Deal #1320

Location #1

Spatial accuracy level
Administrative region
Location
Āwash, Ethiopia

Target country
Ethiopia
Comment on location
Located on the upper course of the Awash River.174 km away from Addis Ababa along Awash River, Upper Awash, Oromia.

Land area

Intended size (in ha)
1334
Size under contract (leased or purchased area, in ha)
[2007] 1334
Size in operation (production, in ha)
[2014] 1200
Comment on land area
Another data source mentions 1600ha.

Intention of investment

Intention of investment
Food crops
Comment on intention of investment
Process passion fruit for export and produce fruit and vegetables for the domestic market.

Nature of the deal

Nature of the deal
Outright Purchase

Negotiation status

Negotiation status
[2007] Concluded (Contract signed)

Implementation status

Implementation status
[1975] In operation (production)
[2009] In operation (production)
Comment on implementation status
Rehabilitation of Previously state-owned farm (since 1975). The farm was set alight by protestors in October 2016-- the company still has to make a decision on the future of the plantation.

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
100
Comment on contract farming
At the same time, we have planned to support the development of over 1,200 hectares of outgrowers (contract farmers) over the next 10 years to supplement the supply and extend community participation. To date almost 100 hectares are in development.

Contract #1

Duration of the agreement (in years)
50

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
2000
Comment on jobs created (domestic)
900 over five years

Operating company

Name of investment project
Tibila Farm

 

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Data source #1

Data source type
Company sources
File
Date
2008-01-01
Comment on data source
Company website

Data source #2

Data source type
Personal information
Includes in-country-verified information
Yes

Data source #3

Data source type
Personal information

Data source #4

Data source type
Other (Please specify in comment field)
File
Comment on data source
World Bank Multilateral Investment Guarantee Agency

Data source #5

Data source type
Research Paper / Policy Report
File
Comment on data source
IWMI- Working paper 124, Irrigation practices in Ethiopia: Characteristics of selected irrigation schemes

Data source #6

Data source type
Company sources
File
Comment on data source
Africa Juice overview

Data source #7

Data source type
Media report
File
Comment on data source
Bloomberg Business- Company Overview of africaJUICE BV

Data source #8

Data source type
Research Paper / Policy Report
File
Comment on data source
MIGA project brief

Data source #9

Data source type
Media report
File
Date
2016-10-10
Comment on data source
Bloomberg- Ethiopia Losing Foreign-Investment Appeal on Attacks

Former land owner (not by constitution)

Former land owner
State
Comment on former land owner
The farm was first established as a private establishment in a joint ventures by local and foreign investors, prior its nationalization in 1975. Then after the implementation of the national land reform, it was organized as four different State farms under the Nura-Era Agricultural Development Enterprise (NADE). In 1993, it was re-established with its current name, “Upper Awash Agro-Industry Enterprise (UAAIE)”, as a public enterprise having four farms and one processing plant under it. As a result, it was given the mandate to administer the four farms, i.e. Nura-Era, Merti-Jeju, Awara-Melka and Tibila, as well as Merti Fruit and Vegetable Processing Plant.In 2007, two of the farms (Awara-Melka- #1309 and Tibila) were transferred. In 2013, the remaining farms and processing plant was sold to MIDROC (#2228).

Former land use

Former land use
Commercial (large-scale) agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Banana, Fruit (unspecified), Mango, Papaya, Passion fruit, Pineapple, Vegetables (unspecified)

Use of produce

Has domestic use
Yes
Domestic use
25
Has export
Yes
Export
75
Comment on use of produce
At least 75% of production exported. Export via Djibouti to Europe, Middle East and regional markets. Process passion fruit for export and produce fruit and vegetables for the domestic market.

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Fruit juice production

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
Awash River

Overall comment

Overall comment
Previously state-owned, two of the farms were transferred to MIDROC (#2228), one farm to #1309 and the remaining farm to Africa Juice. "Africa Juice BV was set alight last week by a crowd of hundreds in Oromia".

Feb. 1, 2018, 9:29 a.m.

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Oct. 18, 2016, 10:49 a.m.

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Oct. 7, 2016, 6:14 p.m.

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July 29, 2015, 4:21 p.m.

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June 27, 2014, 2:04 p.m.

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June 7, 2013, 2:17 a.m.

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May 10, 2013, 1:54 p.m.

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March 6, 2013, 9:08 a.m.

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Feb. 15, 2013, 5:01 p.m.

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