Ethiopia: Massive Promises, Empty Fields - the Multi-Billion-Dollar Unsuccessful Saudi Project in Ethiopia

Saudi Star Agricultural Development Plc

The Saudi Star Agricultural Development Plc, a venture promoted as a cornerstone of the King Abdullah Initiative for Saudi Agricultural Investment Abroad, acquired a vast 14,020 hectares across Ethiopia's Gambella and Benishangul-Gumuz regions. Backed by Saudi-Ethiopian billionaire Sheikh Mohammed Al-Amoudi, the project promised an injection of $2.5 billion to $3 billion in foreign direct investment. Corporate blueprints envisioned a modern agricultural powerhouse, complete with advanced machinery, thousands of secure jobs, and an annual yield of 1 million tons of export-grade rice, intended to secure food supply for Saudi Arabia.

However, an on-the-ground investigation reveals a stark contrast between these initial pledges and the current reality. After more than 15 years, the majority of the conceded fields remain completely idle. Millions of dollars worth of highly engineered infrastructure, including irrigation systems, now sit rusting in the open air, a testament to the project's operational paralysis. This failure underscores the challenges of translating ambitious corporate visions into sustainable agricultural realities in complex ecological and social environments.

Abobo Reservoir Dam

A core operational strategy for the mega-farm involved expanding a Soviet-era canal network to divert 22 cubic metres of water per second from the Abobo reservoir dam along the Alwero River. While Saudi Star managed to clear sections of land and construct approximately 35 kilometres of secondary irrigation channels, large portions of this multi-million-dollar network are now either dry or entirely abandoned. Local agricultural experts have pointed to engineering flaws and inconsistent maintenance as key factors rendering the irrigation system functionally useless during critical crop cycles.

The firm's leadership, through Jemal Ahmed, CEO of MIDROC Investment Group, admitted to fundamental, systemic errors in their baseline environmental and feasibility studies. These initial agricultural models failed to account for the complex, localized ecological realities of the Gambella basin, leading to severe seasonal challenges. Specifically, unexpected moisture shortages during the critical "milking stage" of rice plants consistently stunted growth, while erratic unseasonal rainfall disrupted mechanised harvesting, causing mature crops to rot.

36.7 Per Cent

The human cost of Saudi Star's operational failures is profoundly felt by the indigenous Anuak and Nuer agrarian populations, who were systematically relocated from their ancestral lands. Promises of localized wealth, paved roads, and modern schools have largely failed to materialize, leaving these displaced communities separated from their primary means of survival. Local elders lament that the sweeping clearance of natural forests and the construction of dry canals have permanently disrupted local ecosystems and traditional cattle-grazing pathways, exacerbating food insecurity.

For the local residents who did secure employment within the agricultural enclave, the reality of corporate labor proved highly exploitative and dangerous. Workplace asset registers and internal records reviewed during the investigation indicated a staggering 36.7 per cent rate of occupational injuries among field laborers. This alarming figure is directly linked to a severe lack of safety oversight, with data showing that 83.75 per cent of monitored field workers operated completely without personal protective equipment (PPE), highlighting a profound disregard for worker welfare.