More than two dozen companies have submitted an expression of interest (EoI) to participate in the ongoing privatization of Ethiopian Sugar Enterprises, authorities announced last week .
Eight state-owned sugar enterprises namely Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Arjo Dedessa, Kessem, Tana Beles, and Tendaho – collectively referred to as the Sugar Enterprises – are subject of the government’s privatization bid.
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Authorities say this initiative is part of the larger effort to transition to a competitive market structure and strengthen private sector growth in the sugar sector.
The government, through the Ministry of Finance and Ethiopia Investment Holdings, issued an invitation to submit expressions of interest or EIO on August 18, 2022.
Both international and domestic investors were invited to participate in the tender to acquire up to 100 percent of the state-owned sugar enterprises.
“In response to the invitation to submit an expression of interest (E0I), over twenty local and international investors have expressed their interest in the tender,” said the Ministry of Finance.
The ministry did not disclose the names of the investors but said the government is now engaging with interested investors to receive early feedback for consideration on the envisaged policy reforms.
Thereafter, it will issue a comprehensive Request for Proposal (RFP) that will outline the bid submission process.
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“The Government thanks investors for their interest in the privatization process and looks forward to their continued participation in the tender,” the finance ministry stated.
Ernst and Young LLP is serving as the lead transaction advisor to assist the government with the transaction process.
