Al Amoudi's Firm to Secure 58,000hct land in Mejenger area of Gambella for Bio-Fuel

July 8, 2008 (Addis Ababa) – Horizon Plantation Plc, a newly established company by Sheikh Mohammad Hussein Al Amoudi, will secure the 100, 000hct of land it requested for its planned bio-fuel development.

The plot is located in Dangur and Guba Woredas of Metekel Zone, Benishangul-Gumuz Regional State.

The bio-fuel project is part of Horizon's grand vision to put up agricultural development schemes on 250,000hct of land in Ethiopia. The schemes include oil palm development (58,000hct) in Mejenger area of Gambella and rubber tree plantation (85,000hct) in Bench-Majy Zone of Southern Nations, Nationalities and Peoples Regional State (SNNPR) and tea plantation (10,000hct).

Though the company has already reached agreements with the Gambella and SNNPR for its rubber tree and oil palm projects, the project on bio-fuel from the Jatropha plant has not progressed as anticipated.

In September 2007, the Council of Ministers approved Ethiopia's first Bio-Fuel Development Strategy that includes plans to extract it from jatropha, palm tree, caster seed, as well as extraction of ethanol from sugarcane. The four are the kind of plants selected for bio-fuel development and no cereal crop would be utilized for this purpose, according to the strategic plan.

A study conducted in that same year by the Ministry of Mines and Energy (MoME), indicates that there are 23.3 million hectares and 700,000hct of land available for the production of the oil rich Jatropha, and sugarcane, respectively.

Though not clearly stated in the strategic plan, State Minister of Agriculture and Rural Development Abera Deressa (PhD), said that areas to be used for bio-fuel development should be infertile and degraded land.

Accordingly, a team of experts, led by Abera, were dispatched to examine the land Horizon requested and come up with suggestions as whether or not to grant it to the company. The findings of this investigation have been presented to the Council. However, the team could not give assurance that the entire 100,000hct of land that Horizon wants is infertile and degraded. Additional experts therefore, were included in the initial, which made team a second site visit to determine the status of the targeted land, an informed source told Fortune.

According to the State Minister, the soil tests from as deep as eight metres indicate that 85 per cent of the plot under discussion qualified for the purpose Aamudi's company wants it for. The remaining 15 percent of the land is fertile and not degraded. The report on the findings will be presented to the Council again, and a copy has already been sent to the Benishangul-Gumuz Regional State.

"We have got the report. After our own experts check it, we will grant the requested land," Yaregal Ayisheshum, the state chief, told Fortune.

Dangur and Guba Woredas, characterized by arid weather, have a population of 40,023 and 13,416, respectively. Their land mass is used for farming and grazing with some parts being forested. There are three soil types in both areas - clay, sandy and black.

After examining the possible impacts on the environment and the community, the regional government will discuss the compensations with the company, Yaregal said.

A Horizon publication states that its project will benefit the environment, the community and the country. The implementation of the three agriculture projects would be a substantial source of foreign currency earning for the country.

Once fully operational, the entire project will be managed by Ethiopian nationals, and directly employ nearly 50,000 people in various areas, while indirectly benefiting over 350,000 individuals.

"On a broader environmental scale, the 'Green Zones' these plantations would create would add millions of tonnes of carbon sequestered from the atmosphere, contributing greatly towards the environmental targets of the Kyoto Protocol," the publication reads.

Established in 2007, with 150 million Br registered capital, Horizon Plantation Plc is owned by Alamudi (major shareholder) and Jemal Ahmed, one of the biggest edible palm oil importers in Ethiopia. Headed by Jemal, and AgriNexus Malaysia - a consultancy company that provides services in the areas of plantation business, development and management - received an investment license from the Ethiopian Investment Agency. It has currently finalized a Detailed Development Plan and has made an order to Reis Engineering for the import of farm machineries. Horizon hopes to start operations at the beginning of next year, securing all the land it requested, a source from the company told Fortune.