Review of privatisation for sustainable growth

Project Active from to Inclusive Growth

As part of the ongoing recent wave of economic reforms designed to revitalise the economy by expanding the role of the private sector, Ethiopia is aggressively pursuing privatisation policies selling varying level of stakes and assets in different state-owned enterprises (SOEs) including power, telecoms, and logistics/transport sectors.

The primary aim of this project is to produce a synthesis report with the aim of informing the public discourse on privatisation in Ethiopia. To do so, the researchers review existing literature in the area of privatisation. Due to the complexity surrounding any privatisation process and the vastness of the existing literature, the researchers draw on various theoretical perspectives. In addition to providing a brief critical discussion on the role of the state, the researchers anchor their discussion on theoretical models that acknowledge the costs (e.g. potential retrenchment of SOE employees) and benefits (e.g. efficiency, welfare gains) of privatisation as a complex set of options.

Privatisation is one of the highest priorities of the current Ethiopian government. This study aims to help the Ethiopian Privatisation Advisory Council to have the relevant knowledge on privatisation particularly on lessons from other countries. The report will provide recommendations on the framework of privatisation, complex regulatory and welfare considerations such as job creation, security of work, and decency of employment in industrial parks, particularly for women. The contents of the report will have impact on the ground by providing insights for members of the Council. Moreover, the researchers anticipate the report will be a useful reference for the executive and legislative branches of the government implementing and/or overseeing the privatisation process.