AGRI INDUSTRY: Yara gave controversial price to Ethiopia´s president, won € 12.5 million worth of contracts

subscriber | 15 January, 2006

JOHANNESBURG. In September last year Norwegian fertiliser giant Yara gave the first African Green Revolution Yara Prize, worth $ 200 000 (NOK 1 million), to Ethiopia´s President Meles Zenawi at a controversial ceremony in Oslo that Norway´s Prime Minister Kjell Agne Bondevik declined to take part in.

Three months later Yara was awarded a series of contracts worth $12.5 (NOK 95 million) worth of contracts, according to the Norwegian watchdog newsletter Norwatch.

The fertilisers will be used by state co-operatives, which make it possible for the state to control and put political pressure on the farmers, according to Norwatch.

The prize, given to Zenawi for the inspirational leadership as the country´s agricultural production have doubled during the past ten years, was very timely from a political point of view as Norway, together with Sweden and Denmark, withdrew all their aid to Ethiopia late last year due to increased state repression against the country´s opposition.

The awarding of the prize to the Ethiopian President, who´s secfurity forces detained between 4000 and 5000 opponents to the regime last year, was heavily critisised in Norway.
It may be smart of Yara from a business point of view, but politically unwise, said one observer at the time.

Yara will deliver 50 000 ton of fertilizers to Ethiopia, the first deliveries are due already this month.

Yara´s spokesperson Arne Cartridge confirmed the deliveries and said that he can see nothing wrong in the awarding of the contract.

“As the world´s largest fertiliser manufacturer, and the only large player around in Africa, it is perhaps not surprising that we every now and then are delivering there”, Arne Cartridge was quoted to say to Norwatch.

At the time of the awarding of the prize Yara denied that it was a way of rewarding an already large customer.