ethiopian soe boss our strategy is reform not privatisation

Ethiopian Soe Boss: Our Strategy Is Reform, Not Privatisation

In August 2024, Brook Taye took on the role of chief executive at Ethiopian Investment Holdings EIH, a key institution tasked with reforming Ethiopia's state-owned enterprises SOEs. EIH, established in 2021, serves as the Ethiopian government's strategic investment arm and manages a portfolio of 40 companies worth tens of billions of dollars. This includes major entities such as the national airline, the state telecoms company, the dominant bank, as well as businesses in sectors like electricity, manufacturing, construction, chemicals, hospitality, and insurance.

Brook, who also contributes to shaping Ethiopia's economic policy, views the state's enterprises as crucial for fostering significant economic development. "We think of ourselves as an entrepreneurial state," he says, reflecting the government's ambition to drive growth through SOEs.

EIH's creation highlights Prime Minister Abiy Ahmeds vision for the countrys future. While his first six years in office were marred by political instability, including a brutal war in the north and widespread rebellions, the current government is now focusing on revitalizing its economic agenda. This shift followed Ethiopias entry into an IMF program in July 2024, alongside efforts to liberalize the economy, such as floating the national currency and allowing foreign competition in sectors like banking. However, Brook clarifies that these changes do not signal a rush towards privatization.