Ethiopian Government has launched the Request for Information (RFI) which will set the pace started of privatising 13 sugar factories which are operational and under construction.
The Ministry of Finance and Ethiopian Sugar Corporation will use the RFI to gather information used to assess potential investors seeking to buy the sugar factories clarifying that it should not “be construed as a competitive solicitation nor as an obligation on the Ministry’s or Sugar Corporation part to enter into any contract or make any purchase.”
Eyob Tekalign, Minister for Finance, said “It’s about time the government stops interfering in projects that ultimately result in macroeconomic strains.”,”
“This RFI is not an invitation for privatization or a PPP process; it is only to initiate the private sector participation process. Based on the information provided by respondents to this RFI, the Ministry will determine the form and mode to engage the private sector in a competitive tender process in line with Ethiopian government Laws and regulations. No purchases will be made as a result of this request,” Eyob was quoted by New Business Ethiopia.
Some of the ideas expected from the investors include the kind of engagement they are looking for; whether it’s full ownership of a sugar factory, partial transfer or a public-private partnership.
There are eight operational sugar factories in the country with an annual production capacity of four million quintals, in the previous fiscal year; Ethiopia imported 4.1 million quintals of sugar.