Legal Issues on Corporate Governance of State-owned Enterprises in Ethiopia in Light of Global Good Practices

Abstract

There are several state-owned enterprises in Ethiopia, and these enterprises have dominance in many strategic sectors. Although the state has enacted corporate governance laws, there are concerns that the laws are not comprehensive and strong enough, and need to draw lessons from comparative global good practices. This article analyses the Ethiopian laws and practices of corporate governance of state-owned enterprises in light of the OECD Guidelines on Corporate Governance of State-owned Enterprises, World Bank Toolkit, and comparative good practices. The analysis shows that the existing laws and practices of corporate governance of state-owned enterprises have gaps that have several implications on the corporate governance of state-owned enterprises. Thus, there is the need for reform or enactment of laws that incorporate good practices of corporate governance of state-owned enterprises.