Posted by Stephanie Baker on
Ethiopia produces more coffee than any other country in Africa.
Ethiopia is also the 10th largest producer of livestock in the world. Other main export commodities are khat, gold, leather products, and oilseeds. Recent development of the floriculture sector means Ethiopia is poised to become one of the top flower and plant exporters in the world.
Exports from Ethiopia in the 2009/2010 financial year totaled $US1.4 billion. Neighboring Kenya with half of Ethiopia's population exported goods worth US$5 billion during the same period.
Cross-border trade by pastoralists is often informal and beyond state control and regulation. However, in East Africa, over 95% of cross-border trade is through unofficial channels and the unofficial trade of live cattle, camels, sheep and goats from Ethiopia sold to Somalia, Kenya and Djibouti generates an estimated total value of between US$250 and US$300 million annually (100 times more than the official figure). This trade helps lower food prices, increase food security, relieve border tensions and promote regional integration. However, there are also risks as the unregulated and undocumented nature of this trade runs risks, such as allowing disease to spread more easily across national borders. Furthermore, the government of Ethiopia is purportedly unhappy with lost tax revenue and foreign exchange revenues. Recent initiatives have sought to document and regulate this trade.
With the private sector growing slowly, designer leather products like bags are becoming a big export business, with Taytu becoming the first luxury designer label in the country. Additional small-scale export products include cereals, pulses, cotton, sugarcane, potatoes and hides. With the construction of various new dams and growing hydroelectric power projects around the country, Ethiopia also plans to export electric power to its neighbors. However, coffee remains its most important export product and with new trademark deals around the world, including recent deals with Starbucks, the country plans to increase its revenue from coffee. Most regard Ethiopia's large water resources and potential as its "white oil" and its coffee resources as "black gold".
The country also has large mineral resources and oil potential in some of the less inhabited regions. Political instability in those regions, however, has inhibited development. Ethiopian geologists were implicated in a major gold swindle in 2008. Four chemists and geologists from the Ethiopian Geological Survey were arrested in connection with a fake gold scandal, following complaints from buyers in South Africa. Gold bars from the National Bank of Ethiopia were found to be gilded metal by police, costing the state around US$17 million, according to the Science and Development Network website
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