Saturday, July 13, 2024

Public enterprises evaluated for privatization


Valuations and other preparations for the privatization process of major public enterprises is ongoing, Capital learned.
Brook Taye, an adviser at Ministry of Fianace, said that the relevant bodies in specific areas are working on the process of privatizing local enterprises.
He said that placing a value on sugar factories is expected to be finished in the near future. The sugar sector is expected to be the first sector to realize the initiative of privatizing mega public businesses.
Its request for proposal (RFP) has been concluded for some selected factories and about ten companies including local firms have been shortlisted for further steps.
“The valuation work of all 13 sugar factories will be finalized within 40 days. The technical assessment is being undertaken and in the second week of November the public consultation will be held in the specific sector,” Brook said.
“The government is also coming with the sugar policy and regulatory framework or proclamation to manage the sugar business, price and operation in the production process of managing the relationship of industries and out growers,” the advisor added.
Even though the country has a huge potential in the sugar sector it has been importing significant amounts of the sweet to fill the market gap, while new sugar factories are expected to surplus the business which hopes to export sugar eventually.
Brook also said that the initiative with the logistics work has been also finalized and sent for decision to the macroeconomic committee that is chaired by Prime Minister Abiy Ahmed.
The structure recommendation is the main area of focus anticipated from the committee on the logistics sector according to Brook. “We are waiting for the decision of the committee for further process,” the Advisor said.
One of the areas the government decided to open is the logistics sector. Last year the government has allowed foreign actors to invest up to 49 percent on the logistics business. Following the decision some local firms are making deals with foreign business partners.
The government has also working to sell shares in the state logistics and shipping giant, Ethiopian Shipping and Logistics Services Enterprise (ESLSE), which is the only state owned shipping enterprise and sole cross continent shipping enterprises in Africa.
ESLSE is one of the oldest and profitable enterprises in the country, while the logistics sector is criticized by stakeholders by its poor operation, which is one of the challenges on doing business in the country.
The energy sector is also looking in two sides; the debt rearranging and reform of the sector, according to Brook.
“The roadmap will also look at the overall structure of the energy sector, which is mainly the electric sector,” he said.
According to the advisor the work on the industrial park is also ongoing.

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