Law of public enterprises and cooperatives law ethiopia. A governmentowned corporation is a legal entity that undertakes commercial activities on behalf of an owner government. Capacity utilization before and postprivatization for ethiopia hotel enterprise. Public sector investment increased only marginally from 6. Public enterprises as a form of business organisation have gained importance only in recent times. Hanson rightly observes that, public enterprise without a. Public enterprises holding and administration agency. Whereas as long a public enterprises have to stay under government control, it is necessary to create an organizational structure whereby they can enjoy management autonomy and thus. The brain behind every successful small and medium scale enterprise. The completion report cr of the ethiopia 2011 2015 csp, endorsed by the boards committee on. The concept and characteristics of public enterprises in ethiopia. Ethiopia, international studies program working paper 0838, andrew young school of policy studies alefe abeje belay 2014, system of division of revenue in ethiopia, european scientific journal d.
A study of entrepreneurs in tigray region by mesfin seyoum kebede submitted in accordance with the requirements for. Hence over 287 enterprises had transferred from the public to the private sector through the privatization program. Although the importance of public enterprises pes in the ethiopian economy. Public enterprises are autonomous or semiautonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities.
Ethiopia is a country located in the horn of africa. Public private partnership or ppp means a longterm agreement between a contracting authority and a. The creation and growth of state public sector of business is designed as an instrument of social control. The trainings should be separately targeted for those in public interest entities, small and medium enterprises, and the banking and insurance sectors 3 recommendations for the bank as the name indicates the bank is an international bank, therefore for the bank to be more competent internationally it should adopt an internationally accepted. Federal democratic republic of ethiopia proclamation no. The role of internal auditors in private and public. Consequently 87 manufacturing enterprises were nationalised in 1975 and it is estimated that up to 159 enterprises were nationalised under the derg regime selvam, 2007.
Privatization of public enterprises or stateowned business entities has been greatly acclaimed as one of free market ideas and a sort of democratic rule on equitable distribution of wealth. According to the new economic policy of the transitional government of ethiopia. Section two describes the macroeconomic environment in ethiopia, while section three looks at the economic reform and. Privatization of stateowned enterprises soes has been a centerpiece of these reforms, reducing the states role in the economy and alleviating already strained public budgets. The production system ranges from home gardening, smallholder farming to commercial farms owned both by public parastatal and private enterprises aklilu, 2000. Some 70% of ethiopia s public investment has had a propoor focus, with particular emphasis on infrastructure and commercial agriculture. Whereas the transitional government of ethiopia has adopted a new economic policy and it has become necessary to take successive measures for the implementation of this policy. Astudy of the entrepreneurs in tigray region is my own work and that all the sources that i have used or quoted have been indicated and acknowledged by means of complete references. Regulationfederal government of ethiopia 1996, the ministry of finance and economic developmentsmofed ia manual mofed 2004, and privatization and public enterprises supervisory agencyppesaregulations privatization and public enterprises supervisory agency 2004, 2005. For a developing country public enterprises have become a key factor for the planned and balanced growth. Public entity means a public body or a public enterprise. This is partly due to the huge cost of investment and the fact that the returns. In 1992 the government of ethiopia goe embarked on a comprehensive and.
The concept of transition of the public enterprises to share companies in ethiopia is evolved from article 5 of the proclamation no. The public enterprise alternative presents to the government a massive mechanism to exert sustainable influence on the national economy. Public enterprises are financed out of public money. On privatization of public enterprises in ethiopia. Doc the general concept of auditing in ethiopia by kasahun.
Coming off a decade of doubledigit growth, fueled primarily by public infrastructure projects funded through debt, the government of ethiopia goe has tightened its belt, reducing inefficient government expenditures and attempting to get its accounts in order at bloated stateowned enterprises soes. Effect of privatization on selected privatized public enterprises. By 20, total investment by the public sector reached 33% of gdp, as compared to 22. Electric power, there are also stateowned enterprise working. Ese ethiopia seed enterprise et ethiopian television etc ethiopian tourism commission. Doc the general concept of auditing in ethiopia by.
The role of public enterprises in ethiopia is manifested in the quantum of capital. Public enterprise is a business organization wholly or partly owned by the state and controlled through a. Since 2006, ghli has worked closely with the ethiopian ministry of health to support their ambitious vision for improved management, leadership, and organizational performance at all levels of the health sector, including hospital and primary health care settings, as well as district, zonal, and regional health offices. In this issue of our legal update, we share with our readers how the ethiopian governments recent policy drive to privatize key stateowned enterprises, referred to in the ethiopian legal regime as public enterprises pes, may be implemented legally and the broad regulatory issues that may need to be considered. Ethiopia is a late starter in terms of privatisation in africa nellis, 2003. Ethiopia is one of the many countries in subsaharan africa attempting to privatize various stateowned enterprises since 1994. Public enterprise means an enterprise federal government federal democratic republic of ethiopia. According to the imf, ethiopia was one of the fastest growing economies in the world, registering over 10% economic growth from 2004 through 2009. Government also passed a privatization policy during ndp 8, which resulted in the creation of the public enterprises evaluation and privatization agency peepa. All the activities undertaken by the ethiopian privatization agency are therefore part and parcel of the reform measures. Whereas as long a public enterprises have to stay under government control, it is necessary to. Scale enterprises visavis roles played by the government and financial institutions in achieving. As a result of these changes, international public accounting firms, i. During twentieth century various governments started participating in industrial and commercial.
Privatization and deregulation in ethiopian industry jstor. Prospects of public private partnership ppp in ethiopia. With the signing of the peace agreement between ethiopia and eritrea in december 2000, effectively ending the twoyear conflict between th e neighbouring countries, there is a renewed hope that ethiopia will regain the economic growth momentum that it experienced in the post 1992 liberalization period. Challenges and prospects of small enterprises in ethiopia. Nevertheless, other pes targeted for privatization falling under the jurisdiction of the min. Ethiopian government attempts to monitor informal value transfer networks within the country and has closed a. The objective of the policy is to enhance and improve the efficiency of public enterprises. In the last six years, the sale of such enterprises has expanded rapidly.
Public enterprises holdings and administration agency p. However, public enterprises are expected to generate surplus in course of time. The regulation of public enterprises in ethiopia dullah omar. This is a list of governmentowned companies of ethiopia. During 198893, sixtynine developing country governments sold almost 2,300 enterprises. The urban population in ethiopia is increasing rapidly.
The concept and characteristics of public enterprises. The first part examines the emergence of privatization as a doctrine at the levels of theory and praxis. Across lowincome countries in subsaharan africa, the public investment rate is just 22. Regulationfederal government of ethiopia 1996, the ministry of finance and economic developmentsmofed ia manual mofed 2004, and privatization and public enterprises supervisory agencyppesaregulations privatization and public enterprises. The role of public enterprises in ethiopia is manifested in the quantum of capital they command and the magnitude of the economys dependence on such enterprises. Axum agricultural research center, tigray agricultural research institute, p. Privatizing public enterprises and foreign investment in. The legal status of stateowned share companies in ethiopia. Since ethiopia embarked on the road to liberalization and a market economy in the 1991, the privatization of stateowned enterprise has become an important element of the nationwide reform program. Ethiopia, by the ethiopian investment authority eia and the ethiopian commission on science. Public enterprises and their management, in new york during 2728 october 2005, the division for public administration and development management dpadm of the united nations department of economic and social affairs undesa attempted to advance the debate on the subject further and articulate more clearly the needs and options of public.
Achievements and challenges, public policy and administration research. Public enterprises and suggests measures for improving their efficiency. List of governmentowned companies of ethiopia wikipedia. The primary aim of a public enterprise is to render service to the society at large. Public enterprises in ethiopia african journals online. However, illdesigned modes of privatization, particularly, article 5 of the proclamation no. The second part critically examines why public enterprises were created and highlights some of the problems associated with their. Introduction vegetable production is an important economic activity in ethiopia. Federal democratic republic of ethiopia federal micro and. Challenges and opportunities of vegetable quality seed. If managed proactively, urban population growth presents a huge opportunity to shift the structure and location of economic activity from rural agriculture to the larger and more diversified urban industrial and service sectors. All the activities undertaken by the ethiopian privatization agency are therefore part and parcel of. Federal democratic republic of ethiopia federal micro and small enterprise development agency womens enterprenuers development project procurement plan femseda ministry of construction and urban development march public disclosure authorized public disclosure authorized public disclosure authorized public disclosure authorized.
Types of public enterprises subsidiary joint stock company. Public enterprises holding and administration agency is a government organization which have responsibility to supervise. Public private partnership or ppp means a longterm agreement between a contracting authority and a private party under which a private party. It is a limited liability company whose shares may be freely sold and traded to the public although a plc may also be privately held, often by another plc, with a minimum share. Financial and accounting problems of public enterprises. Essential services such as electricity, telecommunication, shipping and logistics, transport. The majority of the industrial public enterprises ipes in ethiopia today fell under state ownership as a result of the 1975 nationalizations. The concept and characteristics of public enterprises in. There is no standard definition of a governmentowned corporation goc or stateowned enterprise soe, although the two terms can be used interchangeably.
Public enterprises holding and administration agency home. What state owned enterprises soes or sectors were privatised in ethiopia during the. Hanson rightly observes that, public enterprise without a plan. Public enterprises enterprise ethiopian airlines enterprise legal notice no 791983 the ethiopian airlines corporation establishment regulations regulations no. Short title this regulation may be cited as the ethiopian design and supervision works corporation establishment, council of ministers regulation no. Nevertheless, formation of the audit service corporation asc government of ethiopia 1977 to conduct external audit of public enterprises was an important landmark in the history of. Privatisation of state owned enterprises in ethiopia since 1991. Privatisation of state owned enterprises in ethiopia since. The investment in infrastructure and public service delivery has traditionally been the. Importantly, when the users demand for the required security implementations and assurance, cloud service. The role of public enterprises in ethiopia is manifested in the quantum of capital they command and the magnitude of the economy s dependence on such enterprises. Such a new move was undertaken by the power given to the ethiopian privatization agency hereafter epa, recently substituted by privatization and public enterprises supervising agency hereafter ppesa. Public ownership was deemed necessary for almost all medium and largescale industries.
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