BY BETELHEM BEDLU
ADDIS ABABA- The Ministry of Finance (MoF) disclosed that some 20 domestic and international companies responded to the government’s desire to transfer the ownership of eight sugar factories. Speaking to the Ethiopian Press Agency (EPA), Finance Minister’s Economic Reforms Advisor Hinjat Shamil stated the government witnessed strong desire of potential companies to purchase the sugar industries. Accordingly, the MoF set up a team to review the queries submitted by the business entities.
Moreover, a document that facilitates the privatization process is being formulated. The document will evaluate what the companies would bring to the sugar sector and the overall economy at large. The document also encompasses the status and production capacity of each sugar factory, policy issues, as well as privatization options. “A tender would be opened in the coming five weeks once the government responds to the recommendations.”
According to her, apart from factories’ poor infrastructure, the main reason for the privatization came with their failure to perform adequately, “We believe that the factories will be advanced to better production capacity after they are privatized.” The privatization would attract the involvement of anchor companies with the required capital and expertise and facilitate knowledge and experience transfer.
Similarly, the privatization of these factories galvanizes the government’s efforts to attract more investment. Also, the increase in the production of sugar entitles Ethiopia to more foreign currency earnings. Omo Kuraz one, two, and three, Arjo Didessa, Kessem, Tendaho, and Tana Beles are among the sugar factories that are said to be privatized. THE ETHIOPIAN FRIDAY 10 MARCH 2023
