Most of Public Enterprises Administered Under Ethiopian Investment Holdings Become Profitable - ENA English
Most of Public Enterprises Administered Under Ethiopian Investment Holdings Become Profitable
Addis Ababa, September 25/2023(ENA):- Most of the public enterprises that are being administered by the Ethiopian Investment Holdings (EIH) have become profitable due to the reform carried out to improve their activities, Deputy CEO disclosed.
The government of Ethiopia has been implementing a home grown economic reform over the past four years with a view to expediting the development of the country by creating conducive business environment.
State owned enterprises are some of the sectors included in the overall reform program of the nation to make them competent and profitable.
In an exclusive interview with ENA, Deputy CEO of Ethiopian Investment Holding, Yasmin Wahbrebi said most of the public enterprises had gone through various difficulties before the reform measures. .
The enterprises were in debt, bankrupted and suffering from complex financial management problems before the implementation of the reform, she added.
However, following the reform, she mentioned that the government decided to help the companies reduce the accumulated debt and improve their financial management in order to make them carry out a profitable business approach.
In this process, the deputy CEO mentioned the establishment of Ethiopian Investment Holdings (EIH), which manages 27 pubic enterprises under one umbrella as part of the reform.
Accordingly, the financial capability of the enterprises have now been enhanced and are being encouraged to engage in other new investment activities, he said pointing out that most of the enterprises have now become profitable.
According to the deputy CEO, the total wealth of the public enterprises administered under the Ethiopia Investment Holding has now reached more than 2.4 trillion birr.
The total income of the enterprises during the concluded Ethiopian budget year was more than 900 billion Birr with a profit of more than 100 billion Birr, she indicated.
Efforts are also being undertaken to help the remaining few enterprises that are currently facing problems so as to enable them play role in the economy of the country.
Ethiopian Investment Holding (EIH) is known to be an institution established by the government to meet Ethiopia's long-term trade and investment needs.
EIH is an institution established by the government to meet Ethiopia's long-term trade and investment needs.
It was established in December 2021 to serve as the strategic investment arm of the government of Ethiopia and to execute the state’s ownership of commercial assets.