Ethiopia invests US$2M in strawberry, saffron farming

ETHIOPIA – Ethiopia’s agricultural sector is set for expansion as African Farming Industries commits US$2 million to cultivating strawberries and saffron within the Bole-Lemi Industrial Park Special Economic Zone. 

This investment aims to enhance export-oriented production by leveraging modern farming technologies, including vertical farming and hydroponics.

A memorandum of understanding (MoU) was signed between African Farming Industries and the Ethiopian Industrial Parks Development Corporation to formalize the investment. 

Under the agreement, African Farming Industries will utilize 5,000 square meters of land and a 3,000-square-meter shed for operations.

Government endorsement and strategic goals

During the MoU signing, Fiseha Yitegesu (PhD), CEO of the Ethiopian Industrial Parks Development Corporation, highlighted the government’s commitment to supporting projects that enhance agricultural exports.

“This initiative aligns with Ethiopia’s goal of becoming a key exporter of high-value crops like strawberries and saffron,” he stated.

Nasser Mahamat, CEO of African Farming Industries, noted the company’s extensive experience in Chad and its plans to introduce advanced farming methods in Ethiopia to strengthen agricultural productivity.

“We will apply modern agricultural techniques, including vertical farming, to enhance productivity,” he said.

Ethiopia’s growing strawberry sector

Strawberry production in Ethiopia has seen steady growth in recent years, with local farms adopting innovative methods. 

Zuqualla Horti PLC, for example, employs advanced greenhouse systems featuring drip irrigation and volcanic ash as a growing medium. These techniques enable year-round production while improving efficiency and reducing labor costs.

Industry reports indicate that Ethiopia produced approximately 2.6 thousand tons of strawberries in 2023, representing a 4% increase from the previous year. 

The sector had previously experienced an 87% production increase in 2018. The country’s strawberries are primarily exported to the Middle East and Europe, with key destinations including the United Arab Emirates and Germany.

Regional competition in strawberry exports

Ethiopia faces competition from other African strawberry producers, particularly Egypt, South Africa, and Morocco. 

Egypt remains the continent’s largest producer, yielding approximately 300,000 tons annually, with exports directed mainly to Europe and the Middle East. South Africa and Morocco each produce around 85,000 tons per year, with their exports reaching European and Asian markets.

Despite this competition, Ethiopia aims to position itself as a strong player in the international fresh produce market by adopting modern agricultural techniques and expanding production capacity.

Technology transfer and employment opportunities

The Ethiopian Industrial Parks Development Corporation views African Farming Industries’ investment as an opportunity to enhance technology transfer and generate employment. 

The introduction of hydroponics and vertical farming is expected to improve yields while reducing land and water usage.