The reform undertaking of the last few years has lifted Ethiopia’s mega public enterprises out of the abyss and is turbocharging them into becoming prestigious world-class companies.
Most of the public enterprises, if not all, were languishing in an abysmal situation resulting from acute mismanagement and were inching closer to biting the dust.
In today’s standing, and as reliable sources show, some of Ethiopia’s key public enterprises have raised their service standards. Equipping themselves with state-of-the-art technology, adopting innovative practices and building the capacity of their human capital, the enterprises are not only striving to meet the demands of their customers but are also seizing opportunities in the international business environment.
Let’s just see their domestic accomplishments. The rate of unbanked population in Ethiopia is dropping due to the reform efforts. Today, bank branches have reached 12, 800 from their previous standing at 5,400. Saving accounts have climbed into around 100 million from a previous 38 million. Likewise, the number of mobile bank users has shown a sharp upturn to around 47 million.
The services of some of the enterprises such as Ethio telecom and Commercial Bank of Ethiopia (CBE) are not limited to the territories of Ethiopia, just to name a few. The former makes life easier and convenient in South Sudan. The latter is also providing financial services in both Djibouti and South Sudan. The efficiency of Ethiopian Electric Power that is tasked with energy generation, and Ethiopian Electric Utility which is responsible for power distribution, is benefiting neighboring countries.
What is more, the pan-African Ethiopian Airlines that have been stretching wings in the skies of Africa have continued connecting Africans among themselves and with the rest of the world. The flag-carrier has made its maiden flights this year to Warsaw (Poland), Freetown (Sera Leon) and Maun (Botswana). The proud African airliner connects peoples, cultures and economies with its vast passenger and cargo destinations. The airliner serves 65 destinations in Africa, 24 destinations in Europe, 12 destinations in the Americas, 25 destinations in Asia and 13 destinations in the Middle East. The Ethiopian Airlines innovative cargo supplies during the pandemic (Covid-19) have already been ingrained in the memories of the global community.
Ethiopia, since long ago, has invested not only in areas that positively impact the lives of its citizens but its enterprises, projects and initiatives also know no bounds. The development feats that Ethiopians achieve at home are benefiting neighboring countries and the wider Africa in general.
Unless African institutions feed on each other in all respects, it is tough for the people of Africa to see a peaceful and prosperous continent at the end of the day.
The institutions, in addition to their very purposes, can also serve as centers of excellence. The efficacy of an institution in one sub-region, for instance, should serve as a springboard to create similar entities in the rest of Africa. The experiences could be emulated and scaled up in the other sub-regions. Indeed, the Ethiopian public enterprises mentioned above are providing cross-border services. Over and beyond, the accomplishments of public enterprises in Ethiopia could be learned elsewhere in Africa.
Strong and sustainable institutions are the right ingredients that catapult our continent to desired levels. As it is highlighted in the aspirations of Africans expressed in Agenda 2063, Africa wants “capable institutions and transformative leadership in place at all levels.” There is also a plan to realize world-class infrastructure aimed at making Africans trade among themselves. The goal is to reach intra-African trade 50% by 2045 from 12% in 2013. Hence, building the capacity of African institutions must be a task that should come at the top of the list of African states’ priorities.
While there is room for improvement for these pan-African institutions, there seems to have erupted a coordinated attack against these enterprises. The bottom line is- Africa’s and its institutions agency are not houses made on sand, they are being founded on a rock base.
THE ETHIOPIAN HERALD FRIDAY 26 JULY 2024
