February 7, 2026
The federal government is preparing yet again to privatize sugar estates under the Ethiopian Sugar Industry Group as part of ongoing economic reforms, reviving an initiative that has failed repeatedly over the past eight years.
In a letter addressed to International Monetary Fund (IMF) Director Kristina Georgieva, Finance Minister Ahmed Shide stated the privatization process would begin anew after government authorities and heads of Ethiopian Investment Holdings (EIH) finalize efforts to rehabilitate the beleaguered Group, formerly known as the Ethiopian Sugar Corporation.
“Our recent efforts have focused on financial restructuring and operational rehabilitation of individual sugar estates, resulting in positive EBITDA of the Ethiopian Sugar Group. Once this process is advanced, we will undertake new valuations of the assets, as required by law, and restart the privatization process,” reads the letter.
At present, ESIG operates eight major sugar estates, five of which operate independently as subsidiaries. These include Wonji Shoa, Metehara, Fincha, Kessem, and Tana Beles. The remaining three—Arjo Didessa, Omo Kuraz II and Omo Kuraz III—are still under the direct control of the Group.
The Group reported comprehensive losses of 22 billion Birr in 2021/22, and nearly 10 billion Birr in losses the following year.
The government first attempted to privatize more than a dozen sugar estates (including ones that are yet to go operational) immediately following the political transition of 2018. It issued a Request for Information (RFI) to prospective investors, and the process ultimately went nowhere.
In late 2020, the authorities attempted once more—this time announcing plans to privatize eight estates—but the effort fell flat owing to conflict and other factors.
In August 2022, the government floated a request for Expression of Interest (EoI) for the privatization of eight sugar factories: Arjo Dedessa, Kessem, Omo Kuraz I, Omo Kuraz II, Omo Kuraz III, Omo Kuraz V, Tana Beles, and Tendaho.
The window was eventually extended into 2023, and in March that year, the Ministry stated that more than a dozen potential buyers had expressed their interest.