March 10, 2025 – In a significant setback for Ethiopia’s agricultural and horticultural sector, Selecta One has announced the closure of its production site in Kunzila, citing political instability and security concerns. The German-based floriculture company made the difficult decision after years of investment in the region, despite efforts to maintain operations post-civil war.

Per Ansgar Klemm, CEO of Selecta One, shared the news via LinkedIn, calling the decision a “bitter pill to swallow.” He emphasized that the safety of employees on the ground could no longer be guaranteed under the current political and military tensions. The closure will result in the loss of over 1,000 jobs, affecting around 10,000 people directly and indirectly in the area.

The Kunzila production site was established with high hopes of contributing to the economic development of the region. Selecta One had invested heavily in knowledge transfer, workforce development, and production infrastructure. The company had remained committed to operating in Ethiopia even after the civil war ended in November 2022, anticipating improved conditions. However, ongoing instability has rendered it impossible to sustain operations or execute necessary business expansions.

Klemm expressed deep regret over the decision, highlighting the devastating impact on local employees and their families. “For many people from Kunzila and the surrounding area, our young company was an opportunity for economic prospects. It is with a heavy heart that we leave them behind, hoping for better times,” he stated.

Despite the setback in Ethiopia, Selecta One is shifting resources to strengthen its operations in Kenya and Uganda to ensure continuity in supply for its customers. However, the closure underscores the growing challenges faced by foreign investors in Ethiopia, particularly in sectors reliant on political stability and security.

Ethiopia has been striving to attract foreign direct investment (FDI) to boost its economy, but recurrent conflicts and regulatory uncertainties have led to concerns among international businesses. Selecta One’s exit raises further questions about the business climate in the country, particularly in regions affected by instability.

As the Ethiopian government works to stabilize the political landscape and restore investor confidence, the departure of companies like Selecta One serves as a stark reminder of the risks associated with operating in conflict-prone environments. The company remains hopeful for future opportunities to re-establish operations in Ethiopia should conditions improve.