War of the roses – African style


By Ikenna Azuike, Radio Netherlands | March 3, 2009


England’s ‘War of the Roses’ was fought in the fifteenth century between the Lancaster and York families. But, whereas the English experience was political and bloody, East Africa’s version is economic and fragrant. Kenya and Ethiopia are fighting for the crown of premier producer and exporter of roses.

Ethiopia: The young pretender

Ethiopia is undoubtedly the young pretender when it comes to the rose empire in east Africa, but for how much longer? The Dutch National Office of Statistics reports that more than 95% of roses imported into the Netherlands are grown in Africa, with the majority supplied by Kenya. But there has been a nearly 50 percent increase in the number of roses imported from Ethiopia since 2007 and all the signs point towards that trend continuing.

According to the Chairman of Ethiopia’s Horticulture Producers’ and Exporters’ Association , Tsegaye Abebe, Ethiopia’s success is due to a stable political climate, shrewd business acumen and an ideal environmental climate. Mr Abebe says:

“The land is almost free in Ethiopia. It is around 14 dollars per hectare per year. It’s a lease between 60 to 70 years. Water is free in Ethiopia and the security is fine in Ethiopia.”

The inevitable question is to what extent are local Ethiopians actually benefiting from the generous financial terms being given to investors. Mr Abebe says everyone benefits and there is a level playing field for investors from all backgrounds:

“About 53 to 54 percent is foreign investment and 46 to 47 percent is local investors and all have the same treatment. No discrimination. And that is why the foreign companies and the local companies are attracted to invest their money in Ethiopia.”

Whether money filters down to ordinary Ethiopians isn’t completely clear. However, investment on a grand scale invariably generates jobs which should in turn raise living standards.

Kenya: The aging king

The present king of the rose production and export industry in East Africa is Kenya. This title is despite the fact that just a year ago, political violence there threatened to decimate the country’s flower business. The Chief Executive Officer of Kenya’s Flower Council, Jane Ngigi, explained how the rose exporters managed, against all odds, to do business during the violence:

“The industry decided to weather the political unrest storm and just continue producing flowers. It still surprises us that we were able to deliver more flowers during that time than the same time the previous year when we had no problems at all in the country.”

Partnership not war

Jane Ngigi says that Kenya is not focussed, at any cost, on maintaining its dominant position as east Africa’s chief producer and exporter of roses. For her, the entry of Ethiopia was welcomed in terms of ensuring that the African market share was retained:

“What is important for us is that collectively as African producers we continue to provide a quality that is valuable to our markets particularly in the European Union.”

But, despite positive overtures of partnership between the two East African rose giants, business is business. Ethiopia and Kenya will only cooperate with one another in the flower industry to the extent that such cooperation is mutually and financially beneficial. So, as Ethiopia’s rapid ascendancy in the rose world continues lets keep an eye out for Kenya’s commercial response.


Source:
Radio Netherlands


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