Production-driven trade strategy enables Ethiopia to boost export destinations, competitiveness

Addis Ababa, April 1, 2025 (FMC) — Ethiopia has achieved tangible results in enhancing its export destinations and competitiveness by implementing a production-driven trade strategy, Trade and Regional Integration Minister Kassahun Gofe noted.

Ethiopia will play its leading role in strengthening intra-African trade by commencing soon a pilot African Continental Free Trade Area (AfCFTA) project in selected countries, he added.

The minister stated that Ethiopia has achieved significant results in export diversification and competitiveness.

Recalling that Ethiopia’s export revenue was 2.6 billion USD in 2017/8, Kasahun stated that 4.5 billion USD has been earned in the first eight months of 2024/5 alone.

The activities carried out in export productivity, implementation of the macro-economic reform policy and free-floating exchange rate systems have enabled significant changes, he pointed out.

Although Ethiopia’s potential is much greater than this, the minister stressed that the promising results being registered are encouraging taking into consideration the red tape that constrained the trade sector in the past, he elaborated.

The minister, who recalled the annual export revenue from coffee production to be 700 million USD, stated that over 2 billion USD is expected this Ethiopian fiscal year.

Endeavors carried out in developing and producing quality coffee plants in connection with the Green Legacy Initiative have made a significant contribution to its competitiveness.

Kasahun emphasized that Ethiopia’s export competitiveness is growing as a result of its pursuing a production-driven trade strategy.

According to him, Ethiopia’s export revenue is low in terms of its Gross Domestic Product, and the aim of joining AfCFTA and the World Trade Organization is to expand trade destinations.

For him, it is necessary to strive towards making Ethiopia’s export market predictable and competitive.

The minister revealed that Ethiopia has finalized preparations to start the pilot AfCFTA project.

He believes that AfCFTA is promising for Ethiopia because of the large-scale production of coffee, pulses, and other products, as per ENA.