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Shipping enterprise continues being most profitable SoE

For successive years the Ethiopian Shipping and Logistics Services Enterprise (ESLSE) has continued being the most profitable state-owned enterprise (SoE) that are under the supervision of the Ministry of Public Enterprises (MoPE), with 716 million birr of gross profit record over the past half year.

It is to be recalled that during the preceding year, the Enterprise has collected 684.9 million birr profit before tax.

The Enterprise, as of the current half year, has bagged a total revenue of birr 9.7 billion out of the planned 11.6 billion birr.

The revenue from ESLSE is the largest among the seventeen SoEs under the supervision of the Ministry of Public Enterprises. The total revenue of the SoEs is reported to be 18.4 billion birr revenue over the past half year of 2018. From this, USD 8.6 million of the revenue was generated from export of goods from the enterprise.

This total revenue reported this year is much better when compared to similar period of the preceding year. It is to be recalled that in 2017, revenue of these enterprises was birr 16.8 billion birr.

In addition, as of this year, these enterprises from the revenue they collect they have managed to post 1.4 billion birr of gross profit.

Among other enterprises, Ethiopian Construction Works Corporation generated total revenue of 2.1 billion birr, followed by Ethiopian Agricultural Works Corporation, with 1.02 billion birr.

From the above enterprises, Ethiopian Agricultural Works Corporation by far exceeded its expectations of collecting 804.8 million birr.

As far as the performance of projects under SoEs, sugar projects of Tendaho 1 and Omo Kuraz 2 have become operational as well as Ethio-Djibouti railway.

On the contrary, Yayu Fertilizer project is said to be the worst performer. The contractor, MeTEC was expected to complete 17 percent of the project and reach 42 percent of completion over the past half year. However, it only managed to complete 0.3 percent out of the 17 percent.

The Ministry also reported that it has performed well when it comes to transferring enterprises to a private holding.

In this respect, though the Ministry planned to collect 1.7 billion birr revenue from the transfer of enterprises, it has collected birr 12.7 billion.

This significant increment mainly came from the transfer of government stake (30 percent), in Ethiopian Tobacco Enterprise to Japan Tobacco with a total cost of USD 434 million.

At the same time, during the report period, 379 million birr was invested in enterprises which were already transferred to private holdings.