Ethiopia imported 102,072 tonnes of sugar in 2007/08 to meet growing domestic demand while also exporting 21,700 tonnes of raw sugar to generate foreign currency, a government official said on Tuesday. Musa Mohammed Zeinu, head of the Sugar Support Enterprise, told Reuters the country earned $21 million in the year from selling the raw sugar as well as some 58,000 tonnes of molasses and 2 million litres of ethanol to Europe under a preferential trade deal.
"The foreign currency generated from the export of sugar to Europe will help the government in its effort to accelerate the country's development," Musa said. "On the other hand, Ethiopia had to import 102,072 tonnes of sugar worth $32.11 million to meet the growing demand of its 81 million people." Local sugar demand this season is about 350,000 tonnes and is projected to reach 520,000 tonnes by 2008/09, he said. Ethiopian peasant farmers who normally add salt or honey to their cups of coffee are now using sugar and this has been driving up the demand for sugar, Musa said.
The Horn of Africa country produces some 300,000 tonnes of sugar annually from three estates but a $600 million project to be completed by 2010 is expected to produce another 600,000 tonnes per year, which will plug the shortfall and provide a surplus for export.