Ethiopian Informer
ADDIS ABABA: The Ethiopian government has invited domestic and international investors to participate in the tendering process of eight state-owned sugar enterprises.
The announcement was made by the Ethiopian Ministry of Finance as it invited investors to submit their Expression of Interest (EOI) to participate in the tendering processes of the eight sugar enterprises.
The eight sugar enterprises are Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Arjo Dedessa, Kessem, Tana Beles, and Tendaho (together with the ‘Sugar Enterprises’), the ministry disclosed in a press statement on Friday.
The ministry said 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 said the move is part of 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,” the statement read.
It said 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.
According to the ministry, the transaction is also expected to create opportunities for refined and raw sugar exports given the good existing climate for growing sugarcane in Ethiopia, enabling foreign currency inflows into the country.
The move aimed at improving competitiveness and increase sugar production so as to meet the domestic demand, while also saving Ethiopia from spending substantial foreign exchange in importing sugar.
The ministry said the improved performance of the sector will eventually increase income and improve the standard of living for Ethiopians who rely on sugarcane plantations as the main source of livelihood in sugar-growing regions of Ethiopia.
Meanwhile, the ministry said interested local and international firms of consortia can register their interests by submitting an Expression of Interest (EOI) to participate in the proposed transaction.
(Photo, from Ethiopian Sugar Corporation, shows the Omo-Kuraz II Sugar Factory, which is one of the eight eight state-owned sugar enterprises set fro privatization)
