Recently in East Africa: 

 
 

Bangalore's Karuturi group is acquiring 300,000 hectares of land in Ethiopia. It is the world's

largest producer of cut roses.

The company supplies cut roses to markets in Europe and West Asia.

Aurangabad-based Kamal Industries is setting up the first private export processing zone (EPZ)
in Tanzania.

Reliance Industries has acquired a majority stake and management control of Gulf Africa
Petroleum Corporation.

Sainik Potash is mining in the Danakil Depression, one of the hottest places on earth.

If successful, its total investment will be approximately $450 million and annual exports 1
million tonnes a year worth about $350 million at current prices. And then there is the $10.7-
billion acquisition of Zain Africa by Bharti Airtel, giving the Indian mobile player a presence in
16 African states.  

Says Mr Ramkrishna Karuturi, promoter of the Karuturi project, “it was my search for bigger
pastures which got me to Ethiopia in 2008”.

Huge potential

While he speaks of both land and labour being cheaper in Africa, Mr Sam Elangallor, Managing
Director, Airtel, Tanzania adds, “There is huge potential not just in Tanzania but in Africa as a
whole. Africa is one of the last bastions of growth available.”

It was this potential which got Mr Gagan Gupta, Chairman and Managing Director, Kamal
Steels, to think of setting up the first EPZ in Tanzania.

 “Currently, have about 600 people, but within the next one year or so we hope to increase the
workforce to about 5,000-6,000 people,” he adds.

The EPZ on the outskirts of the Tanzanian capital has been designed to accommodate 80
industrial units spread over 300 acres. The land has been given to the company on a 99 year
lease.

Assets insured

Incidents of the past, when land was taken over by some African governments, are no longer a
deterrent.

  “We have acquired land through laid down procedures. All my assets are insured by the
multilateral investment guarantee agreement (MIGA) so if anything were to happen to my
project I will get the $20 million that I have invested in the project,” Mr Karuturi told a visiting
media team..
India-Africa summit

The  visit was part of a familiarisation trip organised by the Ministry of External Affairs ahead of
the second India-Africa Forum Summit scheduled to be held in Addis Ababa in late May.

The Prime Minister, Dr Manmohan Singh, is expected to attend the summit.