Ethiopian Entrepreneurs Leverage Herbal Heritages in Emerging Retail Sector

In front of the Pawe Building around Enkulal Fabrica, on Arbegnoch St., a two-year-old natural remedies producer is winning favors with customers. Deshet Herbal, which was founded by a medical doctor and chemical engineer, has ten offerings spanning skin care products, simple therapeutics, and cosmetics. Anti-grey hair products, scalp oils, and respiratory detox teas have cultivated a reliable customer base for the budding company. The moringa-based tea and the Ashwagandha, an evergreen shrub scientifically referred to as Withania Somnifera, have particularly left a mark on high-anxiety individuals looking to reduce stress.

Ethiopia, known for its rich biodiversity and traditional healing practices, is a major producer of herbal oils derived from indigenous plants. These oils, extracted from seeds, leaves, and flowers, have been used for centuries in medicine, cosmetics, and therapy. A vibrant culture of using folk medicine continues today, polished by contemporary touches.

Deshet leases a 3,000 sqm expansive farm in Arba Minch, Southern Ethiopia, where they carefully source each ingredient for their products. Estifanos Sisay, a chemical engineer who co-founded Deshet, says they conducted a nationwide survey and undertook research before starting their business.

“We both brought our expertise into it,” he told Shega.

Estifanos says they avoid the use of chemicals in the production process, solely relying on heating, water treatment, and plants for their products. The cofounder casts a self-assured smile as he explains that the entire process depends on “nature’s magic.” He acknowledges the potential difficulties faced by customers in identifying genuine products amid the proliferation of herbal products on social media.

Centuries of using herbs to treat various ailments also pose risks just as much as it offers alternatives in treatment. With the rapid rise of social media marketing, a slew of products with unclear origins and unidentified side effects have flooded consumers. Still, testimonies abound about the benefits, especially from users of cosmetic products.

Bezawit Assefa, a finance manager working in the capital, says she feels less concerned about potential side effects due to the strictly natural production process. She has become a regular user of soaps made from Qesil, powder sourced from crushed leaves of the Gob tree.

“I used to have acne a few years ago,” Bezawit told Shega.

The finance manager is highly selective of the products she applies due to her oily skin complexion. Nonetheless, prices have remained all but constant as Bezawit has witnessed the prices of the 200mg Qesil soap increase nearly five-fold to around 250 birr in three years.

Despite Ethiopia being endowed with a rich agro-ecology capable of supplying most of the necessary inputs for these products, imports are still quite common. Beauty, skincare, and perfume imports added up to around 6.05 million dollars in 2023 according to trade reports.

The Ethiopian Bio and Emerging Institute, a state-led center of innovation, has been conducting rigorous research over the past few years on extracting the maximum potential from indigenous plants. Guava leaf tea and the avocado oil extraction techniques have garnered significant attention from potential investors and customers alike. Meskerem Adamu (PhD), a researcher at the Institute, says there is a global push to avoid reliance on synthetic chemicals for products applied on the body. He attributes the shift to a rising awareness of the dangers posed by unnatural elements.

“Several people should be working on it,” Meskerem told Shega.

Yordanos Abraha, a recent entrant into the herbal industry, believes that the sector is in its early stages. Her company Queen Herbal and Beauty Products sells around seven products, including soaps, oils, and hair treatments.

“Our products are better than the imports,” she says. ” They (imports) just have better packaging.”