Addis Ababa August 19/2022 /ENA/ The Government of Ethiopia has invited domestic and international investors to participate in the tendering of 8 state-owned sugar enterprises.Thank you for reading this post, don't forget to subscribe!
Ministry of Finance announced today that the government has initiated a holistic sugar sector reform aimed at increasing private sector participation in the ownership and control of sugar companies.
“To transform the sugar sector, the Government of Ethiopia is now inviting both international and domestic investors to participate in the tendering of 8 state-owned sugar enterprises. These include Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Arjo Dedessa, Kessem, Tana Beles, and Tendaho (together with the ‘Sugar Enterprises’),” a press release of the ministry disclosed.
The proposed transaction presents an excellent investment opportunity to interested investors to acquire up to 100 percent of the sugar enterprises, most of which are newly constructed factories with built-in trunk infrastructure, abundant water, land resources, and excellent cane-growing agro-climate conditions, it was learned.
The transaction is aimed at improving competitiveness and increasing sugar production to meet domestic demand and will save Ethiopia from spending substantial foreign exchange used in importing sugar, the release added.
The improved performance of the sector will in turn increase income and improve the standard of living for the population that relies on sugar cane plantations as the main source of livelihood in sugar-growing regions of Ethiopia.
It further elaborated that the transaction will not only reduce the future reliance on public financing but also enable the sugar enterprises to raise additional capital to support projected expansion and modernization.
Moreover, the transaction will create opportunities for refined and raw sugar exports given the good existing climate for growing cane in Ethiopia, enabling foreign currency inflows into the country.
In addition to sugar production, the enterprises engage in the production of ethanol and electricity for internal use and to supply to the national grid, the press release stated.
The sugar sector reform in Ethiopia is intended to sustain rapid and inclusive economic growth by laying the ground for economic transformation that leverages the increasing role of the private sector.