KEYIR NEWS - Ethiopian Investment Holding (EIH), the state-owned sovereign wealth enterprise established to oversee and manage public sector companies under a single framework, has announced a record-breaking performance for the 2024/25 fiscal year.
According to its annual report, EIH earned a net profit before tax of 262.7 billion birr, representing an 88 percent increase compared to the previous year.
The institution revealed that enterprises under its umbrella collectively generated revenues of 2.05 trillion birr during the fiscal year, highlighting both their scale and their strategic importance to Ethiopia’s economy.
EIH oversees some of Ethiopia’s largest state-owned enterprises, including Ethio Telecom, the Commercial Bank of Ethiopia, Ethiopian Airlines, Ethiopian Electric Power, and other key companies in agriculture and manufacturing.
Ethio Telecom reported a 7 percent increase in its voice call service subscribers and a 15 percent increase in internet service subscriptions. The growth in internet usage reflects the country’s accelerating digital transformation and rising demand for mobile connectivity.
The Commercial Bank of Ethiopia (CBE) also posted remarkable gains, with deposits surging by 310 percent and loans to the private sector increasing by 104 percent. This signals both expanding confidence in Ethiopia’s banking system and the bank’s growing role in financing private sector development.
Meanwhile, Ethiopian Airlines reported an 11 percent increase in passengers served, maintaining its status as Africa’s largest and fastest-growing airline despite global challenges in the aviation sector.
In the energy sector, Ethiopian Electric Power reported an 18.2 percent increase in electricity supplied to its customers, measured in gigawatt hours. This growth reflects ongoing efforts to expand access to power, crucial for industrialization and household consumption.
The Ethiopian Agricultural Works Corporation distributed 18 percent more fertilizer than the previous year, while Wonji Sugar Factory reported a staggering 113 percent increase in sugar production, demonstrating the potential of agricultural industries to contribute more strongly to the national economy.
EIH was established to consolidate the government’s development enterprises under one sovereign wealth-style framework, enabling better coordination, financial oversight, and long-term planning.
Its performance in 2024/25 shows the growing importance of state enterprises as both engines of revenue generation and enablers of Ethiopia’s wider development agenda.
Analysts suggest that the sharp rise in profitability and operational output across sectors indicates that the state-owned enterprises are beginning to achieve greater efficiency and competitiveness, even in the face of inflationary pressures and global economic uncertainty.
Despite the strong performance, challenges remain. Many of the enterprises face demands to modernize operations, improve transparency, and adapt to global competition as the government gradually opens key sectors to foreign investment.
Maintaining profitability while pursuing broader development objectives, such as affordable access to services, remains a balancing act.
EIH officials, however, expressed optimism that the current trajectory can be sustained and even expanded. The institution’s consolidation model allows for stronger oversight and accountability, while also positioning the state-owned giants to play a bigger role in regional and global markets.
Looking ahead, EIH’s performance will be closely linked to the government’s broader economic reform agenda, which seeks to liberalize parts of the economy, attract foreign investment, and reduce reliance on external borrowing by leveraging domestic resources more effectively.
For now, the reported net profit of 262.7 billion birr before tax stands as a landmark achievement. The 88 percent growth compared to the previous fiscal year underscores the resilience and potential of Ethiopia’s public enterprises when managed under a unified structure.
By demonstrating both financial strength and service expansion across critical sectors such as telecom, banking, energy, aviation, and agriculture, Ethiopian Investment Holding is positioning itself as a cornerstone of Ethiopia’s journey toward sustainable growth and economic sovereignty.