It is believed that the government is still playing a dominant role in the economy. In fact, as agriculture is the mainstay of the nation’s economy, in which 80 percent of the population relies on it in one way or another, the private sector’s role is insignificant.
Experience indicated that due to various reasons most public enterprises are in efficient and ineffective. During the Derg era when command economy was prevailed private sector was barred even engaging in cottage industries.
At that time, many enterprises were managed by politically appointed personnel who had no a passion to the required profession. As the result, many of them produced below their capacity and others faced bankruptcy. The absence of sense of ownership also further aggravated the situation. Such and other situations forced the government to restructure and privatize public enterprises.
For the last 27 years though the EPRDF regime used to announce that it had intended to privatize public institutions, but the pace was not as it had been expected and some of the privatization activities were carried out in a none transparent manner and even favored politically affiliated business tycoons.
Recently, however, the Minister of Transport Dagmawit Moges announced that the government showed green light to the foreign investors to involve in selected sectors through joint venture with local investors.
Among the sectors opened for the joint venture are transiting goods, agents of shipping lines, local air transport services and trans-regional land transportation services which utilize vehicles with a capacity to carry more than 45 people.
Reacting to this announcement, the renowned economist and business man Kebour Ghenna said that the joint venture can bring new working culture along with technology and innovation; develop capacity of local companies; creates job opportunities and transfer knowledge vital to the nation’s economic growth.
However, Kebour said that the joint venture…