Dr. Arkebe Oqubay, a minister and special advisor to the Prime Minister of Ethiopia, has dismissed the argument that state enterprises are inefficient and corrupt.
Oqubay was speaking at the recent United Nations Development Programme (UNDP) public dialogue on promoting green growth and sustainable industrialisation in Uganda at Imperial Royale Hotel. He was the keynote speaker at the event.
He noted that the government in Ethiopia is disciplined and ensures that state enterprises run efficiently without corruption.
He cited the mobile telecommunications sector as a cash cow which the Ethiopian government refused to privatise.
He revealed that the money generated from telecoms in Ethiopia is being used to build the standard gauge railway.
He also attributed Ethiopia's low power tariffs to the government's ownership of the utility companies considered strategic and priority sectors.
The trade minister, Amelia Kyambadde said mistakes were made during Uganda’s liberalisation when telecoms and power companies were privatised.
The minister said the privatization of power companies has made power tariffs expensive.
She asked for more incentives to be given to domestic industries to spur growth and not to depend on foreign direct investment, because it has not transformed Uganda.