sweet newsletter vol.4. no.4 june 2016 , by ethiopian sugar corporation

New Organizational Structure Ensures Sustainablity of Sugar Industry: Bezabih Gebreyes, Deputy CEO of Strategic Support Division

The new organizational sturucture implemented has the objective of ensuring sustainability of the sugar industry sub sector.

Speaking about the new structure Ato Bezabih Gebreyes, Deputy CEO of Strategic Support Division of the Corporation, said there is a need to compete in the sugar

industry sub sector as it is a source of foreign exchange earning.

He underlines the necessity of implementing the new organizational structure as the sector is one through which the nation, fulfilling the local demand, gets foreign currency exporting sugar.

Construction of Omo-Kuraz Factory II of Omo-Kuraz Sugar Development Project, the civil work of which began in August 2015, has reached 58% till April 2016.

The Project`s Factory Number II Deputy General Manager, Ato Alem Kebede explained that most of the civil as well as foundation works of the Factory is completed. Among these the

steel structure foundation, cane preparation, mill, power cogeneration, steel structure, housing and chemical water treatment are some of them.

According to Ato Alem factory construction will be completed by 2017 and will begin producing raw sugar which shall be followed by white refined sugar.

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Seven Thousand Tones Molasses Exported• 1 Million 35 Thousand USD earned from the sale

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Inside Pages

Sweet Vol. 4 No. 4 June , 2016Newsletter

VISION ፡ Ensuring sustainable growth, become one of the ten competitive sugar producing countries of the world in 2023 www.ethiopiansugar.com || facebook.com/etsugar

Capital Intensive Sugar Projects Still Bearing Fruit >> 7

1 million 35 Thousand USD is earned exporting seven thousand tones of molasses. It is also planned to export 10 thousand tones of molasses each month, it was learnt.

Sugar Corporation has been trying to sell the excess molasses, which is one among other by-products of sugar, deposited at sugar factories both at domestic and foreign markets. Accordingly, it has been supplying the product to the domestic market so that those in the cattle fattening business as well as various industries could buy it.

Construction of Omo-Kuraz Sugar Factory II Reached 58%

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Factory Number II Deputy General Manager- Ato Alem Kebede

Ato Bezabih Gebreyes, Deputy CEO of Strategic Support Division

S w e e t N e w s l e t t e r

Quarterly Newsletter Published by Sugar Corporation Communication Directorate | 2

New Organizational Structure Ensures... Continued from page 1

He emphasized on the importance of the wide range of preparations to compete in the market as one new to international market.

According to Ato Bezabih the new organizational structure which fits with scientific approach helps to use the labour force more effectively while it is expected to organize jobs which had been discrete earlier. He further said that the

new structure harmonizes the work between the corporation, sugar factories and sugar development projects.

To become profitable, doing away with its earlier problems, Sugar Corporation has designed problem solving packages such as capacity building, good governance, investment and many other packages.

Seven Thousand Tones Molasses... Continued from page 1

Currently, the Corporation, reaching on an agreement with Rownet Business PLC on February, 2016, has begun exporting molasses through the Company.

According to the General Manager of the Company Ato Abdiwehab Reshid, the Company has exported seven thousand tones of molasses to England and planned to export 10 thousand tones of molasses each month. The export enables Ethiopia to earn more than 1 million USD on monthly basis.

According to the agreement signed the Corporation will deliver 100 to 120 thousand tones of molasses annually.

Ato Abdiwehab further stated that his company has reached an agreement with United Molasses Limited, a renowned company in molasses trading worldwide. The molasses is exported to the European countries which are refining 80% of the world molasses supply, it was learnt.

Samples of molasses taken from Wonji Shewa and Kesssem sugar factories had been sent to Spain, Netherlands and United Arab Emirates prior to the start of molasses export and were proved of high quality.

Furthermore, molasses refining companies of Europe prefer Ethiopian molasses rather than the one supplied from Brazil or other Latin American countries due to proximity, Ato Abdiwehab also added.

Molasses is used to prepare animal feed, fuel, alcoholic drinks, paint and many others including for medical purpose.

150 thousand 278 tones of molasses was produced at Wonji Shoa, Matahara and Fincha sugar factories in 2014/2015 budget year.

Building competitive sugar industry!

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Construction of Omo Kuraz Sugar ...

Corporation Management Held Discussions with Metahara and Wonji Shewa Sugar Factories Employees and Management

Ato Aklilu Addagn , General Manager of Factory III of Omo-Kuraz Sugar Devel-

opment Project

Continued from page 1

The Chinese Construction Company - COMPLANT is transporting different machineries from Port Djibouti, it was disclosed. The Deputy General Manager also stated that 15 engineers from Omo Kuraz Sugar Factory I have been on construction site to ensure the technology transfer.

In another development, civil works of boiler foundation, factory power generation, and water purification tanker of Omo Kuraz Factory III has reached 10% till April, 2016.

According to Mr. Low Lin, Civil Engineering Head of COMPLANT the construction of the Factory which was began last February is scheduled to be finalized early in 2017 and hence begin sugar production soon.

Ato Aklilu Addagn, General Manager of Factory III of Omo Kuraz Sugar Development Project on his part said that contract has been given to three domestic as well as foreign institutions to construct the main canal and other related works.

Accordingly, Ethiopian Water Works Design and Control Corporation and South Water Works Construction enterprise have taken main canal and related works of five thousand 200 km and five thousand 500 hectares of land respectively. Preparations are underway for a Chinese Company called JANGXJ to start the main canal construction work which is about six kilometers long.

On the other hand, provisional canal structure construction work, diverting the Sharma River near the factory site is 70% complete, it was learnt.

Mr. Low Lin, Civil Engineering Head of COMPLANT

Management Members of Sugar Corporation held discussion with employees and management of Metahara and Wonji Shewa sugar factories on the current affairs of the Corporation as well as the factories.

Presiding the discussion, CEO of the Corporation, Ato Endawek Abite said the water supply for irrigation as well as factories routine processes at the two factories is at scarce due to El Nino and hence have

decreased productivity of sugar cane and sugar production of the sugar factories.

He, therefore, urged management members and employees of the two factories to boost up productivity to compensate the productivity gap created as a result. He further calls on them to work hand in glove to attain the goals of the second GTP in the sector.

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CEO of the Corporation, Ato Endawek Abite



TRAINING OF TRAINERS GIVEN ON ENVIRONMENTAL PROTECTION •World Environment Day Celebrated at Sugar Corporation

CORPORATION MANAGEMENT HELD ...

With regard to the demand of cane chopping seasonal workers of the two factories in the improvement of the per dime rate they are being paid, Ato Endawek, approving the claim raised, promised to solve it as of July, 2016.

The Corporation will also try its best to pay the bonuses, which were promised for the best result employees of the two factories had registered last year, by the 2016/17 Ethiopian Budget Year, Ato Endawek further said.

Continued from page 3

Training of trainers on environmental protection and occupational safety is given at the head office of Sugar Corporation.

The two day training which began on April 21 has been given by Environment and Occupational Safety Service of the Operation Division.

Environment and Occupational Safety Service Head Ato Birhanu Rabo said environmental protection plays a key role in enabling the Corporation to compete globally.

As Ethiopia is carrying out its various development activities giving environmental protection due attention, Sugar Corporation should also work in line with the direction the nation is following, he further added noting the importance of environmental protection significance in attaining the goals set in the

sector. According to him the other issue worth getting due attention to the success of the Corporation is the work place safety. 31 professionals from sugar development projects, sugar factories and head office of Sugar Corporation have taken part in the trainers training program.

On a related development World Environment Day has been celebrated at the head office of the Corporation on June 4, 2016. The event was witnessed for the 43rd time in the world and 23rd in Ethiopia with the motto “Zero Tolerance for Illegal Wild Life Trade.”

Environment protection efforts become more fruitful when every working place takes the environment issue in to account, Ato Birhanu Rabo has finally said.

Ato Birhanu Rabo


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Out Growers Associations Signed Agreement with Tendaho Sugar Factory

Ten Sugar Cane Out Growers Assoiciations signed an agreement with Tendaho Sugar Factory to deliver sugar cane to the factory.

The agreement was signed on April 14, 2016 at Samara Town of Afar Regional State following a three-day discussion held at Dubti Town between Management Members of the Factory and Leaderships of Sugar Cane Out Growers Associations, Public Relations Office of the Factory has reported.

Head of Social Organization, Public Relations and Community Affairs Service of the Factory, Ato Abdu Hassen has disclosed that the agreement was signed as a result of arbitration of

Afar Regional State`s Public Associations Union and Sugar Corporation`s Public Participation and Development Office.

Col. Melkau Digafe, General Manager of Tendaho Sugar Factory and leaderships of the ten associations signed the agreement which is going to be effective for the coming three years. The agreement is expected to benefit 449 households of the locality in Dubti District, it was learnt.

Speaking on the occasion, Col. Melkau said the bilateral agreement is crucial to economic partnership of both parties as it significantly increases the productivity of Tendaho Sugar Factory and the

benefits of the associations. Six other out growers associations, signing an agreement with the Factory, have been supplying sugar cane to the factory which have ensured the symbiotic relationship of the Factory and the people of the region, Col. Melaku has said during signing ceremony.

Half out of the total 50,000 hectares of land being cultivated at the factory is to be developed by sugar cane out growers of the area.

Training on International Financial Reporting System Conducted

Training on International Financial Reporting System (IFRS) has been given for 38 finance executive officers and officers from Head Office of Sugar Corporation, sugar factories and sugar development projects. The training program organized by Sugar Corporation was given from May 9 to 14, 2016 at Head Office of the Corporation.

According to Acting Executive Officer of Finance of Sugar Corporation, Ato Kifle Wolde Mariam the objective of the training is to create a financial as well as property administration system such as Cost and Budget, Accounting, Property Registration and Administration and also Swift and Effective Financial Reporting systems with more transparency and accountability based on Ethiopia`s Financial Laws, Principles of Accounting and IFRS.



WORK SHOP ON ROAD MAPS OF HIGHER BENEFITS OF SUGAR INDUSTRY HELD

Policy study and Research Advisor to the Prime Minister of Ethiopia at the Rank of Minister Dr. Kasu Yilala Presiding the discussion

A work shop on road maps which enable Ethiopia benefit more from the sugar industry was held at Ma-tahara Sugar Factory from June 29 to June 30.

At the work shop jointly prepared by Sugar Corporation and F.D.R.E Policy Research Center road maps which would enable the nation benefit more from by-products of sugar and other corresponding de-velopment activities were present-ed by higher institution scholars on which wide discussions were held.

The road-maps are intended to en-able the sugar industry widen its scope and compete in the interna-tional market. This makes the sug-ar industry play a vital role in the transformational journey of the country assisted by golden oppor-tunities like horticulture, animal resource, biochemical, biomass and urban development activities.

The road maps which indicate eco-nomic benefits utilizing bagasse , molasses, filter cake as well as cor-responding products such as ani-mal husbandry and its products, horticulture and fruits cultivation were presented.

The work shop stressed on the chains of input-output of these sug-ar by-products and corresponding

development activities on which experience of foreign countries in utilizing them effectively was pre-sented.

Policy study and Research Advisor to the Prime Minister of Ethiopia at the Rank of Minister Dr. Kasu Yilala on the occasion said the sugar industry sub sector is given higher attention in both the First and Second GTP.

He has also disclosed the govern-ment and other concerned bod-ies commitment to support Sugar Corporation in every aspect so as to enable Ethiopia benefit more from its sugar industry.

Reminding the establishment of Biotechnology Institute by the government, he has also urged the Corporation to exploit this condu-cive condition and thereby change by-products of sugar and corre-sponding developmental activities into higher economical advantage. He also urged the Corporation to work hard so that Ethiopia could compete in the international mar-ket delivering products of interna-tional standardized.

F.D.R.E Sugar Corporation CEO, Ato Endawek Abite on his part dis-closing his gratitude to the govern-ment and other participant schol-

ars in preparing the road maps which will enable the resource in the sector change into higher ben-efit.

Ato Endawek further said that the universities and research centers in developed countries are backbones for industries. He further said it is a great success to see Policy Research Center, Addis Ababa University Science and Technology Institute, Ethiopian Agricultural Research and Study Institute and Ministry of Urban Development and Hous-ing working harmoniously with the Corporation. He also ensured to work with universities and re-search centers for a better effect.

Ato Endawek further said that the Corporation will do its best to im-plement the directions forwarded by the road maps and ensure the creation of favorable conditions for local communities of sugar devel-opment sites with regard to market ties and thereby enable them make their own wealth.

Participants of the workshop on the occasion have visited Metahara Sugar Factory sugar mill, its etha-nol plant, bio compost preparation, tissue culture laboratory and other venues of Matahara Sugar Factory.


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Capital Intensive Sugar Projects Still Bearing Fruit

Never once in Ethiopian modern history that the nation has embarked on a capital intensive and with so many sugar development projects except during the kick off the First G.T.P.

The nation was introduced with the industry some sixty years back working with the Netherland′s Company - H.V.A. in a joint venture modality. And, the construction of sugar industries in Ethiopia by then and the following years thereafter was on “one at a time” basis only while the constructions of the sugar factories were carried out by foreign companies.

Unlike the history of the constructions of the nation′s sugar industry the spine-breaking G.T.P. of the sugar sector has aimed at building ten sugar factories within five years at selected areas of the various regions of the nation which are located at areas devoid of infrastructures. Lack of domestic exposure to such sophisticated industry construction as well as the burden of building various infrastructures prior constructing the factories have made running the sector more cumbersome and time consuming than any other mega project of the G.T.P.

The other factor that makes the sector the most huge one

is that it calls for building dams and/or diversion weirs; constructing long distance stretched big, medium as well as small canals; land leveling and cane plantation work on a very wide area of land; construction of both residential and non-residential houses in hundreds; construction of hospitals, health stations, schools of different levels, internal roads, potable water and many more service giving institutions as the sector deploys thousands of personnel and their families. Hence, it is much easier to say that building a single sugar factory is like building a town.

Some who have been in the leadership of sugar factories for long used to be heard saying “ Being a General Manager at Sugar Factory is Being a Mayor ”. And, it is because that a manager of a sugar factory not only manages the routine business of the factory and the very wide cane plantation field but also oversees the day to day lives of the personnel’s and their household needs such as water and power supply, security, market and transport as well as school access, hygiene, various sport fields and so many others a certain community demands to get as a necessity as well as luxury.

Hence, since establishment, Sugar Corporation together

with domestic as well as foreign stake holders has accomplished so many tasks which lay the favorable situation to exploit this export-oriented sugar industry. And, so far many encouraging results are registered.

Among these the basic infrastructural development and social service facilities so far constructed can be considered as great achievements attained for it was too hard to see any social service and basic infrastructure in the areas where sugar development projects are currently operating.

The other achievement gained is the entrance of Arjo Didessa, Kessem and Tendaho sugar factories into operation among them some with minor limitations though they could not narrow the unmatched domestic demand and supply relations of the sugar product. The aforementioned three sugar factories in operation, as it is the nature of the industry, will reach their maximum crushing design capacity through a very short period of time. It is one step ahead to hear about sugar product not from the old Wonji Shewa, Metehara and Fincha sugar factories we were familiar for about 20 to 60 years but from other three new factories.

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CAPITAL INTENSIVE SUGAR PROJECTS ... Continued from page 7

The completion of expansion projects of Fincha and Wonji Shewa sugar factories with the later one replaced by new and modern sugar factory was made possible during the First G.T.P. Hence, currently two expansion projects and three new factories with total installed crushing capacity of 36,250 tons of cane a day are operational. Before the establishment of Sugar Corporation the three old factories had only a total crushing capacity of 13,900 tons of cane a day. Likewise, as their project progress report indicates, 3 other new factories such as Omo-Kuraz One and Omo-Kuraz Two as well as Tana Beles One sugar factories with installed crushing capacity of 36,000 tons of cane a day are expected to be operational in near future.

With regard to irrigation infrastructure of the sector, our country had only 30,397 hectares of irrigable land for cane plantation before the kick off the First GTP which so far has reached 95,760 hectares.

And, as cane development, currently the land covered with cane is 95,760 hectares. It was only 30,397 hectares some six years back.

Concerning the construction of houses for sugar factories personnel, the Corporation has built 4,218 residential houses and 107 non residential buildings till to date. And the

construction of 2,526 residential and 67 non residential houses is in progress and will be completed soon.

As any developing nation Ethiopia has a problem of unemployment. And, when exploiting the potential of the nation for sugar development sector is envisaged minimizing the number of unemployment of the nation greatly is one among many other targets aimed at. Hence, the sugar industry sector can be taken as the only single sector that has created huge volume of job opportunities to the citizens for the last five years. So far, the sector has created direct job opportunities to more than 350,000 citizens. Moreover, due to these projects hundreds of thousands of citizens are enabled to make their daily breads. One has to note that the sector involves from highly skilled foreign as well as domestic professionals to daily laborers in tens of thousands of numbers.

As mentioned above all new sugar development projects are being carried out at selected remote areas identified as best suitable for the sector while all in all they had been devoid of any infrastructure and social service institution. Accordingly, construction of social infrastructures and community facilities is the other huge task carried out by the Corporation to ensure community benefits.

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Newly Introduced Sugar Products


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In this regard, 286 social infrastructures and facilities (such as schools, potable water and ponds for people and cattle respectively, flour mills, health posts of both human and cattle, training centers, association shops, roads, etc) and 524.5 hectares of irrigated land is provided to households living around the factories and projects to cultivate any crop they choose. Furthermore, 11,817 households residing around sugar factories/projects are organized in 75 sugarcane out-grower associations getting irrigable land from the Corporation and in some projects they have already tested the benefit supplying cane to factories.

The other task Sugar Corporation has been carrying out with regard to community benefit is resettling them where ever it is only necessary by building various infrastructures and social institutions as well as effecting compensation to their properties at household levels.

Moreover, the Corporation has been engaged in building dams and constructing large irrigation schemes to realize the goal set in the sector at the various regions of the nation. It is the other huge task the Corporation has been shouldered with. And, this engagement of the Corporation, beyond the sector, has been seen bearing fruit in coping

up, though not avoid the impact of the 2015/16 El Nino weather. The very significant role played by sugar factories such as Metehara, Kessem, Tendaho sugar factories as well as Tana Beles and Wolkayit Sugar Development Projects in assisting natives around them exposed to the drought by supplying water, top sugarcanes, molasses as well as bundles of hays to their cattle is worth mentioning as fruit of every effort of the Corporation.

So, one has to bear in mind that these all huge tasks which are also very many in number Sugar Corporation has been engaged in for the last six years could not be imagined without an intensive capital. » P.10

Canal Structure

Dam Constructed



Omo-Kuraz Sugar Factory 1


These all does not mean that Sugar Corporation has no setbacks while executing such huge projects at a time. It shares the lack of capacity in skilled man power the nation as a developing country is still facing that can administer such huge as well as more complicated tasks which call for a much synchronized project activities progress as well as the technology gap. Therefore,

problems reflected in project activities, lack of knowledge in project management and contract administration are the main failures seen in the Corporation while turnover of skilled man power in the sector is the other problem reflected.

On the other hand, as it is explicitly mentioned above no domestic sugar factory constructing contractor had

been involved in the building of the pioneer sugar factories of the nation. And, it is for the first time as a nation that an Ethiopian sugar factory constructing contractor - Metals and Engineering Corporation- METEC has engaged itself in the sector as a beginner i.e. during the kick off the first G.T.P.

Omo-Kuraz Sugar Factory 2

This has opened a new chapter in the nation′s history of sugar development endeavor as we had been recipient of technologies where there was no technology transfer. This is a big leap as a nation though there is a failure in meeting the schedule with our domestic contractor in completing construction of sugar factories.

One should not skip over that those nations known building sugar factories including fabrication of a very complicated and sophisticated machineries of the industry have more than a century of experience in the construction business of the industry. The main issue to regret over is the foreign currency we as a nation are being obliged to spend to import sugar from abroad while by now we should have had started exporting it. And, that is the lesson Sugar Corporation as well as METEC including other stakeholders should draw from the challenges they faced as well as the results they have registered so far so that realizing the goal set in the sector is possible from now on as the sector has started bearing fruit though not at a full scale.

Tana Beles Sugar Factory 1

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Here one can notice that the foreign currency Sugar Corporation has recently started getting from merely exporting one of the many other by-products of sugar- Molasses let alone the main product. Currently, the Corporation, reaching on an agreement with Rownet Business PLC on February, 2016, has began exporting molasses to Europe in which from 100 to 120 thousand tones of molasses will be exported to England annually enabling the Corporation or the nation earn more than 17,000,000 USD yearly. Note that molasses is one among other by-products


of Sugar. United Molasses Limited of England-a renowned company in molasses trading worldwide, receiving the molasses exported, distributes to the European countries which are refining 80% of the world molasses supply. And, this trade transaction sometime in the future may attract these refining companies to invest here in Ethiopia building their factories as we are more accessible than other molasses exporting sugar producing countries.

As explicitly mentioned above the huge activities carried out since the First G.T.P. with large personnel of the sector cannot be imagined unless and otherwise the nation has allocated the necessary budget. And, the nation has done so to the sector and the sector is now close to blossom as envisaged at the start. Nonetheless, both Sugar Corporation as well as METEC need close support and follow up from the concerned government bodies. Now it is the momentum. It is crystal clear that the sugar development sector is the first and foremost capital intensive project both in the first as well as second G.T.P. But NOTE that the capital intensive sugar development sector i.e. the WHITE GOLD which has been in the making is still bearing FRUIT! It is to BLOSSM SOON!!!

Cane Plantation Field

House Constructed

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sweet newsletter vol.4. no.4 june 2016 , by ethiopian sugar corporation

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