 CHANGING THE HAND - PRIVATIZATION |
The Privatization Agency, which was established in February 1994, has prepared conducive conditions and started to put up state owned enterprises for sale, beginning January 1995. When Mr. Beshah Azmite, General Manager of The Ethiopian Privatization Agency, clarifies the progress of the agency, he says, "During the 4 years of privatization, we have succeeded in divesting some 178 units. Of course this includes about 127 or 128 small businesses, which are largely engaged in real trade business."
The Agency has been tardy in the discharge of its duties. The pace of privatization is bound to be slowed by a range of intractable technical problems involved quite apart from the question of commitment.
| To speed up the privatization process a helping hand is needed, and it is there. Mr. Beshah Azmite says "We were assisted by the World Bank, which provides us around 500,000 dollar. With that fund, we engaged consultants, so that they could study the whole privatization program. The aim was to speed up the process, and as in one of the recommendations, it was to strengthen the capacity of the Agency."
The Privatization Agency is presently preparing to sell 73.6 percent of the total state-owned enterprises during the next three years.
The Ethiopian government showed deep devotion to ensure the pivotal role to be played by the private capital. There are no quantitative ceilings on private investment and entrepreneurs are allowed to own multiple business which was formerly not allowed.
The Investment Code makes the door of investment burst open to the private sector which formerly was closed. This is so happened because of an inveterate creed that the private sector is the oxygen of a successful economy. |
