Ethiopia Targets Growth

Foreign trade and foreign direct investments earns Ethiopia higher revenues

Ethiopia earned more than US$3 billion from the export sector in 2021. The revenue earned from foreign trade in the first nine months exceeded that of the same time of the previous year by more than US$250 million particularly through the export of gold, horticulture, livestock, textiles and minerals.

The most significant destinations for Ethiopian exports have been Belgium, Britain, China, Djibouti, Egypt, France, Germany, Japan, India, Israel, Saudi Arabia, Somali, Sudan Switzerland and the US.

In related news Ethiopian customs and Revenue Authority, Adama Branch reported collecting more than 10 billion birr in revenue from various exports in 2021. The revenue earned is greater than that of the same period in the previous year by more than 1 billion birr.

The authority has provided more than 2 billion birr in tax exemption for flower exporters and on imported items during the same period.

The revenue office has been able to meet 90 per cent of its target revenue and the Customs and Revenue has recovered more than 20 million birr it had been defrauded of by tax evasion.

Ethiopia earned an average of more than US$320 million per year through the export of leather and leather products in the last five years. The revenue earned through leather exports by Ethiopia is expected to grow steadily in the coming years according to the projected figures released by the Leather Products Development Institute.

The institute expects better performance this year by fostering improved efficiency and also because additional large companies are to launch production in the coming months which will play a significant role in helping meet the projections for this year.

Increased Foreign Direct Investment in the leather sector will help meet sector targets according to sources. Notable international companies which have entered the sector in Ethiopia include the Chinese Hujieang, one of the largest footwear manufacturers in world. The production of this company alone could go a long way towards equaling the exports for the previous year.

On the whole, the Ethiopian economy is expected to sustain an 11 per cent growth in the current fiscal year according to Prime Minister.

The economy has grown at an average rate of 11 per cent in the last few years and the government expects to maintain the growth rate in the current financial year.

Ethiopia's automobile industry is also poised for growth as new investments into Ethiopia are turning the country into the automobile hub in Africa.

Ethiopia's Tourism Earnings Up

Ethiopia earned US$485 million from the tourism sector in the last financial year according to the Ministry of Culture and Tourism. The revenue was earned from 650,000 tourists who were entered the country to visit an range of tourist attractions around the country .

The number of tourists into the country increased by 11 per cent in the last year while the revenue for the sector showed an increase by 58 per cent in the financial year as compared to the previous budget year .

A significant percentage of the tourists who visited the country’s historical sites came from Germany, England, France, Italy and the United States.

The increase in the number of tourists and in the revenue from the sector can be attributed to the promotional work conducted and the enhanced infrastructure around the historical sites claimed Awoke. The tourism sector has generated more than 256,000 jobs so far he said.

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