Ethiopian Investment Holdings (EIH) has announced ongoing negotiations to transfer ownership of certain sugar plants to both local and international companies.

EIH CEO Abdurehman EidTahir stated that bids for some sugar mills are open to foreign and local investors, with the government ready to engage in negotiations. The government aims to reform the sugar industry and is actively encouraging potential investors to submit bids for sugar mills located across the country.

Despite the production of one million quintals of sugar last year covering only 15 percent of local demand, the government covered the balance from the international market. Abdurehman emphasized the need for private investors, including foreign companies, to tap into this significant market opportunity. He highlighted challenges faced by the seven sugar mills, including the necessity for intensive maintenance and substantial foreign currency for spare parts. The government has allocated funds, but unresolved issues require long-term solutions.

The CEO noted ongoing restoration efforts for several factories and outlined reformative measures to address production capacity reductions in the past decade. He highlighted the impact of local farmers shifting to horticulture farming on sugarcane production and mentioned government initiatives to revitalize sugarcane farming, such as irrigation efforts by the WonjiShoa Sugar Factory.

Source: The Ethiopian Herald