Ethiopia would open up its state-run telecoms industry and state-owned Ethiopian Airlines to private domestic and foreign investors, a huge change in policy to allow for private sector participation.
The East African nation of 100 million people has one of the most closed and controlled economies in Africa.
The ruling EPRDF coalition, which has been ruling the East African country since 1991, has been an ardent advocate of strong state involvement in the economy.
However, the EPRDF stated on Tuesday that the country requires economic reforms to sustain growth whilst boosting its exports.
“While majority stakes will be held by the state, shares in Ethio Telecom, Ethiopian Airlines, Ethiopian Power, and the Maritime Transport and Logistics Corporation will be sold to both domestic and foreign investors,” the EPRDF said in a statement.
It is the first major indication that Prime Minister Abiy Ahmed, who came to power in April promising a new dawn for the country, would make good his promise of implementing key economic reforms.