The Ethiopian Privatization and Public Enterprises Supervising Agency earned 6.7 billion birr in revenue in the last fiscal year which showed an increase of 5.7 billion birr from the 1 billion birr projected for the enterprise.
A significant percentage of the revenue raised by PPESA, estimated at 6.18 billion birr, was raised from the auction of public companies up for privatization. Payments deferred from transactions made in previous years accounted for 464 million birr while 50 million birr was raised from transfer differences, fines and other sources of revenue.
The Agency also earned 8.7 million birr from lease sources.
PPESA has projected 71.6 million US dollars in earnings from exports by the various public enterprises that are managed under the agency but was only able to raise 28.4 million US dollars totaling to just 40% of the target revenue.The agency was able to approve offers for 10 publicly owned companies that were amongst the 25 slotted for privatization in the past fiscal year and was able to transfer three to the new owners with down payments completed.
Most notable of the three companies was the 125 million US dollars acquisition of Meta Brewery by Diageo while the Addis Ras Hotel was privatized to Ayat Real Estate for 124.4 million birr and Kalitiy Metal Products Factor went to Tsehay Industrial SC for 555.5 million birr.
It is to be remembered that PPESA put up Ghion Hotel, Awash Winery, Coffee Technology Development, Construction Work, Batu Construction and Limu Coffee Plantation Development Enterprise and various other buildings under the different enterprises as part of its last auction for the just completed fiscal year.
Source: Addis Fortune
