Ethiopia is no longer Africa's basket case but fearsome problems remain


  • English
  • Arabic

The warehouses off Bole road in Ethiopia's capital Addis Ababa are full these days - cotton, bananas and other perishable goods.

You'd be forgiven for thinking this was aid sent by kind-hearted donors. You'd be wrong.

Ever since the 1984 famine brought it to the world's attention, it has been Ethiopia's curse to be the poster child for starvation.

More recently, however, it has emerged as a significant exporter of farmed produce. In the last six months of last year, the country sold almost US$100 million (Dh367.3m) worth of fruit and vegetables, according to government figures.

This year, the government expects the economy to grow nearly 12 per cent, making it one of the best performing in the world. Much of this will be driven by agriculture, which accounts for almost two thirds of Ethiopia's economic activity.

Its burgeoning food exports are by no means unique. Across Africa, investment in agriculture is growing.

"It certainly is an exciting trend," says Zin Bekkali, the chief executive of Silk Invest, a fund manager that specialises in Africa and the Middle East. "We are seeing an increase in exports not just of raw commodities but high-value processed products too."

Plenty of cheap land and low labour costs are a tempting draw. But the increase in intra-Africa trade is also helping the drive. Demand for finished food products from the emerging middle class is also having an impact.

Today, Africa is one of the world's largest importers of rice, wheat, sugar, maize and other staples. For agribusiness investors, it is a vast market waiting to be tapped.

"African countries are selling more of their produce to each other," says Mr Bekkali. "African food products are becoming more packaged, and branded. The added value off this means investors are no longer just buying into commodity production, but in an entire business."

Olam, a global food manufacturer based in Singapore, bought Nigeria's largest biscuit and sweet maker Titanium for $167m this month. And Silk Invest has bought a confectionery maker in Egypt, and plans to acquire a pasta and biscuit manufacturer in Ethiopia.

Tiger Brands, a South African food and consumer products group, is also expanding rapidly across the continent. Peter Matlare, the chief executive, told the website Moneyweb last year that "countries such as Ethiopia, which people generally speaking write off as a basket case until they go there and they understand the economics of the place, hold real growth opportunities".

And while big multinationals such as Nestlé have long had a presence on the continent, others are now joining them. Kraft, the US global food manufacturer, said recently it was going to spend a "disproportionate" amount of its investment capital over the next few years in South Africa.

Fearsome problems do, of course, remain. In spite of its newfound embrace of exports, more than four million Ethiopians still required food aid last year, thanks largely to incompetent governance. Elsewhere, protectionism, corruption and bureaucracy still provide substantial and expensive hurdles to clear to move products from one country to another.

Then there is the land issue: with investors being lured by cheap land, more and more Africans are finding themselves dispossessed of what they considered their birthright.

"In Africa, selling land is like selling your soul," says Mr Bekkali.

"It is something that must be approached cautiously. Buyers need to be sure that they are not taking land from someone who will now be homeless."

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Past winners of the Abu Dhabi Grand Prix

2016 Lewis Hamilton (Mercedes-GP)

2015 Nico Rosberg (Mercedes-GP)

2014 Lewis Hamilton (Mercedes-GP)

2013 Sebastian Vettel (Red Bull Racing)

2012 Kimi Raikkonen (Lotus)

2011 Lewis Hamilton (McLaren)

2010 Sebastian Vettel (Red Bull Racing)

2009 Sebastian Vettel (Red Bull Racing)

 

The biog

Age: 59

From: Giza Governorate, Egypt

Family: A daughter, two sons and wife

Favourite tree: Ghaf

Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

Yahya Al Ghassani's bio

Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence