The government announced the formation of a holding company that will oversee 21 state-owned firms under one government holding company (GHC) that will operate on a market-led business model. This phase furthers the preceding path of privatization, deregulation, and public-private partnerships that led to the formation of a holding company.
The Ministry of Finance (MoF) is now assessing a draft statute drafted and submitted by the Public Enterprises Holding and Administration Agency (PEHAA), which envisions the new holding company’s commercial and institutional structure. If approved, PEHAA will dissolve over the next two years. According to Ermias Wadajo, a global insight provider, this is expected to reduce state monopoly & save the economy from unproductive state enterprises, among other things. However, the success of this integration is highly dependent on the board’s membership selection.
Picture Source: Ermias Wodajo Social Media Post
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