Good export performance is important to the Ethiopian economy. Trade is a substantial share of GDP and exports are the main source of foreign exchange for the economy. Given the recent shortage of foreign currency in the country, the government is currently encouraging businesses to export. If you are an entrepreneur looking to start up or expand a business in to an exporting venture, you should seriously consider the rapidly expanding Chinese market.
In crafting their trade agreement Ethiopia and China have agreed to expand their trade volume to USD 3 Billion by 2015 from the existing volume of 1.5 Billion USD. According to Chen Deming (Chinese Commerce Minister), trade exchange between the two countries has been growing by 35.6 per cent annually on average over the past eight years.
Starting from 2004 China had offered duty-free and quota-free access to its markets for Ethiopia with a modest list of 482 items. In January 2010 however, China offered Ethiopia a long list of 4,700 items that could be exported there with duty-free and quota-free preferential market access. As a potential exporter, this offer could expand your opportunity to export.
The extensive list of items China forwarded now covers more than 90pc of products that can be soundly produced in Ethiopia. It also contains many items which have never been exported from Ethiopia to China, such as pumice stone, pork meat, banana and pineapple.
In addition,· the growing demands for many agricultural products and minerals in China
· the well-fitting Ethiopian climate for organic fruits, vegetables and various other agricultural products
· the Ethiopian government policy and incentives programs in favor of exporting and
· the current large depreciation of the Ethiopian birr
should make Ethiopian exporters competitive suppliers in a barrier-free Chinese market.
Knowing this now, take your initial step; start planning your entry into the exporting business and list China as one of your export destinations.