Agency quits offering land for large scale agricultural investments

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98,800 hectares of land was retaken from the Indian Karuturi, because the company managed to develop only 1,200 hectares of 100,000 hectares it received in one regional state.

Walta Info | 22 March 2016

Agency quits offering land for large scale agricultural investments

Addis Ababa, March 22, 2016 (WIC) – The Ethiopian Agriculture Investment and Land Administration Agency (EAILAA) has given up offering land for large scale agricultural investments for an unspecified time.

The agency made the decision until problems related to overlapping in the granting of land, provision of loans and investors’ capabilities and profiles are addressed, Daniel Zenebe, Public Relations Director at the EAILAA, told FBC yesterday.

According to Daniel, 43 plots of land with various sizes were given overlapping last year. What makes this worse is that two investors who were granted a similar land borrowed money each to develop the land.

The other problem is lack of adequate information on the capability and profile of investors who were offered land and loan.

BHO, an Indian company, which was offered 89 million birr loan, dispread after developing less than 3,000 of the total 27,000 hectares of land it was granted in Gambella regional state.

Moreover, 98,800 hectares of land was retaken from the Indian Karuturi, because the company managed to develop only 1,200 hectares in the past after receiving 100,000 hectares of land in the same regional state.

According to Daniel, these are indicators for the unsuccessfulness of the sector.

Hence, the agency quitted providing land for large scale agricultural investment until these problems are solved, he said.

In related development, the Development Bank of Ethiopia also gave up offering loan for large scale agricultural investments until problems in the sector are addressed, Isaias Bahire, the bank’s President said.

During the past five years, the bank offered 6 billion birr loan for investors engaged in the sector, according to Isaias (FBC).

Original source: Walta Info
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