Ethiopian Investment Holdings plots bigger growth

Ethiopian Investment Holdings, an entity established by the Ethiopian government to attract private investments into the country, is setting its sights on bigger growth and strategic development. Recently joining the African Sovereign Investors Forum, the organization is aiming to enhance its portfolio and open up new opportunities for foreign investors in Ethiopia. In an exclusive interview with CNBC Africa's Julius Bizimungu, CEO Abdurahman Eid Tahir disclosed the meticulous steps being taken to ensure the success of Ethiopian Investment Holdings. Tahir revealed that the organization embarked on a benchmarking exercise to study successful sovereign wealth funds worldwide, such as Temasek in Singapore and Khazanah National in Malaysia, to understand the best practices and strategies to implement locally. Furthermore, Ethiopian Investment Holdings has taken over 27 state-owned enterprises and scrutinized their operations to devise a comprehensive five-year strategic plan aimed at optimizing their performance and profitability. Tahir emphasized that the organization serves as the strategic investment arm of the government and actively engages in negotiations with foreign companies to bolster investment opportunities in various sectors within Ethiopia. One of the key strategies employed by Ethiopian Investment Holdings is to engage in both brownfield and greenfield investments. The former involves inviting foreign companies to invest in existing enterprises to enhance their operations, while the latter focuses on identifying new investment opportunities in strategic sectors crucial for the country's economic growth. By leveraging its assets and capital, Ethiopian Investment Holdings aims to facilitate and de-risk foreign investments in Ethiopia, streamlining bureaucratic processes and maximizing operational efficiency. Tahir highlighted the organization's asset base of approximately 2.4 trillion Ethiopian birr, with a significant portion derived from six major companies like the Commercial Bank of Ethiopia, Ethiopian Airlines, and Ethiotelecom. Notably, Ethiotelecom is undergoing privatization, reflecting the government's strategic shift towards greater private sector involvement to promote efficiency and economic prosperity. Tahir acknowledged the challenges and opportunities presented by Ethiopia's economic liberalization, emphasizing the need for innovation and adaptability to thrive in a more competitive business environment. As Ethiopian Investment Holdings navigates the complex landscape of privatization and strategic investments, the organization remains committed to driving sustainable growth and maximizing returns for both domestic and foreign investors. Looking ahead, Ethiopian Investment Holdings envisions expanding its investment footprint beyond Ethiopia, leveraging its expertise and resources to catalyze economic development across the continent.