Mohammed Al Amoudi Invests $125m in Africa’s Largest Edible Oil Factory

06 January 2020

Horizon Plantations, a leading food sector component of Mohammed Al Amoudi’s extensive MIDROC Ethiopia business empire, has announced a major investment in Ethiopia’s capital, Addis Ababa. Four billion Ethiopian Birr (approximately US$125m) has been allocated to the construction of an edible oils factory whose corner stone was laid by City Mayor Takele Uma on December 28th, 2019. The factory will process up to 500 metric tons of oilseeds (600,000 litres of oil) every day. The oil would be derived from ground nuts, soybean, sunflower and cotton seeds, mainly sourced from MIDROC’s commercial farms.

The significance of the factory is that it is a contribution to food sector import substitution of vital importance to the rapidly growing Ethiopian economy. It is expected to save 25% of the nation’s foreign currency expenditure on edible oils. Currently most Ethiopians rely on imported government-subsidised palm oil. The annual subsidy is in the region of US$600m which alone adds up to around 20% of current foreign trade expenditure. Local producers have only managed to supply 4% of national requirements. The new factory will help stabilise prices and assist the national strategy of import substitution (part of the Government’s ‘Home Grown Economic Reform’ Project.

It is of particular significance to Addis Ababa whose population is growing rapidly. The factory will help alleviate edible oil shortages that drive up prices. It should be seen alongside the commitment announced earlier to build a large-scale bakery and flour factory in the capital. Both investments represent a significant and longstanding commitment of Mohammed to the food security of the capital through price stabilisation. Mohammed has already approved not only the funding but the selection of the latest technology required by the edible oils plant. It was also indicated that a yeast manufacturing plant is planned in the near future as part of an overall strategic approach to food manufacturing.

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