Fortune News | Jul 10,2020
Ethiopia is spending 27.2 billion Br (over 660 million dollars in the current exchange rate) on importing 1.8 million tonnes of fertiliser bought mainly from Morocco but also from Egypt, the UAE and Saudi Arabia.
It is part of the 845,000tn currently under distribution in the Oromia, Amhara, Benishangul Gumuz, Southern, and Sidama regional states. Around 650,000tn of fertiliser have been delivered to farmers' cooperative unions thus far, according to officials from the Ethiopian Agricultural Businesses Corporation (EABC), a public enterprise that has been managing international procurements.
Just under one million tonnes of fertiliser has passed through the Port of Djibouti, and over 90pc of this amount is already in Ethiopia and in the process of distribution, the officials disclosed to Fortune.
An additional 130,000tn is currently being transported, according to Gashaw Aychiluhm, corporate communications and social affairs service head at the Corporation.
"The total amount is expected to arrive by the end of June," he told Fortune.
The procurement process began at the beginning of this year following an open international bid issued by the Corporation in August 2020. It was closed the following month after 76 bidders bought documents, of which 13 submitted price offers. The OCP Group of Morocco; UAE-based companies, OCI, Agri Commodities & Finance Fertiliser, and ETG Agri Input Fertiliser; and the Korean Samsung C&T Company, have won the bids for the supply and transport of the fertiliser.
The 270-million-dollar transaction with the OCP Group, a phosphate mining and fertiliser company, is financed with a loan from the Eastern & Southern African Trade and Development Bank (TDB). It is a transaction praised as the first intra-African trade conducted using a blockchain platform managed by a digital company in Singapore.
Compared to last year’s performance, from surveying demand to distribution, this year is better, said Mengistu Tesfa, director of input marketing at the Ministry of Agriculture.
The agricultural sector is responsible for two-thirds of the 2.1 billion dollars earned from exports over the last eight months, followed by mining (20pc) and manufacturing (12pc). The use of fertiliser increases production and productivity, according to Mohammed Aman (PhD), assistant professor of agricultural economics and agribusiness at Haramaya University.
"But the main issue lies in equity in distribution," he told Fortune.
He urges officials at the Ministry to identify the places and farmers that are most in need of fertiliser.
However, the agricultural sector does not produce as much as it should, despite its place in the economy as the main contributor to export revenues, according to Germame Garuma, state minister for Agriculture.
"The Ministry increased the amount of fertiliser it provides farmers by over a quarter this year," said Germame.
The amount of fertiliser used in smallholder farms has spiked exponentially in the six decades since the 1960s, when annual consumption was 3,500tn. It grew to 140,000tn in the 1990s and 1.4 million tonnes last year.
The involvement of foreign companies in the supply chain should be a cause for concern, according to Mohammed.
"It may not be possible to have all of the fertiliser imported by domestic investors," said Mohammed. "But there should at least be a way for them to partner with foreign suppliers."
According to the expert, fertiliser is expensive, and its prices regularly increase, sometimes by up to 40pc annually; hence, domestic production needs to be prioritised.
"A public-private partnership must be encouraged since there are investors that are willing to invest," said Mohammed.
PUBLISHED ON Apr 10,2021 [ VOL 22 , NO 1093]
Fortune News | Jul 10,2020
Radar | Sep 04,2021
Sponsored Contents | Oct 25,2021
Editorial | Oct 23,2021
Fortune News | Mar 12,2020
Radar | Oct 05,2019
Radar | Dec 07,2019
Radar | Mar 07,2020
Fortune News | Aug 01,2020
Viewpoints | Sep 06,2020
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
August 7 , 2021
There are a few without an opinion on Ethiopia’s federal structure, which is arranged along lingo-cultu...
July 24 , 2021
There was an alarming increase in the price of Teffin August 2017. It suddenly skyrocketed from 2,000 Br...
Ethiopia is at a pivotal moment in its history. Its future path is not only vital for...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
October 23 , 2021
Ethiopia`s civil war continues to rage, with no sign of respite or a prospect for a n...
October 16 , 2021
For many, the past rainy season was a critical moment in the life of the nation. One...
October 9 , 2021
Public offices have been having a field day in the past few years. From the Prime Min...
October 2 , 2021
Ethiopia`s Parliament will pick up a Prime Minister on Monday, October 4, 2021. The i...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Friends help us make the most out of life, providing social and emotional support as...
Human societies have come a long way. Just think about it. It was only in 1888 that electricity in our ho...
Or see contact page