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News: German horticultural firm exits Ethiopia’s Amhara region, cites “unstable political situation, tense military environment”

(Photo: Selecta One)

Addis Abeba – Selecta One, a Germany-based horticultural company operating in the conflict-hit Amhara region, has announced the relocation of its operations to Kenya and Uganda. The company cited the “unstable political situation and tense military environment” as the primary reasons for its decision.

The relocation of Selecta One’s site in Kunzila, located in the North Achefer district of the West Gojjam Zone, has led to the loss of more than 1,000 jobs, according to the company.

“The closure of the site in Ethiopia has been carefully considered and is ultimately necessary, as the major logistical challenges of the past two years could not be permanently resolved under the current conditions, even with the greatest efforts,” the company stated in its recent announcement. “Most importantly, there was no guarantee that the safety of employees could be ensured to the required extent.”

Ansgar Klemm, CEO of Selecta One, described the decision as a “bitter pill to swallow” in a LinkedIn post. “We have to take a painful step: after only a few years of intensive development work, we are forced to close our production site in Kunzila,” he emphasized.

Reflecting on the company’s efforts, Klemm stated, “Years in which we, together with a dedicated team on the ground, have invested countless hours, built up know-how and, after the end of the civil war in November 2022, firmly hoped for a better future.” However, he added, “The political instability and the tense military environment represent an insurmountable hurdle.”

The CEO further stressed that the “safety” of employees on the ground “cannot be guaranteed” under the current conditions. He explained that the relocation will result in over 1,000 job losses and impact approximately 10,000 people in the area, both directly and indirectly.

In August 2023, Addis Standard reported that the conflict in the Amhara region, between the federal government and the non-state militia Fano, resulted in the loss of over 3,000 permanent jobs and an estimated 2.5 billion birr in damages to industries. The news article indicated that investments in the cultivation and marketing of flowers, vegetables, and fruit were particularly affected.

West Gojjam Zone in Amhara region has been experiencing intense armed conflict, particularly in recent months. These clashes include a violent confrontation in October 2024, marked by the use of heavy weaponry.

Another deadly clash erupted this year in Jimat Enkokma Kebele, West Gojjam Zone, resulting in the deaths of four people, including a 14-year-old boy and a monk. Residents told Addis Standard that the conflict, which occurred in late January 2025 near Jiga town, also caused significant damage to harvested crops stored in open agricultural fields. AS

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