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Zemedeneh Negatu commented that privatization would be an "excellent opportunity to establish “Addis Abeba Stock Exchange” & list shares (IPO) of all state owned companies to-be privatized."
I agree completely. In fact, seeing how Dr Abiy has been handling things so far, I wouldn't be surprised if that's one of the next announcements :cheers:
 

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Why on earth would Ethiopian Airlines need to be privatized? What value would that bring? It already operates in the competitive global market. It is hugely profitable, so profitability can't be the issue. It is a major foreign currency earner, so foreign currency can't be the issue. What is expected to be gained from it??

I can understand Ethio Telecom and other underperforming domestic corporations that have no local competition being opened up for foreign investment, but the move to sell off shares of Ethiopian Airlines makes absolutely no sense to me.

Also, why not just liberalize the sector rather than selling off shares of these entities?
 

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^^^it could be privatized but the gov may require that shares must be traded only at (the coming) Addis Ababa Stock Exchange. foreigners could have access to the ADBX (maybe the symbol?) but stocks remain local...why not ?
 

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Why on earth would Ethiopian Airlines need to be privatized? What value would that bring? It already operates in the competitive global market. It is hugely profitable, so profitability can't be the issue. It is a major foreign currency earner, so foreign currency can't be the issue. What is expected to be gained from it??

I can understand Ethio Telecom and other underperforming domestic corporations that have no local competition being opened up for foreign investment, but the move to sell off shares of Ethiopian Airlines makes absolutely no sense to me.

Also, why not just liberalize the sector rather than selling off shares of these entities?
I agree 100%. I said the same thing in some other thread. They need to reconsider EAL. They need to open up the aviation sector first and foremost and allow local competing airlines to rise up. They've artificially closed off the skies to Ethiopian investors, and that needs to be remedied.
 

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Why on earth would Ethiopian Airlines need to be privatized? What value would that bring? It already operates in the competitive global market. It is hugely profitable, so profitability can't be the issue. It is a major foreign currency earner, so foreign currency can't be the issue. What is expected to be gained from it??

I can understand Ethio Telecom and other underperforming domestic corporations that have no local competition being opened up for foreign investment, but the move to sell off shares of Ethiopian Airlines makes absolutely no sense to me.

Also, why not just liberalize the sector rather than selling off shares of these entities?
That was what I thought about EAL , previously I said EAL should focus only on the intercontinental routes and a other state or private airlines should be set up to take on all the local and some of the regional routes from EAL, the airlines industry should be open to the private sector . We have various international airports, capable of landing regional jet airliners such as the 737 or the A320, such as Dire Dawa, Baher Dar, Mekele, Jima, JiJiga and others, at the moment all of this big airports are being used many times below their potential, only served by one or two flights a day with turboprop airplanes , this airports can all be hubs to different private or state airlines, for example a lot of passengers travel to and from Sudan, Kenya, South Africa or the Gulf countries from the different regions of Ethiopia, a direct flight from Dre Dawa, Mekele, Jijiga , Baher Dar or Jimma, to Jedda , Dubai, or Beirut, Johannesburg, Nairobi or Khartoum , will be great for hundreds of thousands. I really think they should think about it.
 
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I agree with Hersh, ahbecede, and Fkebede. ET does ot need to be privatised as it is already a near perfect corporation that creates a huge amount of employment and brings in the largest hard currency than any other entity in Ethiopia. It earns more revenue and profit than all other African air carriers combined so why fix something that aint broke. Why sacrifice long term strategic importance for the sake of short term benefits! If anything, the government should liberalize the domestic market to local competitors.

Now, other sectors such as ethio telecom and sugar corporation may actually benefit and prosper in the same way that the hotel industry is doing today as a result of similar steps taken years back. I think Ethiopia also needs to liberalise the retail industry desparately! I say this because I live in Ethiopia and our malls and supermarkets are embarrasing compared to what you find in Kenya and Uganda. I often have to fly to Nairobi to buy cloth and other items that are of decent quality at a decent price.
 

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eh look at the 1 percenter flying to Kenya to shop. We go to merkato like the 99% :lol:
I agree with Hersh, ahbecede, and Fkebede. ET does ot need to be privatised as it us already a near perfect corporation that creates a huge amount of employment and brings in the largest hard currency than any other entity in Ethiopia. Plus it earns more revenue and profit than all other African carriers combined so why fix something that aint broke. Why sacrifice long term strategic importance fir the sake if short term benefits! If anything, the government should liberalize the domestic market to local competitors.

Now, other sectors such as ethio telecom and sugar corporation may actually benefit in prosper in the same way that the hotel industry is doing today as a result of similar steps taken years back. I think Ethiopia also needs to liberalise the retail industry desparately! I say this because I live in Ethiopia and our malls and supermarkets are embarrasing compared to what you find in Kenya and Uganda. I often have to fly to Nairobi to buy cloth and other items that are of decent quality at a decent price.
 

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eh look at the 1 percenter flying to Kenya to shop. We go to merkato like the 99% :lol:
Do you wear a size 12 and above in shoes and 2xl shirts? If so, then you'd be going to Nairobi too cause you will not find anything that fits you in Ethiopia! Plus they only have cheap Chinese clothes in Ethiopia while you find the same quality stuff in Kenya as you don in America.

Sorry but its pure fact! Addis has a lot of malls that are full of nothing but junk! I say this out of frustration only.
 

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እኛ ሽሮ እየበላን እንዴት size 12 እንደርሳለን? ቦርጫችን እዛ ለመድረስ በሕልም እንኩዋን አልቻለም:)

I feel you on the quality stuff. I went to the wow home store and I came out crying. It's impossible to renovate or build a decent house. unfortunately, mediocrity rules.

Do you wear a size 12 and above in shoes and 2xl shirts? If so, then you'd be going to Nairobi too cause you will not find anything that fits you in Ethiopia! Plus they only have cheap Chinese clothes in Ethiopia while you find the same quality stuff in Kenya as you don in America.

Sorry but its pure fact! Addis has a lot of malls that are full of nothing but junk! I say this out of frustration only.
 

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Do you wear a size 12 and above in shoes and 2xl shirts? If so, then you'd be going to Nairobi too cause you will not find anything that fits you in Ethiopia! Plus they only have cheap Chinese clothes in Ethiopia while you find the same quality stuff in Kenya as you don in America.

Sorry but its pure fact! Addis has a lot of malls that are full of nothing but junk! I say this out of frustration only.
Sky never mind what Gonte says, you are many times modest, compered to those who fly to Dubai and Istanbul to shop,:lol: plus you are doing your part for inter-Africa travel and commerce , which is what we need to see more and more, so kudos to you man. You are right about our so called shopping malls and boutiques, it is hard to find what you want or size, but they also try to rip you off whenever you want to buy something, one thing we have in good quality and good price though, is leather products, I would not buy leather products anywhere else but Ethiopia.
 

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Let's face it, clothes sold in Ethiopia are really shitty. Hopefully this trend of privatization will allow outside retailers into the country; I for one would love a Zara and/or H&M in Bole :lol:

I don't think shopping in Dubai or Nairobi for clothes is that crazy imo, a lot of people go anyway to conduct business or vacation, so might as well take advantage of a nice day at the mall
 

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For furniture, I recommend IMD in Olympia (that's the location I know). They have simple, stylish, locally-made furniture. They have good customer service as well. We ordered from them and were overall happy. Their showroom in Olympia was beautiful.
http://imdinteriors.com

Pics of showroom from Facebook:








You can also check out Sini, who locally produce Scandinavian-style simple stuff, but it wasn't of high enough quality at the time I visited (2013 or 2014). It might be different now. http://www.sinifurniture.com/

We opted to have locally-made stuff because the imported stuff was awful (as said above by Gonte). Just the disgusting ye Arab bilichlich BS everywhere. In fact, we met the owner/designer of IMD and she said she started her firm (she's a former US diaspora) precisely for the same reasons. Plus I wanted to support local manufacturing so it worked out well.

For clothes, I haven't shopped in Ethiopia in forever, so I have no recommendations. However, back in the day there were lots of boutiques that imported European clothes (including Turkish). Are those not an option anymore? Merkato is full of Chinese stuff though. I really hope to see a rise in locally-made clothes retailers.
 

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Sky never mind what Gonte says, you are many times modest, compered to those who fly to Dubai and Istanbul to shop,:lol: plus you are doing your part for inter-Africa travel and commerce , which is what we need to see more and more, so kudos to you man. You are right about our so called shopping malls and boutiques, it is hard to find what you want or size, but they also try to rip you off whenever you want to buy something, one thing we have in good quality and good price though, is leather products, I would not buy leather products anywhere else but Ethiopia.
Its only $200 for a round trip ticket to Kenya (sometimes less). A lot of folks in Addis will spend more than that on a night out.
 

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Ethio-telecom and the rise of start-ups

Word that Ethiopia’s prime minister Abiy Ahmed is looking to loosen his country’s tight grip on strategic assets like its fast-growing airline and its long-term telecom monopoly has sparked interest from international investors and regional corporations.

It’s easy to see why: Ethiopia, with a population of 100 million, has had one of the world’s fastest-growing economies for the past decade. It’s also had a successful top-down implementation of various infrastructure initiatives in transportation and construction.

Still, Ethiopia’s also been called a “sleeping giant” because of its closed markets. Decades after last socialist government, it still has a heavily regulated business environment. Things were changing even before Abiy’s appointment and as the country’s tense politics led to a state of emergency after ethnic-led protests and fatal clashes with security forces.

Where the startup scene is blossoming
At the Afrobytes tech conference in Paris, an Ethiopian delegation of 12 local startups attended to show off some the not-often-seen initiatives. Zekarias Amsalu, founder of investment advisory firm Ibex Frontier, who led the startup group, says he coined the moniker “Sheba Valley” to describe one of Addis Ababa main startup hubs. Amsalu has long been a champion for Ethiopia’s potential, saying it’s not about “emotion, but logic.” The accountant, who splits his time between London, Washington DC and Addis, explains: “We just want our story to be told. We have 250,000 university graduates every year, about 70% of them are in STEM subjects, there’s so much potential.” Sheba Valley is now recognized as a leading hub for AI technology on the continent led by Icog Labs, the Addis research team. “You have to be smarter than the machines than you’re using,” says Betelhem Dessie, who at 18 is already a project manager for Icog, while still a student at the University of Addis Ababa.

There are several other hubs, including Ice Addis and Bluemoon and more established tech-led ventures including Gebeya, an online marketplace for talent. MBirr and Hello Cash, mobile money services, are part of a quiet renaissance that hasn’t had as garnered the same level of attention of tech ecosystems like those in Nairobi or Lagos. “Most startups are probably still in their infancy stages although some online marketplaces are starting to gain traction,” says Ethiopian entrepreneur Samson Assefa, who runs a Geneva-based fintech company called Axens.

Why the tech community has hope
The Ethiopian tech community seems to be optimistic about Abiy delivering on his promise. Probably one of the easiest ways to boost the local tech space would be to loosen regulation around Ethio Telecom, the local monopoly that has 66 million subscribers. It’s Africa’s largest, ahead of MTN Nigeria. Assefa thinks that those restrictions, along with strict banking regulations, are an “impediment in two key bellwether tech sectors.”

Pazion Cherinet, chief executive of Orbit Health, a startup designed to address the weaknesses of Ethiopia’s health system, met two years ago with Abiy, then minister of science and technology. He says he’s always been open minded. Cherinet, who shares his time between Seattle and Addis, remains realistic about what needs to change. “There is a slow way of doing things, for example it takes three months to register a business,” he says. “That’s even before you write a single line of code.”

Ultimately, like others, he’s incredibly optimistic that Ethiopia isn’t going back to being closed: “Transition won’t be that easy. But it’ll happen.”
opening ethio-telecom will definitely boost IT sector in Ethiopia.
ethio-telecom has been for a while the bottleneck of internet service in Ethiopia.
keeping the nation with the most backward internet and IT services throughout the continent !!
the only reason why the gov keeps tight grip was not for ''national security concerns'' rather for his paranoid obsession to grip power and silence all kind of dissents, new ideas, challenges.
hopefully, Abiy now the new PM, this kind of poisonous ideology is set to disappear ?
with much better services, the growing startup in ethiopia will finally benefit greatly and within few years, Ethiopia wil catchup with neighbours, such as Kenya, Nigeria, Rwanda..all of them far ahead (including war-torn Somalia !!)

source : qz.com
 

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Ethio-telecom has been a terrible burden on the country. Our IT sector is so far behind when it doesn't have to be. There are so many Ethiopians working in the sector in the US who could invest or even just consult.
 

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Ethio-telecom has been a terrible burden on the country. Our IT sector is so far behind when it doesn't have to be. There are so many Ethiopians working in the sector in the US who could invest or even just consult.
Yeah, like yours truly. lol

If not for the madness that was Ethio Telecom (and of course the truly superb govt bureaucracy that is the envy of the world), I might still be there by now.

The good thing was my timing turned out to be quite serendipitous. They'd just introduced a new postpaid "30 GB" package which came into effect a few days after I arrived for around 3,600 ETB, which I figure was reasonable enough. But the fact that it was the totality of my data connectivity, since there are no landline options to speak of, I had to be super stingy with my data usage, which wasn't really fun given the amount of data I would normally move around.

But by far my least favorite part of the whole ordeal was having to scratch a bunch of 500 birr cards (the max value you can buy) and go through the tedious process of adding value to my account one card at a time. There is really no practical or technical necessity for all that. There is literally nothing preventing them from offering a far more painless alternative.

Frankly, I am also not sure how MTN or Vodacom buying say a 15-20% stake in Ethio Telecom will solve these problems. All that would do is give Ethio Telecom access to some foreign currency. That's it.

I certainly hope this won't serve as an entry point for Vodacom to bring its M-Pesa (which is about as Kenyan as Barclay's) to Ethiopia. It is encouraging that the govt has kept the financial industry in the off-limits category, but one can never be too certain given how quickly things can change nowadays.
 

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A lot of panel discussions and News about this on Ethiopian TV lately... here is a few of them.

Fana TV: features a comment by Ethiopian Airlines CEO at 2:57



Nahoo TV: panel notably features Henok Assefa (Managing Partner, Precise Consult) and Zemedeneh Negatu (Global Chairman, Fairfax Africa Fund, LLC (U.S))



ETV: multiple panels

this one also features Zemedeneh Negatu

this one features Dr. Arega Yirdaw (Unity University President, Midroc CEO)
 

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I'm not sure I like the idea of a privatised Ethiopian Airways. I'm Kenyan yes and not allowed to vote in Ethiopia but I see this Airline as a very good "Ambassador " for Ethiopia. It has done an impressive job to promote the "brand Ethiopia" and fight the negative mentality of Ethiopia amongst many especially in the west of a Country full of hunger,war and poverty.My concern here is of a private investor only interested in short-term profit and ruin the good reputation of the Airline or eventually "kill it off" for the benefit of competition.
 
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