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Ethiopia Gov’t Begins Process of Privatising 13 Sugar Factories



Ethiopian Government has launched the
Request for Information (RFI) which will set the pace started of privatising 13
sugar factories which are operational and under construction.

The Ministry of Finance and Ethiopian Sugar
Corporation will use the RFI to gather information used to assess potential
investors seeking to buy the sugar factories clarifying that  it should not “be construed as a competitive
solicitation nor as an obligation on the Ministry’s or Sugar Corporation part
to enter into any contract or make any purchase.”

Eyob Tekalign, Minister for Finance, said
“It’s about time the government stops interfering in projects that ultimately
result in macroeconomic strains.”,”

“This RFI is not an invitation for
privatization or a PPP process; it is only to initiate the private sector
participation process. Based on the information provided by respondents to this
RFI, the Ministry will determine the form and mode to engage the private sector
in a competitive tender process in line with Ethiopian government Laws and
regulations. No purchases will be made as a result of this request,” Eyob was
quoted by New Business Ethiopia.

Some of the ideas expected from the
investors include the kind of engagement they are looking for; whether it’s
full ownership of a sugar factory, partial transfer or a public-private

There are eight operational sugar factories in the country with an annual production capacity of four million quintals, in the previous fiscal year; Ethiopia imported 4.1 million quintals of sugar.


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