Ethiopia is the world champion of "land grabbing” – the practice of renting out vast expanses of farmland to local and, in particular, foreign investors. In 2011, 3.5 million hectares were allocated, while the projected figure for 2015 is 7 million hectares, an area twice the size of Belgium.[i] By way of comparison, 12 million hectares are farmed by the same number of smallholders, who make up four-fifths of the Ethiopian workforce. It is not hard, then, to imagine the anticipated leap forward in agricultural output, especially given that the productivity of these new mechanised farms should be much greater than that of traditional peasant farmers. As a first approximation, medium sized yields and export of just half of their production should, in the medium term, bring in about US$ 10 billion in foreign currencies, at a time when the deficit in the balance of payments is the Achilles heel of the Ethiopian economy and its GDP currently stands at US$ 30 billion.

The Ethiopian government has issued an international tender to purchase 35,000 tonnes of milling wheat, European traders said on Monday.

The bidding deadline is May 22.The latest tender means the Ethiopia is now seeking a total 70,000 tonnes of wheat. Ethiopia has a separate tender for 35,000 tonnes which closes on Tuesday, May 15.The grain is for all the country's strategic reserves and finance for both purchases is being provided by the World Bank's International Development Association, traders said.All origins are accepted and shipment for both tenders is sought one month after opening of a letter of credit on the purchase.In April, Ethiopia bought a total 70,000 tonnes of Russian-origin wheat in two tenders also financed by the World Bank.