Projects

Sugar and coproduct potential in Ethiopia Commercial sugar production has been active in Ethiopia for over sixty years and in the last decade has grown in size and extent from the original cluster of Wonji, Shoa and Metahara sugar mills in the Awash valley to 13 sites spread across four regional states. Ethiopia has excellent growing conditions for sugarcane but the diverse range of soils, topography and climate present many challenges for optimal and sustainable production of sugar and co-products such as ethanol and co-generation. The Ethiopian sugar industry is currently all state-owned and operated by the Sugar Corporation, a parastatal, but the Government of Ethiopia’s strategy is to invite private investment to inject muchneeded capital and operating management skills to improve the growth momentum. A privatisation unit within the Ministry of Finance and Economic Cooperation is overseeing and leading the privatisation process.

Scope of work From August 2019 to January 2020 Booker Tate, in association with LMC International and Hickman Shearer, undertook a World Bank Group/International Finance Corporation assignment to assess and value 13 state-owned sugar enterprises in Ethiopia for future privatisation. Booker Tate led the study teams, undertook the fieldwork, technical assessments and valuation modelling and presented findings and recommendations to stakeholder committees. LMC undertook the market and policy research and Hickman Shearer undertook the fi xed asset valuations. After an initial kick-off meeting with all stakeholders to plan the programme and logistics of site inspections, taking into account of the impact of the rainy season, the main study tasks commenced. The fieldwork comprised two technical teams (agriculture and factory) visiting all 13 enterprises to assess construction or operational status and to identify the works required to reach a defi ned production potential. A third fieldwork team collected marketing and financial data for building enterprise valuation models. At the culmination of the investigations, analysis and draft reporting a stakeholder workshop was held in Addis Ababa to present and disseminate the findings. The discussions and feedback arising from the workshop were integrated into the Final Report to complete the assignment.

The Ethiopian sugar industry has the potential to become a major player within the African continent by producing over 2 million tonnes of raw and refi ned sugars to meet the domestic demand, to reduce imports and to provide an option for export if economic factors are favourable. Such a sustained industry would also provide a huge uplift to the rural economy and jobs prospects. Booker Tate is proud to have undertaken over 16 large study assignments for the Ethiopian sugar industry since 1977 and to have been involved in the development and expansion of the Finchaa sugar project