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November 24, 2024

State companies in Ethiopia generate $8.2 billion revenue

State companies in Ethiopia generate $8.2 billion revenue
State companies in Ethiopia generate $8.2 billion revenue

The state enterprises in Ethiopia have generated a total revenue of over 300.5 billion birr (about $8.2 billion) during the budget year of the country concluded July 7, 2020.

The companies have made total profit of 55.6 billion Birr before tax, according to Beyene Gebremeskel, Director General of Public Enterprises Holding and Administration Agency (PEHAA). Out of the 21 state owned enterprises included in the report, only one has reported loss, according to the Director, who recalled that the number of companies reported loss the previous year were four.



He also indicated that the 21 enterprises including Ethiopian Airlines Group, Commercial Bank of Ethiopia, and Ethio Telecom, have generated $8.6 billion last year. Mr. Beyene stated that all the enterprises have started implementing international financial reporting standards (IFRS). During the financial year the enterprises have managed to payback 15.3 billion birr debt for domestic lenders. In addition, the companies paid some $604 million for foreign lenders.

The Director of the Agency indicated that it has set a target to increase the revenue of the companies by 22 percent next year.
The Director has also indicated that the 21 state enterprises have contributed some 1.2 billion birr last year as corporate social responsibility supporting various community and development projects.

In a related development, the Agency indicated that it will announce bid this year to sell eleven of the 21 state enterprises. The state enterprises are engaged in finance, aviation, manufacturing, agriculture, hotel and transport sectors.


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