Dec 8 , 2024
Ethiopia’s sovereign wealth fund has expanded its portfolio, incorporating a number of state-owned enterprises, bringing together 40 companies. Under the Ethiopian Investment Holdings’ (EIH) management, run by Brook Taye (PhD), the newly added enterprises include Ethio Post, Ethio Engineering Group (EEG), Ethiopian Industrial Inputs Development Enterprise (EIIDE), Ethiopian Railway Corporation (ERC), Industrial Parks Development Corporation (IPDC), Development Bank of Ethiopia (DBE), Ethiopian Electric Power (EEP), and National Veterinary Institute & ShieldVax, both subsidiaries of Ethio Pharma Group. Previously managed by the Public Enterprises Holding & Administration, under the Ministry of Finance, these companies operate across critical sectors such as infrastructure, energy, finance, and industrial development. "This integration is integral to Ethiopia’s industrialisation and growth ambitions," said Brook, the third CEO since the Holdings was established in 2021. "Through focused, professional management and active ownership, we aim to elevate these organisations to new heights of performance and innovation.” Brook disclosed that the goal of bringing these companies under EIH’s portfolio is to modernise state-owned enterprises, improve their global competitiveness, and diversifying their activities. EIH's portfolio already includes major entities like the Commercial Bank of Ethiopia (EBC), which underwent a board revamp last month, and Ethio Telecom, which recently offered 10pc of its value for public ownership. The fund also holds a 25pc stake in the Ethiopian Securities Exchange (ESX). EIH has identified five state-owned enterprises for listing on the forthcoming ESX, anticipated to launch in 2025. Among these are ethio telecom, Ethiopian Insurance Corporation (EIC), and Ethiopian Shipping & Logistics Services Enterprise (ESLSE). Its subsidiaries generated nearly 250 billion Br in total revenues in the first quarter of the 2023/24 fiscal year, claiming to have achieved 80pc of their target. The Ethiopian Airlines Group (EAG), Ethiopian Petroleum Supply Enterprise (EPSE), and the CBE contributed 73pc of the total revenues, which yielded a reported 36.5 billion Br in gross profit last year. Close to 80pc of this profit was derived from the Ethiopian Airlines and the ethio telecom. However, three enterprises — Ethiopian Mineral Corporation (EMC), Ethiopian Pulp & Paper Factory (EPPF), and Ethiopian Sugar Industry Group (ESIG) — continued to incur losses during this period. Editor's Note: This article was updated from its original form on December 9, 2024.
Loading your updates...