Mekelle, Ethiopia - Millennium Cities Initiative - Columbia University

More documents

Recommendations

Info

44 Mekelle, Ethiopia: Potential Opportunities for Investment Indicative market size for fruit and vegetables, 2007 Asia US$78,236m UAE US$1,107m Djibouti US$13m Source: FAO, 2009 Note: Based on total import figures for fresh and processed fruit and vegetables A successful supplier of fruit and vegetables to the Middle East and EU should be able to ensure consistency in quality and supply, and provide recorded and demonstrated traceability of products and production. 1 Source: 1. WUR – Development Strategy for Export-orientated Horticulture in Ethiopia, March 2007 Customers in the Middle East and Europe have significant buying power and high quality standards. Ethiopian suppliers may have competitive supply during low/no production periods in Europe and the Middle East, and can have a cost advantage for labour intensive types of fruit (e.g. grapes). Ethiopia is virtually the only supplier of vegetables to the European market in the January to March period, due to the absence of production in Europe and unreliable supply from Morocco and Egypt. There is low local supply of fruit and vegetables in the Middle East during June to September due to very high temperatures and droughts. This presents an additional opportunity. © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
There is significant potential to supply out-of-season fruit to Europe and the Middle East. Despite its favourable location and agro-climatic conditions, Ethiopia is a minor supplier to the Middle East and European markets, primarily due to the inconsistent quality and unstable supply of fruit and vegetables. Ethiopian exports to these markets are negligible and largely fragmented. Ethiopia accounts for less than one percent share in European and Middle East fruit and vegetable imports. Djibouti Djibouti’s arid climate and rocky soil result in almost 90 percent of fruit and vegetables being imported. Ethiopia is a key supplier of fruit and vegetables to Djibouti, however, export is dominated by small scale traders supplying low value/low quality produce. There is growing demand for high quality fruit and vegetables in Djibouti that can be served by Ethiopian suppliers. Middle East Growing demand and limited local production makes the Middle East fruit and vegetable market a very attractive export destination. The United Arab Emirates (UAE), Saudi Arabia and Kuwait, the largest regional markets, are primarily supplied by Egypt, Iran and South Africa. Competition is tough. However, Ethiopian suppliers can benefit from a favourable location and out-of-season fruit supply. Mekelle, Ethiopia: Potential Opportunities for Investment 45 European Union As one of the largest fruit and vegetable markets globally, the European Union’s imports are growing by over 10 percent annually. High quality and safety standards, along with tough price competition, can make expansion into the European fruit and vegetable market quite challenging for Ethiopian suppliers. However, Ethiopia already successfully exports out-of-season fruit and vegetables particularly green beans. There is growing demand for fruit such as mangos, avocados and grapes in the European market. Customers are willing to diversify suppliers, providing room for Ethiopian exporters. Ethiopian fruits and vegetables (for example, strawberries and green beans) are available in European supermarkets such as Tesco in UK and Auchan in Russia. Source: 1. WUR – Development Strategy for Export- Oriented Horticulture in Ethiopia, March 2007 © 2010 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Page 1 and 2: Mekelle, Ethiopia Potential opportu
Page 3 and 4: Foreword As part of KPMG’s Global
Page 5 and 6: The Mekelle region presents attract
Page 7 and 8: Challenges • • • • • •
Page 9 and 10: Introduction to MCI The Millennium
Page 11 and 12: Investment climate in Ethiopia Meke
Page 13 and 14: Investment trends The government le
Page 15 and 16: Key inhibitors Mekelle, Ethiopia: P
Page 17 and 18: Introduction to Mekelle The Mekelle
Page 19 and 20: Supportive state government policie
Page 21 and 22: Infrastructure The Mekelle region i
Page 23 and 24: Mekelle airport Mekelle airport (Al
Page 25 and 26: Mekelle, Ethiopia: Potential Opport
Page 27 and 28: Tourist attractions in the Mekelle
Page 33 and 34: Trade value of exports of meat and
Page 35 and 36: Meat quality certification is a pre
Page 37 and 38: There is high potential for supply
Page 39 and 40: Case study: Comel Honey Processing
Page 41 and 42: There is potential for export of Et
Page 43: Mekelle, Ethiopia: Potential Opport
Page 49 and 50: The construction industries of Ethi
Page 51 and 52: The government has developed libera
Page 55 and 56: kpmg.com Contacts Stefan Dierks, Pa

Mekelle, Ethiopia - Millennium Cities Initiative - Columbia University

Create successful ePaper yourself

Delete template?

Save as template?