Courtesy of Ethiomedia
Saudi Star Agricultural Development Plc, Sheik Mohamed Al Amoudi’s newest company formed to grow food in Ethiopia for Saudi Arabia, paid 80 million dollars for the delivery of Caterpillar agricultural machinery and equipment.
The receipt of the money was confirmed by a letter sent to Haile Assegdie, director general of Saudi Star, and Alemayehu Mengesha, managing director of Ries Engineering SC, by Philippe Bory, finance manager of Near East Financial Corporation.
Saudi Star and Ries signed the agreement on August 13, 2009. Paul Ries is the sole agent of Near East Financial Corporation, which is the dealer for Caterpillar products. These products are manufactured in the United States, Europe and Japan, from where they are expected to be delivered to Saudi Star.
Saudi Star’s was the largest order ever for Ries, which was established in 1974 Alemayehu said.
“We supply products to the Ministry of Defence and Salini; but this is the first time we are getting an 80 million dollar order at once,” he said.
Saudi Star was registered at the Ethiopian Investment Agency on August 20, 2009, with a capital of 500 million Br.
The company plans to increase its land holdings to 500,000hct over the next 10 to 15 years, which could cost the company three to five billion dollars, according to Haile. Its short term plan is to acquire 200,000hct from various regional states in the country.
So far it has only received 10,000hct in Alwero, in the Gambella Regional State, where it plans to grow rice. This farm will use the Alwero dam, which was constructed by the military regime to grow cotton in the area.
Saudi Star is the first company that is benefiting from a decision of the Council of Ministers allowing private investors to utilize irrigation dams and canals made by the government. The Alwero dam had been idle for 18 years.
While Saudi Star is waiting for the delivery of the machinery, it has commissioned the Agricultural Equipment & Technical Services SC (AETS), a state enterprise, to clear 1,000hct of land from the Alwero site for a payment of 9,000 Br per hectare.
“We are trying to get a contract to uproot the tree stumps in the area,” said Teferi Belay (PhD), acting general manager of AETS.
The land given to Saudi Star Plc is covered by a medium-dense forest of juniper and other indigenous trees and is land that will be used to grow rice.
The company will add more crops as it increases its territory including maize, teff, sugarcane and oil seeds.
Saudi Star presented a sample of rice to King Abdullah Bin Abdul Aziz of Saudi Arabia, who liked it enough to give him the order.
Saudi Star will also supply the local market as the company looks forward to harvesting one billion tonnes of various crops, Haile says.
This had been the issue and subject of intense debate two weeks ago when the authority called a meeting, held at a hall, in the Ethiopian Transport Authority, near the Addis Abeba Stadium. The Authority, which has unveiled its strategic plan, is now requesting many of the enterprises under its supervision to send the list of top management members and their ethnic background.
This has invoked fear among managers of state enterprises that there is the possibility for the authority to get tempted to intervene in the appointments of position as high up as department heads and it is also feared that this might create a huge havoc that can spill an ethnic war within the civil service.
The correspondent for Washington Post and Time Magazine in Ethiopia, Kassahun Addis, has fled to Kenya last week.
Kassahun had to fled to kenya to save his life from the imminent danger that he was grappled with.As a reporter and correspondent to these foreign media, he was seen by the regime of Meles Zenawi as a spy of the West.
Kassahun before starting with these two big media, had been a reporter and editor in various English language newspapers in Ethiopia such as The Reporter and SubSaharan Informer.
He holds Bachlors Degree from Addis Abeba University in Poltical Sceience and International Realtions and he also did further studies.
Ethiopia is the second African Nation after Zimbabwe having the highest number of journalists in exile.

A declaration issued this week by farmers and scientists from Ethiopia and Peru urges policymakers to establish indigenous bio-cultural territories as areas for conserving agricultural biodiversity.
The call, made at a workshop in Peru that ended on 29 September, urges recognition of indigenous peoples' and their rights to land and biological, genetic and cultural resources, and their rights to define their own food production and consumption systems.
Delegates highlighted the contribution of indigenous peoples to the conservation and sustainable use of biodiversity that is important for food and agriculture. They pointed to the importance of resilient, biodiverse food systems to sustain livelihoods, reduce poverty and help communities mitigate and adapt to climate change.
"The declaration encourages action research and South-South learning," says Dr Michel Pimbert, who heads IIED's sustainable agriculture, biodiversity and livelihoods programme. "It calls for the creation of democratic spaces for intercultural dialogue and the strengthening of interdependent networks of food producers and other citizens."
IIED's Peruvian partner Asociación Andes organised the workshop with the Association of the Communities of the Potato Park , a pioneering example of community based conservation of agricultural biodiversity.
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