The five sugar factories under the Omo Kuraz Sugar Development Project in southern Ethiopia have consumed over 65 billion Birr (USD 1.1 billion) in investment, but are still not operating at full capacity according to officials.
The five sugar factories are designed to crush 60,000 tons of sugarcane per day when working at full potential. This would require sugar cane cultivation on over 100,000 hectares of land.
Each factory is built to crush 12,000 tons of sugarcane daily and produce 250,000 tons of sugar and 28 million liters of ethanol annually. They were also constructed to generate 45 megawatts of electricity, with 29 megawatts exported to the national grid.
However, project managers admit the factories are yet to achieve these targets. While OMO Kuraz IV and V are still under construction, the three operational factories have consistently failed to reach their crushing and production targets.
In a meeting held last week in Arabminch, stakeholders acknowledged challenges preventing the sugar estates from being utilized to their full capacity. A steering committee was also formed to conduct a study identifying the issues and oversee corrective actions.
The Kuraz Sugar Development Project in Ethiopia has emerged as a highly contentious endeavor, drawing attention to its significant environmental and socio-economic ramifications. Despite its ambitious goals of expanding the sugar industry, the project has faced numerous challenges and is yet to achieve its intended outcomes.
The remote location of the project site, accompanied by a lack of essential infrastructure, has posed substantial hurdles. Additionally, funding shortages resulting from exchange rate fluctuations and inflation, as well as the colossal initial investments demanded by the scheme, have further complicated matters. Furthermore, the involvement of inexperienced key planners and contractors has exacerbated the obstacles encountered in bringing this mega project to fruition.
