Ethiopian Sugar Industry Group cuts annual loss as stalled projects weigh on finances

The Ethiopian Sugar Industry Group reported a comprehensive loss of 5.4 billion birr for the 2023/24 financial year, nearly half the 10.3 billion birr loss recorded a year earlier, according to an independent audit approved by the group in August 2026.

Revenue rose to 8.2 billion birr from 7.4 billion birr. Sales of domestically produced white sugar generated about 7 billion birr, while revenue from imported sugar fell to roughly 250 million birr from 1.3 billion birr. Foreign-exchange losses accounted for about 3 billion birr of the total comprehensive loss.

The state-owned group’s assets remained near 179 billion birr, while long-term borrowing increased to 59 billion birr from 51 billion birr. Accumulated losses stood at 10.8 billion birr as of June 30, 2024.

Auditors said work remained suspended at the Kessem, Omo Kuraz I, Omo Kuraz V, Tendaho and Welkait projects because of financing constraints, insecurity and adverse weather. The government has considered private sales or joint ventures to complete or operate unfinished estates, but the audit raised substantial doubt about when several projects could become operational.

The audit also identified unreconciled balances, discrepancies between inventory records and physical counts, weaknesses in cost accounting and long-outstanding contractor advances. It said these deficiencies limited confidence in some reported balances, including production costs and inventory valuations.

The group operates eight major factories and oversees additional projects that are incomplete or not operating. The narrower annual loss signals improvement, but rising debt, stalled investments and control weaknesses continue to constrain the state sugar business.