WHEREAS, the Government of the Federal Democratic Republic of Ethiopia aims to take necessary measures for the reorientation of State-owned enterprises towards operational and commercial efficiency;

WHEREAS, it has become necessary to create a conducive environment to enable State-owned enterprises to operate in open competition with private enterprises and to create a conducive regulatory environment thereby increasing their productivity and profitability;

WHEREAS, there is a need to strengthen the exercise of Government ownership right of public resources and improve the oversight of State-owned enterprises by establishing systems of supervision and oversight that will enable them to improve their performance;

WHEREAS, it is imperative to align the corporate governance of State-owned enterprises with international best practices by establishing the autonomy of their management while holding them accountable and enhancing their transparency;

WHEREAS, when State-owned enterprises perform a public service obligation, it has become essential to set a
clear objective, financing strategy and monitoring system to achieve their obligation without causing undue burden to the operation and finance of the State-owned enterprises;

WHEREAS, it has become necessary to improve the financial performance of State owned enterprises and minimize fiscal risk and the burden to public finances;

WHEREAS it is acknowledged that improving the regulatory framework under which State-owned enterprises operate would help to unlock their potential in contributing to socio-economic development, and national wealth;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows