Ethiopian Investment Holdings (EIH) continued its comprehensive mid-year performance review of state-owned enterprises (SOEs), examining a diverse range of sectors from tourism and vaccines to housing, toll roads, and electric power. The dialogues revealed a mix of successes, ongoing projects, and areas requiring further attention.
The Ethiopian Tourist Trading Enterprise (ETTE) showcased a strong performance, reporting a 26.5% year-on-year revenue growth, achieving nearly 100% of its target. Profit before tax (PBT) also saw a remarkable 335% year-on-year increase, with its duty-free business generating USD 4.3 million. EIH commended ETTE’s ongoing reforms and encouraged further efforts to capitalize on the projected 5% growth in the travel retail market through 2025.
The National Veterinary Institute (NVI), a crucial player in animal health and food security, presented its six-month report. NVI produced 132.81 million doses of veterinary vaccine and 3.41 million doses of veterinary drugs, with drug production showing a 62% year-on-year increase. The institute achieved 65.82% of its semi-annual vaccine production plan and generated USD 352,500 in foreign currency from exporting vaccines to eight African countries. Looking ahead, EIH recommended that NVI focus on improving its investment strategy, establishing a strong business development unit, exploring future financing opportunities, embracing digital transformation, and enhancing its outstanding receivable collections.
The Federal Housing Corporation (FHC) delivered impressive results, exceeding its 6-month revenue target by 17% and surpassing targets for housing allocation, maintenance, and construction resource provision. The Somale Tera high-rise mixed-use building project reached a near-complete 99.5% completion rate. To further enhance performance, FHC will prioritize building its property and asset management capacity, focusing on rental leasing agreements and contract administration, and conducting feasibility studies. Exploring diverse finance sources for housing development, including real estate investment trusts, public-private partnerships, and joint ventures, is also a key priority.
EIH CEO Dr. Brook Taye conducted a site visit to the Ethiopian Toll Roads Enterprise (ETRE) service station construction project along the Addis-Adama toll road. With 98% of the project complete, Dr. Taye instructed ETRE to finalize the remaining 2% within 45 days and prepare for inauguration. He also directed ETRE to develop the free land near its head office for the customs authority to alleviate traffic congestion at the Tuludimtu toll station.
Finally, Ethiopian Electric Power (EEP) reported producing 13,504.2 GWh of electricity and selling 12,558.9 GWh. Its generation and distribution capacity grew from 65.4% to 70.08%, a 7.16% year-on-year increase. EEP generated over Birr 25.54 billion in revenue from energy sales and achieved a higher EBITDA margin, maintaining a strong liquidity position. EIH, while acknowledging these achievements, stressed the importance of enhancing project implementation capacity and accelerating the digitization of operations.
