Karuturi said it will borrow "hundreds of millions" of dollars from a sovereign wealth fund to invest in farming in East Africa after development banks declined to provide assistance because of “unfair” criticism by advocacy groups
It alleges that the dealings of Karuturi Global, one of India’s largest flower growers, in the African nation do not smell as sweet as what it grows
Africa’s agriculture and food industries are attracting increasing interest from investors. This trend is largely fuelled by the fact that the continent has 60% of the world’s uncultivated arable land, with favourable weather conditions in many countries.
Faced with reports of land grabbing by Indian companies in some African countries, especially Ethiopia, the government says the Indian companies have taken land on lease as per rules of the country concerned.
L’Inde, autre puissante émergente, a elle-aussi pigé l’aubaine des appels du pied de Zenawi. Mais plutôt que de miser sur la production manufacturière où il est difficile de concurrencer l’atelier chinois, New Delhi s’est rabattu sur le gâteau agricole.
The delegation consisted of senior business leaders from Indian companies such as Sai Ramakrishna Karuturi of Karuturi Global Ltd
As losses from Karuturi's Ethiopian farm operations mount, over 3,000 workers from the company's flower farm in Kenya down their tools to protest non-payment of their salaries and poor working conditions.
A slide show by GRAIN that profiles some of those who have been most actively pursuing or supporting farmland grabs around the world.
The company has approached the African Development Bank, the African Export-Import Bank and the Eastern and Southern African Trade and Development Bank to raise another $100 million for a sugarcane estate.
Despite the lucrative returns that foreign investors can achieve by investing in African agriculture, the on-the-ground realities of operating in the continent is often less rosy.
Karuturi, which has 300,000 ha in Ethiopia, is now targeting the DRC, Tanzania, Mozambique, Senegal and Sierra Leone.
Indian-listed Karuturi Global, which has leased land in Ethiopia for commercial farming, plans to export cereals, sugar and edible oil to South Sudan and Kenya upon completing cultivation in 2014.