Selecta One has announced its relocation from Ethiopia’s Amhara region to Kenya and Uganda due to ongoing political instability and safety concerns. The closure of their Kunzila site will result in over 1,000 job losses, reflecting broader economic struggles in the conflict-affected area where significant damages have also occurred. CEO Ansgar Klemm referred to this decision as a painful yet necessary step.
Selecta One, a German horticultural company, has decided to relocate its operations from the Amhara region of Ethiopia to Kenya and Uganda, citing an unstable political climate and tense military conditions as the main reasons for this move. The closure of its Kunzila site in North Achefer district will result in over 1,000 job losses.
In a recent statement, Selecta One indicated that logistical challenges encountered in the past two years could not be resolved under the prevailing conditions. They emphasized the need to ensure employee safety, stating they could not guarantee it under the current environment.
CEO Ansgar Klemm described this decision as a “bitter pill to swallow,” acknowledging the significant efforts made to develop the Kunzila site. He expressed disappointment at having to close the facility after years of investment and hope for improvement following the civil war’s end.
The situation in the Amhara region remains precarious, with ongoing conflict resulting in over 3,000 job losses and damage approaching 2.5 billion birr in industries. Recent armed confrontations have exacerbated the instability, jeopardizing agricultural efforts in the region, including notable incidents leading to fatalities.
Selecta One’s exit from the Amhara region underscores the challenges faced by businesses in conflict zones. The combination of political instability and safety concerns has led to significant job losses and economic impact. As the situation evolves, the full ramifications for the local economy and agriculture will become clearer. The company’s move to Kenya and Uganda reflects a strategic decision to prioritize employee safety and operational viability, following a period of significant investment and hope for stabilization in the region.
Original Source: addisstandard.com
