India gives Ethiopia $640 mln credit for sugar industry
January 14, 2008 (ADDIS ABABA) — India has agreed to give Ethiopia a $640 million credit out of a total $1.3 billion needed to boost Ethiopia’s sugar production, officials from the two countries said on Monday.
Late last year Ethiopia announced plans to increase its annual sugar production to 1.3 million tonnes by 2011 from a current 300,000 tonnes.
India’s Exim Bank will finance the $640 million.
“It is the largest ever line of credit that India has provided to any country so far,” Gurjit Singh, the country’s ambassador to Ethiopia, said while signing an agreement between India and Ethiopia.
The remaining $660 million will be covered by the Ethiopia government.
The money will go mainly towards erecting a new factory at Tendaho in the country’s Afar region, and expansion of Finchaa, one of four existing sugar factories in Ethiopia within the next two years.
“With the completion of Tendaho … and the enhanced production of the existing four sugar factories … annual sugar production is expected reach up to 1.3 million tonnes within the next two years,” Trade and Industry Minister Girma Birru said.
Tendaho will have an annual production capacity of 600,000 tonnes and will be Ethiopia’s largest sugar factory. It will be located in the lower Awash Valley, in the Afar region, along the Addis Ababa-Djibouti highway and railway line.
Finchaa is in the west of the country and its annual production is expected to reach to 270,000 tonnes from the current 80,000 tonnes at the end of the expansion period.
Ethiopia’s other sugar factories are Wonji, Shoa and Methara.
Wonji and Shoa, 100 km (60 miles) east of Addis Ababa, are also undergoing expansion to increase their aggregate annual production output to 350,000 tonnes from the current 75,000 tonnes, according to a Sugar Development Study Paper.
Methara Sugar Factory, 250 kms east of Addis Ababa, is also expected to increase its annual production to 190,000 tonnes from 120,000 tonnes currently.
(Reuters)
Almaz Mequanint
India gives Ethiopia $640 mln credit for sugar industry
In the developed countries, employers are usually cordial and have legal obligation to protect health of the laborers. The workers of such countries are also aware of their health. But in the developing countries like Ethiopia, for instance, in Wonji, Shoa & Metehara sugar factories, many workers are suffering from fluoride, asbestos, air pollution and waste& emission pollution. It is unethical to be profit mongers and as a result the poor workers are bound to do their duties in unhealthy and unsafe conditions.
I wish them all luck in their endeavor to make it better. But until someone actually listens to what is said, it will remain the same. Wonji workers were treated as second class in their own country by The Dutch company from 1954-1975 because they knew that the Ethiopian government officials will turn a blind eye to the abuses of the existing labor law as long as their profit escalates. By the way the existing
Ethiopian government also is neglecting those helpless employees. Many former employees are bedridden from flouride poisoning. Once an employee is sick is kicked from work and his company house thrown like disposal without medical treatment. Beside increasing and expanding profits it’s the Ethiopian government obligation to consider the illness of a worker impacts on the person, family, society, economy and nation. Good luck & congratulation to Ethiopia.
Almaz Mequanint