accounting for It is also the most widely spoken The political landscape of the total population 49,2%are between a respective share of 56,2%, 32,9% language in Ethiopia. Other local region complies with a multi-party the ages of 15-64 while another and 10,9% of the regional economy. languages as Amharic, Guragigna, democracy system of the country. 47,6% are below the age of 15 years Oromia has fertile soils and diverse Somali, Tigrigna and many more The regional house of people implying strong manpower resources. agro-ecology that makes it ideal for are also spoken within the region. representative (Chafe in Afan Oromo) Nearly, 86,27 of the population lives agriculture. Crop production, livestock English is the medium of instruction is the law making body. All laws in rural areas. Population density is and forestry account for respectively at school and international business made at regional level are aligned the highest in South West Shewa 49%, 14% and 4% within the sector. communication; many people in with Federal proclamations and zone while it is lowest in Borena The major crops grown in the government offices and major towns strictly adhere to the constitution of Zone. Adama (Nazreth), Bishoftu region are coffee, cereals, oilseeds, speak the language. the Federal Democratic Republic of (Debre Zeit), Jimma, Nekemte, pulses, vegetables and fruits. Over Ethiopia. Assela, Ambo and Shashemene are 60% of Ethiopia’s top export earner the most prominent cities and towns commodity coffee comes from with population size of over 50.000 Oromia region. About 36% of the people. livestock in Ethiopia, 37% of the poultry and 50% of the beehives are found in the Oromia National Climate Regional State. Oromia is the leading The mean annual rainfall of the investment destination in Ethiopia region varies from 200 mm to and better positioned in terms of 2.400mm while annual mean infrastructure. temperature mostly lie between 7,5-27,5°C. The region generally receives high rainfall. The region has tropical (49,8%), sub-tropical (42,2%), and temperate (7,5%) climate. Areas in the South and South Eastern part of the region and others in the Great Rift Valley are mostly lowland. The majority of the Central, Western and parts of Bale, Arsi and Harargehe in the Southeast and East are midland or highland. Oromia is home to a number of ecological attractions such as the Bale Mountains, the largest Afro-Alpine forest in Africa. Awash, Wabe-Shebele, Genale, Gibe, Baro, Dedessa and Guder are major rivers in the region. The region has 12 major lakes, which cover a total area of 3.135 square kilometres. 6 7 Horticulture Business Opportunity HORTI- ETHIOPIA CULTURE Addis BUSINESS Ababa OPPOR- Horticulture OROMIA corridors TUNITY Wellega - Dedesa Jimma - Gibe Fast facts Great Rift Valley West - South West Shewa National business overview: vegetable. Four horticulture potential Ethiopia has 12 major river basins corridors: Great Rift Valley, East-West East - West Hararghe with an annual runoff volume of 122 Hararghe, Jimma-Gibe and West billion meter cubic of water and an and South-West Shewa. A special estimated 2,6 – 6,5 billion meter consideration of Welega corridor for billion meter cubic of water and an cubic of ground water potential. It fruit production and processing is Horticulture: estimated 2,6 – 6,5 billion meter cubic is often referred as the water tower highlighted. of ground water potential. It is often of Africa, the country has 4 million National referred as the water tower of Africa. hectare irrigable land, over 90 million Specific opportunity products: It has 4 million hectare irrigable land. people, strong peace and stability Potato, potato crisp, flakes and flour; and favourable investment policies (cherry) tomato, tomato paste and Business The horticulture sector has shown that makes it attractive to international juice; fresh beans, peas and canning; rapid growth over the last five years, investors in general and horticulture cabbage, kale and cauliflower, and Overview with cumulative growth of 22%. sector in particular. eggplant; onion and shallots, garlic; Ethiopia has strong potential and According to data from Central grapes and strawberries; chilli, green competitive edge in agriculture in Statistical Authority (CSA) of Ethiopia Business within Oromia: and red pepper; citrus and juice general and horticulture in particular. fresh fruits and vegetables production Oromia Regional State produces processing; tropical fruits, vegetable The country has 12 major river basins in 2013 was estimated to be over 5 42% of the national fruit and seed; spices, herbs and aromatics. with an annual runoff volume of 122 million MT. 8 9 Horticulture Business Opportunity Horticulture Business Opportunity The Agricultural Transformation Horticulture (Fresh and Processed) Agency (ATA) of Ethiopia estimated Export in 1000 MT ATA Horticulture Matrix that annual domestic market of horticultural products around US $ 900 Million. Smallholder farmers 200 are the principal suppliers of fruits Primary and vegetables, but the commercial Sub- Other high Nearby zones and horticultural production focusing on Corridor production corridor crops high production crops high value products is increasing fast. (Region) Fruits and vegetables production in 150 the smallholders sector is mainly rain fed, while most commercial farmers use irrigation. According to a report • Fava bean • West Shewa (Oromia): potato, pepper and • East Shewa fava bean by Ministry of Agriculture (2009), a 100 Addis (Oromia) • Snow peas • South West Shewa (Oromia): fava bean, pea total of close 0,8 million hectares Oromia • North Shewa • Hops
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