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Sugar Corporation Contemplating JV Agreements

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Ethiopian Sugar Corporation is currently considering to join hands with investors from Ethiopia and abroad to build as well as manage sugar factories.

Corporate Communication Chief Executive Officer of the Corporation, Gashaw Aychiluhim, said “Currently, we are negotiating with many investors to partner in the construction and management of the existing as well as the new sugar factories being erected across the country”.

According to Gashaw memorandum of understand was signed with different investors.

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The joint venture (JV) agreements are aimed at boosting the implementation and financial capacities of the corporation when executing new sugar factories, Gashaw explained. The JV deals are going to be in different forms including; developing sugarcane plantation, supplying it to sugar factories and producing ethanol fuel, he added.

According to the Chief Executive Officer, agreements signed with Amibara Agricultural Development PLC, for the supply of sugarcane by developing on 6,000 hectares of land, is bearing fruit.

Upon the government’s decision to form joint ventures, foreign investors have been showing interest. Investors from China, Europe and Middle Eastern countries have concluded memorandum of understandings to join hands with the Corporation, Gashaw noted.