For so long a closed shop, the Horn of Africa nation on Tuesday invited foreign investors to buy stakes in state-owned telecoms, shipping, power generation and aviation companies, a rare opportunity to access such a large market. The bonanza will extend to railways, sugar mills and industrial parks, with the top brass of the ruling party embarking on long-awaited market reforms.
The move continues a breakneck push led by new Prime Minister Abiy Ahmed, who took office two months ago. As well as green-lighting the liberalisation of state companies, he’s taken steps to reduce the role of the military in the economy, agreed to the terms of a long-disputed peace deal with neighbouring Eritrea, and lifted a state of emergency that followed the snap resignation of his predecessor, Hailemariam Desalegn.
Ethiopian Airlines Enterprise is by far the most successful carrier on the continent, turning a profit and linking almost 70 global cities outside Africa with about 60 across the continent from its hub in Addis Ababa, Ethiopia’s capital. However, unlike fellow state-owned South African Airways, it’s not in desperate need of investment. The airline generates business from Ethiopia’s burgeoning flower-export business as well as from travelers, and plans to buy new regional jets in the next month or so, Chief Executive Officer Tewolde GebreMariam said last month.