Selecta One, a German horticultural company, has announced its exit from Ethiopia’s Amhara region, citing the unstable political climate and military tensions. The closure of its Kunzila operations will result in over 1,000 job losses, severely impacting local employment. CEO Ansgar Klemm expressed regret over the decision, which stems from concerns over employee safety amid ongoing conflict in the region.
Selecta One, a German horticultural company, has declared the cessation of its operations in Ethiopia’s Amhara region due to an “unstable political situation and tense military environment.” The company plans to relocate its operations to Kenya and Uganda, citing logistical challenges and safety concerns for employees as key factors driving this decision.
The withdrawal from the Kunzila site in the North Achefer district will lead to over 1,000 job losses, impacting approximately 10,000 individuals in the region, both directly and indirectly. Ansgar Klemm, CEO of Selecta One, expressed regret in a LinkedIn post, referring to the closure as a “bitter pill to swallow” after several years of investment and development.
Reflecting on the past efforts, Klemm noted that the company had hoped for improvement following the end of the civil war in November 2022, but the ongoing instability has created insurmountable challenges. He highlighted the inability to guarantee employee safety under prevailing conditions as a pivotal reason for the decision.
Recent violence in the Amhara region has significantly affected employment and industry, with reports indicating severe job losses and substantial damage to the horticulture sector. In August 2023, it was noted that ongoing conflict had resulted in the loss of over 3,000 permanent jobs within the industry, along with extensive financial repercussions. The West Gojjam Zone has seen increased armed conflict recently, hindering recovery efforts.
In January 2025, violent clashes resulted in fatalities, including a minor and a monk, with accompanying damage to agricultural resources. The consistent upheaval in the Amhara region continues to challenge the viability of businesses, exacerbating the hardships for local populations who rely on agriculture for their livelihoods.
In summary, Selecta One’s exit from Ethiopia’s Amhara region underscores the severe impact of political instability and military tensions on foreign investment and local employment. The decision, motivated by safety concerns and logistical failures, will result in significant job losses and further economic challenges in the region. The continuing conflict highlights the urgent need for resolution to restore stability and support local industries.
Original Source: addisstandard.com
