Ethiopia suspends planned privatization of Ethiopian Airlines

Image: Kenyan Wallstreet

ETHIOPIA – Ethiopia’s Ministry of Finance has suspended the planned partial privatization of the fully state-owned and Africa’s most profitable aviation group – Ethiopian Airlines.

This was indicated by the Ethiopi’s Minister of Finance Ahmed Shide at a press conference.

 “With the currency efficiency and competitiveness, the plan of the government is to make Ethiopian Airlines stronger. We have decided to delay the partial privatization of Ethiopian Airlines.”  he said.

He indicated that Ethiopian Airlines is a well-managed and profitable state enterprise even during the global COVID-19 pandemic and maintaining the current capacity of Ethiopian Airlines Group is more beneficial to the economy of that country.

Ahmed Shide also mentioned the huge investments Ethiopian Airlines Group has made in expansion of airports, cargo services, hotel and catering services.

Recently Ethiopian Airlines Group announced making profit in the face of COVID-19 pandemic mainly from cargo services by converting about 25 aircrafts into cargo planes.

The plan to partially privatize Ethiopian Airlines Group was announced a few years ago when the country was facing severe shortage of financial liquidity and hard currency.

Similarly, the Minister also indicated that in relation to providing dry port services, the Government of Ethiopia has opened its doors partially for foreign investors and the private sector for the first time to be engaged in the sector.

During the first quarter the current budget year of Ethiopia starting July 8, 2020, the country has earned $499.5 million from export of goods.

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