Ethiopia Leading Africa’s Bamboo Revolution

The Country Is Seen As An Attractive Forestry Investment Destination

by Tsveta Zikolova, 

09:34, April 10

An abundance of bamboo resources and foreign investment are making Ethiopia a frontier for Africa’s bamboo revolution, Inter Press Service (IPS) reported on April 8. Being home to the largest area ofcommercially untapped bamboo reserves in East Africa, Ethiopia is seen as an attractive forestry investment destination.

Ethiopia at the Forefront of Africa’s Bamboo Revolution

IPS quoted Mitiku Kassa, Ethiopia’s State Minister for Agriculture and Rural Development, as saying that the country had resources, investment as well as a rapidly-developing manufacturing industry and strong foreign demand for bamboo products.

“We have what we need”, Kassa said. “The expansion of Africa’s bamboo sector has begun.”

Forestry Investment Destination

As IPS pointed out, Sub-Saharan Africa has three million hectares of bamboo forests, approximately four percent of the continent’s total forest cover, with Ethiopia being the country with the largest area of commercially untapped bamboo reserves in East Africa. In addition, Ethiopia is reported as planning to increase its bamboo area from one to two million hectares over the next five years.

“Bamboo is a major untapped resource for Ethiopia,” Minister Mitiku Kassa told IPS, adding that the government was starting to work with farmers and enterprises to encourage and develop the sector to Ethiopia’s economic and environmental benefit.

IPS also quoted the director general of the International Network for Bamboo and Rattan (INBAR), J. Coosje Hoogendoorn, as commenting that governments in Africa have to make financial resources available to enterprises wishing to develop the continent’s bamboo industry. In addition, with the industrial development of Africa’s bamboo resources still being at its early stages, investors are being cautious to put their money into a market with relatively unknown dividends.

“We want governments to put structures in place that offer financial support such as micro finance and that remove any hindrance for investors in the bamboo market, so that when companies want to set up a bamboo industry they have access to financial support,” Hoogendoorn said, as quoted by IPS.

Favourable Demand Outlook

The Country Is Seen As An Attractive Forestry Investment Destination

Felix Boeck, an associate engineer at public-private partnership Africa Bamboo PLC, estimates that Europe has massive market potential in terms of demand for Ethiopian bamboo, IPS said. Reportedly, Africa Bamboo PLC is planning to invest €10 billion over the next five years in their operation in Ethiopia which would supply flooring products to customers in Europe and the US.

“The fastest-growing market in Europe for the wood industry is flooring and outdoor decking,” Boeck noted, as quoted by IPS. “We expect our products to play a large role in this market.”

Forestry investment in bamboo plantations in Ethiopia is likely to be supported by the general timber supply-demand trends. The US housing recovery is one of the factors creating a more favourable supply-demand ratio since it is likely to lead to higher demand in housing and repair or remodelling.