On a letter written to the Ethiopian Prime Minister, Karuturi demanded compensation from the government for a series of failed land deals.
By Nizar Manek (Bloomberg) |
Karuturi Global Ltd., an Indian flower grower, demanded compensation from the Ethiopian government for a series of failed land deals as it prepares to exit the Horn of Africa nation.
The company wrote a letter to Prime Minister Hailemariam Desalegn accusing the state of nationalizing its farming investments and said it should be given “adequate and appropriate” redress. The Sept. 20 letter was emailed to Bloomberg by Karuturi Managing Director Sai Ramakrishna Karuturi.
“We stand tired and defeated and wish to exit Ethiopia,” Karuturi said in the letter, citing a government decision to “unilaterally and illegally cancel our investment and trade license.” The company also asked Hailemariam to allow the company to re-export all its equipment.
Karuturi, based in Bengaluru, India, was one of the first foreign investors to lease land in Ethiopia after the government offered incentives and identified 3.3 million hectares (8.2 million acres) as suitable for commercial farming. The government canceled the lease two years ago after saying the company failed to adequately develop its plot.
The Agriculture Ministry’s land investment agency notified Karuturi in December 2015 that the lease was canceled because development occurred on only 1,200 hectares. Karuturi disputed the state’s findings.
3637 Views Comments
Louvres Hotel Group, number one hotel group in East Africa, signed its 3rd hotel in Ethiopia, pursuing the expansion of an ambitious network covering sub-Saharan
5539 Views Comments
Safaricom has denied reports of the company entering into the Ethiopian market. The Kenyan telco had been said to be gearing up for its first venture
3689 Views Comments
Flying even more greener; Ethiopian Airlines Group, the largest airline in Africa, is pleased to announce that it has fully digitalized all its business processes