The Government of Ethiopia has invited investors to submit their expression of interest to participate in the privatization of eight sugar factories.
Sugar factories are among the companies the government seeks to transfer up to 100% of its stake to the private sector in a bid to ensure efficient use of national resources by shifting towards a competitive market structure.
"The proposed transaction is aimed at improving competitiveness and increasing sugar production to meet domestic demand," the Ministry of Finance said. "This will save Ethiopia from spending substantial foreign exchange used in importing sugar."
The EoI issued on Friday invited both local and international companies to participate in the privatization of the suger enterprises.
These enterprises are Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Arjo Dedessa, Kessem, Tana Beles, and Tendaho (the
Sugar Enterprises), and they are currently owned and managed by the Ethiopian Sugar Industry Group (the ESI Group).
Officials say most of them are newly constructed factories with built-in trunk infrastructure, abundant water, land resources, and excellent cane-growing agro-climate conditions.
The proposed transaction will also presents an "excellent investment opportunity" to interested investors to acquire up to 100% of the Sugar Enterprises, the ministry of finance said.
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, it added.
Interested Parties are expected to register their interest and submit a Non-Disclosure Agreement to Ethiopian Investment Holdinga (EIH) until 1st November 2022.
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