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 :
œœ 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 Values
hh Sustainable change and competitiveness;
hh Virtuous work ethics;
hh Productivity is crucial to our existence;
hh Popularity is our typical feature;
hh We never stop learning;
hh We encourage creativity and best performance;
hh Working in team spirit is our unique feature;
hh Environment protection is fundamental to our development;
hh 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 Su
Industry Profile

ugar
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
crushingmilltothenationcameintoexistence
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

PurposesofEstablishmentof
theCorporation(Continued)
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
theconcludedGTPexposure,
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 Fram
Sugar Industr
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

mework of
ry 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.
9Sugar Corporation

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.
11Sugar Corporation

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
Wolkayitsugarfactorieswhich
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
modernWonji/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
16,000hectaresofsugarcaneplantationfieldintotal.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.
17Sugar Corporation

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.
21Sugar Corporation

V. Kessem Sugar Factory
The Factory is found at ZoneThree
in Awash Fentallie and Dulecha
districts ofAfar 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.
ItssourceofwateristheDidessaRiver.
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
fromthesector.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.
Omo-KurazSugar...

29Sugar Corporation
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
twosugarfactoriesareunder
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.
Whenbothenterintoregular
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.

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,

35Sugar Corporation
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 System
Currently 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
Corporation
Sugar 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. Operations
Lead,support&carryoutsupervisionjobonfac-
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. Marketing
Manage 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
pr@ethiopiansugar.com
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 info@ethiopiansugar.com
Ethiopiansugar.com
facebook.com/etsugar
Ethiopian Sugar Industry Profile

Ethiopian Sugar Industry Profile

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