Unkept Promises: The Unsuccessful Saudi Farming Project in Ethiopia

In the late 2000s, rising food prices pushed Gulf countries to look for stable farming areas outside their borders. The Ethiopian government took advantage of this trend by creating a centralised “federal land bank.” This move aimed to attract foreign investors by offering them large areas of fertile land with the promise of quick national development.

Saudi Star Agricultural Development Plc, backed by Saudi-Ethiopian billionaire Sheikh Mohammed Al-Amoudi, acquired 14,020 hectares of land in the Gambella and Benishangul-Gumuz regions. This project was part of the King Abdullah Initiative for Saudi Agricultural Investment Abroad and promised $2.5 billion to $3 billion in foreign direct investment. The plan was to create a modern farming hub with advanced machinery, thousands of jobs, and an annual production of 1 million tons of export-grade rice.

But after more than 15 years, the situation on the ground is far from what was promised. An investigation shows that many fields remain unused due to poor environmental planning, mismanagement, and a lack of proper regulations. Saudi Star has left its fields idle. Expensive infrastructure now lies abandoned, while local communities face the pain of losing their land and struggling with food shortages.

The mega-farm's plan relied on expanding an old canal system to take 22 cubic metres of water per second from the Abobo reservoir dam along the Alwero River. Although Saudi Star cleared land and built about 35 kilometres of irrigation channels, many parts of this expensive system are now dry or neglected. Local experts say issues with the design and lack of maintenance have made the irrigation useless at critical times for crops.

Recently, company leaders admitted to serious mistakes in their initial environmental and feasibility studies. They recognised that their early farming models did not consider the complex ecological conditions of the Gambella basin. This oversight led to significant seasonal challenges that the farm was not ready to face.

Surprisingly low moisture levels during the key “milking stage” of rice plants hurt crop growth and destroyed expected yields. Unusual rainfall patterns often messed up harvesting schedules, leaving ripe crops to rot in waterlogged fields. Additionally, large flocks of migrating birds invaded the open fields during dry seasons, eating up what little harvest was left.

Jemal Ahmed, CEO of the MIDROC Investment Group, which owns Saudi Star, acknowledged these failures during a review. He said, “The decline in performance occurred because the initial study and investment for the rice project underestimated environmental challenges.” He added that moisture shortages and strange rains made it hard to harvest crops, while birds threatened production during dry seasons.

This admission points to a larger problem: the uncritical acceptance of investor reports by federal regulators. The indigenous Anuak and Nuer people have paid the price for these operational failures. They were moved from their ancestral lands to make way for the corporate project. Promised benefits like better roads and schools never came, leaving these communities cut off from their main source of living.

A local elder from the Abobo Wereda shared, “Fifteen years later, we are locked out of our own lands by fences, and the canal they dug has drained our natural wetlands, leaving our cattle without water. We have received no fair compensation, and our children are going hungry while looking at fields that sit empty.”

For those who found jobs at the farm, the reality was often harsh. Records show a shocking 36.7 percent injury rate among workers. Many lacked safety equipment, with 83.75 percent of field workers operating without any protective gear.

Most workers were on casual contracts with no job security or health benefits. Over 92 percent were temporary labourers earning less than 1,600 ETB ($9.8) a month, struggling to support their families. A former worker said, “When we tried to raise concerns about safety conditions and wages, management viewed it as a problem rather than a legitimate complaint.”

Workers felt they had no choice but to stay silent because jobs were hard to find. Local residents and labour advocates say these practices have led to feelings of economic neglect in a community that expected the multi-billion-Birr project to provide stable jobs and better living conditions.

This long-standing resentment has led to tensions in the area. In 2012, a violent clash at the company’s main site resulted in deaths, showcasing the risks of creating closed corporate zones in impoverished regions. Despite warnings, federal administrations continued to protect investors over local community needs and corporate responsibility.

Recently, regional officials shifted from supporting investors to demanding accountability. At the Invest in Ethiopia High-Level Business Reform summit, officials openly criticised the slow progress of the Saudi Star project. They stressed that leaving fertile land unused while the nation faces economic issues is no longer acceptable.

Lou Opiew, commissioner of the Gambella Regional State Investment Commission, said, “You have made a significant investment in constructing the machinery and irrigation channels for rice production, but the project’s pace has not matched initial expectations.” He highlighted that the region has enough resources to irrigate 10,000 hectares, and it cannot afford to waste them.

Agricultural policy experts suggest that the Ministry of Agriculture needs to tighten oversight of large-scale farming projects. They recommend linking land leases to clear performance goals and conducting regular reviews to ensure affected communities are compensated and that future investments support local livelihoods and national food security.