Dec 12 , 2023
Ethiopian Investment Holdings (EIH), has garnered 250 billion Br in revenues, where three of its 26 companies contributed a third of the figure. National carrier Ethiopian Airlines, the Commercial Bank of Ethiopia (CBE) and the Ethiopian Petroleum Supply Enterprise (EPSE) contributed around 76pc of the revenues for the country's sovereign wealth fund, in the first quarter of the year. Last year, EIH amassed 924 billion Br in revenues and 114 billion Br in profits with a margin of 12.4pc and 90pc coming from five companies. CEO Abdurahman Eid-Tahir presented the first quarter report to the parliament's Standing Committee on Public Enterprise Affairs last week. He revealed that only three of the companies under his oversight (Ethiopian Mineral Corporation, Ethiopian Sugar Corporation and the Ethiopian Pulp & Paper Enterprise ) registered losses, while the Holdings amassed 35.5 billion Br profits. The CEO suggested that public-serving companies like Ethiopian Electric Utility (EEU) are not expected to make significant profits as long as they provide sufficient services to customers. "EEU needs support from other stakeholders," he stated Abdurahim was pleased with Ethiotelecom's performance, maintaining an impressive 45pc profit margin for most of its services, while he forecasted Ethiopian Airlines as the company with the most promising growth trajectory. "A new airport is necessary," he commented. Ethiopian Shipping & Logistics (ESL), which has a monopoly on the country's logistics sector, grew unsurprisingly while it remains plagued by a ballooning receivables account of eight billion Birr. A five-year strategic plan to enshrine reforms and realise sustained growth for the companies is underway, according to the Abdurahim, who revealed that five companies have been slated for registration at the budding Ethiopian Securities Exchange (ESX).
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