Ethiopia’s $500m flower industry wilts as foreign firms exit over worsening conflict
Ethiopia’s multi-million-dollar flower industry is facing a significant crisis as international companies withdraw from the country due to escalating conflict in the northwestern Amhara region, a critical flower-growing hub.
The departure of foreign firms is dealing a severe blow to one of Ethiopia’s key export sectors, which generated over $500 million in revenue last year.
The latest company to exit is Selecta One, a global leader in plant breeding and horticulture. In a press release, the company announced that its parent group, Selecta Group, would be moving its production operations from its Kunzila site in northern Ethiopia to its main locations in Kenya and Uganda.
The company cited political instability and an unpredictable military environment as primary reasons for its decision.
“The Selecta Group will move URC-production from its Kunzila site in northern Ethiopia to its main locations in Kenya and Uganda. The unstable political situation and the uncertain military environment were the main reasons for this decision,” a press statement from the company read.
Selecta One CEO Per Ansgar Klemm also took to LinkedIn to express disappointment over the closure. “Years in which we, together with a dedicated team on the ground, have invested countless hours, built up know-how and, after the end of the civil war in November 2022, firmly hoped for a better future. Despite all the difficulties we encountered on a daily basis, we were able to see how much our joint work could create prospects for the people and their families, who gave their best every day,” Klemm wrote.
The company, which began operations in Ethiopia in 2021, will lay off more than 1,000 local employees as a result of its closure. Selecta One joins a growing list of foreign horticultural companies, including five Dutch-owned firms, that have either ceased operations or suspended production since the beginning of 2024.
Ethiopia’s flower industry is the country’s second-largest export sector after coffee, according to the National Bank of Ethiopia (NBE). The sector contributed nearly $600 million in export revenues during the 2022/23 fiscal year, underscoring its vital role in the nation’s economy.
