Ethiopian Investment Holdings (EIH), Ethiopia’s sovereign wealth fund, has launched a sweeping leadership and governance reform across its portfolio of state-owned enterprises, signaling a decisive shift toward commercially oriented management and stronger accountability.
The reform drive, led by EIH Chief Executive Officer Brook Taye, aims to modernize board structures and executive leadership in line with higher corporate governance standards while improving financial and operational performance. The initiative is grounded in Ethiopia’s Public Enterprises Proclamation, which mandates that at least one-third of board members in state enterprises be qualified independent directors.
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Breaking from the traditionally passive oversight model, EIH is adopting an active ownership approach, directly supervising and evaluating enterprise performance. EIH currently oversees 41 strategic state-owned enterprises organized under nine clusters, including major national institutions such as the Commercial Bank of Ethiopia, Ethiopian Electric Power, Ethio Telecom, and Ethiopian Shipping and Logistics.
Enterprises that fail to meet performance benchmarks during periodic evaluations are subject to leadership changes, with the objective of restoring efficiency and strengthening accountability. To date, the restructuring has resulted in the appointment of 70 new board members, including eight board chairs. At the same time, 41 board members, eight board chairs, and six chief executive officers have been replaced.
As part of the reforms, a new policy limits senior government officials to serving on only one public enterprise board. Board and executive appointments are now primarily guided by sector-specific expertise rather than administrative seniority.
EIH has identified Ethiopian Airlines Group as a benchmark for strong governance, commercial discipline, and profitability, and is seeking to replicate its leadership and governance standards across other state-owned enterprises.
With a mandate to enhance commercial decision-making, improve performance, and ensure long-term sustainability, EIH is positioning itself as a central pillar in Ethiopia’s broader public enterprise reform agenda and ongoing economic transformation.
Source: Capital Ethiopia
