The khat industry in Ethiopia is currently experiencing an unprecedented crisis. In eastern Oromia, many towns depend almost exclusively on the sale of this plant with its psychotropic effects. In 2020, khat accounted for 4% of the country’s export earnings and 9.4% of total merchandise exports. However, in recent months, khat prices have fallen drastically, putting farmers’ incomes at risk.
The rolling landscapes of eastern Oromia are covered with khat shrubs, reflecting the importance of this crop in the region. However, falling prices have created a difficult situation for farmers, who are now struggling to survive. The income generated by the sale of khat is no longer enough to cover essential expenses, such as the purchase of food. A khat farmer, Haron Oumar, deplores the fact that a collection does not allow him to even buy a bag of rice, a basic necessity. Khat prices have indeed fallen precipitously, from 10,000 to 20,000 birr per kilogram to just 2,000 birr.
The crisis in the khat industry is mainly attributed to the doubling of export taxes imposed by regional authorities last October. These taxes, levied on the roads, considerably increased costs for exporters, who then reduced their purchases of khat from producers. This situation has significant repercussions on the local economy, as khat is a true way of life in the region. It generates employment not only for sellers and buyers, but also for people who clean and transport khat bags.
In this context of crisis, it is crucial to find alternatives for farmers and workers in the khat industry. Some experts, like Diredawa University researcher Muluguta Girma, suggest diversifying crops by encouraging the production of foods, vegetables and other plants that can easily grow in the area. This would require dialogue with the community to find short and long term solutions, to ensure a successful transition to new economic activities.
Ethiopia’s khat crisis is a stark reminder of the unstable economic realities facing many parts of the world. It highlights the need to diversify local economies to avoid over-reliance on a single crop or industry. It is essential to encourage the development of sustainable and resilient economic sectors, capable of coping with market fluctuations and guaranteeing a decent standard of living for local populations.
In conclusion, the crisis in the khat industry in Ethiopia raises concerns about the economic viability of this activity. While recognizing the cultural and economic importance of khat, it is imperative to explore alternatives to ensure the stability and prosperity of local communities. It is time to diversify economies and develop more resilient sectors, to create sustainable economic opportunities for all.