Thursday, February 29, 2024
HomeEthiopian NewsAddis Ababa City To Contract  Out Key Services to “Private Sector”, Primarily...

Addis Ababa City To Contract  Out Key Services to “Private Sector”, Primarily Land-Related

Addis Ababa Service delivery
Addis Ababa City Administration Building (Photo : SM)

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The Addis Ababa City Administration is set to contract out twenty-four service deliveries across seven divisions. This decision aims to enhance public service delivery, as stated by Tassew Gebre in an interview with Voice of America Amharic Service. The decision was made at the cabinet level. 

The services being outsourced predominantly revolve around land-related functions. The administration intends to implement these changes to curtail government spending and overcome bad governance practices across those divisions. 

Tassew Gebre specified the seven divisions of the city administration slated for contracting out:

  • Building License and Construction Authority
  • Housing Development and Administration Bureau
  • Food and Pharmaceuticals Authority
  • Land Registration Agency
  • Transport Office
  • Housing Corporation
  • Land Development and Administration Office

Without forgetting the question of desirability, there are concerns regarding the fairness and transparency of this transition to the private sector, particularly in light of widespread corruption within various government levels. Tassew Gebre told VoA  Amharic that the process would maintain “transparency”, although a definitive timeline for the service transfer remains undisclosed.

Another pressing concern revolves around the fate of government employees in these sectors. Gebre indicated that private companies taking over contracts from the city administration would absorb all the employees. However, it remains unclear if the city administration will retain regulatory authority over these companies after the transfer. 

Notably, there had been politically driven policy shifts at the city administration level, primarily aimed at altering Addis Ababa’s demographic composition. It remains to be seen whether the proposed privatization of land-related city services doesn’t harbor ulterior political motives.

Neoliberal Trends Deepen in Ethiopia’s “Home Grown Economy”

Under Abiy Ahmed’s Administration, privatization trends emerged early on. Initially, an advisory board was established to provide a veneer of legitimacy to this privatization initiative by involving prominent national figures. However, Abiy Ahmed swiftly sidelined this board and initiated the sale of national assets, including shares of the state-owned Ethio Telecom.  Ethiopian Shipping and Logistics Service Enterprise, and Sugar factories were also up for sale – according to some sources.  

In his latest speech  to party and government officials, Abiy Ahmed disclosed plans for Ethio Telecom to release 10 percent of its shares to Ethiopians, with Ethiopian Airlines slated to follow suit at an unspecified time. Amid ongoing conflicts in the Amhara region and other parts of the country, escalating inflation rates leading to a burdensome cost of living for millions, coupled with mounting debt, his government is perceived to be facing financial strain. Yet, his government has prioritized what is said to be a $15 billion palace project in the capital and he refused to tell the parliament where the money for the project is sourced from.  Speculation looms over the potential partial sale of Ethiopian Airlines.

While the government promotes the “homegrown” nature of its economic policy, the practical reality indicates a deepening adherence to neoliberal economic principles in Ethiopia. Ahmed’s administration maintains close ties with the IMF and the World Bank, raising doubts about these Bretton Wood institutions funding the purported “Home Grown Economic Model.”

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5 COMMENTS

  1. Being ethnic Amhara is NOT a crime!!!

    Innocent Amharas politicians, journalists, activist, mothers, artists, are being tortured by Abiy unjust , lawless and Genocidal government at Awash Arba prison.
    They are forced to stay naked and subjected to vulgar and ethic slurs by Oromo prison guards in insects and rodents infested prison under the direct order of Abiy Ahmed.
    Under the unjust and ruthless Abiy Ahmed government being Amhara is a crime.

  2. I can sense the motive behind this article. I am gonna steal somebody’s thunder here and now. I am borrowing those poisonous jaws and scream from the top of my lungs with Oromummaa! Oromummaa!! Oromummaa!!! You hear me? Oromummaa! Oromummaa!! Oromummaa! I gave up!!!!!

  3. If true, this is good policy, provided it is complemented by relatively honest and professionally managed oversight (key to success of the policy impact). I would like to see the same policy applied in all federal and regional governments.

    Get rid of no-good bureaucrats whose primary interests are most likely to collect regular pay checks that have multiplier effects with accompanying bribes and theft of public property. I would start by firing long serving bureaucrats that collect hefty pay checks (relatively that is) just simply because they have been employed longest.

  4. This is a misguided decision, as stated it is made at a cabinet level, but it is important that both the cabinet as well as the city Administration do RESEARCH before going ahead and further examine the pros and cons of “Privatizing Public Services”, which is causing havoc in people’s lives in European cities following the Ukraine civil war that started in 2024 but which has escalated in 2022 after Russian join it and commodity prices in Europe and elsewhere have skyrocketed.

    As a result of the 2019 covid-19 (WEF) planned-disruption and the war in Ukraine has forced many municipalities particularly in the UK to declare bankruptcy due to lack of funding that has exasperated as a result of the “Public utility (services) Privatization” decision made decades earlier by Margaret Thatcher administration.

    While the private companies that took over those services today more than any time in their existence /operation are becoming supper profitable since 2020 making $30 to $50 Billion pounds every 3 month (every quarter) from the price-hike of the utilities the public and government (municipalities) are FORCED to pay 4 to 5 times more they used to pay year after year before 2020.

    Millions in Europe are forced to EAT LESS so that their children won’t FREEZE in the winter, and choose to pay for the cooking gas by reducing their food needs.

    “Privatization” is a Western concocted “Neocolonialism” predatory tool designed to SUCK-UP POOR nations resources (to fatten up their Multinational Corporations) using their FIAT- Currency they PRINT endlessly where every $100 bill costing them less than $0.15 to produce, but ROBBING poor nations their RESOURCES that took months /years of hard work to grow or to produce.

    Housing, Utilities, Food, Health care, Education, and similar services MUST never never be PRIVATIZED.
    Nations like Singapore which is taken as an example by many developing nations, have not privatized Housing (made sure every citizen owns his/her home) and other “essential” SERVICES.

    There are a few European countries where housing is not seen as an “investment” therefore all levels of governments are contracting out housing developments to companies that control quality as well as cost to build public housing using competition to award contracts.

    Canada a Western nation, many public services such as healthcare, car insurance, hydro, water etc. are still run by any of the 3 levels of governments.

    Let’s not take the “BAIT” from the SATANISTS (capitalist West) and let our people suffer the consequences of our “government officials” incompetent TO MANAGE ESSENTIAL PUBLIC SERVICES AND UTILITIES.

    Privatizing Public Utilities & Services MUST be declared Illegal in Ethiopia and added into the constitution immediately.

    UK Municipalities and local governments (that cannot Print currency) in economic problems and filing and soon to file bankruptcies…

    Link = standard.co.uk/news/uk/uk-councils-which-declare-bankrupt-birmingham-b1105266.html

    Here is a recent report showing that even the UN has been part of LOOTING Africa for the longest time…Using its ‘Peace Keeping” gimmick.

    Link = youtube.com/watch?v=SwpJ-SajFFo

    This is a misguided & a self-preservation gimmick taken by the top leadership on the back of all working people of Ethiopia, as well as the future generation to keep them in perpetual enslavement by the multinational corporations of the West… It needs to be challenged and stopped.

    I invite everyone to listen to Biden’s speech (double talk) at the 78th UN general Assembly just a few weeks ago, where he stressed that all “Resources” in every nations need to OPEN to our Multinational Corporations (to LOOT, “everywhere”)…

    Link = youtube.com/watch?v=51j1Ih33WGQ

    Be well.

  5. Abiy Ahmed who has lost the popular support in Ethiopia and many countries is destroying and using Drone attacks against Amhara innocent people, houses, farms, churches and schools . This fascism Orommuma Savage army are stealing and destroying the country’s economy and innocent lives.
    Amhara people houses in Addis Ababa are illigaly and selectivity being stolen and demolished by the day light Orommuma hyenas under the lawless Abiy Ahmed regime.

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