Ethiopia invites investors to buy 13 sugar factories
The Ministry of Finance of Ethiopia and Ethiopian Sugar Corporation today invited buyers to express their intent to purchase one or all of the 13 sugar factories the government has recently decided to privatize.
The Request for Information (RFI) aimed at completing the necessary pre-privatization activities to fully or partially privatize the Sugar Corporation assets in the form of 13 sugar projects that are currently either fully completed and in production or partially completed, the Ministry of Finance said.
With over hundred thousand hectares of sugarcane plantations, Tendaho, Fincha, Metehara, Wonji Shoa, Arjo Dedesa, Kessem, Omo Kuraz are among the sugar factories Ethiopia has decided to privatize. The decision came after the reformist Prime Minister Abiy Ahmed came to power in April 2018.
The Ministry stated that in order to incorporate inputs from the private sector, this RFI has been published to facilitate information gathering from interested parties that previously shown interest to acquire Sugar Corporation properties and new prospective buyers in a structured and transparent format.
“This RFI is issued as a means of general approach discovery to complete the necessary steps for pre-privatization activities, and for information gathering only. This RFI is for planning purposes only and should not be construed as a competitive solicitation nor should it be construed as an obligation on the Ministry’s or Sugar Corporation part to enter into any contract or make any purchase.”
“This RFI is not an invitation for privatization or a PPP process; it is only to initiate the private sector participation process. Based on 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,” it said.
Details of the expression of interest can be found on the official websites of the Ministry of Finance of Ethiopia, Ethiopia Sugar Corporation or privatization agency (http://www.mofed.gov.et/ , http://www.ethiopiansugar.com/ or http://www.mope.gov.et/ )
The objectives of the RFI are:
1. Market sounding to identify interested potential investors.
2. To identify which sugar project investors are interested in.
3. Obtain information on the preferred mode of private sector participation in the Sugar Corporation i.e. full/partial privatization or Public Private Partnership (PPP).
4. To identify investors approach for the source of capital and the investment structure for the acquisition.