Privatization Plan, PPP Initiative Motivate Foreign and Local Investors: ECCSA

Addis Ababa February 08/2019 Ethiopia's plan to fully or partially privatize state-owned institutions and the Public-Private Partnerships (PPP) initiative have motivated foreign companies to invest in the country, according to Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA).

ECCSA Deputy Secretary-General, Wubie Mengistu told ENA that the desire of foreign investors to invest in the country has been increasing following the ongoing reform in Ethiopia, particularly the economic related decisions.

“We have been receiving about 24 calls on average from different countries in a month through the Ministry of Foreign Affairs only, apart from calls from embassies and other institutions,” Wubie revealed.

The country’s stability, the recent decision of the government to privatize, and the legal frameworks on PPP initiative are the major causes of the excitement on the part of the foreign companies, it was learned.

The Public-Private Partnerships (PPP) initiative has in particular inspired both local and international companies targeted by the government to fill financial deficiency, according to Wubie.

The first step in this whole process is the PPP proclamation in January 2018. The government has subsequently been focusing on creating legal and regulatory environment for public-private participation.

Six mega solar projects that cost about 800 million USD will be built by the Public-Private Partnerships (PPP) which makes the initiative all the more attractive.

Ministry of Trade and Industry Export Promotion Director-General, Assefa Mulugeta said the new economic reform should be applied as soon as possible to bring the desired changes.

“The process may take its own time, but efforts should be exerted to realize those objectives. This activity creates the chance to attract both local and foreign investors and companies,” he added.

Prime Minister Abiy Ahmed has recently stressed that he would take measures that help to create economic stability, which includes privatization of state-owned institutions.

An Advisory Council that will oversee the process of privatizing large state-owned enterprises to ensure transparency and accountability was established in August, 2018.