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Articles

State-led modernization of the Ethiopian sugar industry: questions of power and agency in lowland transformation

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Pages 434-454 | Received 26 Jun 2020, Accepted 27 Dec 2022, Published online: 24 Jan 2023
 

ABSTRACT

This article critically analyses the history of the Ethiopian sugar industry, with emphasis on drivers, decision-making and processes of incorporation and exclusion aiming to transform lowlands. We argue that the government has used a state-led modernization and expansion of the sugar industry to consolidate the power of central governments. Through the creation of sugar-based agribusinesses, the changing regimes have sought to extend their control over natural resources, increase the movement of labour, and stimulate economic growth. This has led to deepened state structures and considerable transformation of power relations, causing marginalization of the affected communities. In Ethiopia’s post-2018 political and economic transition, this modernist and expansionist programme found itself in a set of deep economic and financial crises, leading to government initiatives to privatize the sugar industry. In response to the privatization initiatives, local elites articulate and contest the historical process of marginalization and compete in demanding redress for the adverse incorporation of the communities. They do so to expand the community space for agency and enforce their interests in gaining from, and perhaps dominating a privatization process through takeover strategies. The past modernist development approach that caused marginalization is likely to affect a new stage of lowland transformation.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Notes

1 Zewde, “Environment and Capital.”

2 Scott, Seeing Like a State.

3 Pankhurst and Johnson, “The Great Drought and Famine of 1888-92.”

4 Lavers, “Patterns of Agrarian Transformation in Ethiopia.”

5 Markakis, Ethiopia: The Last Two Frontiers.

6 Ibid.

7 Mosley and Watson, “Frontier Rransformations.”

8 Birhanu Fikade, “Local Company Eyes Wonji, Metehara.” The Reporter, May 18, 2019. https://www.thereporterethiopia.com/7998/.

9 Ethiopia Sugar Corporation, Roadmap to Implement Privatization of the Sugar Sector; and Fikade, “Local Company.”

10 Birhanu Fikade, “ወንጂና መተሐራ ስኳር ፋብሪካዎችን ለመግዛት የተነሳው ኩባንያ መንግሥት የእኩል ተወዳዳሪነት ዕድል እንዲሰጠው ጠየቀ.” The Reporter, July 7, 2019. https://www.ethiopianreporter.com/64923/.

11 Kabeer, “Resources, Agency, Achievements.”

12 Zewde, “Environment and Capital.”

13 Ibid.

14 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia.

15 Girma and Seleshi, “Irrigation pPactices in Ethiopia.”

16 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia.

17 Ibid.

18 Zewde, “Environment and Capital.”

19 Rahmato, Customs in Conflict.

20 Wendimu et al., “Sugarcane Outgrowers in Ethiopia.”

21 Kassa, “Resource Conflicts Among the Afar of North-East Ethiopia.”

22 Zewde, “Environment and Capital.”

23 Ministry of Finance and Economic Development, PASDEP, 153.

24 Kumar, “India’s Development Cooperation with Ethiopia in Sugar Production.”

25 Ibid.

26 Wendimu et al., “Sugarcane Outgrowers in Ethiopia.”

27 Kumar, “India’s Development Cooperation with Ethiopia in Sugar Production.”

28 Ministry of Finance, Investment Opportunities in Ethiopian Sugar Industry.

29 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia.

30 FDRE House of People’s Representatives, Proclamation no. 504/2006.

31 Ethiopian Sugar Development Agency, New and Expansion Project Plan.

32 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia.

33 Council of Ministeres, Regulation no. 192/2010.

34 Ethiopia Sugar Corporation, Sugar Industry Sub-sector GTP 2 Period Fiscal Plan.

35 Ethiopia Sugar Corporation, Sugar Development Plan (2010/2011 to 2014/2015).

36 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia.

37 Kamski, “The Kuraz Sugar Development Project (KSDP) in Ethiopia.”

38 Water Works Design and Supervision Enterprise, Omo Kuraz Sugar Development Project.

39 Ministry of Finance, Investment Opportunities in Ethiopian Sugar Industry.

40 Ibid.

41 Ibid.

42 Fantini et al., “Big Projects, Strong States?”

43 Ministry of Finance, Investment Opportunities in Ethiopian Sugar Industry.

44 Ibid.

45 Mohammed, “Ethiopia’s Second Five-Year Development Plan.”

46 Berhe, “A Delicate Balance.”

47 Dejene and Cochrane, “Ethiopia’s Developmental State.”

48 Daniel, “Transfer of Land Rights in Ethiopia.”

49 Ministry of Water Resources, Integrated Development of Abay River Basin Master Plan.

50 Asebe, Hizekiel and Korf, “‘Civilizing’ the Pastoral Frontier”; and Lavers, “Patterns of agrarian transformation in Ethiopia.”

51 US Department of Agriculture, Ethiopia Buy Sugar.

52 Thelle et al., “Assessment of the EU Trade Regimes Towards Developing Countries.”

53 Jolly, “Sugar Reforms, Ethanol Demand and Market.”

54 Ibid., 199.

55 Ministry of Finance and Economic Development, GTP I.

56 Cochrane and Bekele, “Contextualizing Narratives of Economic Growth.”

57 Gebreegziabher et al., “Profitability of Bioethanol Production.”

58 Heckett and Aklilu, “Agrofuel Development in Ethiopia.”

59 Science and Technology Minister, Sugar Technology Roadmap.

60 Lavers, “Patterns of Agrarian Transformation in Ethiopia.”

61 Dametie et al., Proceeding of Ethiopian sugar industry.

62 Ethiopia Sugar Corporation, Sugar Industry Sub-sector GTP 2 Period Fiscal Plan.

63 Rahmato, Customs in Conflict.

64 El Mamoun et al., Structural Changes in Sugar Market; and Wendimu et al., “Sugarcane Outgrowers in Ethiopia.”

65 Scott, Seeing Like a State.

66 Lavers, “Patterns of Agrarian Transformation in Ethiopia”; and Markakis, Ethiopia: The Last Two Frontiers.

67 Asebe and Korf, “Post-imperial Statecraft”; and Mosley and Watson, “Frontier Transformations.”

68 Pankhurst and Johnson, “The Great Drought and Famine of 1888-92.”

69 Gebresenbet and Kamski, “The Paradox of the Ethiopian Developmental State.”

70 Fratkin, “Ethiopia's Pastoralist Policies.”

71 Gabbert et al., Lands of the Future.

72 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia

73 Gabbert et al., Lands of the Future.

74 Rahmato, Customs in Conflict; and Kassa, “Resource Conflicts Among the Afar of North-East Ethiopia.”

75 Wendimu et al., “Sugarcane Outgrowers in Ethiopia.”

76 Muluken Yewondwossen, “Upstart, Local Sugar Company in Privatization Push.” Capital, July 8, 2019. https://www.capitalethiopia.com/2019/07/08/upstart-local-sugar-company-in-privatization-push/.

77 Mikias Merhatsidk, “Amibara Rotates Crop Focus from Cotton to Cane.” Addis Fortune, April 6, 2014. https://addisfortune.net/articles/amibara-rotates-crop-focus-from-cotton-to-cane/.

78 Ethiopia Sugar Corporation, Sugar Industry in Ethiopia.

79 Weis, Vanguard Capitalism.

80 Zewde, “Environment and Capital.”

81 Ministry of Finance and Economic Development, GTP I.

82 Ministry of Industry, Ethiopian Industrial Development Strategic Plan.

83 Ethiopia Sugar Corporation, Sugar Industry Sub-sector GTP 2 Period Fiscal Plan.

84 US Department of Agriculture, Ethiopia Buy Sugar.

85 Cochrane and Bekele, “Contextualizing Narratives of Economic Growth.”

86 National Planning Commission, GTP II.

87 Ibid., 72.

88 Ibid., 140.

89 Ethiopia Sugar Corporation, Roadmap to Implement Privatization of the Sugar Sector; and Fikade, “Local Company.”

90 Kamski, “Water, Sugar, and Growth.”

91 Ministry of Finance, Investment Opportunities in Ethiopian Sugar Industry.

92 Dawit Endeshaw, “Economic Reform Targets Five Key Areas.” The Reporter, June 15, 2019. https://www.thereporterethiopia.com/8139/.

93 Yewondwossen, “Upstart, Local Sugar Company in Privatization Push.”

94 FDRE House of People’s Representatives, Sugar Industry Administration Proclamation (draft).

95 Ethiopia Sugar Corporation, Roadmap to Implement Privatization of the Sugar Sector; and Fikade, “Local Company.”

96 Yonas Abiye, “Law Makers Push Gov’t to Speed Up Privatization.” The Reporter, May 11, 2019. https://www.thereporterethiopia.com/7960/.

97 Ibid.

98 Ethiopia Sugar Corporation, Roadmap to Implement Privatization of the Sugar Sector; and Fikade, “Local Company.”

99 Elshaday Tilahun, “Tendaho Stops Making Sugar.” Capital, December 16, 2019. https://www.capitalethiopia.com/2019/12/16/tendaho-stops-making-sugar/

100 Fasika Tadesse, “Ethiopian Sugar Plant Stops Work After Attack by Rebel Army.” Bloomberg, February 14, 2022. https://www.bloomberg.com/news/articles/2022-02-14/one-of-ethiopia-s-biggest-sugar-plants-stops-work-after-attack

101 Ethiopia Sugar Corporation, Roadmap to Implement Privatization of the Sugar Sector.

102 Ibid., 21.

103 Fikade, “Local Company.”

104 Ibid.

105 Ibid.

106 Ibid.

107 Fikade, “ወንጂና መተሐራ ስኳር ፋብሪካዎችን.”

108 Makki and Geisler, “Development by Dispossession.”

109 Yidneckachew, “Policies and Practices of Consultation.”

110 Lavers, “Patterns of Agrarian Transformation in Ethiopia.”

111 FDRE Constitution, article 43 and 44.

112 Lavers, “Patterns of Agrarian Transformation in Ethiopia.”

113 Mosley and Watson, “Frontier transformations.”

114 Scott, Seeing Like a State.

Additional information

Funding

This work is part of a PhD Research project supported by MU-HU-NMBU Institutional Collaboration Phase IV.