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Ethiopia: Omo Kuraz No. 3 Commences Sugar Production

Sugar Factories 20230130

The Ethiopian Sugar Industry Group has declared the commencement of sugar production for the 2024 season at the Omo Kuraz No. 3 Sugar Factory, as sugarcane grinding operations are now underway. The production plan for this year aims to yield 245,927.5 quintals of sugar, utilizing 4,600.5 hectares of land dedicated to sugarcane cultivation.

It is to be recalled that the Ministry of Finance issued an international tender last year to privatize 8 state-owned sugar enterprises. The factories that were open for auction were Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Arjo Dedessa, Kessem, Tana Beles, and Tendaho.

Ethiopia produces 3 to 4 million quintals of sugar annually while the annual sugar consumption is between 5 and 6 million quintals. The country has implemented a five-year strategic plan to tackle challenges in the sugar industry and increase productivity. Eliminating sugar imports starting by implementing this plan is one of the Ethiopian Sugar Industry Group’s objectives. Accordingly, there are efforts to expand irrigation infrastructure for recently built sugar factories to meet domestic demand fully and replace imported sugar in 2025. The Group aims to completely replace the country's sugar demand with domestic production within the next five years by scaling up sugar production from the current 3.6 million quintals to 13 million.

Source: Fana BC and 2Merkato Archives

Image source: Fana BC