The National Lottery Service (NLS), a state owned enterprise under the Ethiopian Investment Holdings (EIH), a sovereign wealth fund (SWF), targets to automate its games under the leadership of a new board that was assigned a couple of weeks ago.
The restructuring comes in light of the reorganization process through the ‘powers and duties of the executive organs’ proclamation that was ratified in October 2021, where the Ministry of Revenue (MoR) was set as the regulator but had not fully committed to lead its role.
In the past, the lottery entity had been responsible as a civil service and at the same time was involved in the business operation wing, which had taken a toll on the lottery operator.
However, as per the 2021 proclamation, the regulatory service had been reserved to MoR, which was the higher body for the former Ethiopian National Lottery Administration for the past several years. The lottery service that is currently controlled by NLS was then transferred as a separate enterprise under the Public Enterprises Holding and Administration.
The new enterprise is now part of the EIH as one of the 26 public enterprises selected to be administered under the SWF, which was formed about a year and half ago.
According to Tewodros Neway, Public Relation Head at NLS, the separation of the regulation and the game was significant decision which allowed the NLS to focus on the lottery game portfolio rather than the experience in the past of balancing both operation and the game.
He said that currently the board of directors has been assigned by EIH to overlook the operation it handles that would help enhance the commercialization of services.
Tewodros however declined to give further details about the future strategy when asked by Capital.
“Lottery was not a commercial entity; it was the national lottery administration that was undertaking the regulation and the game. It has just now got through the license as a business body that will be a new environment for it to render its support,” Abdurahman Eid, CEO of EIH, told Capital recently.
The information that Capital secured from sources show that in this new juncture, the body will focus on transforming the games through a digital scheme, an upgrade from the current paper based system.
A year ago, NLS partnered with ethio telecom launching ‘Admas’ digital lottery with the state telecom operator’s mobile money platform, telebirr.
As per sources, NSL is in the process to fully shift to digital based games.
On her latest meeting with media, Frehiwot Tamiru, CEO of ethio telecom, disclosed that her enterprise, which is one of the enterprises under EIH, will be involved on the lottery business aggressively, starting from the current budget year.
As the power sharing proclamation no. 1263/2021indicates, MoR is the responsible body to give a green light for any entities that wants to do any form of lottery business.
However, Capital learnt from sources that the ministry is yet to exercise its power. Due to that NSL is still carrying out the giving of license and permission for those who want to be involved on the activity.
Capital’s effort to get further information from MoR and ethio telecom were however unfruitful.
Under proclamation no. 1263/2021 that was ratified when the newly elected parliament was assigned about 20 months ago, gives power to MoR to issue permit to undertake lottery activity, supervise, suspend and revoke the same; as well as determine the type and specifications of equipment required to perform lottery games; issue permit and supervise the importation of the same; and control illegal lottery activities.