Ethiopia Drafting Framework for Public-Private Partnerships

The government is preparing a legal and policy framework to expand the implementation of public-private partnerships (PPP). The minister of the recently restructured Ministry of Finance and Economic Cooperation (MoFEC), Abdulaziz Mohammed’s six-month report presented to parliament indicates that PPP will be a core strategy for development in the second Growth and Transformation Plan (GTP II).

“The contribution of the private sector is an option to expand the finance base and meet capital demands of government led developmental projects,” the Minister explained.

He said that expanding of the role of the private sector is a priority in GTP II that the ministry is working to affirm. Government strategies to work with the private sector have been drafted by MoFEC and will be tabled for amendment in the coming months, according to the Minister.

Focus on public-private partnerships has increased in recent years, with the government’s move to draft a strategy to develop industrial zones and parks with private sector partners. To push forward the initiative, the government has established the Industry Zones Deployment Corporation, under Ministry of Industry as an enterprise.

One of the first such projects will be a 1,000 hectare industry zone in Komblcha, Amhara region built in collaboration with an Israeli company.