Business Opportunities In Ethiopia Economics Essay

profession Opportunities In Ethiopia Economics EssayAs in that location atomic number 18 part of business opportunities in Ethiopia in different sectors, as it is non accomplishable to hail every(prenominal) of them. But try to concentrate and search opportunities on whatever of basic and important business sectors for extinctside investors3.1 Business Opportunities in Manu concomitanturing SectorThe manufacturing sector plays an important role in economy of Ethiopia it has near a sh atomic number 18 of 5% of gross municipal help product and 37.8% to the one-year return respect of industrial mathematical product in 2008/09 (Central Statistical Agency Statistical abstraction 2009). The important manufacturing sectors in Ethiopia be business of food, drinks, tobacco, frameworks and get dresseds, welt goods, paper, metallic and non-metallic mineral products, cement and chemicals.The return of framework and plumes, leather products and agro-processing argon o ne of the roughly important beas for coronation, because of its geographic advantage of easy and fast penetration to Middle-East and atomic number 63.In manufacturing section we discussed on business opportunities in textile and groom constancy and leather product.3.1.1 stuff and garmentIn 1939 nether the Italian politics supervision and engineering, the first textile factory was opened. Presently the menses textiles sedulousness involves in the process of spinning, weaving and processing. Ethiopia has five earthly concern textile factories producing generally work-wear garments for the domestic foodstuff. Numerous c democracyestinely- possess factories produce shirts, suits, work stuffes and uniforms for national and international market places.Ethiopias textiles and clothing industry is undergoing major developing, aided by the presence of a cheap, skil conduct and extremely-motivated workforce. This surge has been helped by the demesnes impressive econo mic assumeth everyplace the past years. Ethiopias considerable exporting potential is do possible by the wide availability of naked as a jaybird cotton and other natural lineaments and Ethiopias access to domestic, sphereal and international markets.The basis for the full cycle of business opportunities and the enormous growth potential for the textile industries is the local production of cotton. Large-scale production is carried give away under irrigation, primarily in the Awash Valley, which has more(prenominal) than 50,000 hect atomic number 18s under cultivation. Another 45,000 hect bes of high-quality cotton is cultivated by small-scale farmers. thither excuse exists spacious potential for the blowup of cotton cultivation in Ethiopia, peculiarly in the Omo-Gibe, Wabi Shebelle, Baro Akobo, Blue Nile and Tekeze River basins. The production of cotton is well(p) integrated into the textile sector, with garment factories relying heavily on domestically produced cotto n.Available within Ethiopia are all essential ingredients for a competitive textile industry crank strongs, low wages and low energy costs. This gives the country a comparative advantage all over other countries and regions. The Ethiopian Government is actively promoting the advertise modernization of the textile sector with the aim of attracting opposed investors that stub circularize the spheric market. surface ready and egressputsEthiopias textile manufacturing industry embraces both medium and giant public and private enterprises. Their main activities include spinning, cloth formulation, dyeing, finishing and sewing.The Ethiopian textile industry is the third boastfulst manufacturing industry, wholly molybdenum to the food processing, deglutition and leather industry. In the fiscal year 2000/01, with a entire output value of 699.91 gazillion birr (1USD=8.6 birr), the contri preciselyion of textile industry to GDP was 1.35% and 8.31% to the output value of th e manufacturing industry.The Ethiopian textile sector mainly produces nose candy% cotton textiles. Each enterprise produces one product consort, much(prenominal) as cotton recite, cotton textiles, bed sheets, blanket, knitwear and so forth All the cotton yarn in the Ethiopian market is supplied to the local handlooms. It is estimated that the annual hand-loomed fabric is around 95 zillion square meters.Supply of raw material and accessoriesOut of the raw materials used by textile enterprises, cotton is wide grown in Ethiopia and it is easily available from local suppliers. otherwise materials including chemical fiber, wool, dyestuffs and chemicals as well as a small share of lint cipher on imports. merchandise groceryData from Ethiopian Export progress Agency show that the fiscal year 2000/01 witnessed apparent increase over the previous year both in the variety and quantity of textile export. Variety increased from 6 kinds, mainly cotton yarn and whiten cloth made from pure cotton, to over 20 kinds including gray cloth pure cotton, bleach cloth, knitwear, bedding products etc. Among them, gray cloth made from pure cotton is the major export item, roughly contributing to 2/3 of the substance export quantity.Ethiopias textile export is mainly targeted at European and African markets. In Europe, the export destinations for Ethiopian textiles are Italy, Sweden, and Belgium etc. African major export destinations are Djibouti, Kenya, and Swaziland etc.Ownership and geographical distribution of textile enterprisesDue to the reform undertaken by the Ethiopian governing body in modern years, much(prenominal) as privatization and the favorable conditions for the inflow of foreign and domestic private investment into the textile sector, ownership of the industry has diversified. conglomerate type of ownership, much(prenominal)(prenominal) as public enterprises, privately owned enterprises, shareholding corporation, coalition enterprise and individual enterprises etc devote come into being and developed.Broadly classifying the enterprises into public and private, there are currently 19 public and 16 private enterprises which makes a core of 35 enterprises. Most public enterprises are abundant scale, playing leading roles, as evidenced by the number of enterprises and employees, total output values, income from sales etc.Most textile enterprises are ascertain indensely populated bombastic or medium cities. Out of the total 35 textile enterprises in Ethiopia, 18 are in Addis Ababa, the capital city. Textile enterprises located in Amhara and grey (S.N.N.P) regions are 6 and 5 respectively.Marketing System of textile productsProducts such(prenominal) as yarn, fabric and blanket made by Ethiopian textile enterprises are comm scarcely distributed by private business companies to the local market. The export of the product is mainly handled by the enterprises themselves.Imported textile hold a large market share in Ethiopian mar ket and nearly one green small-scale family-owned trading firms and a small number of large trading companies are engaged in the import business of textile.Favorable Conditions for the suppuration of the Textile Sector inEthiopiaAbundant Cotton Re stemsEthiopia covers an area of 1.1036 trillion square kilometers and boasts vast fertile land, rich geographical and weather conditions, and lush water resources. Domestic cotton production has already developed to a certain scale and for a long time it has made major contribution to satisfying the requirement of fiber by the textile sub-sector. Ethiopia has a large area of irrigated farmland which is very adequate for planting cotton. on that point is in like manner great potential for further expanding the cultivation and increase the current yield.Abundant cheap tote resourceWith a population of more than 70 million, and with cheap cost of grok, Ethiopia can provide sufficient labor force with cost-competitiveness for the tui tion of labor intensive textile sub-sector. The cost of labor in the Ethiopian textile sector is not provided if demean than near Asian nations with developed textile sector, such as China, India, Pakistan but withal than some African countries such as Tunisia, Mauritius, Kenya, etc. live done policy and incentivesEthiopia identifies textile as the key industry to the development of industrialization as well as the exploitation of local resources to instigate export in accordance with the policy of Agriculture Development led Industrialization (ADLI). The long-term strategy of the Ethiopian government is not only to develop the textile and garment industry and expand shares in domestic market, but also to develop a competitive, lollyable industry in the export market.The Ethiopian government has been s tea leafdily pushing towards market-oriented reform by means of developing the private sector, deregulating rigid control over the economy, liberalizing foreign exchange, lo wering duty rate, etc. Given that export forwarding is of paramount enormousness, the government has issued a series of export incentives. All in all, in terms of macroeconomic policy, the Ethiopian government has created an enabling milieu for the development of textile sub-sector.Investment policy and incentives fit to the in the rawly rewrite investment policy, the minimum capital required for foreign investors has been lowered, creating a contributing(prenominal) investment environment.The minimum capital requirement for foreign investors on a single investment project has been reduced to 100, 000 USD from 500, 000 USD for solely invested projects and for joint proceed it has been lowered to 60, 000USD from 300,000USD.In addition, a series of investment incentives invite been put in place, such asRemittance of foreign currency of profit and dividends from investmentExemption from income tax from 1-5 years etc.In participation to promote export, unhomogeneous flexible taxation encouragement measures have been undertaken such as export tax refund, tax coupon and bonded warehouse. Simplified procedures have greatly shortened customs clearance time.The Ministry of Trade and Industry has launched textiles and garment export forum to attract domestic textile and garment exporters into the reciprocation of issues and prospective development for textile and garment sector in order of battle to promote the export of textiles and garments.Increased Domestic DemandEthiopia has a large territory with a large population. The growth rate of the population is 2.7%, creating a large potential market. jibe to the country economic development program, the number growth rate of GDP in the coming years go out reach around 7%. As a result of the development of economy and the progress in reduction of poverty as well as the improvement of peoples living standards, it is believed that not only the present market hold would increase, but also a new market demand will arise. Currently the Ethiopian per capita fiber intake is roughly 1kg, which is far below the publics average level of 8.7kg and Africa average level of 3.2 kg. It is estimated that domestic fiber demand will increase at an annual rate of 5% and the large and continuously increasing domestic market will fuel the development of the textile sector.Easy access to international marketIn the latter half of the 20thcentury, the consumption of fiber products all over the humanity has increased five times, firearm the world population has increased only 1.4 times.The improved living standards quality of sympathetic beings has created 2/3 of the increase in fiber production. In recent years, along with the revival of world economy, occurrencely the economic growth of U.S.A, Europe and Japan, the market demand has increased. In 2000, import pile of textiles in the world amounted to US $167.13 billion. The get together States and EU were the two largest textile importers,occupying 39.2% of the worlds textile import value.Africa Growth Opportunity Act (AGOA)In may 2000, the United States approved Africa Growth Opportunity Act (AGOA) to give sub-Sahara region of Africa, specialally 48 countries, special preferential trade policy. In haughty 2001, Ethiopia was entitled AGOA qualifications and is one of the 18 beneficiary countries which can export textiles and garments to the United States free of duty and without quota restrictions.Everything but Arms of the European UnionThe European Union (EU) has given preferential trade policy to the Lesser certain Beneficiary Countries (LDBC) including Ethiopia. Accordingly, Ethiopia is a beneficiary of Everything but Arms initiative of the EU in which all Ethiopian export products except arms can enter the EU market free of duty and without quota restrictions.Common Market for eastern and Southern Africa (COMESA)Ethiopia is a member of the Common Market for Eastern and Southern Africa (COMESA) agreement embracing 20 countries in Eastern and Southern Africa with a population of approximately 353 million. Exports and imports with member countries have intercourse preferential tariff rates.Bilateral AgreementEthiopia has signed bilateral trade agreements with 16 nations such as Russia, Turkey, Yemen etc which provide legal framework for enjoying most-favoured-nation treatment and removing tariff barriers. According to Generalized System of Preference (GSP), most of the products made in Ethiopia enjoy tariff treatment in the United States, Canada, Switzerland, Norway, Sweden, Finland, Austria, Japan and the majority of EU member nations.3.1.2 Leather productsEthiopia exports processed and semi-processed hides and strips to the world market. Some of the products, such as Ethiopian highland sheepskin (which has gained an international reputation for make gloves), are known for their quality and natural characteristics. Ethiopian hide and skin exports include pickled sheep skin, wet low sheep ski n, crust sheep skin, wet blue goat skin, crust goat skin, crust cow hides, finished garment leather, finished glove leather, lining/upper leather, suede leather, full shred leather, embossed leather and patent leather.The manufacturing and export potential of finished leather and leather products (such as leather garments, footwear, gloves, bags and other leather articles) is also extremely promising.Production might of hides and skinsEthiopia has a major comparative advantage in the raw materials sector needed for the leather sector which makes it in belief very appropriate for leather product exporting Ethiopia has the largest livestock production in Africa, and the 10thlargest in the world. Ethiopias livestock population is currently estimated at 35 million cattle, 21 million sheep and 16.8 million goats. Annually it produces 2.7 million hides, 8.1 million sheepskins and 7.5 million goatskins.1This comparative advantage is further underlined by the fact that the cost of raw hides and skins constitute on average mingled with 55 to 60% of the production of semi-processed leather (Kiruthu 2002).These data are provided by LLPTI and ETA. Muchie (2000 539) provided slightly different estimates for the late 1990s 30 million cattle, 24 million sheep and 19 million goats, magical spell CSA (2002) provided diverging figures for 2000/01, in particular in the lawsuit of skins 35.4 million cattle, 11.4 million sheep and 9.6 million goats.Leather processing categories and suppliersWith in the leather sector, the CSA distinguishes two broad categories. The first one is the tanning/ ski binding of leather, manufacture of luggage and handbags, while the second concerns the manufacture of footwear. The footwear enterprises are more numerous, but smaller in terms of employment than the causality category. For example, in 1999/2000 out of 53 leather establishments, 38 (72%) were in footwear, employing only 49% of the total persons engaged (CSA 2002). Since the downfa ll of the Derg, a rapid expansion has been taking place in the tannery sub-sector. In 1990 there were only cardinal tanners, consisting of six public and two private plants. In November 2002, 19 tanneries were registered with the Ethiopian Tanners Association (ETA) 15 private and 4 public ones the latter are in the process of privatisation. Furthermore, six private tanneries are in development.The annual sheep and goatskin production of an estimated 15.6 million skins falls below the capacity of the 19 tanneries (LLPTI). According to the ETA, the current daily capacity of the tanneries of 133,450 skins is being utilized for only 50.1%, while this percentage is higher for hides (65.6%), albeit of a much lower daily capacity of 5,055 hides. All but one tannery can produce skins, while only half of them have the capacity to produce hides.Regarding small-scale footwear producers in Addis Ababa, some studies have been undertaken (e.g. Tebarek 1997, Tseguereda 2002 and Zewdie et. al. 200 3, this volume). There is a clear cluster of such producers in a specific part ofMerkato, the largest open-air market in Africa. Within this cluster (i.e.Woreda5), there is a sub-cluster calledShera Tera, where there are not only many producers, but also the largest concentration of suppliers of almost all raw materials necessary for clothe production. The very existence of a well-developed scheme of suppliers in the footwear sector maintains one of the main assets of small shoe producers. The ability of suppliers to manufacture a wide variety of products with short delivery times allows the shoe producers to postpone to the last moment their purchase of inputs.ProductsSheep and goats skins represent the bulk of Ethiopian leather production. Ethiopian highland sheepskins (cabretta), in particular retain a high reputation in international markets for some natural characteristics of clarity, thickness, flexibility, strength and compact texture which make them especially suitable f or high quality gloves, sports equipment and garments.Goat skins classified asBati-genuineandBati-typeare characterised by thick, highly flexible and clean inner surfaces and are in high demand for the production of fashion leathers, especially suede (). Hides, in stead are not regarded as particularly attractive in international markets callable to the scummy quality and the small size of thezebu,the most common bovid in Ethiopia. (Bini 2002 17).The Ethiopian leather and leather product sub-sector produces a range of products from semi-processed leather in various forms to processed leathers such as shoe uppers, leather garments, stitched upholstery, school bags, handbags, industrial gloves, and finished leather. such(prenominal) leather products have been exported to markets in Europe, the USA, Canada, Japan and the Far East. There is also export to countries in Africa, in particular to Nigeria and Uganda, as well as to the near East, i.e. Yemen. The market for leather products is mainly international and not domestic.ExportDuring the past two decades leather and semi-processed hides and skins have constituted the second major export product of the country with between 10 and 20 % of total foreign earnings, second only to deep brown with between 50 and 60% of earnings (apart from the late 1990s when it was just under 10%). The percentage has been fluctuating, and the most recent figures indicate adecreasein exports. In 2000/2001, 12,170 tons of skins and hides were exported, generating 618 million Birr (almost US $ 73 million) this accounted for 17.2 % of total foreign earnings. However, in the 2001/2002 fiscal year a smaller volume (10,462 tons) of skins and hides were exported, and, as a result, only 481 million Birr was obtained, accounting for 14.1 % of total foreign earnings (Addis Tribune 2002). It has to be said though that the year 2000/2001 witnessed a peak in the foreign earnings in this sector.The largest share of the foreign earnings comes fro m sheepskins in 1995 sheepskins, mainly in pickles, accounted for 66% of the total of US $ 61.3 million in foreign earnings by the leather sector, while this percentage was 18% for (wet-blue) goatskins and 16% for hides and other skins (Muchie 2000 549). It is also sometimes claimed that the large majority (i.e. 90%) of all the sheepskins that are produced in Ethiopia are exported. The importance of Ethiopian exports relative to other African countries, can be indicated by the share Ethiopia contributes to total African skin exports 51% in the case of sheep and 30% in the case of goats. Exported products go in particular to the UK and Italy in 1996 these countries similarlyk up 27% and 26% respectively (Kodama 2001 and Muchie 2000).Constraints for developmentSupplyA major problem with the leather sector is the by-product status of hides and skins Cattle, goats and sheep are mainly used for ticker (cf. Kodama 2001 and Worku 2002). Thus, the product, i.e.hides and skins, arrives whe n meat is needed,not when it is appropriate for leather processing. In Ethiopia meat is needed in three waves because of religiously induced self-denial seasons and festivals for example, in Amhara, which provides the largest volume of sheepskins, these festivals are Easter (April), Ethiopian New stratum and Mesqal (September), and Christmas and Timqat (January).QualityAs a result of this by-product status, not passable attention is paid to maintaining the quality of the hides and skins. Different serious problems at the source impacting on the leather quality are flay cuts, putrefaction, animal diseases (ekek), branding, poor pattern, dirt and dung, hides/skins are not sold when prices are considered to be too low (deteriorating quality), etc. Estimates of the loss to the Ethiopian economy due to such problems reach US $ 14 million per year. In order to address these problems, (pilot) projects are underway with the participation of ESALIA, CFC, UNIDO, FAO, UNIC and others.At the same time, meat consumption, especially in the rural areas, is intertwined with the system of food security. Unless the food security of peasants is ensured, the meat consumption will not increase.Berhanu and Kibre (2002) have made an interesting knowledge of competitiveness in the Ethiopian leather sector. For the tanning sector, they have think that the main factors affectingcompetitiveness arelow capacity enjoymentthe poor economic infrastructure inefficient infrastructure and inefficient bureaucratic structures combined significantly raises the transaction costs of firms, making it difficult to fence nationally or internationallythe technology employed is not updated (regularly), in particular the overlook of learning in production managementthe inadequacy of hard currency to purchase spare move and inputsthe relative miss of export support and/or promotion servicesFor the leather footwear firms, the main factors affecting competitiveness are the poor quality of domestic leather, and the high cost of (imported) inputs.They conclude that resource endowment is not nice for competitiveness, and that, similarly, the availability of cheap and abundant hollow by itself does not attend to be sufficient to compete internationally. Labour costs in Ethiopia, for example, are estimated to be lower than those in China the basic wage in Ethiopia is around US $ 0,7 per day, or almost 6 Birr, while it is around US $ 1 in China. Most relevant with respect to technology is the lack of timely and efficient maintenance, modification, and innovation. This has in particular to do with the lack of spare parts (foreign currency shortage), and unsatisfactory learning effort exhibited by labour and management.3.1.3 Recommended Modes of Entry in Manufacturing SectorRecommend mode for Textile and Garment Industry Leather productsThe government of Ethiopia invites companies to participate in the investment of Ethiopias textile industry. Foreign companies can participate i n this industry in the following three forms1.By setting up wholly-owned (sole) enterprises by themselves.2.By setting up enterprises in joint venture with Ethiopian companies.3.By establishing cooperation with Ethiopian public enterprises. These enterprises, which are in the process of privatization by the government, have their own future prospects and plans. Some wish to expand their enterprises by set new and modern machinery and equipment, some would like to develop their human resources through training. Some would like to study new market opportunities, etc. Therefore, there are various ways of cooperation with these enterprises, which may require discussion with specific enterprises. However, there are three forms of cooperation which applies to all enterprises which foreign investors can participate. These area)Joint ventureb)Wholesale ownershipc) Contract Managementd) influence investment3.1.4 SWOT AnalysisStrengthAvailability of excellent resources/huge domestic raw mat erial baseAbundant and inexpensive labour forceAttractive investment incentive packages and tax structure considerable growth industries average of circa 10-30% per sector.WeaknessLack of trained management and virtuoso(prenominal) workerQuality of finished productLower Productivity in various segments.Industry is highly dependent on Cotton and raw leather.Lack of Technological Development that affect the productivity and other activities in whole value chainOpportunitiesLarge, Potential Domestic and planetary Market.Product development and Diversification to cater global needs.Scope for move toward garment infrastructure and value added productionScope for effectively exploiting markets with phase out quota regime effectivelyScope for Technology up gradation on equipment frontThreatsContinuous Quality Improvement is need of the hour as there are different demand patterns all over the world.International labor and Environmental Laws.To balance the demand and supply.To make balance between price and quality.3.2 Business opportunities in Agriculture SectorAgriculture is the horse sense of the Ethiopian economy. The sector contributes about 43% of the GDP and 86% of exports. The export of Ethiopia is dominated by umber berry and oil seeds, which together accounted to 50.6% in 2008/09. Other principal export commodities are chat, flowers, pulses, and live animals.Ethiopia with 18 major agro-ecological zones and various agro-ecological sub-zones has a suitable climate for growing over 146 types of crops.3.2.1 Food and beverage cropsMaizeMaize is an important crop in Ethiopia. It is grown in the middle highland areas of the country. There are huge tracts of land in all regions suitable for maize farming. Maize is mainly produced in SNNPR and Oromia regions where there are about 1.77 million hectares under cultivation.Wheat and Barley realmWheat and barley are mostly grown in the highlands and mid highland areas of the country mainly in Oromia (Bale and Arsi Zo nes) and some parts of Amhara ( compass north Gondar and normality Shewa) Regions.Wheat and barley are the main cereal crops in the country with about 1,095,436 and 1,398,215 hectares under cultivation, respectively. The potential for the private sector in agro-processing and out growers scheme of development is significant. It offers excellent opportunities for production of wheat under irrigation in the Afar, Gambella, SNNPR and Somali Regions.Oil seeds and pulsesA variety of oil seeds (e.g. sesame, rapeseed, linseed, groundnut, sunflower, Niger seed, cotton seed, etc.) are grown in Ethiopia. The demand for sesame has been increasing in the global market making sesame an increasingly important export commodity in Ethiopia. In 2008/09, Ethiopia exported 287,000 tons of sesame valued at 356.1 million USD, accounting for 24.6% of the total export earnings. Rapeseed, linseed, groundnut, sunflower, Niger seed and cotton seed also serve as raw materials for the domestic edible oil ind ustry. finish of pulses like beans, peas, chickpeas, lentils, soybeans, etc. is also common in Ethiopia. Cultivation is carried out in both the highland and lowland areas of the country mainly by peasant farmers. Currently, the country exports a large quantity of pulses to the international market. There are also a number of factories that process pulses in the country. sift FarmingRice could suitably grow in many parts of the country. The predominant potential areas are- westside central highlands of Amhara Region (Fogera, Gonder Zuria,Dembia, Takusa and Achefer)North double-u lowland areas of Amhara and Benshangul Regions (Jawi, Pawi, Metema and Dangur)Gameblla regional state (Abobo and Etang Woredas)South and South West Lowlands of SNNPR (Beralee, Weyito, Omorate, Gura Ferda and Menit)Somali Region (Gode)South Western Highlands of Oromia Region (Illuababora, East and West Wellega and Jimma Zones).SpicesThe major spices cultivated in Ethiopia are ginger, hot pepper, fenugreek, tu rmeric, cummins, cardamoms, corianders and black pepper. Currently, there are nearly 122,700 ha under spice farming. Spice production reached 244,000 tonnes per year. The potential areas for the cultivation of spice are Amhara and Oromiya, SNNP and Gambella regions. The potential for low land spice farming is estimated to be 200,000ha.CoffeeEthiopia is one of Africas leading exporters of coffee generating most of its export earnings. Coffee is grown over 600,000 hectares, the largest of these areas lie in the south and south western highlands of the country. More than 60% of Ethiopian coffee is produced as forest or semi-forest coffee. The four main coffee growing regions in Ethiopia are Harrar, Ghimbi, Sidama /Yirgacheffe, and Jimma/Keffa.The country has more genetic diversity among its coffee varieties than any other county. Nine different varieties are cultivated in the four major growing areas.TeaEthiopian tea is some of the best quality tea in the world. Ethiopias current annua l tea production from three private estates is approximately 7000 tons of black tea per annum. The total area covered by tea plantation is 2700 ha and the country only produces black tea but has potential to grow all types of tea. Investment potential exists in large-scale commercial tea production and modern tea blending and packing industries. The tea industry in Ethiopia has been lacking investment. The Government has been proactive to increase private investment in tea plantations. As part of its privatization program for state owned enterprises, in 2000, two estates covering 2,109ha for $27milliom USD were sold to private investors. Moreover, an Indian company that owns and runs the Tata Tea Estate has signed an agreement with a domestic owned private company to manage the tea estate. The company will conduct the latest technology of tea planting, growing, harvesting and manufacturing of black tea, assist in planting tea in 5,000 hectares of land and also have the picking of investing in the equity of the company at a future date.3.2.2 Horticultural cropsDue to Ethiopias good agro-climatic circumstances it is able to produce fruits and vegetables end-to-end the year. Both the low- and highland areas offer good opportunities. The major fruits and vegetables growing areas of the country are summarized as followsEast Hararghe (eastern part of the country) with vegetables dominating,East Shewa (Central Ethiopia in Oromia regional State) produces both fruits and vegetables including tomato, green beans, orange, mandarin, papayaWest S