Ethiopian Sugar Industry Group faces ongoing challenges, MPs reveal inspection findings

State-run sugar estates under the Ethiopian Sugar Industry Group continue to be affected by security issues, high staff turnover, inadequate wages, and a lack of essential services like banking, telecom, and clean water. These findings were presented to the Public Enterprise Administration Committee by Members of Parliament MPs following their on-site inspections. The Group, which manages over 86,000 hectares of sugarcane plantations with an estimated annual production capacity of 600,000 tons, presented a nine-month performance report to Parliament. MPs highlighted significant problems at the Omo Kuraz factories, located in the South Omo Zone, despite the Group improving productivity and creating nearly 5,000 jobs since taking over from Chinese contractor Genertec Complant. Issues at Omo Kuraz include a failure to provide housing, absence of clean water, lack of road and communication facilities, and difficulties retaining experienced professionals. An inoperable irrigation dam, outdated machinery, lack of banking services, and frequent power interruptions were also cited. The Omo Kuraz estates, built at a cost of USD 341 million, face repayment challenges if sugar production does not increase. The report also noted security concerns and inadequate inconvenience allowances for employees in harsh weather conditions. While the Wonji Sugar Factory nearly met its productivity goals, it still faces issues with salary, incentives, and staff turnover. Similar problems were observed