According to producer exporters of cut flowers, vegetables, and fruits, the recent macroeconomic reform is set to enhance the competitiveness of exports and the growth of the horticultural industry in Ethiopia. These exporters have indicated to ENA that the reform is expected to increase export earnings and competitiveness within the sector. Tsegaye Abebe, a veteran in the horticultural sector with 28 years of experience, highlighted the sector's potential in job creation and foreign exchange earnings. He pointed out that foreign exchange has been a major bottleneck, but the new macroeconomic policy reform could be instrumental in improving the sector's earnings and competitiveness. The National Bank of Ethiopia has introduced a reform that shifts the exchange rate determination to a competitive, market-based system, aiming to correct long-standing economic distortions.
Abebe expressed his intention to leverage the reform by exporting quality products in larger quantities. Nega Mequanent, President of the Ethiopian Horticulture Producer Exporters Association (EHPEA), and Tewodros Zewdie, the Executive Director, both praised the government's initiative for its potential to boost export volumes, income, and capacity in the sector. They noted that managing the market-based foreign exchange effectively could greatly benefit the export trade. The reform is part of Ethiopia's broader economic liberalization efforts, including significant changes in the telecom, financial, trade, and logistics sectors, aiming to position the country more favourably in the global market.
Source: ena.et