Ethiopia sells off seven state firms, to offer more

March 30th, 2012 Print Print Email Email

* Eyes privatisation of another 40 firms

* Rules out airlines, telecoms and banks

(Reuters) – Ethiopia has accepted bids worth 2.1 billion birr ($121 million) for seven state-owned firms, part of a plan to privatise dozens of corporations in the next three years, it said on Thursday.

The Horn of Africa nation, whose state-dominated economy ranks among the fastest growing in the world, aims to sell around 40 enterprises, including several large farms, a winery and a big hotel.

The Privatisation and Public Enterprise Supervising Agency accepted an 860 million birr bid from MIDROC Ethiopia for one of the country’s biggest farms, Upper Awash Agro-Industry Enterprise, said agency spokesman Wondafrash Asefa.

MIDROC Ethiopia is owned by Saudi-Ethiopian billionaire Mohammed Al Amoudi, who is one of the world’s richest men according to Forbes magazine.

Al Amoudi’s other companies Horizon Plantation PLC, National Mining Corporation and Saudi Star Agricultural Development won bids for four other firms for a combined 463 million birr ($26.7 million), Wondafrash said.

“The enterprises engage in different sectors, including agriculture, beverage, construction, printing, textile and transport. At this time though agriculture enterprises are found to be more attractive than others,” Wondafrash said.

Last year, the government sold its last remaining breweries Bedele, Harar and Meta Abo to Heineken and Diageo for a combined $388.3 million.


Ethiopia expects its gross domestic product to grow by more than 11 percent each year until 2014, while the International Monetary Fund forecasts a growth rate of 7.5 percent this year and 5.5 percent next year.

Like other African nations, Ethiopia has embarked on ambitious infrastructure investment projects to improve its economic competitiveness, including a multi-billion dollar plan to scale up energy generation.

Economic experts say the government could fund the development plans by privatising its five biggest firms. They include Ethiopian Airlines, Ethiopian Shipping Lines, Ethio Telecom, the Ethiopian Insurance Corporation, and the Commercial Bank of Ethiopia.

“Only with a large-scale privatisation program can Ethiopia achieve many of the objectives,” Ethiopia-based research group Access Capital SC said in an economic outlook report.

A sale of the five firms could generate $7.7 billion, the group said, while the privatisation of some 81 other state corporations could rake in another $9.6 billion.

Prime Minister Meles Zenawi has repeatedly ruled out privatisation of the banking and telecommunications sectors, despite pressure from Western donors to do so.

“Several strategic enterprises in different sections will remain in government hands, such as Ethiopian Shipping Lines and another 11 enterprises. They could be privatised once their strategic importance diminishes” Wondafrash said.

  1. | #1

    The woyane have now completely exhausted the country’s resources and they have realised that running companies is not as simple as tauting a gun at people. By selling off state assets which belong to the Ethiopian people to their friend Alamoudin the woyane are totallly dismantling the economic infrastructure and selling it off to people who have no interest in the survival of Ethiopia

  2. Anonymous
    | #2

    ወያነዎች ኪሳቸውን በኢትዮፕያ ህዝብ ገንዝብ እየሞሉ ነው

  3. anon
    | #3

    The lie machine of the woyane has been fabricating stories of ‘economic miracle’ in Ethiopia for decades. Those who provide funding to the woyane to feed the starving people have also been trumpeting the woyane lie propaganda without shame or remorse.

    If there is such an economic growth the woyane perennial liars talk about, why is that most people in Ethiopia could not meet their daily needs? why is there so much shortage of food that it has become unaffordable with the wages people are paid? why are so many people, especially the young people without any jobs.

    the woyane liars can repeat their lies year after year. what we are witnessing on the ground is a society that is getting poorer year after year without break. life has become so miserable that 1000s of people are prefering to flee the country and seek refugee in other countries.

    many die on their way hoping to find a better life elsewhere, in the deserts of sudan, libya, yemen and sinai.

    poor People making hand to mouth existence are being uprooted and evicted from their homes and villages in their own country to make them suffer deliberately and to destroy their lives. this is the reality in Ethiopia.

  4. amare
    | #4

    even though I don’t support the current ruling government, I support the idea of privatization because the thous companies in hand of government are very bureaucracy , no progress in production and others

  5. kefagn
    | #5

    Woyane sells and sells. Who benefits from the proceeds? The Ethiopian people or the money will smuggled out for deposit in foreign banks?

  6. ቢከፋህ ቢከረፋህ ምን ታመጣለህ?
    | #6

    ግሪክም ጣሊያንም ስፔይንም እንዲሁ ነው
    ጩሀት ብቻ!!!

  7. Anonymous
    | #7

    part of the weyane plan to deconstruct and dismantle Ethiopia. all of them are sold to weyanes under the umbrella of Chinese firms. i wish death to all weyanes. all the disease ridden weyanes will die before they see their dream come true. Ethiopia will live forever. the devil is better than weyanes.

  8. wo!w
    | #8

    Welcome to neocolonialism and neoliberalism. We are an inch away from being Banana Republic. I am sure those who support privatization in the world will be very happy and more funding of military to kill Ethiopians will be given to TPLF/Meles as a gift

  9. wo!w
    | #9

    I am sure Weyane is doing so much damage because they are laughing their head off and saying ok Ethiopians, you dare us! We know we are just commenting insults here and we have no power to do anything.

  10. Girmay
    | #10

    I do not see any negative thing on this news. It says some part Ethiopia resource will be sold in order to build another big resource within Ethiopia.So why do some people eye turn to red when they see positive news about Ethiopia.

  11. ቢከፋህ ቢከረፋህ ምን ታመጣለህ?
    | #11

    ፕሮፌሰሩም ዛሉ ሲሉ ተበደሉ
    ዶ/ሩም አተቱ ሲሉ ተበደሉ
    ምሁሩም ለፈፉ ሲሉ ተበደሉ
    ዲያስፖራውም ጮሁ ሲሉ ተበደሉ
    ምነው ተበዳዮች ለምን ዝም ይላሉ?

    ልጄን ላስድግ ነው ይሁን የፈለገው?
    ቤቴን እስራለሁ ነው ቢሆን የፈለገው?
    ያረረበት ያማስል ነው እሱም በተራው?

    ወይስ ግራ ገባው
    አጣ የሚያምነው?

    ወይስ ሁሉም ያው ነው
    ክቶ ምን ሊለውጥ ነው?

    እንካንስ እኛና ኢሮፕም ታምሳል
    ግሩኩ ጣሊያኑ ስፔይኑም ተዎርኣል
    መሪዎቹን አጥቶ ሲታዘዝ ዝም ብሎአል?
    ወይስ ኑሮ ካሉት መቃብር ይሞቃል?

    ያሻሁትን በሉኝ ዕምነት የጠፋው
    በራስ ይሁን በአገር በፈጣሪ እንበለው
    ይህንን የሚያክም ሐኪም ነው የጠፋው?

    አገሩን ብንለቀው
    ወንዙን ብንገድበው
    ምሁርነት ካባ ብንላበሰውም
    በሌሎቹ ቃንቃ ርቱዕ ብንሆንም
    አርባ ታቦት ገዳም መስጊድ ብንገነባም

    ያጣነው ዕምነት ነው በራስ መተማመን
    ያጣነው መታመን ነው በራሳችን ወገን!!!!

  12. aha!
    | #12

    Since the exploitation, political, economic and political strangle hold of the country’s resources is undertaken by TPLF and TPLF affiliated enterprises and foreign corporations, these privatization of what ever number of firms less those which the”Ethiopia’s Prime Minsiter Meles Zenawi says that “country not ready to liberalise key sectors yet”, according to Evelyn Njoronge, is nothing more than transfer of the firms from TPLF to TPLF affiliated enterprises who have access to capital over the last 21 years.

  13. yebbo
    | #13

    This is another shrade by TPLF politbureau. all the TPLF are doing is transfering their loot from EFFORT to Alamoudin. Monasteries, graveyards and forest land is being burned down and bulldozed to be sold to arabs, chinese , indians, etc. Tplf/Alamoudin are working hand and glove to put everything that they have not so far managed to own into their control.

    They have total ownership over the land and the people. They are selling our young women and men to arabs, in a modern day slavery, and they are destroying the Ethiopian landscape making it barren and unproductive by destroying the forests, and polluting the watercourse and the land with huge doses of insecticides and fertilizer, by introducing genetically modified seeds foreign to Ethiopia.

    God save Ethiopia

  14. Anonymous
    | #14

    @ቢከፋህ ቢከረፋህ ምን ታመጣለህ?
    I do not see negative because you are part of the system and, this economic jenocide benefit your tigre tribe. Prepare to face your grave in the coming months.

  15. aha!
    | #15

    Yebbo, you got it right, the silent majority of Ethiopians are denied free market capitalism, deomocracy and individual freedom, liberty and equality are hindered because of set up of the government as ethnic federalism, secessionism and totaliarinism, and the precedence of ethnic rights, secessionist rights, having precedence over individual rights and to which the political models of TPLF/eprdf and OPDF/EFDF/fdre are holding onto with the support direct or indirect by the teletafi parties and loyalist opposition parties with ethnic agenda governed under a division of the country’s resources by ethnic groups. Added to that the exploitaiton, economic, political strong hold and devastaion of the natural resources of the country along with the disintegration, rather than integration of Ethiopia as one nation, one flag, one language and one religion, where Ethiopia land mass belongs to individuals of all denomination, and all ethnic groups, residing in the original 14 provinces not seven ethnic regions/Killil Mengistats. Having done that no one individual expedited nor persecuted from these provinces based on ones ethnic origin, because the provinces with their assorted ethnic groups, nor the government nor the states have any inclination to ethnic cleansing but leave harmoneously together in a cooperative and competitive manner in a free maket capitalism and democracy available to all Ethiopians, through the the ratified constitution free of ethnic and secessionist politics and/or policies as well as exploitation, economic, political straglehold of the countries resources by TPLF and TPLF affiliated enteprises and foreign corporations.

  16. Aba Guda
    | #16

    Tinmbu Girmay,

    Nobody oppose develpment. The sale of our resource is made at dirt cheap price. The proceed is stashed away from the country to your Facist Ethno Agame’s account overseas.

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