Privatization Programme in Ethiopia: Is the Cause Justified?

Abstract

This paper examines the causes for privatization in Ethiopia. As believed strongly, the decline trend of industrial output and capacity utilization of SOEs were the major causes at micro level behind the privatisation of SOEs in the country. Budget deficit and external debt coupled with the external pressure from the International donors were considered as the strong factors to justify why the government of Ethiopia implemented privatization in the country.

Keywords: Privatisation, State owned enterprises, budget deficit

JEL Classification: L32, L33, H62, H63