ASSESSMENTS
Ethiopia Offers Investors a Tantalizing, If Tainted, Promise
Nov 22, 2018 | 10:00 GMT
(THOMAS PETER - POOL/Getty Images)
Highlights
- Addis Ababa will proceed carefully toward the partial privatization of large state-owned enterprises like Ethio Telecom, Ethiopian Airlines and others in 2019.
- Ultimately, the transparency of the process will give investors key insight into the government's intentions regarding privatization.
- Ethiopia's rising economic potential will drive further investment interest from non-Western countries like China and Vietnam.
- Investors' appetites to take on additional risk will depend greatly on whether Ethiopia's recently completed infrastructure projects are perceived as successful.
- Although the partial privatization of state-owned enterprises may spark an uptick in investment, Addis Ababa will need to undertake deeper structural economic reform to improve growth and foster greater internal stability.
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