Ethiopian Review

The biggest Indian investor in Ethiopia, Sai Ramakrishna Karuturi, launched a multi-million dollar project in the agriculture sector in Itang Woreda in the Gambella People’s National Regional State (GPNRS).

His company, Karuturi Global Limited, has been involved in a number of different projects in the agricultural sector.

Mr. Sai Ramakrishna, Owner and Managing Director of Karuturi Global, which started as a floriculture company some 18 years ago, said he saw a very good opportunity in Ethiopia to expand his business globally with additional product lines.

The 100 million dollar company Karuturi is the largest exporter of roses. It has farms in Kenya and Ethiopia, in addition to India.

Sai Ramakrishna, an engineering graduate and MBA holder from the US, told Capital that he is devoted to investing in Ethiopia and expanding his businesses in the country.

Sai Ramakrishna Karuturi said the project would develop palm oil tree, rice and sugar cane on 300,000 hectares of land. The project will create 25,000 jobs directly and indirectly in the coming three to five years.

According to the managing director, his company plans to grow paddy, palm and sugarcane for both sugar and ethanol, while other crops such as sorghum and vegetables would be rotated to take advantage of the growing global demand for these commodities.

The company plans to export rice to Asia and African countries while the other commodities will be targeted at the European and American markets.

He said he is engaged in the agriculture and floriculture sectors in Oromia and Southern Nations Nationalities and Peoples’ Regional states in Bako, Holeta and Wolkite.

At the inaugural ceremony held on Saturday June 6, 2009, State Minister of Agriculture and Rural Development Dr. Abera Deressa, Gambella state chief Omod Obang Olom and Indian Ambassador to Ethiopia Gurjit Singh attended.

Dr. Abera said that the government is working to enhance the agriculture sector as it generates 90 per cent of the total foreign earnings and contributes 50 per cent of the GDP.

The state minister, who is known for his straight talking, told the gathering at the presidential palace that this investment should also help protect the environment.

Omod Obang, president of GPNRS, told Capital that these kinds of investments will bring prosperity to the region.

He also expressed his gratitude to the Indian government and Ambassador Gurjit Singh for their support in capacity building for the sector, which he said had been previously lacking.

In response, Ambassador Gurjit promised to send six officials this year on a scholarship to India on capacity building training from the region.

According to the ambassador, total investment by Indian companies was 40 million dollars in 2005 when he assumed his post, but at present the total investment of Indian companies in Ethiopia is over four billion dollars. The investments are in agriculture, floriculture, engineering plastic, consultancy, ICT, education water management, health, pharmaceutical, among others.
The investment projects of Indians are creating 200,000 jobs so far.

Ethiopia is India’s second biggest partner in Africa after Sudan in terms of investment.

- By Groum Abate | Capital Ethiopia