The growth of this industry is mainly attributed to export incentive policies implemented by the government to promote and encourage private sector engagement in the flower export business. The discussion around Ethiopia’s flower export market is often heated, with many questioning whether the industry is in decline. At the macroeconomic level, several intuitive arguments can explain a negative relationship between domestic demand and exports. In a context of high domestic demand pressure, firms will work at full capacity and will not be able to meet external demand increases in the short run. Local market appealEthiopia faces a pivotal choice in the flower business: emphasize local market sales or focus on the export market.

Source: Ethiopian News June 15, 2024 18:39 UTC