Ethiopian Sugar Industry Profile

June 2019
Ethiopian
Sugar
Industry Pro�ile
0115527475 info@ethiopiansugar.com www.ethiopiansugar.com

ETHIOPIAN SUGAR INDUSTRY PROFILE
3
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
domestic demand and ensuring the benefits
of the public.
Vision: Ensuring sustainable growth, becoming one of
the ten competitive sugar producing countries
of the world in 2023.
Mission
Core
Values
• Sustainable change and competitiveness;
• Virtuous work ethics;
• Productivity is crucial to our existence;
• Popularity is our typical feature;
• We never stop learning;
• We encourage creativity and best
performance;
• Working in team spirit is our unique
feature;
• Environment protection is fundamental to
our development;
• Human resource Development is vital to
our success.
ETHIOPIAN SUGAR
CORPORATION’S
MISSION, VISION &
VALUES

ETHIOPIAN SUGAR INDUSTRY PROFILE ETHIOPIAN SUGAR INDUSTRY PROFILE
4 5
Purposes of Establishment of
Sugar Corporation According to
Regulation No192/2010
• 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;
• 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 there of;
• In cooperation with capable
domestic enterprises, to
cause the designing and
fabrication of machineries
and spare parts required by
public sugar factories;
• To possess, 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, to
sell and pledge bonds and
to negotiate and sign loan
agreements with local and
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 140 tons of sugar a day. 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 170 tons of sugar production capacity
a day. The two factories known by the name
Wonji Shoa Sugar Factories /which later on
administered as one factory/ altogether had the
capacity of producing 75,000 tons of sugar per
annum till 2012 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 2012 and 2013 respectively. Replacing
these pioneer factories, the new and modern
factory had started production in 2013.
Ethiopian Sugar Industry
Profile
international financial sources;
• To engage in any other related activities
necessary for the attainment of its purposes.

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The second factory, Metehara
Sugar Factory is established as
a share company between same
Netherlands Company and the
then Ethiopian government in
1965 and started production
in 1969 at a location known as
Merti 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 130 thousand tons sugar
and 12.5 million liters ethanol a
year on average.
Fiveyearsaftertheestablishment
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
according to notice number
58/1978 of the then Ministry
of Industry 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.
Meanwhile, in relation with
sugar development, Fincha
valley is found to be suitable
and sustainable for sugar
development as per studies
conducted in 1974. Based on this
extensive study was underwent
in 1978 by the British Bookers
Agricultural International
Limited, for the establishment
of the country`s third sugar
factory - Fincha Sugar Factory.
Construction of the factory
which was delayed by finance
shortage started in 1988 and
cane planting in 1991. It was
completed eight years later
and inaugurated by the former
FDRE president H.E Negaso
Gidada (Dr.) and began regular
production in1998.
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 Development Bank
and Development Fund,
Governments of Australia and
Spain as well as domestic banks
of the nation.
Its initial sugar production was 50 thousand tons 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.
Later in 1992 the Corporation which had administered
the three sugar factories was dissolved by stature
after 14 years of service. All the above factories were
reestablished as separate public enterprises. Metehara
and Wonji Shoa Sugar Factories by regulation number
88/93, and Fincha Sugar Factory by regulation number
199/1994 have become independent 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.
Years later, Ethiopian Sugar Development Agency was
established by proclamation number 504/2006 in its
stead. The Agency had given support the factories in
project development, research, training and marketing.
In 2006 Tendaho Sugar Factory was established by
Regulation Number 122/2006 as a fourth project in the
country. Construction of the factory with the capacity
of crushing 13 thousand tons of sugarcane per day
has started production in 2014. The first phase, using
sugarcane produced on 25,000 hectares of land.

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Sugar
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. It is operating under a board
of directors. Currently the Corporation is accountable to
Public Enterprises' Property and Administration Agency
as dictated on proclamation number 1097/2018.
Ever since its establishment in October 2010 Sugar
Corporation has benefited communities of the areas
in which the development is going on. It has made
irrigation, potable water, roads, schools, health posts
and other social service institutions available for the
local community. It is also expanding land covered with
sugarcane, increases the number of sugar factories and
creates job opportunities. However; it is possible to
witness that it has yet to do a lot in increasing housing
construction, and sugar co-products supply.
To fulfill its major goals and tackle problems faced the
Corporation is implementing change management and
other series of tasks. Along with this capacity building
trainings are going on locally and abroad.
Corporation
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, 1.4 Million hectares wide and
proved irrigable agricultural land as well as abundant resource of
water and ample labor resource. The government has given higher
attention to the sector and it is working for further development
of it.
Productivity
The country is rich with
resources like suitable climate,
fertile land and abundant water
supply which are favorable for
sugarcane development. Hence,
it is possible to cultivate 162
tons of sugarcane per hectare
on average in 15 months. In
relation to the productivity it is
possible to produce 10.8 tons of
sugarcane in Ethiopia per month
and when compared against the
global sugarcane production
potential it outstrips the global
production per hectare in 2.3
tons.
Cognizant of this fact, the
FDRE government has
started broadening the sugar
development sector which had
been limited to Wonji Shoa
and Metehara Sugar Factories
for more than half a century
to Oromiya, Afar, Amhara,
Tigray and Southern Nations,
Nationalities and Peoples
Regional States since 2010.
Based on this at two sugar
factories are under construction
with crushing capacities 12
thousand tons sugarcane per
day using sugarcane to be
planted on36thousand 277
hectares of land at Tana Beles
Sugar Development Project in
Amhara Region.
On the other hand, there are
four sugar factories which use
sugarcane developed on 100
thousand hectares land in South

10 11
Omo, Bench Maji and Kaffa
zones of Southern Nations,
Nationalities and Peoples
Region where Omo Kuraz Sugar
Development Project is found.
The constructions of these
factories are at different levels.
Among these Omo Kuraz Sugar
Factory Number Two and Three
have started production, with
each having crushing capacity of
12 thousand tons of sugarcane
a day.
Whereas the other two factories
with each having crushing
capacity of 12 thousand and 24
thousand tons of sugarcane a
day are under construction.
In the same way, construction
of Welkayit Sugar Development
Project in Tigray region, which
will use sugarcane developed
on 39 thousand 500 hectares
of land and has the capacity
to crush 24 thousand tons of
sugarcane a day is advancing.
Commencing 10 huge sugar
development projects which
require high investment in the
lowland areas of the country is
challenging. However our motto
is "we learn while working." And,
hence our sugar development
projects in the areas which have
no infra-structure before are
becoming hopeful.
Though the successes so far are
not as anticipated, it is possible
to say thatthey foresee the
bright future of the industry.
We had only three sugar
factories till 2014. But now we
have eight operational factories
while making the existing ones
expanded.
Generally, from the new sugar
factories Tendaho, Kessem,
Arjo Diddessa, Omo Kuraz
Number Two and Omo Kuraz
Number Three`s construction
is completed and the factories
have started production.
Moreover, it has been possible
to make the land covered with
sugarcane to 102 thousand
741 hectares from 30 thousand
397 hectares in 2009. This is
made possible by the efforts
made in the past eight years.
Similarly, the efforts made to
increase irrigation infrastructure
becomes fruitful. On the other
hand, the effort made to benefit
the local community from the
development in the area is
encouraging.
Community Services
• Hand in hand with the sugar development, Sugar Corporation
working with Ministry of Water, Irrigation and Energy has built
255 social service institutions like schools, potable water supply,
health institutions, mills and roads.
• Members of the local community are given priorities to be hired
at the projects after training on tractor operation, building,
carpentry and the like. This continues in the future.
• The local youth are organized in micro and small enterprises to
take part in the development activities and generate income.
This also continues now and in the future.
• Irrigated land is given for the local pastoralist community. The

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Domestic Sugar Supply
pastoralists now have begun producing crops like maize. In the
future conditions are laid for them to be sugarcane out growers
who sell the product to the sugar factory around. In order to
make this possible they have got experiences from sugar cane
out growers of Wonji Shoa Sugar Factory.
• From 2010 to 2017, Sugar Corporation has spent about 1.2
billion birr for the construction of social service institutions,
infra-structure, compensation, vocational training and others
to benefit the local community.
• In conclusion, ever since the development is started in 2010
more than 450 thousand citizens have got jobs on permanent,
temporary and contractual basis.
Even though the nation`s sugar industry has scored more than half
a century, it has failed to satisfy the domestic demand because of
the following facts:
• Growing demand of sugar of the society in relation to the
fast economic development the country is registering;
• Growing of population and
• Due to Increasing number of industries which use sugar as an
input, the sugar demand and supply has been incompatible.
TThe current sugar supply is about 650 thousand to 700 thousand
tons of sugar per annum. Of this 325 thousand to 400 thousand
tons of sugar is produced in the country. To fill in this gap about
200 thousand to 300 thousand tons of sugar is imported annually
by the government spending high amount of foreign currency.
Though only 7 kilo grams is being supplied, the current sugar
consumption per individual in Ethiopia is more than 10 kilo grams
a year.
As stated earlier the government spends higher foreign exchange
and distribute sugar to balance the demand and supply. As
importing sugar is not a long lasting solution, the sugar industry
sub sector is given due attention ever since the inception of the first
growth and transformation plan along with other manufacturing
industry sectors.
Ethiopia is extensively expanding sugar development projects in
low land areas carrying out “Sugar Revolution” so as to:
• Narrow the gap between demand and supply of sugar;
• Improvethelives ofcitizens bycreatingvastjobopportunities;
• Ensure the benefits of citizens of the development areas and
• Earn foreign currency by exporting the product.
InvestmentInvestment Opportunities
and Joint Venture
The government has decided to transfer public enterprises to the
private sector fully or partially. Encouraged by this several domestic
and expatriate companies have showed interest to work in joint
ventures as well as private investment on sugar and related sectors.
It is recalled that in April 2019 the Ministry of Finance and the
Ethiopian Sugar Corporation have invited responses to request for
information (RFI) to finance the preparation of 13 sugar projects.
Favorable conditions for jointly developing or
privately investing on sugar and diversified products
• Greater interest of the government on investment and its
political commitment;

14 15
• Conducive investment incentives based on the country`s
investment policy;
• The Country`s economic development and
• Abundant natural wealth and labor.
• To widely produce sugar and co products in Ethiopia
includes:
• 1.4 million hectares irrigable land suitable for cane
development;
• Favorable climate;
• Abundant water for irrigation (rivers);
• Higher cane productivity and
• Large labor force
• In terms of productivity, the country is rich with resources like
suitable climate, fertile land and abundant water supply which
are favorable for sugarcane development. Hence, it is possible
to cultivate 162 tons of sugarcane per hectare on average in 15
months. In relation to the productivity it is possible to produce
10.8 tons of sugarcane in Ethiopia per month and when
compared against the global sugarcane production potential it
outstrips the global production per hectare in 2.3 tons.
• Infrastructure (big dams and irrigation infrastructures, roads,
airport, electric power, telecom services etc.);
• 102, 741 hectares land covered with sugarcane;
• More than fifty years of experience of producing sugar and
ethanol locally;
• Ten new and three existing huge sugar factories in operation;
• Growing of the society`s sugar demand and a vast sugar market
• Expansion of industries (like food, beverage… industries)
which need sugar as an input
• Abundant animal resource that opens wide market to
produce animal feed and carry out fattening business.
• Major Sugar By-products
• Molasses
• Ethanol
• Bagasse
• Sugar Co-products
• Electricity
• Fruits ; Orange,
Banana, Mango
• Animal feed
• Cattle Fattening
• Cotton
• Rice
• Soya bean
• Sesame
• Wheat
• Haricot bean
• Mung bean
Categories of Joint Venture and
Private Investment
• Construction of sugar projects;
• Administration of sugar factory and operation;
• Ethanol factories construction, administration and operation;
• Diversified sugar and related products;
• Irrigation infrastructure, land preparation and sugarcane
development projects;
• Sugar factory spare parts production industry;
• Animal feed production and fattening;
• Pulp and paper factories;
• Chipboard producing factories;
• Liquor production;
• Sugar packing sack producing industries and
• Paint producing factories.
Main Accomplishments of
the First & Second Growth
and Transformation Plan
• Fincha and Wonji Shoa sugar factories are expanded and have
Fincha and Wonji Shoa sugar factories are expanded and have
increased their production capacity,
• Though volume of sugar production planned annually is
partially not successful, it was made possible to increase the
annual sugar production to 400 thousand tons from 290

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Comparative Description of Developments in the
Sugar Industry Sector
No. Title of the
Development
1991 2019
1 Number of Sugar
Factories
Two (Wonji Shoa
and Metahara
Sugar factories)
Eight operational
factories (Wonji Shoa,
Metahara, Finchaa,
Kessem, Tendaho, Arjo-
Diddessa, Omo Kuraz 2
and Omo Kuraz 3)
2 Under Construction Fincha Omo Kuraz 1, Omo
Kuraz 5, Tana Beles
1 ,Tana Beles 2 and
Welkayit
3 Annual Sugar
Production
149 thousand
658 tons
Planned to produce
520 thousand tons of
sugar in 2018/2019.
In the past years 325
thousand tons to 400
thousand tons has been
produced annually
4 Annual Ethanol
Production
None 22 million 355 thousand
liters is expected to be
produced in 2018/2019.
In 2014/15 19 million
804 liters is produced.
Out of which large
amount of ethanol is
mixed with benzene.
5 Sugarcane Crushed
Per Day
6 thousand 213
tons
Currently eight factories
have a crushing
capacity of 62 thousand
500 tons
6 Land Covered with
sugarcane
15 thousand 501
hectares
102,741 hectares
thousand 374 tons in 2010;
• It was possible to make the new sugar
factories of Kessem, Tendaho, Arjo Diddessa,
Omo Kuraz Number Two and Omo Kuraz
Number Three sugar factories operational ;
• The land covered with sugarcane reached
102,741 hectares from 30 thousand 397
hectares in 2010;
• Ethanol production booms to 19 million 804
litres from 7 million 117 thousand litres in
2010. Out of these large amount of ethanol
is mixed with benzene annually playing a
significant role in lowering foreign currency
expenditure;
• Several research works which increase
sugarcane productivity have been conducted;
• Several big dams, vast irrigation infra
structures, roads, housing, and huge
factory constructions works as well as land
preparation are widely done;
• Due to lack of infra-structures, limitations
of implementation capacity, finance, foreign
exchange, spare part as well as machinery
supply and many others, the sector is not
as fruitful as it was thought at the outset.
However, because of the chains of activities
carried out and other endeavors made, the
sector is becoming hopeful now. The country
has targeted to become one of the top ten
sugar producing countries of the world in
2023.
Generally, when the remaining five sugar
factories under construction are completed
Ethiopia would have 13 sugar factories and its
annual sugar production would become 2 million
250 thousand tons.

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7 Labor 11 thousand 452
on permanent,
contractual and
temporary basis
More than 40 thousand
on permanent,
contractual and
temporary basis
8 Housing 7 thousand
483 residential
houses
21 thousand 147
residential houses and
311 different service
providing blocks
9 Number of social
service institutions and
infra-structures built
for the local community
around sugar factories
and sugar development
projects
31 institutions 255 institutions
(schools, health
institutions, mills,
potable water supply
centers, roads, animal
health posts, water
ponds for animals,
farmer/pastoralist
training centers,
association shops,
religious institutions,
etc.)
10. Total number
of sugarcane
outgrowing
and providing
associations
1 thousand
200 members
organized
in seven
associations at
Wonji only
15 thousand 316
members organized in
70 associations
Of these 9 thousand
319 members
organized in 31
associations at Wonji
Some associations in
Wonji share 50,000 to
240,000 birr for each
individual member
every 18 months
11 Total land covered with
sugarcane out growers
in the sugar industry
1 thousand
2o hectares at
Wonji only
17 thousand 246.82
hectares
(Of these, 7 thousand
hectares found at
Wonji)
Sugar Factories
Wonji Shoa Sugar Facory
The factory is found in Oromiya region near Adama City at 110 Kilo
Meters from Addis Ababa. Wonji Sugar Factory is the oldest and
the pioneer in the history of Ethiopia’s sugar industry. Commencing
production in 1954.
Then, followed Shoa Sugar Factory in 1962; is the second oldest.
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
75 thousand tons 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 2005/2006. And,
the factory plant expansion project has come into its completion
in July, 2013. Accordingly, the newly built and modern Wonji Shoa

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Sugar Factory has currently a design capacity
of crushing 6,250 tons of cane a day and
producing 174,946 tons of sugar per annum
which with further expansion work will reach
up to 12,500 TCD maximizing its production to
220,700 tons of sugar a year.
The new plant, when having an ethanol plant,
will initially have a capacity of producing 10,000
meter cube ethanol per annum that with
further expansion will also reach 12,800 meter
cube. The factory has the capacity to produce
31 megawatt electric power. Out of these The
Factory is currently contributing 20 megawatt
electric powers to the national grid in addition
to satisfying its own demand which is around
11 megawatt. 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.
From the 12,800 hectares of land covered with
sugarcane 7 thousand hectares are developed
by 31 sugarcane outgrowing associations
which have 9,319 members. The members
are benefiting from the higher income they
generate. Some association members have
collected 50,000 to 240,000 birr each as a
dividend.
The factory has created favorable conditions
giving irrigated land for the out growers,
providing special seed as well as vocational and
technical support so as to benefit them more
from the business.
Metehara Sugar Factory
The factory is found in Oromiya
region at 200 Kilo Meters
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 second sugar mill to the
nation. Its sugarcane plantation
filed is 10,230 hectares and has
the potential to produce more
than 130,000 tons of sugar per
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 50,000
liters of ethanol per day.
It also generates 9 megawatts
of power from bagasse. This
makes it self-sufficient with
regard to its power demand.
The factory is best known
in implementing kaizen
philosophy. It is a pioneer
factory for registering
successful result by applying
kaizen. It received awards all in
institutional, development team
and individual levels at the first
Kaizen award nationally held
It got trophies and medals for
this.
Moreover, it received honorary
medals and trophies from
the former Prime Minister
Haile Mariam Desalegn at the
Kaizen award held at Hilton in
September 2015.

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Fincha Sugar Factory
It is found in Horo Guduru Welegga Zone of Oromiya
Region in Abay Chommen District at Fincha Valley Agamsa
area, 350 Kilo Meters from North West of Addis Ababa.
It was found that the valley is favorable for sugar industry.
Sustainablity, topography and soil content had been
studied by the British Booker`s Agricultural International
Limited Company since 1977/78.
Its project construction started in January 1988 after
being financed by Africain Developemnt Bank, Sweden,
Australia and Spain Governements as well as local banks.
Fincha Sugar Factory`s command area including the West
and East area is 67,098 hectare wide. Passing through
Fincha Valley it generates hydro electric power. Then it
divides the valley into two and travels to North and flows
to Blue Nile. The western Bank of Fincha River develops
6,476.72 hectare land. Factory started trial production in
1998 and entered into regular production the following
year.
Altitude of the place ranges between 1,350 to 1,600
meters. Higher temprature of it is 31 degree centigrade
and the lowest is 15 degree centigrade. Its average annual
rainfall is 1,300 milimeters. This natural situation makes
the area where Fincha Sugar Factory is located a ‘’Green
Desert’’.
The factory has the capacity to produce105,000 liters
of ethanol per day so it is playing a leading role in the
country`s economy by providing ethanol to be mixed
with benzine and used as fuel. It also provides ethanol
for other industries.

24 25
General Expansion Project of the Factory
The expansion project of the
factory started in 2005/2006.
With this it is planned to
expand land covered with
sugar cane to 21 thousand
hectares including West
Bank`s 8,300 hectares as well
as 7,000 hectares of East
Bank and 4,670 hectares of
Neshe area.
Parallel to this, by increasing
the cane crushing capacity,
it is planned to increase
the factory`s annual sugar
production to 270,000 tons
from what it was 110,000
tons. It is also planned to
increase annual ethanol
production to 20 million
litres from what it was 8
million litres.
The expansion completed
in 2013/14 and the factory
intered into production
process having 19,000
hectares of land covered
with sugarcane by then.
With the factory expansion
work carried out one
additional factory planned
Tendaho sugar Factory
It is found 670 km from Addis Ababa and at only 300 km distance
from port of Djibouti. It is found at Mille, Dubti, Asaita and Afambo
districts of Afar region. The location where the factory is located
makes it more strategic to exporting sugar.
The factory`s construction
began in 2005/2006. The
constructor of it is The Indian
OIA (Overseas Infrastructure
Alliance) company. The first
phase of the factory began trial
production in 2014 and is now
in regular production.
When it reaches its full
production capacity it can crush
13,000 tons of sugarcane per
day.
It will also generate 40
megawatts of electricity when
it starts producing full gear. It
uses 20 megawatts for itself and
sends the rest to the national
power grid.
The first phase of the factory
uses irrigation water of Awash
River from Tendaho dam for its
sugar cane development. The
dam has the capacity to hold
1.86 billion meter cube water
and is expected to nourish
60,000 hectares land.
As the factory facilitates irrigable
land for the pastoralists, the
pastoralists now are becoming
semi farmers.
to crush 6,600 tons of sugarcane a
day and there by produce 160,000
tons of refined white sugar annually
is made possible lifting the total
annual sugar production capacity of
the factory to 270,000 tons.
The factory generates 31 megawatts
power. From this 17megawatts is
spent to residential houses, the
factory and other internal works of
the factory. And it has a potential
to sell 14 megawatts to the national
power grid.

26 27
Construction of Irrigation
Infrastructures
• More than 42 km main canal and
other various level structure works are
completed
• 22,835 hectares land is irrigated
Sugarcane Development
• 17,683 hectares land is covered with
sugarcane
Housing Construction
• 8,997 residential houses and
146 service providing blocks are
constructed and they are now giving
service.
Society`s Benefit
Ever since the beginning of the project
77,035 people have got job opportunities
at the project on permanent, contractual
and temporary basis. 84 micro and small
enterprises have been organized.
In order to benefit the local community
from the development 16 sugarcane
outgrowing cooperative associations
with 1,667 members have been
organized. They are, creating mutual
relationship, working with the factory as
out grower. Sugar Corporation has spent
1.60 million birr in total to fulfil its social
responsibilities.
Kessem Sugar Factory
Kessem sugar Factory is located
in Afar Region, zone three`s
Awash Fentale and Dullecha
districts. It is found 250 km from
Addis Ababa and 50 km from
Metahara Sugar Factory.
It originally has been started
as an expansion project of
Metahara Sugar Factory. Later
on it was studied that its
distance from the factory and its
sustainability as an independent
sugar factory made it an
independent sugar factory.
It was constructed by the 123
million dollar loan given by
Chinese Development Bank.
Constructor of the factory
is the Chinese COMPLANT
Company. The factory began
trial production in 2015 and
commence regular production
the following year.
Working in its full capacity in
the first phase the factory has
a capacity to crush 6,000 tons
of sugarcane per day. With its
expansion it is expected to crush
10,000 tons of sugarcane a day.
In its first phase the factory is
presumed to produce 153,000
tons of sugar and 12 million 500
litersethanol.Itcanalsogenerate
26 megawatts electricity of
which it uses 10 megawatts for
its own operation and sends the
remaining 16 megawatts to the
national power grid.

28 29
The design capacity of
the factory shows that the
expansion work will enable the
factory produce 260,000 tons of
sugar a year and 30 million liters
of ethanol in the future.
The factory`s cane cultivation
area’s 20,000 hectares land is
developed by Kessem Dam
which has the capacity to hold
500 million cubic liter. The
sugarcane development is
also found at Bolhamon area.
As per an agreement reached
with Amibara Agricultural
Development Private Company,
the company is developing
sugarcane on six thousand
hectares land and delivering it
to the factory.
Irrigation Infrastructure Construction
• 2,946 hectares land is irrigated.
• An average 2,823 hectares of sugarcane cultivation land of
the factory and 6,000 hectares land of Amibara Agricultural
Development Private Company is covered with sugarcane.
• 648 houses and 25 service giving blocks are completed and are
giving service.
Society`s Benefit
Ever since its inception Kessem Sugar Factory, which is benefiting
the local community both socially and economically, has benefited
42,773localyouthaswellascitizensviatheprojectitself,contractors
as well as 29 micro and small enterprises by creating permanent,
contractual and temporary job opportunities.
Moreover, 399 members organized in five sugarcane outgrowing
cooperative unions have reached a business agreement with the
sugar factory as out grower modality to deliver sugarcane for the
factory. These also have benefited the local community from the
development activity going on in the area.
Arjo Diddessa
Sugar Factory
Arjo Diddessa Sugar Factory is located in Western Oromiya region
between East Wellega, Buno Beddelle and Jimma zones at Diddessa
valley. It is found at a distance of 395 km from Addis Ababa on
Nekemte - Beddele route.
Average altitude of the place is 1350 meter above sea level. Its
climatic condition is known for being hot. Its annual average rainfall
is 1400 millimeters. The rainy season lasts from May to October
every year. It mostly has black soil and occasionally has red and
brown soil which makes it suitable for sugarcane development.
Sugar Corporation bought the Sugar Factory from the Pakistani AL-
Habasha Sugar Mills PLC in 2012/2013. This factory has a capacity
to crush 8,000 tons of sugarcane per day using sugarcane to be
developed over 16,000 hectares of land.
Overtaking the factory, Sugar Corporation has completed the
rest of the construction of the factory in a very short time. It as
well began the development activities (public organization, such
as dam construction, land preparation, irrigation and sugarcane
development, public organization, as well as construction of social

30 31
service giving institutions and other related works) and the factory
begun sugar production in 2015.
Furthermore, the factory has a higher potential to produce ethanol
and generate electricity from bagasse. This will make it self-
sufficient with energy supply and send the remaining power to the
national power grid.
The factory which is producing sugar now was inaugurated by the
former FDRE Prime Minister Haile Maryam Dessalegn on May 14,
2015.
Irrigation Development Infrastructure
• The factory receives water for sugarcane development from
Diddessa River;
• A dam is under construction by Oromiya Water Works
Construction Enterprise on Diddessa River for the sugarcane
development;
• Additionally, irrigation infrastructures which cover 2,300
hectares land is under construction by Oromiya Water Works
Construction Enterprise. 1,600 hectares land is irrigated till
2019.
• 4,450 hectares land is covered with sugarcane
• 124 residential houses and 11 service giving blocks are
constructed
Society’s Benefit
More than 20 million birr is spent for social service institutions in
East Wellega and Buno Beddelle zones. Ever since the beginning of
the project job opportunities have been created for 17,547 citizens.
Intermediate skill training sessions were given specially for the
youth of the localities so as to benefit them from the development
activities of the area. Furthermore, 71 micro and small enterprises
are organized in the area and engaged in different fields of work.
On the other hand, it has spent 65.66 million birr compensation
for its sugarcane field expansion, for compensation of cane
cultivation field received from the farmers as well as fulfill its social
responsibility.
Omo Kuraz Sugar
Factory TwoIt is found in Southern Nations, Nationalities and Peoples Region
of South Omo Zone Selamago District at a distance of 825 km
from Addis Ababa. Its construction began in July 2015 by the 6.67
billion birr loan secured from Chinese Development Bank. After
successfully completing its trial production it has entered into
regular production on March 23, 2017.
This huge factory constructed by the Chinese COMPLANT
Company, can produce 800 to 1000 tons of raw, plantation white
and refined sugar per day.

32 33
Omo Kuraz Sugar
Factory Three
Located at a distance of 874 km from Addis Ababa, it is found in
Kaffa and Bench Maji zones bordering Omo River. The factory is
inaugurated by Prime Minister Abiy Ahmed (Ph.D) on October 14,
2018.
Construction of the factory officially started on March 11, 2016
with the 8 billion Birr loan obtained from Chinese Development
Bank. It is a huge project constructed by the Chinese COMPLANT
Company which, while reaching at its full design capacity, is
capable to produce from 800 to 1000 tons of sugar a day. As it is
up to date in technology it can produce raw, plantation white and
refined sugar as per the demand of the domestic as well as the
world market.
Commencing of production of Omo Kuraz Sugar Factory Three
will increase the number of operating sugar factories in Ethiopia
to eight (Wonji Shoa, Metehara, Fincha, Kessem, Tendaho, Arjo
Diddessa, Omo Kuraz Two and Three sugar factories).
Sugar Development Projects
Omo Kuraz Sugar Development Project
ItisaprojectfoundinSouthOmoZone(SelamagoandGnanegatom
Districts); Bench-Maji Zone (Surma and Mieinitshasha Districts)
and Keffa Zone (Diecha District) of Southern Nations, Nationalities
& Peoples Region.
It is about 825-954 km from Addis Ababa via Hosaena – Arbaminch
-Jinka or 859-988 km via Shashemenne – ArbaMinch – Jinka route.
It is an hour flight from the Capital to Jinka Town plus a vehicle
journey that stretches from 80 -220 km.
The project has four factories which altogether can crush 60,000
tons of sugarcane. Two of them are under construction. Both use
sugar cane developed over 100,000 hectares land. When they all
produce in full capacity each of the three can crush 12 thousand
tons of sugarcane a day. They also have a capacity to generate 60

34 35
megawatts electricity and send 40 of it to the national power
grid.
Similarly the remaining factory has a capacity to crush 24
thousand tons of sugarcane a day. Furthermore, it generates
120 megawatts of electricity; sends 80 megawatts of it after
consuming 40 megawatts for itself.
From the four sugar factories those constructed by the Chinese
Company COMPLANT i.e Omo Kuraz Sugar Factory Two and Omo
Kuraz Sugar Factory Three have entered into production while
Omo Kuraz One and Omo Kuraz Five are under construction.
Investment Cost
Till April 8, 2018, close to 34.8 billion birr has been spent for the
four sugar factories in Omo Kuraz Sugar Development Project for
capital investment (irrigation infrastructures, land preparation,
sugarcane development, housing, factory construction, etc.);
project pre operation as well as operational budget.
Social Benefit
In collaboration with Southern Nations, Nationalities and Peoples
Regional State, Sugar Corporation is implementing various life-
style-changing activities to benefit the local society around and
hence bring about regional transformation within the country.
Accordingly, the Corporation in fulfilling its social responsibility
has spent about 86 million birr to the benefit of the local
community.
Hence, more than 50 social service institutions (schools, health
posts, community policing offices, local area administration
offices, association offices, flower mills and animal health
posts, potable water, internal roads, irrigated land supply) are
constructed and are now giving service.
Compensation Fees
1,141,165 birr compensation fee is given to pastoralists whose
beehives and crops had been affected due to coffer dam and main
canal construction work.
Public Discussion and Mobilization
2,584, 309.30 birr is spent to hold public discussions at different
times to raise their awareness about the benefits of the sugar
development.
Skill Training
2,866,658 birr is spent for a medium level skill training so as to
benefit the local society from the job opportunities created at the
project.
Job Opportunities
Ever since the project started in 2011 more than 110,000 local
community members have got job opportunities by the project,
contractors and micro and small enterprises on provisional,
permanent and contractual basis. More than 300 micro and small
enterprises are organized in the area and have begun work playing
their own share in the creation of the above job opportunities.
Sugarcane Outgrowing Associations
In order to benefit pastoralists of the area permanently each
household is given 0.75 hectares irrigated land since 2013/14 for
2,205 families organized in four associations. The total area of land
given for the pastoralists to develop and sell sugarcane for the
factory is 1,653.75 hectares. In addition to this the pastoralists for
the first time in their history have produced crops like maize. This
transformed them to semi farmers.

36 37
Omo Kuraz Sugar Factory One is found in South region of South
Omo Zone in Selamago District at a distance of 863 km from
Addis Ababa. By an agreement signed in June 2012 with Metal
and Engineering Corporation (METEC), factory construction had
been supposed to be completed and begin production in 18
months. However, due to the delay for long period to complete the
construction, contract with METEC is terminated by the decision of
government in 2018. At the termination point construction of the
factory reached 80%.
The remaining part of the construction of the factory is expected
to be completed by well experienced foreign contractor that will
overtake the responsibility. When the factory operates in full
capacity it is expected to crush 12 thousand tons of sugarcane per
day.
Omo Kuraz Sugar Factory Five
Omo Kuraz Sugar Factory Five shares boundaries with South Omo
Zone`s Nyangatom District. It is found at the distance of 954 km
from Addis Ababa. Factory construction begun in November 2016
by the Chinese JJIEC and is being constructed in two phases. When
it operates with full capacity it can crush 24 tons of sugarcane a
day.
Omo Kuraz Sugar Development Project
Irrigation infrastructures
• Extensive irrigation infrastructures are being constructed on
Omo River which enables 100 thousand hectares of land to be
covered with sugarcane.
Coffer Dam
• A coffer dam is built on Omo River to supply water for the
project.
Main Canal Construction
• On the left bank of the river 55 km long main canal infrastructure
is constructed and is giving service. 43 km out of the total 134
km main canal to be constructed on the right bank of the river
is constructed and giving service in the same way. Digging of
the remaining 91 km main canal is complete and left only with
structural works.
Generally 22.3 billion birr is needed to complete the main canal
construction work at Omo Kuraz Sugar Developemnt Project and
other related works.
• So far over 25,000 hectares land at the project is irrigated out
of it 16,000 hectares land is covered with sugarcane.
• 1,140 residential houses and 52 service giving blocks are
constructed and now giving service at the project.
Omo Kuraz
Sugar Factory One

38 39
Tana Beles Sugar
Development Project
The Project is located at Awi Zone`s Jawi District of Amhara region.
Its head quarter is at Fendika Town 650 km from Addis Ababa and
225 km from Bahir Dar town.
Construction of two sugar factories, each with crushing capacity
of 12 thousand tons of sugarcane per day each, begun by Metal
and Engineering Corporation (METEC) in 2010. However, due to
long delay observed from the contractor to construct Tana Beles
Sugar Factory One and Two`s the contract signed with METEC was
terminated by the Government in 2018 and 2017 respectively.
When the remaining construction of the two factories is completed
they are expected to use sugarcane developed on 36,277 hectares
of land. The irrigation water supply for sugarcane development is
made available because of the weir constructed on Beles River.
They are designed to produce refined sugar. Furthermore, they
altogether will have a design capacity of generating 45 megawatts
electric power out of which using 16 megawatts for their own
factory operation could send the remaining 29 megawatts to the
national power grid and generate income.
Tana Beles Sugar Factory One
An agreement was signed between Sugar Corporation
and Metal and Engineering Corporation (METEC) in
June 2010. Later on the agreement had been improved
in June 2012. According to the later agreement the
project was supposed to be completed and begun
production in 18 months. However, due to the delay
of construction the government terminated the
agreement in 2018. Factory construction had reached
65.79% by then.
In the way forward construction of the factory will be
completed by chinees company CAMC Engineering
Co.LTD.When complete and operate in full capacity,
the factory will crush 12,000 tons sugarcane a day.

40 41
Tana Beles Sugar Factory Two
As per the agreement signed between Sugar Corporation and
Metal and Engineering Corporation (METEC) in June 2012, factory
construction would have been completed and begun production
in 18 months. However, due to overstretched delay by the side of
METEC the government had terminated the contract with METEC
in 2017. As Sugar Corporation`s external consultant confirmed
factory construction had only reached 25% by then
Irrigation Infrastructures Construction at Tana Beles
Sugar Development Project
Irrigation water is already made available from Beles River for
sugarcane development of the project. The project has a 30 km
length weir which can pass 60 cubic meter water per second.
Additionally, in-flow water controller, silt remover and main canal
construction is completed and is giving service. With the exception
of few fields the area is irrigated using overhead irrigation
(sprinkler).
• 16,000 hectares land is irrigated
• 13 thousand 600 hectares land is covered with sugarcane
• 1,689 residential and 24 service giving institutions are
constructed and giving service
Community`s Benefit
Successive discussions were held with members of the community
at the venue of the project at different times so as to make the
development is a benefit for all. Schools, health institutions,
potable water supply, roads and other infrastructure and social
service institutions are constructed to those relocated from the
area. These public service institutions are now giving services.
In addition to this payment of 152.6 million birr is effected for asset
valuation, perennial plants developed on their lands as well as for
religious institutions as compensation. 91,493 jobs were created
for the area`s youth and other citizens by the project, contractors as
well as micro and small enterprises on permanent, contractual and
temporary basis. Furthermore, 1,253 micro and small enterprises
are organized and job ties are created to them.
With regard to fulfilling its social responsibility and development
works, a total of 178.68 million birr is spent by Sugar Corporation.

42 43
Welkayit Sugar Development
Project
The project office is located at
Tigray Regional State`s Western
Zone, Welkayit District 1,030
km distance from Addis Ababa.
It uses sugarcane which will be
developed at 39,500 hectares
of land when the construction
work of the factory is completed
it is expected to crush 24,000
tons of sugarcane a day. The
factory is being constructed in
two companies by The Chinese
CAMC Company.
The project gets its irrigation
water from Tekeze, Kalema and
Zarema Rivers.
Irrigation Infrastructure Building
• May-Day Dam, which has the capacity to hold 3.5 billion cubic
meter water, is being constructed on Zarema River. When the
Dam is completed it will have 840 meter width and 135.5 meter
height.
• In line with dam construction, to develop 7 thousand hectares
land with drip irrigation. An agreement is signed with Israeli
NETAFIM Company and the job is being carried out.
• 10 km long main canal construction is completed.
• Construction is going on to develop 3 thousand hectares land
with sprinkler pumping from Kalema River
• 260 hectares land is irrigated for sugarcane seed
• 1,066 residential houses and 53 service giving blocks are
constructed and are now giving service.
Community`s Benefit
Intermediary skill trainings have been given so as to benefit the
local community from the development activities being carried
out at the project. 84, 659 local community`s youth and other
citizens have got permanent, contractual and temporary jobs. 161
organized micro and small enterprises are getting every support
including creation of business links.
Asset and production compensation has been given for those who
are relocated as a result of the development. 2,621 locals resettled
at the newly built town Korarit from the factory`s command area.
Social Service institutions (schools, human and animal health posts,
farmer training centers etc. ), 14 potable water supply facilities and
62 km roads are built and now giving services.
A total of 407.68 million birr is spent by Sugar Corporation for
public participation and social development works.

44 45
Sugar Producing Factories /Projects
Factory Sugarcane
crushing
Capacity per
day per tons
Region Land for
sugarcane in
hectares
Omo Kuraz
Number 1
12,000 South N.N.P 20,000
Omo Kuraz
Number 5
24,000 South N.N.P 40,000
Tana Beles 1 12,000 Amhara 18,138.5
Tana Beles2 12,000 Amhara 18,138.5
Welkayit 24,000 Tigray 39,500
Factories /Projects under construction
Research and Development
Center
Research works on sugar begun in our country in 1951 by the
Dutch HVA Company. The Headquarter of the then Research
Center was in Amsterdam. The center by then had been giving a
strong support for sugar factories in Ethiopia.
Since the factory started planting sugarcane and start sugar
production, evidences show that trainings on sugar industry were
used to be given from 1958 onwards. Later, due to the factories
transfer to public ownership, the research works had been carried
out by different organizational structures at different times.
It was with the establishment of Sugar Corporation by Council
of Ministers proclamation number 192/2010 that research and
training is given higher attention. Since then it performs the
following:
• Increase production and productivity by advancing applied
research which reduces production cost based on problem
solving approach. So far it is possible to generate technologies
for commercial service;
Factory Sugarcane
crushing
Capacity per
day per tons
Region Total Land for
sugarcane in
hectares
Wonji Shoa 6,250 Oromia 12,800
Metahara 5,372 Oromia 10,230
Fincha 12,000 Oromia 21,000
Tendaho (phase I) 13,000 Afar 25,000
Kessem 6,000 Afar 20,000
Arjo Diddessa 8,000 Oromia 16,000
Omo Kuraz
Number Two
12,000 South N.N.P 20,000
Omo Kuraz
Number Three
12,000 South N.N.P 20,000

46 47
• Apply research findings to boost production at each sugar
factory and field;
• Identifying problems faced in production process, it has given
technical and advisory services to optimize productivity;
• By evaluating the application of researches on work and their
environmental impact new research directives and strategies
are prepared ;
• Introduced sugarcane seeds with higher productivity, disease
resistant with high sugar content ;
• Introduced improved sugarcane production means and new
technologies;
• Enabled application of operational technologies with their
appropriate standards and there by share best experiences ;
• By issuing different sugar technology researches it has been
possible to avoid sugar loss and increase overall recovery;
• It has made possible to generate and adapt technologies on
sugar by-products and those related with ethanol
• It has conducted various trainings involving professionals so as
to lead the industry with skilled and fruitful human resource.
The sugar research center which is located at 110 km distance
from Addis Ababa is restructured in 2016 to successfully achieve
the above tasks.
Accordingly, the Center has set up research posts in Wonji Shoa,
Metahara, Fincha, Tendaho, Arjo Diddessa and Kessem sugar
factories as well as Tana Beles, Omo Kuraz and Welkayit sugar
development projects. The Sugar Research Center is conducting
sugar technology researches to improve sugarcane and seed
development.
Currently, it has prepared three roadmaps and these are bio
refinery,sugartechnologyandmicroorganismsandhencetosupply
modern technologies and ensure the industries competitiveness
sustainably. It has currently entered the implementation stage.
Sugar Academy
The Sugar Academy was Set up
in 2016 at Wonji taking into
account the gap in knowledge,
skill and point of view in the
sugar development sector and
hence bring about technology
and ensure knowledge transfer,
Sugar Academy is giving various
trainings since 2017.
Prior the establishment of the
Academyexperienceshavebeen
taken both from abroad and
local institutions. Professional
standards as well as curriculums
of 12 fields of studies including
modules which were considered
to help the teaching have also
been prepared by professionals
with rich experience. To create
the platform whereby it would
be possible to start a certified
regular training program, the
trainings to be given are made to
directly link with competencies
of professional standards.
Currently, the Academy is
giving training courses on the
sugar industry and related fields
such as sugarcane plantation as
well as factory operation and
maintenance at a certificate
level. It has now reached on a
potential of producing 400 to
600 graduate trainees a year.
A road map is prepared to

48 49
enable the Academy internationally competent and become a
center of excellence of technology transfer. And, coming up with
short and long term strategic goals to attain this, works are going
on to give training programs on regular, pre service and short term
training schedules.
Using regional integration forum in the future, it has also set a
plan to create regional ties with higher educational institutions
and thereby be able to graduate about 2000 professionals in first
degree, masters and doctoral degree levels.
The Sugar Academy has facilities for practical training programs
and one among them is revamping the former Wonji Shoa Sugar
Factory and its workshop. In addition to this the Academy is
equipped with facilities which include classrooms, library, dormitory
and other services.
Currently, the Academy is striving to obtain accreditation as
domestic and evaluation training center.
Sugar Distribution
The task of distributing sugar all over the country is managed by
quota system set by Ministry of Trade and Industry. Using the
domestic production as well as imported sugar, Sugar Corporation
monthly supplies 61,300 tons of sugar for Addis Ababa Consumers'
Associations, Regional Cooperative Unions, industries and service
provision institutions such as (hospitals, higher educational
institutions, defense forces, etc.). The distribution follows the
following three systems:
Sugar Distribution in Addis Ababa
For residences of Addis Abeba sugar is distributed by the
Metropolitan's Bureau of Trade through Consumers’ Associations
in a quota system. It is distributed from the association’s shops
and outsourced retailer merchants represented by them. Fruit and
Vegetable Trading Business Unit (former ET Fruit) and Alee Bejimla
(a whole selling government institute) also distribute sugar for
service providing institutions according to a quota set by the Trade
Bureau.
Sugar Distribution at Regions
Sugar is distributed for regions every month by cooperative
associations, endowments, Ale BeJimla and Ethiopian Industrial
Inputs Development Enterprise (former Merchandise Wholesale
and Import Trade Enterprise/MEWIT). After the product is
transported to regions, it is distributed by their respective trade
bureaus to retailers.
Sugar Distribution for Industries
Industries which use sugar as an input (such as soft drinks, beer,
biscuit, candies factories, etc) are supplied monthly with sugar as
per studied quotas set by Ministry of Trade and Industry and Sugar
Corporation together.
All aforementioned institutions which take part in the sugar
distribution get sugar from stores of Sugar Corporation and sugar
factories.

50 51
Locations of sugar Factories and
Sugar Development Projects
Producer: Corporate Communication
Corporate Communication Executive Officer:
Gashaw Aychiluhim
Editorial Address: Kazanchis Behind Ministry of
Trade and Industry
Telephone :
Mobile: 0911677754 Office: 0115527475
Email: info@ethiopiansugar.com
www.ethiopiansugar.com
facebook.com/etsugar

Ethiopian
Sugar
Industry Pro�ile
0115527475 info@ethiopiansugar.com www.ethiopiansugar.com

Ethiopian Sugar Industry Profile

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