— November 30, 2019 add comment
Ministry of Finance announced today that six sugar projects will be privatized in the first quarter of 2020.
Finance State Minister, Eyob Tekalign told journalists that the country is conducting technical assessment, validation of factories and social impact assessment for all the thirteen sugar projects, of which the 6 will be privatized in the stated period.
The assessments on the projects are expected to be completed by the end of next month, he added. 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.
He admitted that the effort to expand sugar factories has brought no result, except accumulated debt burden, despite the huge investment made by the government. The privatization of this sub-sector will help exploit the country’s potential for sugar production, Eyob said, adding that the transfer of means of production “will increase produce of factories to meet growing local demands as well as export sugar to regional and international markets.”
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 regulation will create different price regime between domestic and export markets and ensure equitable export obligations among producers, he revealed.
The one-day Consultation on Ethiopian Sugar Industry Reform was aimed at reviewing and enriching a draft sugar policy and proclamation to reform the sugar industry in Ethiopia.