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Mohammed Ali Al-Amoudi’s recently established Saudi
Star Agricultural Development Plc requested, two
weeks ago, for an additional 250,000ht of land in
Jawi Wereda of the Awi Zone of the Amhara Regional
State for sugar beet production from the Ministry of
Agriculture and Rural Development (MoARD).
The request is under review by the Investors Support
Directorate under the State Minister Abera Deressa
who told Fortune that the land would be
granted if the review of the business plan of the
company turned out to be good.
The three sugar factories in Ethiopia, Metahara,
Finchaa, and Wonji Shoa, as well as Tendaho and the
Pakistani-owned Al-Habesha Sugar Mills Plc, which
are under development, all produce sugar from
sugarcane, making Saudi Star the first to use sugar
beet.
This is part of the company’s plan to develop
500,000ht of land in 10 years at a total expected
cost of three billion to five billion dollars. It
has currently obtained 10,000ht of land in the
Alwero Area of the Gambella Regional State for the
production of rice. Subsequently, the company
intends to produce maize and wheat. The Amhara
Regional State project focuses on cash crops.
“Al-Amoudi wanted this project to be implemented in
the Amhara Regional State in order to create job
opportunities in the area. It emanates from his
aspiration to alleviate the poverty there,” Haile
Assegdie, managing director of Saudi Star told
Fortune.
The company wanted to get the land in the Jawi
Wereda where 98pc of the land is said to be flat
terrain with an annual average rainfall of 1200 to
1300mm.
The wereda’s Communication and Public Relations
Secretary Tamene Demessie, said that the interest in
the area previously came from sesame growers.
Lately, however, Hibir Sugar had chosen the area for
its sugar factory and sugarcane plantation, followed
by Saudi Star’s interest now.
The Caterpillar agricultural machinery, which Saudi
Star acquired for 80 million dollars, are, at
present, being transported to the Alwero farm in
Gambella. This company and the Indian Karuturi are
presently the two largest food and cash crop growers
in the country. Karuturi has commenced wheat
production on the 300,000ht of land it acquired in
the Gambella Regional State.
In Ethiopia, crop production has been localised to
the densely populated, highland areas, which
accounts for 40pc of the total land of the country.
The lowlands cover the remaining 60pc, and are
sparsely populated. The Ethiopian government has
been assuring land concessions should an interested
investor come, as has been repeatedly expressed by
PM Meles Zenawi. |
