Ethiopia spends over $800 on oil import annually

Editors Note:Ethiopia spends over $800 on oil import annually imports, amounting to roughly 90 percent of earnings from foreign trade.This signals the message that the basic cause of our poverty and famine can be alleged to TPLF's secessionist policies.India’s Praj Industries Limited, has been advising the the regime to grow biofeuls to alleviate the problem.However, WFP and other agencies state that biofeul production affects food production and land considerably.

India’s Praj Industries Limited has agreed to provide consultancy service to Ethiopia’s Eco Energy which is trying to cultivate thousands of hectares for generating biofuels.

Praj will help Eco Energy complete the development of 25,000 hectares of land for large scale energy crops. Advice in packaging, land and irrigation management and leading farm mechanization tools will also be given.

Eco Energy has been selling shares since last January to fund its plans to cultivate and refine biodiesel from non-edible biological feedstock. It needs an investment capital of 1 billion birr ($80 million) for this plan.

The company expects to raise $20 million to start farming jatropha and castor oil in the country within the next 18 months.

On average, Ethiopia spends over $800 million every year on petroleum imports, amounting to roughly 90 percent of earnings from foreign trade. This has prompted the government to shift from high-cost fossil fuel to cheaper biofuel, starting with a development strategy approved by Ethiopia’s Council of Ministers.

The Ethiopian government has allotted 23.3 million hectares for biofuel investments. However, the Ethiopian Investment Agency said that out of the more than 60 companies that received licenses to participate, not more than 10 companies have started production.

Praj operates bioethanol, biodiesel and brewery plants and related waste water treatment systems in more than 45 countries. The company is also developing the Metehara sugar factory, the biggest of its kind in Ethiopia which would also be involved in ethanol production.