Ethiopia is endowed with abundant agricultural resources.

with ranging altitudes from 148 meters below sea level to 4,620 meters above it. The country has 18 major agro-ecological zones and 49 sub zones. Therefore, the country provides one of the largest and most diverse genetic resources in the world.Opportunities abound for farming, for example, in cereals, root crops, legumes and vegetables, flowers and so on and so forth in various parts of Ethiopia, not only for local consumption but also for export. This means that both food and cash crops can be grown for sale and as industrial inputs.

Currently, the crops hereunder are some of those grown in the country, but more can be added:

Food, Beverage & Cash crops

Maize

Maize is an important crop in Ethiopia. It is grown in the mid 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 Farming

Wheat and barley are mostly grown in the highlands and mid highland areas of the country mainly in Oromia (Bale and Arsi Zones) and some parts of Amhara (North Gondar and North 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 pulses

A 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 industry.

Cultivation 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.

Rice Farming

Rice could suitably grow in many parts of the country. The predominant potential areas are:-

West central highlands of Amhara Region (Fogera, Gonder Zuria,Dembia, Takusa and Achefer);

North West 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).

Spices The major spices cultivated in Ethiopia are ginger, hot pepper, fenugreek, turmeric, 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.

Coffee

Ethiopia is one of Africa’s 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.

Tea

Ethiopian tea is some of the best quality tea in the world. Ethiopia’s current annual 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 transfer 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 option of investing in the equity of the company at a future date.

Tobacco, sugarcane, cotton and rubber plantations are also part of the major cultivation opportunities in cash crops in Ethiopia.

Horticulture & Flori-culture

Fruits, vegetables & flowers

The climate, various soil types and access to water make Ethiopia favorable for the growing of fruits, vegetables and flowers. Major exportable fruits include citrus, banana, mango, papaya, avocado, guava, grapes, pineapple, passion fruit, apples and strawberries. Vegetables include potatoes, cabbage, cauliflower, okra, egg plant, tomato, celery, cucumber etc. Currently a total of 1200 hectares of land is covered by more than 80 flower growers who came from the Netherlands, India and Israel as well as domestic investors. The main cut flower exports include: statice, alliums, roses and carnations. The Ethiopian Horticulture Producer Exporters Association contains extensive information on the sector.

Apiculture

The current annual production of honey and beeswax of the country is estimated at 43.7 thousand tonnes and 3,600 tonnes respectively.This provides a high investment opportunity in all aspects of the development of this untapped sub-sector in the production, collection, processing and marketing of honey and beeswax.in relation to this, the demand for the bee queen is growing rapidly providing an additional opportunity for investment.With some 3.3 million beehives, Ethiopia is the leading honey and bees wax producing and exporting nation in Africa. This offers excellent prospects for private investment in apiculture.

Integrated Forestry

An estimated 2.5 million hectares of natural forest presently remains in 58 designated National Forest Priority Areas (NFPA). Of these, 13 are managed under integrated forest management systems, with about 80,000 hectares of industrial forest having been established for limited sustainable exploitation. Investors are welcome to invest in integrated commercial production of structural timber, pulp-wood, match wood or even fuel wood. Production of rubber and natural gum also offer exciting opportunities for private investment.