Ethiopian sugar corporation facts – December 2013

It was at Wonji in 1951 some 120 km.
east of the capital Addis Ababa modern
sugar industry started in Ethiopia as a
share company established by foreign
investors & Ethiopian government.
Then followed Shoa Sugar Factory in
1962 and Metahara in 1969.

istered 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.

Five years later, in 1974, following the
dawn fall of the emperor regime, all
sugar factories were made to be admin-

Later in 1992 when the corporation was
dissolved by stature; all the factories
were reestablished as separate public
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Ethiopian Sugar
Industry Profile

The nation’s first & oldest sugar factory -Wonji Sugar Factory

enterprises. Then 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.

try. That same year the Ethiopian Sugar Development
Agency was established replacing the support center
to assist the sugar factories in project development, research, training and marketing vis-à-vis its regulating
role.

Fincha Sugar Factory, found 300 Km to the west of the
capital started its regular sugar production in 1998.

The present “ Sugar Corporation” with a vision of developing sugar development activities in a large scale and
structure came into existence on October 2010 by the
Council of Ministers Regulation No.192/2010 replacing
the former Ethiopian Sugar Development Agency.

In 2006 Tendaho Sugar Development Project is established as a fourth sugar development project in the coun-

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Sugar Corporation
Purposes of Establishment
hh To grow sugarcane and other sugar hh In cooperation with the relevant organs
yielding crops;
undertake studies and research in the
hh To process and produce sugar, sugar
field of sugar cane plantation and sugar
products, sugar by-products and prodproduction technologies and implement
ucts of sugar by- products;
useful results thereof;
hh To sell its products and by-products in hh In cooperation with capable domestic
the domestic and export markets;
enterprises, to cause the designing and
hh To cause the undertaking of feasibility
fabrication of machineries and spare
studies, design preparation, technology
parts required by public sugar factories;
selection and negotiation, erection and hh To posses, in accordance with the law,
commissioning of new sugar developand develop lands required for its operament and expansion projects;
tions;
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hh To encourage and support sugar cane growers who
are supplying their cane products to public sugar
factories;
hh To cooperate with the concerned educational institutions in producing the required type, number and
quality of trained manpower for the sugar industry;
hh In line with directives and policy guidelines issued

by the Ministry of Finance and Economic Development, to sell and pledge bonds and to negotiate and
sign loan agreements with local and international
financial sources;
hh To engage in any other related activities necessary
for the attainment of its purposes.

Therefore, to accomplish the aforementioned purposes,
the corporation has carried out expansion projects on
the existing sugar factories while it is constructing ten
new sugar factories at different regions of the country.
Accordingly, the corporation is building five new sugar

factories at Southern Nations Nationalities & Peoples
Region; three at Amhara Regional State; one at Tigray
Regional State and a factory at Afar Regional State (Kessem) with 175,000 ; 75,000 ; 50,000 and 20,000 hectares
of sugarcane plantation field respectively.
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Mission:

Core
Values

ÒÒ To create a sustainable competitive sugar industry
œœ Create an institution that plays a major role in the national endeavor to realize social, political & economic transformation that ensures rapid , sustainable and equitable growth;
œœ Create a result oriented leadership and workforce with a development mind-set, ethics
and skill;
œœ Satisfy the national sugar demand;
œœ To seize a remarkable export share in the international market;
œœ Support the national energy supply through the use of bi-products of sugar;
œœ Create a wide job opportunity to citizens;
œœ Support and facilitate cultural, social and economic transformation around sugar development areas;
œœ To bring about technology transfer in sugar development sector;
œœ Enhance the industry’s competitiveness through intercropping;
œœ Create institutional competence capable of attaining the strategic goals of the sugar industry;
œœ Create compatible social and economic interlink among the public.
hh Establish a result- oriented and cost effective attitude and system;
hh Sustainable change and competitiveness;
hh Establish good governance;

hh Virtuous work ethics;
hh Cooperate with the people and ensure
their benefit.
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tt Satisfy the national demand of sugar;
tt Support the national energy supply system, through
cogeneration and use it for key economic sectors;
tt Maximize the contribution of the sector to the national economic growth and create job opportunities
for citizens;

Objectives

• Produce 2.25 million tons of sugar and 181,604
meter cube ethanol by the end of the GTP period ;
• Contribute 101 Mega Watt electric power to the
national grid by the end of the GTP period;
• Finalize expansion projects of the existing (Wonj/
shoa, Methera and Fincha) sugar factories as well
as construction of the new one at Tendaho;
• Build additional ten new sugar factories with a capacity that ranges from 12 to 24 thousand TCD
a day & cultivate sugarcane plantation at 320,000
hectares of sugar cane plantation;
• Export 1,246,000 tons of sugar by the end of the
GTP period out of which half in raw sugar while the
rest half is white ;
• Substitute up to 137,464 meter cube imported ker-

tt Hold an elevated export share in the international
market;
tt Create institutional capacity with the appropriate human resource and potential for research & technology which help realize the strategic objectives of the
sector.
•
•
•
•
•
•
•
•

osene and utilize for cooking and other purposes;
Produce up to 44,340 meter cube ethanol for blending purposes by the end of the GTP period;
Spread six high yield cane varieties developed
through research;
Establish a well equipped sugar cane breeding station;
Complete the construction of four tissue culture laboratories and green house;
Enhance the productivity of cane from 145 to 155
tons per hectare;
Provide knowledge and skill upgrading training for
21,500 employees at different levels;
Create direct job opportunities to more than 200,000
citizens through agriculture, factory, house and irrigation projects;
Construct the corporation’s head quarters and research & training institutions.
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Vision :

Goals

Vision, Mission & Values

T

16,000 hectares of sugarcane plantation field. And, the
entire factory’s sugarcane field cultivated with the agricultural expansion project is owned by out grower farmers of the surrounding area.

1.Wonji Shoa Sugar Facory

he factory is found in Oromiya Regional State
near Adama Town at 108 Kilo Meters from Addis
Ababa. Constructed 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 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 75,000 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.

out both in the cane cultivation field and the factory
since three years back. And, the factory plant expansion project has come into its completion in July, 2013.
Accordingly, the newly built and highly automated
Wonji Shoa Sugar Factory will initially have a capacity of crushing 6,250 tons of cane a day and producing
174,946 tons of sugar per annum which with further expansion will reach up to 12,500 TCD maximizing its
production to 220,000 tons of sugar a year. The new
plant will initially have a capacity of producing 10,000
meter cube ethanol per annum that with further expansion will reach 12,800 meter cube. By the end of the
GTP period the factory would be able to contribute 22
In a bid to replace these two oldest factories with a new mega watt electric powers to the national grid in addiand modern one, an expansion project had been carried tion to satisfying its own demand.
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The newly built Wonji Shoa Sugar Factory

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Expansion Projects of
Existing Sugar Factories

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

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 Holland. The factory was
constructed in 1970 and had started
sugar production by the same year.
Formed as Share Company between
Ethiopian government and the constructing company, it was the third
sugar mill to the nation. It has 10,235
hectares of land covered with sugarcane. Until recent times it was the
best when it comes to its production
capacity that 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 2011.
Currently the factory’s ethanol plant
has a capacity of producing 12,500
Meter Cube ethanol per year.

3.Fincha Sugar Factory

The factory is found in Oromiya Regional State in
Horro Guduru Zone 350 Kilo Meters away from the
capital – Addis Ababa. 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.

Till July, 2013, the average annual production capacity of Fincha Sugar Factory was 110,000 tons of sugar
while it had the capacity of producing 8,000 meter cube
ethanol. It had been working with 5,000 TCD. Until
December, 2011. It had been the only factory in the
country that produces ethanol.

pansion project has been carried out around the areas
known as East Bank & Neshie located on the eastern
side of Fincha River and also on the idle areas found
on the western side of the river. The factory, therefore,
in the end 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 17,000 hectares till the end of 2013.

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 capable of
annually producing 270,000 tons of sugar and 20,000
meter cube ethanol by the end of the GTP period.

Factory’s ethanol plant constructed through expansion
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To acquire and cultivate cane cultivation field capable
enough to feed the expanded plant with more than
double crushing capacity, the factory’s agricultural ex-

Fincha Sugar Factory after the expantion
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2. Metahara Sugar Factory

S

ugar Corporation is working
vigorously to raise the current
capacity of sugar production
in the country which is around
300,000 tons that is mainly
produced by the existing three sugar
factories, to 2.25 million tons per
year within the five year growth &
transformation plan period. Furthermore, this effort of the corporation
will also uplift the 8 million liter ethanol production capacity of the country till 2010 to 181, 604,000 liter, and
will replace the 137,464 meter cube
kerosene imported from abroad. The
effort will also enable the country to
produce 44,340 meter cube ethanol
for blending to minimize the foreign
currency the country spends on oil
import. Furthermore all existing and

new sugar plants, satisfying their own
power demand, will contribute 101
mega watt electric power produced
through co-generation to the national
grid.

the areas suitable for sugar cane production. Based on the above survey
the corporation has planned to build
ten sugar factories within five years
while bringing the construction of the
first phase of Tendaho Sugar Factory
into its completion is another task set
to attain too. The areas identified &
the numbers of sugar factories to be
constructed on each of these areas are
mentioned as follows:-

According to the survey conducted at
a national level on 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 Be- • Kessem Sugar Development
les River, areas of south-west of Lake
Project will have one sugar facTana called Upper Dinder , areas
tory with a capacity of 10,000
along Tekezzie River & its tributaries
TCD on 20,000 hectares of cane
around Welkaiyt & Humerra , valleys
cultivation field;
of Anger River – Negiesso, central • Tendaho Sugar Development
Genallie River and Barro-Gillo rivProject will have one huge sugar
ers of Gambella are among some of
factory with a capacity of 26,000
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TCD and with total area of 50,000 hectares of sugarcane plantation land;
• Kuraz Sugar Development Project will
have five sugar factories among these
two will have 24,000 TCD each and
three each will have 12,000 TCD and
altogether occupy a total area of 175,000
hectares of sugarcane plantation field;
• Welkaiyt Sugar Development Project
will have one sugar factory with a capacity of 24,000 TCD & will have 50,000
hectares of sugarcane plantation;
• Tana-Beles Sugar Development Project
will have three sugar factories each with
a capacity of 12,000 TCD and with total
area of 75,000 hectares of sugarcane plantation field.

The project is found at Zone Five
in Fentallie and Dulecha Woredas of Afar Regional State, 50
kilo meters from Metehara Sugar
Factory. It is a project which will
have a total of 20,000 hectares of
land to be cultivated & its plantation stretches to the areas known
as Kessem and Bolhomon.

part will stretch & cover 19,900
hectares of land. It will also be a
factory with ethanol and co-generation facility. Upon completion
the factory will have a capacity of
crushing 6,000 tons of sugarcane
per day & thereby developed to a
level with 10,000 TCD and capable of producing 153,000 tons of
sugar & 12,500 meter cube ethaEarlier the Kessem project was nol at the start and when it reaches
part of the expansion project of its maximum crushing capacity it
Metehara Sugar Factory. It was will produce 260,000 tons of sugafter the establishment of Sugar ar and 30,000 meter cube ethanol
Corporation the project was made a year. Moreover, the factory out
to proceed as an independent of the total 26 mega watt electric
entity.
power it produces, will contribute 15 mega watts to the national
By the end of the five year plan, grid.
its canal & road development
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Sugar Development Projects

1.Kessem Sugar
Development Project

It is found in Afar Regional State in Millie, Doubti,
Assaeitta and Affambo Woredas at a distance of
677 k.m. from Addis Ababa. The project is started
in 2006 with 50,000 hectares of land to be cultivated and a two-phased factory construction with a
26,000 TCD with its full capacity. The first phase
of the factory with 13,000 TCD is expected to start
production sugar at the earliest months of 2014.
Upon coming to its maximum crushing capacity the factory will be able to produce more than
619,000 tons of sugar and 55,000 meter cube ethanol annually.

tivated by out growers. The cane cultivation field
will get its water supply from Tendaho Dam that
has a capacity of holding more than 1.8 billion cubic meter water.

It is the biggest plant in the country and it will take
the lion’s share of the total amount of sugar production in the very near future while it will contribute
90 Mega Watt electric power to the national grid
by the end of the GTP period. The total amount
that will be produced by the factory is 120 mega
watt electric powers and out of this it consumes 30
mega watt for its own regular operation. FurtherOut of the total hectares of the farm land, the pro- more, up on completion and reaching its maximum
ject occupies 25,000 hectares sugarcane plantation production capacity the project is expected to crefield while the rest 25,000 hectares are to be cul- ate job opportunities for around 50,000 citizens.
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2. Tendaho Sugar
Development Project
The last
picture
the factory will have

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3. Kuraz Sugar Development Project
It is a project found in South Omo
Zone (Selamago and Gnanegatom
Woredas); Benchmaji Zone (Surma and Mieinitshasha Woredas)
and Keffa Zone (Diecha Woreda)
of Southern Nations, Nationalities
& Peoples Region. It is a huge
project where five sugar factories
will be built. Among these five,
two will work with 24,000 TCD
each and are 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.

Upon reaching their maximum
crushing capacity these five sugar factories will altogether produce 1,946,000 tons of sugar and
183,134 meter cube ethanol per
annum. Furthermore, the factories
The project will have a total area out of the 415 mega watt electric
of 175,000 hectares of land for its power which they are expected to
sugarcane cultivation. This wide produce through cogeneration will
area of cultivation field will get its contribute 275 mega watts to the
water supply from the Omo River nation’s electric grid.
through a diversion weir with 381
meter width & 22.4 meter height.

4. Wolkaiyt Sugar Development Project
This is the other sugar development project located at
1,200 kilo meters from Addis Ababa at the Western
Zone in Wolkaiyt Woreda of Tigray Regional State.
There will be one sugar factory with 24,000 TCD and
when it reaches its maximum production capacity, it
would be capable of producing 484,000 tons of sugar
and 41,654 meter cube ethanol. The project’s total area
of land for sugarcane cultivation is 50,000 hectares.

It will get its water supply from the river called Zarema upon which a dam named “May-Day” is under
construction. The dam which is under construction by
a local construction company – Sur Construction, will
have 840 meter width and 135.5 meters height. When
completed, May-Day Dam will have a capacity of containing 3,497,000,000 meter cube water.

May-Day Dam under construction
15

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It is a project found at western Ethiopia in Oromiya Regional State in East Wollega and Eilu Ababora Zones in the
Didiessa Rift Valley at a distance of 540 kilo meter from
the capital through the route from Addis Ababa-JimmaBeddelie-Nekemet Road. The project had been owned by
a Pakistan company called Al-Habasha P.L.C. which had
been unable to run the business. Therefore, the company
was transferred to the ownership of the Ethiopian government and was made to operate as a property of Sugar Corporation as of August, 2012. When it was transferred to the
corporation, over 90% of the construction of the plant was
completed. The factory , at the start will have a capacity
of crushing 8,000 tons of cane a day which with further
expansion will reach to 12,000 TCD factory.

To accomplish these targets, the corporation is working
hand-in-glove with the federal and regional government institutions responsible for constructing roads,
electric power generation, water supply, telephone networking & housing facilities. Both residential & non
residential houses in and around the new sugar factories are made fully from the product of agro stone
which is more economical either in terms of money

or time. This effort of the corporation, to work in collaboration with the Ministry of Urban Development
& Construction and its consulting agency, has greatly
saved huge amount of money and time wastage. The
ten new sugar factories, to be constructed within the
GTP period are expected to create direct and indirect
job opportunities to more than 500,000 citizens in various fields of work.

Current Sugar Distribution System

6.Belles Sugar Development Project
It is a project found in Amahara Regional State at 576 kilo meter distance from Addis Ababa where three sugar factories are under construction and some parts of its cane plantation field found in Benishangul Gumuz Regional State. It
is a project with a total area of 75,000 hectares for cane cultivation and its water supply is from Beles River through
a diversion weir built on it.
Reaching their full capacity, each sugar factories will have a capacity of producing 242,000 tons of sugar and 20,827
meter cube ethanol per year.
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Currently the task of distributing sugar all over the
country is managed by quota system made by Ministry
of Trade and Sugar Corporation. And, the distribution
system has three features:1. Sugar Distribution in Addis Ababa
• Distribution in Addis Ababa is based on a quota
made by Addis Ababa Trade and Industry Bureau
to be distributed through retail traders and Consumers’ Associations’ Shops. And other service
providers get from Ethiopian Fruit and Vegetable
Share Company (ETFRUIT).

2. Sugar Distribution in Regions
• Distribution in the regions is carried out by Ethiopian Whole Sale Trade Share Company to selected
towns for distribution.Then whole sellers of regions selected by regional trade & industry bureaus distribute sugar to consumers.
3.Sugar Distribution to Industries
• Industries that use sugar as an input to their production get sugar directly from Sugar Corporation
according to a quota made by Ministry of Trade
and Sugar Corporation.

* It is from the corporation’s warehouses that all involved in the business of distributing sugar collect the sugar
supply.

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5. Arjo Didiessa Sugar Development Project

Sugar Corporation is established on October 2010 by
the Council of Ministers Regulation No. 192/2010 and
is led by a director general. Accordingly, the corporation is entitled to administer the existing sugar factories, the ongoing as well as new sugar development
projects.
And, following a recent study of BPR it is organized as
follows:Divisions, Duties & Responsibilities:
1. Office of Director General
Carrying out a follow up and application of special
assignments singled out by the director general of
the corporation; planning ,coordinating and conducting meetings of management; carrying out a
coordination and follow up activities on common
tasks given to divisions and reporting on their performance;
2. Canal & Houses Construction Division
Conducting canal & housing construction on the
existing and new sugar factories; carrying out
maintenance to those already in use and carrying
out environmental protection activities;

3. Operation Division
Carrying out a follow-up, support & supervision on
agriculture and factory operation activities both on
the existing and new sugar factories;

4. Public Organization Division
Organizing and coordinating out growers and small
scale enterprises & carrying out follow up activities;
managing compensation, rehabilitation and land
distribution programs;
5. Marketing Division
Managing and carrying out market research &
promotion on sugar and by-products of sugar;
directing & running domestic sugar distribution
activities and managing foreign marketing & logistic activities;
6. Research & Training Division
Managing & conducting research on sugarcane;
running research activities to develop sugarcane
verities and on sugar technology and also managing & conducting training;
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7. Plan & Project Division
Preparing corporate policies & strategic plans; managing operational plans, monitoring and supervision activities; monitoring and evaluating project
plans and studies;
8. Human Resource Management & Development
Division
Carrying out human resource management activities; strengthening employee-industry relationship;
designing and managing a system that helps human
resource development;
9.Finance Division
Managing financial and related activities; carrying
out financial supervision; performing fund administration and treasury management tasks;

10.Plantation & Factory Construction Division
Managing and carrying out sugarcane plantation
development and factory plant construction activities;
11.Corporate Kaizen & Change Management Division
Design and manage transformation and change
management activities; implement and supervise
activities of kaizen;
12.Purchasing & Property Administration Division
Carrying out and managing procurement, property
and facility administration activities.

Address

Communication Directorate
Director – Ato Zemedkun Teklie
etsugar@hotmail.com

Tel: +251 (0) 11 552 74 75
Mob: +251 (0) 913 53 96 94
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Structure of Sugar Corporation

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Ethiopian sugar corporation facts – December 2013

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