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Ethiopia to Privatize Sugar Factories to Boost Production, Meet Demands

Sugar Factories _ Ethiopia
Omo Kuraz sugar factory. Credit : Ethiopian Sugar Corporation

By  TESFA-ALEM  TEKLE
borkena
November 28, 2019

(ADDIS ABABA) – Ethiopia’s Ministry of Finance announced that it will transfer six sugar projects to the private sector in the first quarter of 2020.

The Ministry has held a forum focused on ways to improve the sugar industry in Ethiopia.

According to ENA, state Minister of Finance, Eyob Tekalign said currently, 13 state controlled sugar factories are undergoing under technical, price, social and environmental impact assessment  studies.

Once the ongoing assessment is completed by December, the minister said six of the 13 factories will be privatized.

It was disclosed that the ministry has gathered valuable input to enable the procurement process to begin and thereby to conduct an open, transparent and inclusive bid process.

According to Eyob, useful information has been gathered from potential buyers in order to commence the first phase of privatization.

“We will announce open, transparent and competitive bid process for these sugar projects as the government has encouraged the participation of the private sector and inflow of private capital into the economy,” the state minister explained.

The minister said the private sector’s involvement in sugar factories could increase the productivity of the factories and meet the existing sugar demand and create opportunities for export.

The Minister noted that the government’s efforts to expand sugar factories to date have been of little value.

Sugar Corporation CEO, Weyo Roba said on his part a well-designed policy and regulatory framework has been put in place to protect the domestic industry from distorted international price.

The consultation meeting on Ethiopian Sugar Industry Reform was attended by several stakeholders and advise on the country’s sugar policy and draft proclamation in a bid to enhance the role of the private sector in the country’s economy.

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