Examining the Ethiopian sugar industry risks and mitigation strategies

Abstract

This research aims to carry out a comprehensive assessment of the risks observed in the sugar industry; evaluate the extent to which proper mitigations strategies are being adopted; and, propose actionable mitigation strategies for resilient industry development. A mixed research design was applied in the course of this research. From the population of Ethiopian Sugar Industry Group, sugar factories, and key players in the sugar industry, sample participants are selected by means of both random and judgmental sampling methods. A total number of 734 participants have participated in the study, providing data through questionnaire, interview, and FGD. Primarily, data was analyzed quantitatively while a mixed analysis method is employed as the data types are both qualitative and quantitative. Based on the data analysis, logistics and transportation cost, regulatory barriers and bureaucracy, human resources development, financial unavailability, high interest rates and cost of capital, lack of private sector investment, and limited access to agricultural credit schemes are identified as key risk factors in sugar industry in Ethiopia. Thus, a proactive stance towards risk assessment and management is suggested to bolster overall growth and promote resilience within the sugar industry while ensuring that the Ethiopian sugar industry can thrive in an increasingly competitive global landscape. Further, the state actors should implement forward-thinking policies and foster partnerships across various stakeholder groups to safeguard the industry against the pitfalls that threaten its stability.