Vast amounts of Land.

Ethiopia’s vast land, favorable climate, and water and land resources combine to make it an incredible hub for investment. Located in the Horn of Africa, Ethiopia is at the crossroads between Africa, the Middle East and Europe. Within easy reach of the Horn’s major ports, Ethiopia is close to its traditional markets for export products—the Middle East and Europe. This geographical proximity provides the
major exporters in the world unparalleled access to the Ethiopian floricultural market.

Improved investment code

New incentives have been offered to investors since Ethiopia’s investment code was revised in May 2002. The floricultural sector in particular has strong backing from the Government. Incentives such as a five-year tax holiday, duty-free imports of machinery and easy access to bank loans and land have attracted investors. As a result of these and other incentives, Ethiopia's flower business is booming
and could potentially overtake coffee as the country’s main export commodity. Below are some major
incentives granted to investors:

• A 100% exemption from the payment of import customs duties and other taxes levied on imports is granted to investors to cover the importation of investment capital goods such as plant machinery and equipment.
• Investment capital goods imported without the payment of import customs duties and other taxes levied on imports may be transferred to another investor enjoying similar privileges.
• Exemptions from customs duties or other taxes levied on imports are granted for raw materials necessary to produce export goods.
• Ethiopian products and services destined for export are exempted from paying any export tax and other taxes levied on exports.
• Any income derived from an approved new manufacturing and agro-industry investment or investment made in agriculture will be exempt from the payment of income tax for different periods of time, depending upon the area of investment selected, the volume of exports and the location in which the investment is undertaken.
• Any remittance made by a foreign investor from the proceeds of the sale or transfer of shares of assets upon liquidation or winding up of an enterprise is exempted from the payment of any tax.
• Business enterprises that suffer losses during the tax holiday period can carry forward such losses for half of the income tax exemption period, following the expiration of the exemption period.

Economic environment

• Ethiopia has achieved macro-economic stability.
• Stable annual economic growth in double digits since 2003.
• Stable exchange rate.
• Government commitment to the private sector.
• Safe and secure working and living environments, identified by the U.N. and the International
• Chamber of Commerce (ICC) as key assets for investors in Ethiopia.

Labor and unemployment

Ethiopia also has globally competitive advantages for quality produce, cost of freight, cost of production and proximity to markets. Labor costs are cheaper than many African countries already involved in floriculture export. Investments by floricultural companies have created employment opportunities for 16,626 workers (directly) and 66,504 others (indirectly).The labor intensive process required for seeding, cultivating, packing and exporting makes the floriculture sector unique in absorbing a huge labor force.