Ethiopia has moved 10 state-owned enterprises, including Ethiopian Electric Power and the Development Bank of Ethiopia, under the control of Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund. This decision is intended to improve management efficiency and facilitate financial restructuring.
The companies transferred play a crucial role in Ethiopia’s economy, overseeing infrastructure projects such as the Great Ethiopian Renaissance Dam and the country’s industrial parks. EIH now manages these enterprises alongside 27 others, including Ethiopian Airlines and Ethio Telecom, which are central to the country’s transport and telecommunications sectors.
The Ethiopian government also plans to securitise approximately 846 billion birr in debt held by these companies into 10-year bonds. This is aimed at enhancing their balance sheets and enabling them to attract investment through improved creditworthiness.
Ethiopia is simultaneously developing its first securities exchange, with some enterprises under EIH, such as Ethio Telecom, expected to list shares. This marks a significant step in diversifying Ethiopia’s financial infrastructure and offering new avenues for investment.
The changes are part of a broader programme to modernise the management of public enterprises and streamline their operations, with a focus on leveraging their economic contributions more effectively.
