July 18, 2017 - The government of Ethiopia announced that revenue from privatization has grown by 5 folds. By the beginning of the fiscal year, the Ethiopian Ministry of Public Enterprises (MoPE’s) plan was to collect 2.11 billion Birr from privatization; however, according MoPE’s latest report it has earned 12.6 billion Birr during the period. The performance was the highest Ethiopia ever saw.
According to Wondafrash Assefa, public relations head of Ethiopian Ministry of Public Enterprises, the difference in the target and performance was due to the fact that the deals were unpredictable. “They are already under a joint venture bases so we have to give priority to the initial partners for the tobacco industry and Ambo, so it was not included in the projection,” he added.
The highest revenue was generated from the transfer of 2 public enterprises, Girma explained. During the first month of the fiscal year, Ethiopia made the biggest ever privatization deal with Japan Tobacco Inc.
The Japanese firm agreed to pay 510 million USD for the purchase of 40 percent of National Tobacco Enterprise S.C. share holding. It was in few days time that the company made the payment. Other shares are hold by the Ethiopian government and Sheba Ethiopia Investment, a Yemeni firm.
In addition to this, the Ministry signed another privatization deal in December 2016 with a Mauritius company, Ambo International Holding Ltd, for the purchase of the 33 percent share held by the government. The transaction was effected for a sale value of 19.7 million USD.
According to Wondafrash Assefa, public relations head of MoPE, the difference in the target and performance was due to the fact that the deals were unpredictable. “They are already under a joint venture bases so we have to give priority to the initial partners for the tobacco industry and Ambo, so it was not included in the projection,” he added.
Source:- Capital