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In the largest single agricultural investment,
Ethiopia’s richest man Sheik Mohammed Hussein Ali
Al-Amoudi, joined the bio-fuel sector in a joint
venture with Jemal Ahmed, one of the biggest edible
and palm oil importers in the country.
Establishing Horizon Plantations Plc with a capital
of 190 million Br, the two investors received their
licenses from the Ethiopian Investment Agency one
month ago. Headed by Jemal, in collaboration with
AgriNexus of Malaysia, the company plans to embark
on an unprecedented project in scope to introduce
cash-rich plantation crops to Ethiopia.
“I have never seen a project of this size, Abiy
Meskel, director general of the Ethiopian Investment
Agency, told Fortune. “It is especially
useful for Ethiopia as it is labour intensive.”
This company is expected to grow jatropha, palm oil,
rubber trees and tea in the coming five years with a
projected investment of 250 million dollars. The
total investment land required for the project,
which is 250,000hct, five times the size of Addis
Abeba, is expected to benefit 350,000 people.
The oil palm investment would be carried out in the
Gambela Regional State on 58,000hct of land and the
Region is ready to grant the plot for the project,
sources disclosed.
Omed Obang, Gambella Regional State President, says
land is available but he has not yet received a
formal proposal.
Horizon’s biggest project is the 100,000hct
plantation of jatropha on 100,000hct, which it wants
to carry out in Benishangul Gumuz. The Ministry of
Agriculture and Rural Development (MoARD) is
undertaking studies for this project.
Ethiopia has 23.3 million hectares of land suitable
for oil-rich jatropha, according to a study by the
Ministry of Mines and Energy (MoME).
In September 2007 the Council of Ministers approved
the first Ethiopian Energy Strategy that includes
plans to extract bio-fuel from jatropha, palm oil,
caster seed and ethanol from sugarcane. The MoME
study indicates that there is 700,000hct available
for sugarcane production.
As in Gambella, Benishangul Gumuz Regional State
President, Yaregal Aysheshum, has not yet received a
proposal from the company.
“The Region has huge available plots, but a project
proposal must be reviewed before giving the green
light,” Yaregal told Fortune.
Horizon will be the second company to engage in
large-scale mechanised palm oil farming. Fri El
Green Power, an Italian Company, has previously
received 30,000hct from the Privatisation and Public
Enterprises Supervising Agency (PPESA) in the
Southern Nations, Nationalities and Peoples’
Regional State (SNNPRS) to cultivate palm oil and
jatropha with an investment of 320 million Br.
The company hopes to carry out its rubber tree
plantation project in Bench Maji Zone of SNNPRS on
85,000hct of land. Rubber tree plantation was first
started in Ethiopia by Matador Addis Tyre SC. The
company also has 600 rubber trees in Gambela.
The sap of rubber trees is the primary source of
natural rubber, which is used widely for industrial
products, tyres and furniture.
The third project, tea plantation, is expected to be
undertaken either in the Oromia or Gambela regional
states on 25,000hct of land. MoARD is conducting a
study to parcel the suitable plots.
Sources told Fortune that there is a greater
probability that Horizon would be given land for the
plantation in Oromia. an Indian Company has already
requested to cultivate the plot under consideration
in Gambela.
Berhanu Tesfaye, an expert at MoARD, told Fortune
the land would be given to Horizon if the Indian
company does not develop the land.
Experts from the Ministry have confirmed that over
one million hectares of land in the region is
suitable for various plantations.
Horizon has signed an agreement on January 23, 2008,
with the Malaysian consultant company AgriNexus to
give it management roles. Based in the country with
over four million hectares of oil and rubber
plantations, the company also has experience in
plantation development and management in Indonesia
and West Africa.
Sheik Mohammed at the end of the signing ceremony
stated that the world economy is shaking up with oil
and stock markets.
“If we focus on the agricultural sector in Ethiopia,
the growth will further expand,” he said. |
