Ninety million dollar investment in Ethiopian tea

The Kanan Devan Hills Plantations (KDHP), an Indian company, says it will invest more than 90 million dollars (N11.5 billion ) in Ethiopia to develop 10.000 hectares of tea plantation.

Commodity Online reports from India that KDHP officials said while the new project would have a 70:30 debt equity ratio, some foreign private companies have shown interest in the venture.

The participation of Tata Tea, which already holds 20 per cent equity in KDHP, would also be sought.

The debt component would be raised from Ethiopian banks, which have also shown interest in the project.

The aerial survey of the land have been completed along with queries on the employment and economic generation potential of the project.

According to KDHP officials, the project would create direct employment for close to 10,000 people and accelerate export and economic development in the region.

The land, which is given on a 90-year lease, will command a very nominal rent.

The suitability of the land is attested to by its proximity to Kenya and Tanzania, which are traditional tea growing countries.

The company is in the process of preparing a detailed project report.

KDHP succeeded Tata Tea Limited on April 1, 2005 when the latter exited most of its plantations in Munnar, to focus on the growth of its branded tea business.

Source: The Tide Online