Ethiopian Sugar Industry Profile

Ethiopian

Sugar Industry Profile

Ethiopiansugar.com || Facebook.com/etsugar

January, 2017

Vision, Mission & Values

ÒÒ Ensuring sustainable growth, become one of the ten com-petitive sugar producing countries of the world in 2023.

Vision :

Ò� Creating modern technology and capable human resource so as to develop the nation’s potential to the sector, produce sugar, sugar bi-products and co-products and take remarkable foreign market share and support the nation’s economy beyond satisfying domes-tic demand and ensuring the benefits of the public.

Mission:

Core ValuesÒh Sustainable change and competitiveness;

Òh Virtuous work ethics;

Òh Productivity is crucial to our existence;

Òh Popularity is our typical feature;

Òh We never stop learning;

Òh We encourage creativity and best performance;

Òh Working in team spirit is our unique feature;

Òh Environment protection is fundamental to our development;

Òh Human resource Development is vital to our success.

2 Ethiopian Sugar Industry

Purposes of Establishment of Sugar

Corporation According to Proclamation

No.192/2010

• To grow sugarcane and other sugar yielding crops;

• To process and produce sugar, sugar products, sugar by-products and products of sugar by- products;

• To sell its products and by-products in the domestic and export markets;

• To cause the undertaking of feasibility studies, design preparation, technology selection and negotiation, erection and commissioning of new sugar development and expansion projects;

• In cooperation with the relevant organs undertake studies and research in the field of sugar cane plantation and sugar production technologies and implement useful results thereof;

• In cooperation with capable domestic enterprises, to cause the designing and fabrication of machineries and spare

parts required by public sugar factories;

• To posses, in accordance with the law, and develop lands required for its operations;

• To encourage and support sugar cane out growers who are supplying their cane products to public Sugar factories;

• To cooperate with the concerned educational institutions in producing the required type, number and quality of trained manpower for the sugar industry;

• In line with directives and policy guidelines issued by the Ministry of Finance and Economic Cooperation, to sell and pledge bonds and to negotiate and sign loan agreements with local and international financial sources;

• To engage in any other related activities necessary for the attainment of its purposes.

3Sugar Corporation

It was at Wonji in 1951 some 110 km east of the capital Addis Ababa that modern sugar industry started in Ethiopia as a share company established by foreign private investors & Ethiopian government. By then the Netherland’s H.V.A. Company had entered into the sector as a foreign share holder. When the factory started production in 1954 its initial production was one thousand four hundred quintals of sugar a year. At the start, the share company had five thousand hectares of land for its sugarcane cultivation. As its location is one of the most suitable areas of the world to the sector it opened a door to Wonji Candy Factory to come forward.

Then, followed Shoa Sugar Factory in 1962 with 1,700 quintals of sugar production capacity a day. The two factories known by the name Wonji Shoa Sugar Factory altogether had the capacity of producing 750,000 quintals of sugar per annum till recent time i.e. prior to the completion of the new Wonji Shoa Sugar Factory. Serving for more than half a century and getting obsolete, these two Wonji and Shoa sugar factories were closed in 2011 and 2012 respectively. Replacing these pioneer factories, the new and modern factory had started production in 2013 with higher production capacity.

The second factory- Metehara Sugar Factory is established as a

Ethiopian Sugar Industry Profile



share company between same Netherlands Company and the then Ethiopian government in 1965 and started production in 1969 at a location known as Mertti some 200 km from Addis Ababa. Currently, the factory with a total 10,235 hectares of sugarcane cultivation land has a capacity of producing more than 1.3 million quintals sugar and 12.5 million liters ethanol a year on average.

Five years after the establishment of Metehara Sugar Factory

i.e in 1974 following the dawn fall of the emperor’s regime all sugar factories were made to be administered under the ownership of the government and started operating under the then Ethiopian Sugar Corporation. The corporation had also been made to administer the Addis Ketema and Asmara Candy Factories together with the above mentioned three sugar factories.

Later in 1992 when the Corporation which had administered all sugar factories was dissolved by statute; all the above factories were reestablished as separate public enterprises. Following this the Ethiopian Sugar Industry Support Center came into existence in 1998 to provide support to the factories. The center was established as a share company of the Development Bank of Ethiopia, Ethiopian Insurance Corporation and the three sugar factories.

Fincha Sugar Factory as the third sugarcane crushing mill to the nation came into existence in late 1998 though its establishment process and other activities dated back to 1975. The gap between the establishment and commencement of production of the factory is mainly occurred due to the political change the nation had undergone.

Its finance sources were African

5Sugar Corporation

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Development Bank and Development Fund; Governments of Australia and Spain as well as domestic banks of the nation.

Its initial sugar production was 500,000 quintals per annum. More modern than the former factories, the factory’s construction job including its ethanol plant was executed by American company known as F.C. Shefer and Associates and Netherland’s company called Dewetto International while many domestic construction companies had also played their part in the process.

In 2006 Tendaho Sugar Development Project was established as a fourth two-phased project in the country. Construction of the first phase of the factory has started production in 2015. The two-phased project, reaching its maximum crushing capacity, eventually enables the factory produce 3 Million quintals of sugar and 30 million Litters ethanol a year. The factory, with its first phase factory construction finalized, has started producing sugar. The factory will in total have 50,000 hectares of sugarcane cultivation land.

It was during the inception of Tendaho Sugar Factory that the Ethiopian Sugar Development Agency came into existence replacing the support center to assist the sugar factories in project development, research and training.


The present “Sugar Corporation” with a vision of executing sugar development activities at a large scale came into existence on October, 2010 by the Council of Ministers Regulation No.192/2010 replacing the former Ethiopian Sugar Development Agency. Currently, with the Regulation No. 916/2015 instituted to determine the authority and practice of FDRE Executive Bodies, the Corporation is operating under a Board of Management while it is organized under Ministry of Government Enterprises.

The Corporation, during the First GTP, has carried out various activities such as building various infrastructures as well as social institutions

carrying out wide sugarcane plantation activities and creating large job opportunities. On the other hand, the Corporation, from the concluded GTP exposure, has learnt that it has got a lot to do to increase the number of sugar factories as well as amount of sugar production and co-products.

Hence, the Government has come to a conclusion that the Corporation, to attain the mission it is expected during the Second GTP, has to make certain structural changes which enable it accomplish the goals of the Second GTP of the sector. Accordingly, the Corporation, with a new structure which is believed to efficiently conduct sugar development activities at a large scale in the nation, is now carrying out various activities.

Sugar Corporation

7Sugar Corporation

Strategic Framework oF

Sugar induStry Sub Sector Sugar development sector is one among other huge projects which enables industry take a leading role in the nation’s economy. Ethiopia has huge human as well as natural resources which enable the nation to broaden this export oriented manufacturing industry sector and its productivity. The nation has suitable climate, wide and proved irrigable agricultural land (more than 500 thousand hectares) as well as abundant resource of water to use through canal schemes. And, the Government, to ensure equitable share of the nation’s resource among its peoples, has started broadening the sugar development sector which had been limited around Wonji Shoa, Metehara and Fincha Sugar Factories for long years to Oromiya, Afar, Amhara,

Tigray and Southern Nations, Nationalities and Peoples regional states.

Accordingly, various activities are being carried out to build two sugar factories each with a capacity of crushing 12 thousand tons of cane (TCD) at Tana Beles Sugar Development Project in both Amhara and Benishangul Gumuz regions and these two factories all together have 50 thousand hectares of sugarcane cultivation land.

Likewise, activities are being carried out at Omo-Kuraz Sugar Development Project of South Omo, Bench-Maji and Kaffa zones of Southern Nations, Nationalities and Peoples Regional State where four sugar factories are at


Strategic Framework oF

Sugar induStry Sub Sector different levels of construction owning 100 thousand hectares of sugarcane plantation land. Among them three are each with a crushing capacity of 12 thousand tons of cane a day while one with 24 thousand TCD. Omo-Kuraz Factory One is almost to start production in early 2017.

Similarly, the construction of one sugar factory with 24 thousand TCD using 50 thousand hectares of cane plantation field is underway at Wolkayit Sugar Development Project of Tigray Regional State.

Though the sugar industry sector of the nation has more than half a century of experience the disparity in demand and supply of the product has prevailed due to the following factors :-

• Tardiness of the construction of sugar factories;• The huge rise of demand of the community for the product due

to the fast economic growth the nation has registered; • Amount of production of sugar in existing sugar factories has

become unable to satisfy the growing domestic demand;• Rise of population of the nation and• Increment of industries which use sugar as input to their

product.

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Domestic

Supply of

Sugar The current annual domestic supply of sugar is between 6 to 6.5 Million Quintals of which 3.25 to 4 Million Quintals of sugar are produced domestically while the rest is imported to fill the gap between demand and supply of the product with a subsidized price. Currently a rough study conducted on the annual consumption of sugar at an individual level is more than 10 Kilo Gram while the supply is only 7 Kilo Gram. And, to do away with above trend, the Government has put the sugar industry sub sector as one among other mega manufacturing industry sectors which have got great attention both in the first and second GTPs.

Accordingly, the Government is currently carrying out huge sugar development projects to:-• Eliminate the gap between demand and supply of

sugar domestically;• Create wide job opportunities to citizens and there

by improve their living conditions;• Ensure the benefits of communities living around

sugar development projects;• Export sugar and thereby get foreign currency.


Accomplishments of the

First Growth & Transfor-

mation Period

• Modernize existing sugar factories (Wonji Shoa - replaced with new one & Fincha sugar factories) and upgrade their production capacity.

• Increase annual sugar production of the nation from 2,903,740 to 4,000,000 quintals.

• Expand sugarcane cultivated area from 30,397,000 to 65,363 hectares which is 215% increment.

• Boost production of ethanol from 7,117 to 19,804 meter cube out of it 18,480,000 is consumed as fuel blended with benzene.

• Develop research works which have increased sugarcane productivity.

• Carry out construction of provisional dams, water weirs, large irrigation structures, internal roads, houses as well as new huge sugar factories and land preparation works have been done.

• Exporting 31 Mega Watt electric power to the national grid is made possible.

• Kessem and Arjo Didessa sugar factories have entered regular production.

• Actions which will enable Tendaho Sugar Factory Phase-One enter into trial production have become successful.

• Lives of natives living around sugar factories/projects have improved through social institutions as well as infrastructures constructed.

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Accomplishments of

the First Growth & ...

• Youths of natives around have got job opportunities being equipped with various skills through training.

• Youths organized in micro and small enterprises are enabled to participate in sugar development projects.

• Irrigable lands are made available to natives living around from which they are benefitting producing various crops and later on supply sugarcane to factories working as out growers of sugarcane.

• Favorable situations are created in the sector in the first GTP so as to enable the nation become one among the ten top sugar producing countries of the world in the future.

• More than 350,000 citizens have got regular, casual as well as contractual job opportunities from the


Comparative Overview

of the Sugar Industry

13Sugar Corporation

Comparative Overview...


• Enable Omo-Kuraz 1, 2, 3 and 5; Tana Beles 1 & 2 as well as Wolkayit sugar factories which are both under construction during the First GTP enter into regular production.

• Increase sugar production to 2.8 Million Tons by the end of the second GTP and thereby satisfying domestic demand export sugar to international market.

• Increase annual production of ethanol to 28,105,000 Liter by the aforementioned period.

• Expand the current 95,760 hectares of land cultivated with sugarcane to 307,324

hectares by the above mentioned period.

• Broaden participation of the community and create regular, casual as well as contractual job opportunities to more than 637,000 citizens of the nation.

• Export remarkable amount power to the national power grid.

• Carry out construction of canal infrastructures as well as houses with quality at a larger scale.

• With regard to co-products, cultivate crops, fruits as well as run dairy farms at a larger scale.

Major Goals of the Second

Growth & Transformation Period

15Sugar Corporation

The factory is found at Oromiya Regional State near Nazareth City at 110 Kilo Meters from Addis Ababa. Commencing production in 1954 it is the oldest and the pioneer in the history of Ethiopia’s sugar industry. And Shoa Sugar Factory constructed in 1962 is the second oldest and both, being obsolete, have stopped production since July, 2012 and July, 2013 respectively. The two factories constructed by the Holland Company known as H.V.A had a capacity of producing 750,000 quintals of sugar a year. The sugarcane plantation land of these two factories was 7,000 hectares out of which 1,000 had been planted by out growers.

In a bid to replace these two oldest factories with a new and modern one, an expansion project had been carried out both in the cane cultivation field and the factory since 2010. And, the factory plant expansion project has come into its completion in July, 2013. Accordingly, the newly built and modern Wonji/Shoa Sugar Factory has currently a design capacity of crushing 6,250 tons of cane a day and producing over 174,000 tons of sugar per annum which with further expansion will reach up to 12,500 TCD maximizing its production to 220,700 tons of sugar a year. The new ethanol plant planned to be built, will have

I.Wonji Shoa Sugar Facory

Sugar

Factories


a capacity of producing 12,800 meter cube. The Factory is currently contributing 20 mega watt electric powers to the national grid in addition to satisfying its own demand which is around 11 mega watt.

Its agricultural expansion project is currently being carried out around the areas known as Wakie Tiyo, Welenchiti and North Dodota areas. The factory, with the help of this agricultural expansion project, will have 16,000 hectares of sugarcane plantation field in total. The total cane cultivation field of the factory has currently reached 12,800 hectares. And, the 7,000 hectares of the factory’s sugarcane field cultivated with the agricultural expansion project is owned by out grower farmers of the surrounding area. There are 32 Sugarcane Out Growers associations which in total have 9,100 member farmers. The Factory, beyond supplying the farmers with selected seeds, and rendering professional as well as technical support to them, has made irrigable land available to all.

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II.Metehara Sugar Factory

The factory is found in Oromiya Regional State at 200 Kilo Meters distance from Addis Ababa. Same as Wonji Shoa Sugar Factory its construction was carried out by H.V.A. Company of the Netherlands. The factory started sugar production in 1970. Formed as Share Company between the then Ethiopian government and the constructing company, it was the third sugar mill to the nation. It currently has more than 10,000 hectares of land covered with sugarcane. Its average production capacity is 136,692 tons of sugar a year.

Through an expansion project conducted, it came up with an ethanol producing plant by the end of 2010. Currently the factory’s ethanol plant has a capacity of producing 12,500 Meter Cube ethanol a year. It also generates 9 Mega Watt electric power and satisfy its own power demand by itself. It is a factory which has applied Kaizen appropriately and has won trophies at national competition. It has received trophies as well as medals from FDRE Prime Minister Hailemariam Desalegne in September, 2015 for its work in making Kaizen perpetual.


III. Finchaa Sugar Factory

The factory is found in Oromiya Regional State in Horro Guderru Wellega Zone, Abay Chomen District in Fincha Rift Valley around 350 Kilo Meters away from the capital – Addis Ababa. Feasibility study including the topography and soil content of the area was conducted by Bukers Agricultural International Ltd. of Britain since 1978 while the project work had started in 1989. The finance needed to construct the factory was secured from the African Development Bank & African Development Fund; governments of Australia & Spain and domestic banks of the nation.

Fincha River which is generating hydro electric power and then made reach the rift valley to water the sugarcane plantation field of Fincha Sugar Factory finally goes to Nile River as a tributary. The Factory’s command area is 67,098 hectares.

The factory started production in 1998 and till July, 2013 the average annual production capacity of Finchaa Sugar Factory was 110,000 tons of sugar while it had the capacity of producing 8,000 meter cube ethanol. Till the last months of 2010 it had been the only factory in the country that

19Sugar Corporation

Finchaa...

produces ethanol.

The factory has carried out expansion projects both on its sugarcane plantation field and its sugar mill. Hence it has come up with a plant of 12,000 TCD design capacity capable of annually producing 270,000 tons of sugar and 20,000 meter cube ethanol. The Mill’s previous design capacity was 5,000 TCD. To acquire and cultivate cane cultivation field capable enough to feed the expanded plant with more than double crushing capacity.

It is found at the lower Awash River Basin of Afar Regional State around Millie, Doubti, Assaeitta and Affambo Districts at a distance of 670 k.m. from Addis Ababa. It is located at 300 k.m. distance from Dijibouti Port which makes it more fit to export sugar. The project was started in 2006 with 50,000 hectares of land to be cultivated and will have a

factory with a design capacity of 13,000 TCD a day. The factory construction contractor is OIA (Overseas Infrastructure Alliance) of India. The first phase of the factory has started trial production in October, 2014. It is currently in regular operation. Upon coming to its maximum crushing capacity, the factory will be able to produce more than 3 Million Quintals

The factory’s agricultural expansion project has been carried out around the areas known as East Bank (eastern side of Finchaa River) , Neshie and also on the idle areas found on the Western side of the river. The factory, therefore, in near future will bring its total sugarcane plantation land which had been only 12,170 hectares close to 21,000 hectares. The cultivation land expansion job has enabled the factory to expand its cane covered land to more than 19,000 hectares till 2016. The Factory produces 31 Mega Watt electric powers out of which 10 Mega Watt is exported to the national grid.


IV. Tendaho Sugar Factory

of sugar and 31,000 meter cube ethanol annually.

Out of the total hectares of the cane farm land the factory will cultivate 25,000 hectares sugarcane plantation field by its own while the rest 25,000 hectares are to be cultivated by surrounding out grower pastoralists. The factory has cultivated sugarcane over 20,866 hectares of land. The cane cultivation field is getting its water supply from Tendaho Dam and it is capable of irrigating 60,000 hectares of land having a capacity of holding more than 1.8 billion cubic meter water. Irrigable land has reached 22,835 hectares while construction of main canal and other canal structures are

already built. The factory has made irrigable land available to pastoralists around which enable them to become semi pastoralist. 175 residence houses and 429 buildings are built at the factory command area.

It is the hugest plant in the country and it will take the lion’s share of the total amount of sugar produced in the nation. Out of the total 60 mega watt electric power it will be generating from its sugar bi-product it will export 38 Mega Watt electric powers to the national grid while the rest is consumed for its own regular operation.

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V. Kessem Sugar Factory

The Factory is found at Zone Three in Awash Fentallie and Dulecha districts of Afar Regional State, 50 kilo meters from Metehara Sugar Factory and 250 kilo meters from Addis Ababa. It is a project which has a total of 20,000 hectares of land to be cultivated with cane & its plantation stretches to the areas known as Kessem and Bolhomon. The Kessem Dam which has a capacity of holding 500 cubic meters water is the source from which sugarcane cultivation is being carried out. Irrigable land has reached 2,946 hectares while the construction of

20.5 kilo meters of main canal is completed. Currently, the factory has 8,413 hectares of land covered with cane among which 6,000 hectares cultivated by a private company known as Amibara Agricultural Development with which Sugar Corporation has signed contractual agreement.

Earlier the Kessem project was part of the expansion project of Metehara Sugar Factory. It was after the establishment of Sugar Corporation that the project was made to proceed as an independent entity. The construction contractor

23Sugar Corporation

of this Factory is a Chinese company – COMPLANT.

517 residential and 20 service giving buildings or blocks are constructed.

The Factory making trial production by March, 2015 is now in regular operation. And, it will also be a factory with ethanol and co-generation facilities. The Factory is expected to start crushing 6,000 tons of sugarcane per day soon which will later on will develop to 10,000

TCD making it capable of producing 153,000 tons of sugar & 12,500 meter cube ethanol a year at the start and when it later reaches its maximum crushing capacity it will produce 260,000 tons of sugar and 30,000 meter cube ethanol annually. Moreover, the Factory out of the total 26 mega watt electric power it is expected to produce through its cogeneration facility, will contribute 15 mega watts to the national grid satisfying its own demand.


2. Arjo Sugar Factory

It is located at Western Ethiopia of Oromiya Regional State in eastern Wollega, Eilu Ababora and Jimma Zones at the Didessa Rift Valley at a distant of 540 kilo meters from the capital through the route of Addis Ababa-Jimma-Beddelie-Nekemet Road. The altitude of the area is 1,350 meters above sea level while its annual rainfall is 1,400 millimeter. Its rainy season is extends from May to October. The soil content which is usually black in color and rarely blue together with its climate makes the area suitable to sugarcane cultivation. The Factory had been owned by a Pakistan company called Al-Habasha P.L.C. which had been unable

25Sugar Corporation

to proceed the business. Therefore, the company had been transferred to the ownership to the Ethiopian government and was made to operate as a property of Sugar Corporation as of August, 2012. Over 90% of the construction of the plant was completed when it was transferred to the Corporation.

The Factory is inaugurated by FDRE Prime Minister Hailemariam Desalegne on May, 2015. Commencing production by mid 2015, it is in operation with a design crushing capacity of 8,000 tons of cane a day. Equipped with necessary facilities, it is expected to produce electric power from its by-product which enables it satisfy its own power demand as well as export some to the national grid and also produce ethanol in the future.

The Factory in total will have 20,000 hectares of land cultivated with cane. Its source of water is the Didessa River. Currently, 1,660 hectares of land is made irrigable area. And, has 3,448 hectares of land covered with cane. 64 residential houses and two service giving buildings are constructed.


Sugar Corporation is working vigorously to raise the nation’s current sugar production capacity remarkably so that the nation will greatly benefit from the sector. And, according to the survey conducted at a national level on the water resource & canal development opportunities, it is proved that the country has a potential of more than 500,000 hectares of land suitable for sugarcane plantation.

The upper & lower areas of Beles River, areas of South-West of Lake Tana called Upper Dinder, areas along Tekezzie River & its tributaries around Welkayit & Humerra, valleys of Anger River -

Negiesso, central Genallie River and Barro-Gillo rivers of Gambella are among some of the areas suitable for sugar cane plantation.

Based on the above survey the Corporation is currently building ten new sugar factories, among these Tendaho Sugar Factory, Kessem and Arjo-Didessa sugar factories have entered in to regular production in different months of 2015. The Corporation has undertaken Arjo Didessa Sugar Factory which had been under the ownership of a Pakistan company called Al-Habesha P.L.C since mid of 2012.

Sugar Development

Projects with Various

Construction Levels

27Sugar Corporation

1. Omo-Kuraz Sugar Development Project

It is a project found in South Omo Zone (Selamago and Gnanegatom Districts), Bench-Maji Zone (Surma and Mieinitshasha Districts) and Keffa Zone (Diecha District) of Southern Nations, Nationalities & Peoples Region at 900 k.m. distance from the capital city. It is a huge project where four sugar factories are found under different levels of construction. Among the total four one will work with 24,000 TCD and is capable of producing 556,000 tons of sugar and 52,324 meter cube ethanol a year while the rest three will work each with 12,000 TCD and are capable of producing 278,000 tons of sugar and 26,162 meter cube ethanol a

year individually. While reaching their maximum crushing capacity, all together will be able to produce 1,339,000 tons of sugar and 130,810 Cubic Meters ethanol annually.

Furthermore, the factories out of the 415 mega watt electric power which they are expected to produce through cogeneration will contribute 275 mega watts to the nation’s power grid. All sugar factories under construction are expected to enter production during the Second GTP period.

The construction of Omo-Kuraz One Sugar Factory which is being carried out by domestic


contractor- Ethiopian Metals and Engineering Corporation is expected to enter production by early 2017. Upon reaching its maximum crushing capacity, it will be a 12,000 TCD factory. The constructions of secondary, tertiary as well as fourth level canals for both Omo-Kuraz One and Two sugar factories have reached their completion which has made 16,141 hectares of land irrigable. And, for Omo Kuraz 1, 2 and 3 Factories 12,903 hectares of land covered with cane. 830 residential houses and 29 service giving blocks are already constructed.

The construction of Omo-Kuraz Two sugar factory which is being carried out by a Chinese Company known as COMPLANT is also closer to entering into production by early 2017. It will have same crushing capacity of the Omo-Kuraz One Sugar Factory.

Same is true, except its entrance time, with Omo-Kuraz Three Sugar Factory which is under construction by the aforementioned Chinese company.

The construction of civil work of Omo-Kuraz Five has already begun signing the contractual agreement with a Chinese Company- JJIEC. Reaching its maximum crushing capacity, it will be a factory with 24,000 TCD.

The project will have a total area of 100,000 hectares of land for its sugarcane cultivation. This wide area of cultivation field will get its water supply from the Omo River through a diversion weir which is under construction with 381 meter width & 22.4 meter height.

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Omo-Kuraz Two sugar factory


2.Tana Belles Sugar Develop-

ment Project

It is a Project mainly found in Amhara Regional State at 576 kilo meters distance from Addis Ababa where two sugar factories are under construction and some parts of its cane plantation field is also found in Benishangul Gumuz Regional state. The construction of two sugar factories with design capacity of 12,000 TCD each is in progress.

When both enter into regular production with their full crushing capacity they will produce 2,420 tons of sugar and 20,827 meter cube ethanol a year. Tana Beles Sugar Factory One and Two are expected to enter into their regular production during the Second Growth and Transformation Period. The construction of the two factories is being carried out by a domestic company- Ethiopian Metal

& Engineering Corporation.

A river diverting weir with a capacity of transmitting 60 cubic meter water per second; is already constructed together with controlling station, main canal as well as alluvial clearing structures over 30 k.m. area.

12,807 hectares of land is made irrigable while 13,049 hectares of land is covered with cane.

1,945 residential houses and 20 service giving blocks are already constructed at the site.

The project with a total area of 50,000 hectares for its cane cultivation gets its water supply from Beles River through a diversion weir built on it.

31Sugar Corporation


3. Wolkayit Sugar

De velopment Project

It is the other sugar development project located at 1,300 kilo meters from Addis Ababa in the Western Zone of Tigray Regional State at Welkayit District. One sugar factory with 24,000 TCD is found under construction by Chinese Company - CAMC. When it reaches its maximum production capacity, the factory will be capable of producing 484,000 tons of sugar and 41,654 meter cube ethanol a year. The project’s total area of land for sugarcane cultivation is 50,000 hectares. It will get its water supply from the

river called Zareima upon which the construction of a dam named “May-Day” is in progress. The dam which is under construction by a local construction company-Sur Construction will have 840 meters width and 135.5 meters height. When completed, May-Day Dam will have a capacity of containing 3,497,000,000 meter cube water. Vis-à-vis the dam construction a drip irrigation scheme is in operation reaching at a contractual agreement with an Israeli Company known as NETAFIM so as to cultivate sugarcane at 7,000 hectares of

33Sugar Corporation

land of the project. A 10 kilo meters long canal construction work is completed. A canal structure work capable of cultivating 3,000 hectares of land is underway. As cane cultivation needs water supply all throughout the year, the project is currently cultivating cotton till cultivating sugarcane with irrigated water supply is possible. 261 hectares of land is made irrigable while 220 hectares are covered with cane. 800 residential and 36 non-residential houses are constructed at the project.

In general, these new sugar factories under construction together with Tendaho, Kessem and Arjo Diedessa sugar factories which already commence production at different levels are expected to create direct and indirect job opportunities to more than 600,000 citizens in various fields of work. Moreover, as the sectors’ development activities are mainly carried out at the various remote areas of the nation, local people of these areas are enabled to get access to various social services and infrastructures including irrigable farm lands.

To accomplish these targets, the Corporation is working hand-in-glove & in coordination with the federal as well as regional government institutions responsible for constructing roads, electric power generation, water supply, telephone networking & housing facilities.


Research and Development Center

The research unit main centre was at Amsterdam, Netherlands when Ethiopia is introduced with the sugar industry in 1951 by the Dutch Company known as H.V.A. which later on made to be carried out at Wonji. Records show that it was since 1958 that trainings focusing on the science of sugar industry had been given when the above company had started cultivating cane and sugar production at wonji.

It was with the establishment of Sugar Corporation by the proclamation No.192/2010 that the research and training, structured at a division level, has got higher attention so as to accomplish the following tasks. These scopes of responsibilities are:-

• Conduct problem solving applied research and thereby originate technologies for commercial purpose;

• Enhancing productivity, boost production and minimize expenditures ;

• Properly apply research findings on every sugar factory’s cane plantation field and factories so as to improve facilitated production process;

• Identify problems encountered in the production processes and deliver technical and consultancy service in taking optimization measures;

• Evaluate the benefits of research findings on the industry as well as their impact on the environment and thereby outline new directions and strategies of research approach;

• Introduce factories and projects with methods and technologies of sugar production processes as well as with improved sugarcane seeds which give high production, resist disease,

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have high sugar yield and early maturing varieties and apply them practically,

• Outline work processes which enable technologies in operation continue with the set standard, select best experiences and apply them;

• Play a pivotal role in facilitating trainings and thereby support the industry with well trained and productive human resource.

In order to carry out the aforementioned responsibilities more efficiently the Research and Training Division which is located 110 K.M. from the capital at Wonji is reorganized in 2016 as Research and Development Centre. The Center is currently conducting sugar technology researches on all sugar factories and sugar development projects setting up research stations on each of them.

Current Sugar Distribution SystemCurrently the task of distributing sugar all over the country is managed by quota system set by the Ministry of Trade. And, the distribution sys-tem has three features:-• Sugar Distribution in Addis Ababa

Distribution of sugar in Addis Ababa is based on a quota set by Addis Ababa Trade Bureau to be distributed through shops of Consumers’ Associations as well retail traders who obtain the product from the associations. And other service providers get sugar from Vegetables, Fruits and Associated Products Business Sector formerly known as Ethiopian Fruit and Vegetable Share Company or ETFRUIT

• Sugar Distribution at Regions

Distribution in the regions is carried out by Industry Input Ser-vice Organization formerly known as Merchandize Wholesale and Import Enterprise in collaboration with trade bureaus of se-lected distribution centre towns of regions participating retail traders.

• Sugar Distribution to Industries Industries which use sugar as an input to their production get sugar directly from Sugar Corporation according to a quota set by Ministry of Trade and Sugar Corporation as per the survey conducted concerning each industry consumption.

It is from the Corporation’s warehouses here in the capital and at its sugar producing factories that all involved in the business of distributing sugar collect the sugar supply.


Structure of Sugar

CorporationSugar Corporation is established on October, 2010 by the Council of Ministers Regulation No. 192/2010. And, based on the organizational structure change made in March, 2016 it is currently led by a Chief Ex-ecutive Officer. The Corporation, as before, is entitled to administer all existing sugar factories as well as new sugar development projects.

According to the structure, the four major work units at the Deputy Chief Executive levels to report direct to the Chief Executive Officer of the Corporation and these are:-1. Strategic Support

Carrying out human re-source management activi-ties; employee-industry re-lationship, health services; designing and managing a system that helps human resource development; lead the application of good gov-ernance, Kaizen and other change management tools; lead and support the pur-chasing, logistics, ICT ac-tivities and related works.

2. Investment & Development Manage the activities of

sugar development projects structured to report to it, their sugarcane land prepa-ration and cultivation, ca-nal structures, house con-structions, infrastructures, resettlement/villagization programs and related works including carrying out (ei-ther by-itself or resourcing out) feasibility studies and contract management ac-tivities of projects and upon their completion transfer sugar development projects to operations.

37Sugar Corporation

Searching foreign as well as domestic capable investors which shall work in joint venture mo-dality; creating conducive environment to work with them jointly and reaching up on agree-ment, enable them enter into work.

3. OperationsLead, support & carry out supervision job on fac-tory operation activities on sugar factories un-der operation starting from their commission-ing; manage the human resource development activities, carry out input potential building job of factories, study and adopt new selected tech-nologies and using co-products, expand crop, fruit as well as animal husbandry jobs.

4. MarketingManage and carry out market research & intel-ligence work that enables the Corporation enter into international market, direct domestic sugar distribution activities fairly and manage foreign marketing & logistic activities.

There are 21 work units organized under the above categories and Office of Chief Executive Office. Furthermore, Office of Chief Executive Officer; Finance; Research and Development Center; Planning; Machineries and Technique Service; Ethics and Good Governance and Au-dit are organized to report direct to the Chief Executive Officer of the Corporation.


Corporate Communication

Executive Officer : Gashaw Aychiluhim

[email protected]

Tel: +251 (0) 11 552 74 75

Mob: +251 (0) 911 67 77 54

Ethiopiansugar.com

etsugar.gov.et

facebook.com/etsugar

Location of Head Office:

Kazanchise around Ethiopian Development Bank

Tel: 251 11 552 66 53/52 68 96

P.O.Box – 20034 Code 1000 A.A

Address

39Sugar Corporation

:+251-(0)11-552-6653/526896 : +251-(0)11-515-1283 : 20034 Code 1000 A.A [email protected]

Ethiopiansugar.com facebook.com/etsugar
