BusinessNews

EIH’s Subsidiaries Generate 250bln Birr in First Quarter Revenue

ADDIS ABABA – Ethiopian Investment Holdings (EIH), a national sovereign fund, managed to generate close to 250 Billion Birr in first-quarter revenue from state-owned companies in its portfolios.

CEO Abdurahman Eid Tahir presented the EIH first quarter performance report to the parliament’s Public Enterprises Standing Affairs Committee Wednesday.

The first quarter report shows all but three public enterprises recorded positive performance, generating nearly 250 billion Birr in total revenues, and attaining 80% of the target. Ethiopian Investment Holdings has also reported a 36.5 Billion Birr in gross profit.

However, the contributions of the companies both to the revenues and profit vary.

Most of the revenue came from three companies. Ethiopian Airlines Group, Ethiopian Petroleum Supply Enterprise, and Commercial Bank of Ethiopia (CBE) contributed 73% to the revenues.

Likewise, Ethiopian Airlines and Ethio Telecom have contributed close to 80% of the profit.

“Together with CBE, three companies contributed 87 percent of the profit recorded in the first quarter,” the CEO said.

While 23 enterprises in EIH portfolio record positive financial performance, Ethiopian Mineral Corporation, Ethiopian Pulp and Paper Factory, and Ethiopian Sugar Industry Group continue to incur losses.

Set up by an act of parliament decree in December 2021, EIH is one of the largest sovereign wealth funds in Africa, with over $150 billion in assets under management and additional dividend income inflow. It also acts as co-investor to foreign investors coming to Ethiopia.