Ethiopia’s privatisation plans go ahead
Ethiopia’s Privatisation and Public Enterprises Supervising Agency (PPESA) sold 18 government owned enterprises in 2009-10, including at least one leather producer. The agency registered a 46% increase in privatisation revenues compared with the previous year. In the 15 years since it was established, PPESA has transferred 287 state-owned enterprises to the private sector.
The firms that were privatised include Ethiopia Leather and Leather Products, Dire Dawa Textile Factory and Nifas Silk Paint Factory. Ethiopia Leather fetched ETB70 million ($5.1 million).
The agency achieved its target of 18 privatisations, although many other firms it attempted to auction did not sell. It had also planned to collect $50 million from leathergoods and textile exports produced by companies it supervises and was just short of its target at $49.9 million.
Privatisation of state-owned enterprises is one of the criteria set by the World Trade Organisation (WTO) for countries who wish to become members. Ethiopia’s initial application to become a member in 2003 was accepted and the country is now in the second stage of accession.
