Ethiopian Finance Minister Speaks On Privatization Plans

Ethiopia’s Minister of Finance Ahmed Shide has indicated that the government is preparing to privatize some state-owned entities such as Ethio Telecom, which serves more than 41 million customers.

Explaining the decision Shide stated, "In the past, we have been actively involved in the economic affairs, but now we are rebalancing. We need to facilitate the sustainability of growth. We will first privatize four sectors: the telecom, aviation, energy and logistics, as well."

Shide said that investors should be attracted by the growing market potential, as well as planned reforms and measures the government is planning to improve laws, procedures and customs in support of a more competitive business environment. Despite having one of the fastest growing economies in the world, Ethiopia ranks 167 out of 190 in the World Bank’s Ease of Doing Business rankings.

The government initially announced plans to gradually privatize some state-owned enterprises last year, appointing a 21-member advisory council to lead the process.