Former Ethiopian PM offers to help revive Arusha flower farms

Arusha. Africa’s icon of the modern agricultural revolution and former Prime Minister of Ethiopia, Hailemariam Desalegn, has thrown his weight behind Tanzania’s ambitious plan to revive the once lucrative cut flower industry.

The state strategy is to revamp the seven defunct premium flower farms on the southern slopes of Mount Meru in Arusha in a bid to recover thousands of lost jobs and generate revenue for the country’s economy.

Official data shows the redundant flower estates were earning Tanzania $24.5 million annually in export value, creating 4,010 jobs directly and 40,000 others indirectly, as well as generating $800,240 worth of the government’s taxes.

Arusha Regional Commissioner John Mongella has, in collaboration with the horticultural association (Taha), been working extra time to recoup the redundant 2,107.6-acre flower estates to rekindle Arusha's lost glory of being a major producer and exporter of cut flowers.

In his fact-finding mission at some defunct flower farms recently, Mr Desalegn, who is President Samia Suluhu Hassan’s strategic advisor in agriculture, pledged to use his vast experience to support Tanzania’s initiatives to bring the non-operational farms to life.

“Ethiopia has been successful in the horticultural industry. I can use such experience and my connections to support your efforts to revive the defunct flower farms, which abound with enormous potential,” Mr Desalegn told his host, the Arusha Regional Commissioner.

Mr Desalegn, who is credited as Africa’s agricultural revolutionist, advised Mr Mongella to prepare for him a strategic plan outlining a package of key requirements for reviving the flower plantations.

During his tenure as prime minister between 2012 and 2018, horticulture in Ethiopia became the country's second-largest source of foreign currency after coffee.

Mr Desalegn revealed his success, saying it relied on a prudent combination of market forces and State’s interventions.

To become internationally competitive, Ethiopia had to open its doors wider for foreign investors to bring much-needed investment capital and cutting-edge technological capabilities.

“A slew of incentives had to be created to induce foreign and domestic firms to meet international standards for export,” he said.

Ethiopia had to offer subsidies, generous credit schemes, and a 100 percent exemption from payment of duties on imported capital goods and raw materials, coupled with a five-year tax holiday on profits.

As Ethiopian firms had jumped onto the floriculture bandwagon in 2012, foreign firms increased their investment, accounting for 63 percent of all firms operating in the horticultural industry, let alone their technological transfer and improved market access contribution.

Official data shows nearly two-thirds of firms in the industry relied on loans from the Development Bank of Ethiopia, inspiring private banks to also borrow a leaf from the industry.

The latest statistics indicate that Ethiopia exported more than 215,800 tonnes of horticulture products to the international market, generating over $514 million in the final nine months of the fiscal year 2023.

Exports of flowers accounted for almost $444 million in revenue, while exports of vegetables and fruits brought in $57 million and $13.3 million, respectively, official data indicates.

Mr Mongella welcomed Mr Desalegn’s commitment, saying it does not only offer a fresh impetus to Tanzania’s painstaking initiatives to recover the flower industry but also signals fortunes looming over the local economy.

“We’re so delighted to see the influential former prime minister of Ethiopia’s willing heart to support our mission to revive the defunct flower farms and restore the local population’s hope,” Mr Mongela explained.

Briefing the former Ethiopian PM, the RC said the defunct flower estates used to generate multi-million dollars and create thousands of employment opportunities for women and youth, in particular.

Mr Mongella said before they were closed, the defunct flower estates raked in $24.45 million annually, created 4,010 jobs directly and 40,000 others indirectly, generated $800,240 worth of government taxes, and stimulated the rural economy.

"We at Taha can’t wait to see these farms become operational once again to leapfrog other local businesses, recoup thousands of lost jobs, and spawn much-needed revenues in the economy,” chipped in the Taha Chief Development Manager, Mr Anthony Chamanga.

The once lucrative flower farms situated in Tanzania’s Northern Highlands Zone still represent the highest potential for diverse horticultural investments, Mr Chamanga explained.

To him, the country’s conducive climate, adequate infrastructure, proximity to the markets’ gateway, supportive technical institutions and ready-made clusters of activities in place suffice to lure investors.