ADDIS ABABA – Recent macroeconomic reforms are poised to significantly increase the export earnings and competitiveness of Ethiopia’s horticulture industry, according to statements from local producer exporters of cut flowers, vegetables, and fruits.

According to the Ethiopian News Agency, these reforms are anticipated to enhance the horticulture sector, which includes flowers, fruits, and vegetables. Producer exporters, such as Tsegaye Abebe, who has nearly three decades of experience in horticulture, emphasized the sector’s potential for job creation and foreign exchange earnings. He noted that one of the primary challenges has been foreign exchange constraints, which the new policy reforms are designed to address by introducing a competitive, market-based exchange rate determination.

The National Bank of Ethiopia has outlined that these reforms are aimed at correcting long-standing distortions within the economy. Furthermore, members of the Ethiopian Horticulture Producer Exporters Association (EHPEA), including its president, Nega Mequanent, and executive director, Tewodros Zewdie, highlighted the reforms’ potential to increase the export of horticultural products by enhancing income and strengthening capacities. They also noted the critical opportunity these reforms present for better managing market-based foreign exchange, which is crucial for the export trade.

This shift towards a market-based foreign exchange system is part of broader economic reforms undertaken by Ethiopia, which also include liberalizing sectors such as telecom, finance, trade, and logistics, aiming to open up the economy to more significant international trade and investment.