Commentaries | Jan 11,2020
March 16 , 2019
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )
An economic wing of the Amhara Regional State is expanding to sugar production with an estimated investment of 1.4 billion Br.
Abay Industrial Development SC plans to set up a sugar manufacturing plant at Tana Beles sub-basin in the Amhara Regional State. The factory will have a capacity of crushing 8,000tn of sugar cane a day, and there is a plan to expand to 12,000tn of sugar cane. The project will include a sugarcane plantation development, processing complex and a power co-generation facility.
For the project, Abay, a public-private partnership with four billion Birr in registered capital raised from about 516 investors and state-owned enterprises in the Amhara Regional State, is in the process of hiring a firm to carry out the feasibility study.
A tender for a consultancy firm was also floated late last month by Abay, a company established to develop 22 different industries in the region including steel, cement, fertiliser, textiles, chemicals and commercial farming.
There are eight local sugar factories that are operational in the country including Wonji Shoa, Metehara, Fincha, Tendaho, Arjo Dediessa, Kessem and Omo Kuraz Sugar Factory II. Excluding Omo Kuraz II, the seven factories have an annual production capacity of four million quintals, while the demand is between 6.5 million quintals to seven million quintals.
To meet national demand, Ethiopia imported 4.14 million quintals or 414,587tn of sugar two years ago.
Last year, Prime Minister Abiy Ahmed (PhD) inaugurated Omo Kuraz III Sugar Factory, located in the Bench Maji Zone of the SNNPR built at a cost of more than eight billion Birr. The factory became the eighth operational sugar factory in the country. Built by the Chinese company COMPLANT, it has a capacity of producing 8,000 quintals to 10,000 quintals of sugar a day.
Close to 34.8 billion Br was spent for the four sugar factories in Omo Kuraz Sugar Development Project for irrigation infrastructure, land preparation, sugarcane development, housing, factory construction, project pre-operation and operational budget by March 2018.
The growth in sugar factories will not only minimise the shortage of sugar but make a major contribution to saving forex spent to import it, according to experts. That the project is not solely government-owned has also been hailed.
"It is good that the private sector is stepping up, but the government should take care to keep the price of sugar down," said Alemayehu Geda (Prof.), a macroeconomist and university lecturer at Addis Abeba University. "The government will also have to improve the current sugar producing capacity of the publicly-owned sugar factories."
Abay is also in the process of setting up the nation's largest steel cold rolling mill complex in Bahir Dar. It also plans to set up a cement factory at Dejen, 240Km northwest of Addis Abeba, two furniture factories in the cities of Debre Tabor and Debre Berhan and a textile factory in Gonder. It also laid the foundation for a one-billion-Br wood mill plant to be located in Woldiya town, Amhara Regional State.
Demes Teshager, general manager of Abay Industrial Development, did not respond to questions from Fortune before the paper went to print.
PUBLISHED ON Mar 16,2019 [ VOL 19 , NO 985]
Commentaries | Jan 11,2020
Fortune News | Feb 02,2019
Editorial | Mar 09,2019
Featured | Jul 10,2020
Commentaries | May 29,2021
Fortune News | Jul 18,2021
Editorial | Apr 10,2021
Commentaries | Jan 05,2019
Fortune News | Apr 04,2020
Radar | Feb 02,2019
November 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
November 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
The terms corporate accountability, corporate ethics, corporate citizenship, corporat...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
January 15 , 2022
Foes and friends of Prime Minister Abiy Ahmed (PhD) agree that his administration is...
January 7 , 2022
There has not been much research to put a number on high costs wars inflict on Africa...
January 1 , 2022
It is a norm to emphasise grand structural changes to address the myriad political pr...
December 25 , 2021
In the words of Herbert Hoover, the 31st president of the United States, it is older...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
I lived in Tanzania some time ago, working on a project. I met new people who came f...
Or see contact page