The Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund, has begun a wide-ranging leadership and governance overhaul across its portfolio of state-owned enterprises, marking a shift away from long-standing public sector management practices toward a more commercially driven model.

The reform agenda, led by EIH Chief Executive Officer Brook Taye, focuses on reshaping boards and executive management to meet higher corporate governance standards and improve financial performance. The effort is anchored in Ethiopia’s Public Enterprises Proclamation, which requires one-third of board members in state-owned enterprises to be qualified independent directors. EIH is enforcing this requirement by adopting an active ownership approach rather than the traditionally passive oversight model.

EIH directly supervises 41 strategic enterprises grouped into nine clusters, including major national institutions such as Commercial Bank of Ethiopia, Ethiopian Electric Power, Ethio Telecom, and Ethiopian Shipping and Logistics. Companies that fall short of performance benchmarks during evaluations are subject to leadership changes aimed at restoring efficiency and accountability.

So far, the restructuring has led to the appointment of 70 new board members, including eight board chairs, while 41 board members, eight chairs, and six chief executives have been replaced. A notable policy change limits senior government officials to serving on only one public enterprise board, with appointments now guided primarily by sector-specific expertise.

EIH views Ethiopian Airlines Group as a benchmark for effective governance and profitability, seeking to replicate its leadership standards across the broader portfolio. With a mandate to strengthen commercial decision-making and long-term sustainability, EIH is positioning itself as a central driver of Ethiopia’s ongoing public enterprise and economic reforms.

Source: Capital Ethiopia Newspaper