Annual flower exports from Ethiopia currently stand at more than $20 million and are expected to reach $100 million by 2007. More projects - with a further 100 investors from the Netherlands, Germany, India and Israel have acquired the use of 450 hectares to set up farms, and should generate an estimate extra $300 million a year by 2007.

Floricultural development is a thriving part of Ethiopia's export trade according to the Export Promotion Department director, Melaku Legesse. He said that revenue earned from flower exports has grown significantly over the last couple of years from sales to the European market.

"Ethiopia has an ideal ecology for floricultural development, with an immense potential to grow high quality standard flowers that would meet the requirements demanded by the international market."

Karuturi Networks is one of a number of hi-tech Indian floriculturalists that has recently announced that it is setting up operations in Ethiopia. The Indian company has set up a 50-hectare unit at Holeta, near Addis Ababa and is in the process of adding a further 50 hectares. Other companies including Pushpam Florabase Pvt Ltd. are also in the process of setting up their operations.

Karuturi recently won a major order with the UK supermarket chain Morrisons and will be using its Ethiopian operations to service it.

According to K.S. Ramakrishna, managing director of Karuturi Networks, Ethiopia's appeal lies in its proximity to consuming markets such as Europe and West Asia, its ideal climate conditions all year round, the improved investment code in the country, the accessibility to bank loans and the availability of land.

"Located in the equatorial belt, Ethiopia has an ideal climatic condition that helps in producing premium grade roses. The Ethiopian government offers large tracts of land for floriculture companies on a perpetual long-lease at very attractive rentals," he said.

"Roses produced in Ethiopia are of top quality and command a significant premium compared to the Indian roses."

"Indian growers expect to reap the low freight cost advantage by operating from Ethiopia," said Manjunath Reddy, CEO of Pushpam Florabase, which is setting up a 50-hectare unit in the country.

"Freight costs, which account for more then half of floriculture earnings, are 50 to 60 percent lower from Ethiopia to Europe than the costs from India," he added.