African War of the Roses

ThirdTerm · Aug 31, 2016

In Kenya, flower-growing is a $500 million business that dates back to 1969. This success is currently threatened by a new gardener on the patch: Ethiopia. A $200 million industry is emerging in Kenya’s neighbouring country, and a rivalry has begun.

Here’s all you need to know about the modern day, African War of the Roses.

10 years ago, Dutch-owned AQ Roses’ chose to set up a $10 million flower farm in Ethiopia, rather than industry leader Kenya. “Here is much better than Kenya”, Directo Ammerlaan said. “What for us is very important is the security and corruption, which is much better here than in Kenya. Kenya is more Wild West than Ethiopia.”

Reasons for the success of Ethiopia’s flower industry include tax breaks, state-bank loans and an intolerance of graft.

In just 10 years, Ethiopia has become the second biggest flower exporter in Africa

Ethiopia gives flower investors a five-year exemption from corporate income tax. The state also exempts them from duties on products like fertiliser.

On the other hand, Kenyan flower exporters complain of unnecessary taxes and bribe demands from officials, said Dipesh Devraj, chairman of the Fresh Produce Exporters Association of Kenya.

Last year, five companies in Kenya moved their operations to Ethiopia, according to the Kenya Flower Council.

Although Ethiopia’s flower industry is booming, it still has some way to before it can overtake Kenya. Ethiopia’s 2015 production was about 50,000 metric tons a year, according to the Ethiopian Horticulture Producer Exporters Association. Kenya produces 112,800 tons.

http://www.africanbusinessreview.co...t-Ethiopia-and-Kenya's-flower-growing-rivalry
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In Kenya, there is a $500 million flower industry and Kenya is one of the world's biggest exporters of cut flowers. In 2015, the flower industry amounted to 1.45% of Kenya's GDP, while flower exports contributed to 1.01% of the country's merchandise exports. The country is the third largest exporter of cut flowers in the world, accounting for around 35% of all sales in the European Union. Kenya's roses are also popular in Russia, which are also exported to as far as Japan. Ethiopia’s flower industry is growing rapidly in parallel, thus the African War of the Roses has commenced.

[video=youtube;cdcqg4CroYo]https://www.youtube.com/watch?v=cdcqg4CroYo[/video]

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African War of the Roses

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