Ethiopia has seen exports decline for a second consecutive year, dropping two percent to 1.53 billion US dollars in the first half of the 2023/24 fiscal year.
Data from the Export Ministry shows a 22 million dollar fall, exacerbating concerns over dwindling foreign exchange reserves in the import-reliant nation, where reserves currently cover less than one month of imports.
Coffee remains the largest export, but its decline by 13.6 percent to 571 million dollars (accounting for 37 percent of total exports) did little to drive overall sales higher.
Khat export decline by the same percentage to 89.6 million dollars. Flowers (225 million dollars) export however saw marginal increases by 66 percent, showing the highest increase among all exports.
At a meeting at the Ministry’s premises, exporters blamed quality issues, lack of access to credit, and smuggling for hampering their competitiveness in international markets. They warned Ethiopia's global trading position may continue to erode without action from the Export Ministry.
State Minister Kasahun Gofe acknowledged joint goals to spur faster export growth had fallen short so far. However, he expressed optimism that boosting efficiency in areas like standards, contracts and trade could help exports rebound to the $2.39 billion target.
Whether exports can reach this target or alleviate the worsening foreign exchange reserves crisis is now a major question facing Ethiopia's economic policymakers. For importers, the forex crisis shows no signs of abating.
