ድህነትን ለመዋጋት የወይን ኢንዱስትሪ ማስፋፋት
Proposal to Establish a Poverty Fighting Wine Industry within Ethiopia
Background
With 85% of its employees working in the farming sector and an estimated $900 of GDP per capita,
Ethiopia is one of the poorest countries in the world. 1 As a result, 70% of Ethiopians earn less than
$2 per day, while almost 50% survive on less than $1 per day.
This project was conceived following discussions during which Prime Minister Meles Zenawi
expressed an interest in the creation of an economically and socially beneficial wine industry within
Ethiopia; one that might expand upon its recent successes with high‐quality coffee.
At the request of the International Society of Africans in Wine (ISAW), a 501(c)3 based in Atlanta, a
team of six students and one professor from Emory University’s Goizueta Business School (see
Appendix A) traveled to Ethiopia to analyze the feasibility of encouraging the development of a
commercial wine industry in and around Addis Ababa. The specific charge was to assess the
prospects of developing an economically‐viable and socially‐responsible wine cluster and then
provide specific recommendations.
The team travelled to Ethiopia in August, 2010 and met with government and industry leaders and
visited different farming regions along with the recently‐planted Castel Vineyard. In particular, we
met with His Excellency, President Girma Woldegiorgis, to discuss his vision for wine production
within Ethiopia. We also met with Dr. Abera Deressa and Mr. Haileselassie Tekie, the Minister of
Agriculture and Director General of Horticulture, respectively, to discuss historical land surveys and
the prospect of obtaining government land to plant vineyards. Another set of meetings was with Mr.
Tadesse Meskela, the General Manager of the Oromia Coffee cooperative. As the largest and most
successful coffee cooperative in Ethiopia, we were able to draw parallels between the successes
that he had achieved with coffee and potential economic successes in the wine industry.
This report documents the viability of a quality‐oriented anti‐poverty initiative for Ethiopia in the
wine industry. It outlines the considerable potential and the various impediments before proposing
an interconnected set of programs that will collectively address these obstacles.
The success of the proposed endeavors is linked to the potential to create a quality‐based identity
for Ethiopia in the wine market. At the same time, a key point of differentiation for Ethiopia (at least
initially) relates to the strong social mission of this project. To our knowledge, this represents the
first attempt to develop a wine‐producing region with the primary aim of reducing poverty. By
paying careful attention to the design of this wine industry cluster, many of the ensuing economic
benefits should flow directly to Ethiopian farmers and their families.
We therefore make a strong business case for the centrality of a clear and strong anti‐poverty
mission for this project. More specifically, we outline a number of specific market ‘subsidies’ that
follow such a commitment; i.e., examples of the financial, knowledge and market‐access support
that might be expected.
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