Ethiopian authorities have announced suspending planned partial privatization of national carrier Ethiopian Airlines. Ethiopia Finance Minister Ahmed Shide praised the airline as a top forex exchange earner thus a treasured state asset.
The minister said the cancellation is attributed to the airline’s growing global reputation and profitability. The Ethiopian government owns 100 percent stake in the airline whose revenues have grown steadily amid the COVID19 pandemic.
In June this year, the airline announced a profit having positioned itself as Africa’s premier cargo carrier. The pandemic provided a silver lining as the airline shifted business from passenger flights to cargo, changing 27 of its passenger planes into freight transportation.
The privatization was part of the government’s goal for economic reforms aimed at attracting private investors to Ethiopia’s critical sectors. These include; telecoms, logistics, and transportation where the government has majority control.
Government statistics indicate that state companies generated $8.2 billion during the budget year concluded on July 7, 2020.