Saturday, July 13, 2024
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ESC tables differed LC sugar import

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The Ethiopian Sugar Corporation (ESC) invites interested sugar suppliers to offer their rates for the procurement of at least 200,000 metric tons of the sweet.
It is to be recalled that initially, the corporation had tried to import sugar through an international bid which later didn’t pan out as expected. Following this, the corporation opted for direct invitations to short-listed companies.
The final steps of buying sugar from shortlisted companies, which offered their rates and conditions, were then underway with the files being filed to the Ministry of Finance (MoF) for final approval. However, at the latest meeting with officials from MoF, the ministry placed the process on hold and insisted ESC proceed with another round as soon as possible.
There have been also companies who had expressed their interest directly to MoF to supply the basic commodity.
According to the information Capital obtained from MoF, the companies that expressed their offers for the ministry had in compliment sent to the ESC so as to be part of the latest process that the corporation is undertaking.
As per the direction given by MoF, the corporation has invited all companies that have been interested to be part of the latest bid.
According to Weyo Roba, CEO of ESC, the corporation has preceded the invitation for both the companies that have approached the corporation in the previous processes and those who are at MoF.
He told Capital that the current procurement process would follow the differed letter of credit scheme that would be paid in the future but at least within two years’ time.
The various companies’ offers are expected to be opened in the coming week.
The government has the interest to buy about 300, 000 metric tons of sugar.
The country annually imports up to 350,000 metric tons of sugar to address the gap. ESC targeted to produce 413,000 metric tons in the current budget year.
As ESC highlights, in the budget year, the corporation plans to supply about 720,000 metric tons of sugar for consumption.
The sugar demand has been growing from time to time and it is estimated that the country’s annual sugar demand stands at 1.2 million metric tons. Thus the remaining gap is covered by other importers who have a special permit from the government and those who have Franco-Valuta privileges.

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