Ethiopia Plans to Offer Firms Shares in Road Projects – Finance Minister

Ethiopia Plans to Offer Firms Shares in Road Projects – Finance Minister Abraham Tekeste

Abraham Tekeste of MoFED said the government expected gross domestic product to grow 11 percent in the 2016/17 fiscal year, up from 8 percent the previous period.

ADDIS ABABA―Ethiopia plans to offer shares in its road-building and maintenance projects to private investors, its Finance and Economic Development (MoFED) said on Tuesday, the latest step to open up and modernize the state-led economy.

The Horn of Africa country has over 113,000 kilometers (68,0000 miles) of paved roads and plans to increase that to 220,000 kilometers by 2019/20, official data showed.

“We do not have private-run roads. Through public-private partnerships, the private sector is interested to develop roads,” Minister of Finance and Economic Development (MoFED) Abraham Tekeste told Reuters in an interview.

“Through this arrangement, we could work to share the risks and create an environment whereby the private sector can recoup returns on its investment.”

The move to partly liberalize the sector follows Ethiopia’s decision to offer foreign companies stakes in the government-operated Ethiopian Shipping and Logistics Services Enterprise early this year and its energy sector in 2013.

Ethiopia is one of the fastest-growing economies in Africa, but the expansion has mainly been fueled by huge public investment. The spending has gone into roads, schools, new highways and dams for hydroelectric power.

It opened an electrified railway linking the landlocked nation to a port in neighboring Djibouti this year.

Mr. Abraham Tekeste said the government expected gross domestic product to grow 11 percent in the 2016/17 fiscal year, up from 8 percent the previous period.

Tagged as:

Business, Abraham Tekeste

RELATED CATEGORYMore

220 Views Comments

Louvres Hotel Group,Signed Its 3rd Hotel In Ethiopia

Louvres Hotel Group, number one hotel group in East Africa, signed its 3rd hotel in Ethiopia, pursuing the expansion of an ambitious network covering sub-Saharan

312 Views Comments

Is Safaricom Entering the Ethiopian Market?

Safaricom has denied reports of the company entering into the Ethiopian market. The Kenyan telco had been said to be gearing up for its first venture

236 Views Comments

Ethiopian Airlines Digitalized All Business Processes

Flying even more greener; Ethiopian Airlines Group, the largest airline in Africa, is pleased to announce that it has fully digitalized all its business processes