The Privatization and Public Enterprises Supervising Agency (PPESA) plans to put up nine state farms for tender in the coming budget year.
The farms will be privatized on a full management scheme for interested bidders. Apart from the farms six other enterprises will be put up for bid to be privatized fully or to be managed through a joint venture (JV) scheme.
According to PPESA plan, five state farms controlled by Arsi Agricultural Development Enterprise (AADE) and four state farms controlled by and Bale Agricultural Development Enterprise (BADE) will be auctioned off during the 2012 fiscal year.
Lole, Garadila, Temela, Goffer and Arba Gugu Agricultural Developments are the farms under AADE scheduled for privatization.
Herero, Hunte, Robe and Sinana, Agricultural Developments managed under BADE, are the other state farms that will be privatized in the coming year.
Both Bale and Arsi Agricultural Development Enterprises are located in the southern part of the country. Known for their wheat and barley crops, they failed to render a significant profit recently. According to experts, the farms did make money in the years before but lately they have not lived up to their potential. These state farms are one of the major wheat sources for the local market; mainly for flour milling industries.
Currently, Abobo, Bilito Seraro, which is under Awassa Agricultural Development Enterprise and Upper Awash Agro-Industry Enterprise are also on the lookout for an interested private investor.
PPESA’s privatization plan will greatly reduce the number of state owned farms, some of which have been owned by the government for thirty years. Limu Coffee Plantation and Gojeb Agricultural Farm which is under the Coffee Plantation Development Enterprise are the other farms expected to be privatized.
One of the state enterprise that will be put up for tender in the 2012/13 budget year is the Natural Gum Production and Marketing Enterprise, which is the oldest maker of natural gum and resin for the export market. According to PPESA, the gum enterprise will be put up for bid to be transferred fully for interested investors.
Ethiopian Pharmaceutical Manufacturing Share Company and Artistic Printing Enterprise are also expected to be transferred in the coming budget year on a full bid scheme.
The government is also inviting interested investors to manage the Ethiopian Pulp and Paper Factory Share Company and Awash Melkassa Aluminum Sulfate and Sulfuric Acid Share Company on a JV scheme when the new fiscal year begins in July.
There are 43 enterprises and projects under PPESA scheduled to be privatized or managed under JV since the start of the Growth and Transformation Plan. Twelve state farms that are under Coffee Plantation Development Enterprise, Awassa Agricultural Development Enterprise, AADE and BADE are included in the 43 enterprises.