Two German companies gave their 38-percent joint share of the New Baghlan Sugar Factory to the government of Afghanistan, making it the sole owner of the factory, Ministry of Agriculture said Sunday.
The factory needs subsidies of $500,000 annually, but it is expected to turn a profit within the next 5 years, the ministry added.
A major obstacle to the factory's productivity has been a shortage of beetroot, largely due to a pest infestation of the crop in Baghlan over the last few years. As the only shareholder of the factory, the Afghan government will endeavor to resolve the shortage and make the company self-sustained.
"We try to remove the challenges the company faces so that the opportunity for its self-sufficiency is provided. There is no doubt that carrying all the responsibilities of this factory will benefit Afghanistan," said Minister of Agriculture Mohammed Asef Rahimi.
Reconstruction of the Baghlan Sugar Factory started six years ago by the private sectors of Germany and Afghanistan. It had seven initial shareholders, including the Ministry of Agriculture. Three years ago, the four Afghan shareholders gave up their shares, followed by the Germans this year.
Abdulkarim Waziri, the former head of the New Baghlan Sugar Company, says that the company's assets are valued at an estimated $15 million.
"This factory is ready to work. The only problem is shortage of beetroot. If beetroot is provided, it will be capable of good productivity. The factory's infrastructure and systems are ready," said Waziri.