MIDROC and its affiliate has signed a contract for the transfer of three agricultural enterprises previously owned by the Ethiopian government. The contract was signed by Sheikh Mohammed Ali Al Amoudi and Beyene Gebremeskel, Director General of the Ethiopian Privatization & Public Enterprises Supervising Agency, on April 4, 2013, at the Sheraton Addis Hotel.

MIDROC acquired Upper Awash Agro-Industry for 860 million Br, 35pc of which it has paid in advance. HORIZON Plantations, its affiliate, also acquired Coffee Processing & Warehouse Enterprise and Gojeb Farm for 228.2 million Br and 35.1 million Br, respectively, paying 50pc in advance for both.

It took a year to conclude the acquisition, after both companies have  been selected for the acquisition in March 2012.

MIDROC Ethiopia will invest an additional 432 million Br into Upper Awash and, doubling its production capacity, according to Jemal Ahmed, Deputy General Manager of HORIZON Plantations.

Upper Awash Agro Industry Enterprise was established, in 1979, with a farm at Merti-Jiju, located on the border of the Afar and Oromia regions. It has a branch in Addis Abeba, which produces fresh and processed fruit and vegetables, as well as; cereals, cut flowers, seeds and fibre crops. The company is also well known for its oranges, mandarin, mango, grapefruit, tomato and strawberries.

“The upgrading work will start in the coming year, to expand the farm’s capacity, which currently contributes 50 percent to the country’s total orange production,” Jemal said.

Horizon Ethiopia also intends to invest 15 million Birr ona 500ha banana plantation at Gojeb Farm for the export market. This farm, Horizon Plantations said in a press statement, would enable Ethiopia to compete with major banana growers and exporters in the world such as India.

Source: Fortune