Ethiopia’s Minister for Finance and Economic Cooperation (MoFEC), Abraham Tekeste, disclosed the country intends to offer for the private sector shares in its road-building and maintenance projects.

Ethiopia is said to have 113,000 kilometers (68,000 miles) paved roads. The country aims to take this number to 220,000 kilometers by the end of the second Growth and Transformation Plan period (GTP II), 2019/2020.

"We do not have private-run roads. Through public-private partnerships, the private sector is interested to develop roads," Abraham explained. "Through this arrangement, we could work to share the risks and create an environment whereby the private sector can recoup returns on its investment."

In the aim of liberalizing the sector the government has decided to offer foreign companies a share in the government owned and monopole, Ethiopian Shipping and Logistics Services Enterprise.

According to the Minister Ethiopia’s economy will grow by 11 percent in the just begun fiscal year, up from 8 percent the previous period.
From the entire 320.8 billion Birr budget the House of Peoples’ Representatives approved for the just began fiscal year, around a quarter of it is set to be spent on roads.

"Why do we continue to invest in infrastructure? To make private investment feasible. With no roads, private investment will not be worthwhile," Abraham said.

FDI flow to Ethiopia has been increasing in the last 5 years. According to Abraham Ethiopia took in 3 billion USD in FDI in the last fiscal year and expects the number to rise by the end of the current year.

Source: Reuters