The Ministry of Finance is to hire a consultant to carry out a strategic assessment on three state-owned enterprises (SOEs) its officials believe are "underperforming". It is part of a project designed to overhaul the performance of state-owned enterprises, funded by Agence Française de Développement (ADF).

The Ethiopian Mineral, Petroleum & Biofuel Corporation, the Ethiopian Tourist Trading Enterprise, and the Ethiopian Postal Services Enterprise (Ethiopost) were selected out of a pool of state enterprises believed to be performing poorly but with promising prospects, according to Hinjat Shamil, technical advisor for economic reform at the Finance Ministry. The initiative aspires to clear up the portfolios of the 44 state-owned enterprises progressively, Hinjat disclosed.

In June 2019, the federal government and ADF had signed an agreement for 85 million euros in loans and 15 million euros in grant disbursements. Over the past two years, the Fund has disbursed around 100 million dollars. ADF supports 4,000 projects in 115 countries, including a dozen in Ethiopia.

The project is implemented jointly by the Public Enterprise Holding & Administration (PEHA) and the Ministry of Finance. The money is extended to support public-private partnership initiatives, facilitate economic reform, and boost state-owned enterprises.

The Ethiopian Mineral, Petroleum & Biofuel Corporation was established to fill gaps in investment in the mining, petroleum and biofuel industries. Under the management of Mulugeta Damtew, the chief executive officer (CEO) since its incorporation in 2015 with a paid-up capital of four billion Birr, it recorded a 41.2 million Br loss over the first half this year. Mulugeta, who studied applied development at the University of Reading in the UK, held various government positions, including as a state minister for Culture & Tourism.

The Ethiopian Tourist Trading Enterprise (ETTE) is one of the oldest public companies. Established in 1964, it provides duty-free goods and duty-paid merchandising, handicrafts and souvenir production. Its Director-General, Asefa Guya has been serving the company for over two decades and sat on the boards of various institutions such as Addis International Bank and the Addis Abeba Chamber of Commerce.

The 128-year-old state-run Postal Service Enterprise, which was re-established as a public enterprise in 2009, reported gross profits amounting to 88 million Br last year. Running nearly 900 mail outlets, it reported losses of 34.4 million Br the previous year. In the first half of this year, it has made a 75 million Br profit. Hanna Arayaselassie, formerly a deputy head of the Ethiopian Investment Commission and a senior expert at the Office of the Prime Minister, has been heading the Enterprise since 2020.

PEHA has also hired a consultant to conduct a strategic assessment of five other state-owned enterprises as part of the overhaul programme, including Berhanena Selam Printing Enterprise, the Chemical Industries Corporation, the Ethiopian Pulp & Paper Factory, the Ethiopian Business Trading Corporation, and the Ethiopian Construction Works Corporation.

The Administration categorises the 36 public enterprises it supervises into commercial and good performers, with potential but require help, and operating with the lofty national development mission. The five enterprises selected fall under the second category, according to Aderajew Shumete (PhD), head of the ADF technical assistance programme for economic reforms.

Last month, the Authority signed an agreement with MTI Consulting to complete the assessment for over 13 million Br, in six months. A launch meeting has been conducted, and the consultant will begin work in the coming weeks, according to Aderajew.