Prime Minister Abiy Ahmed’s cabinet on Monday revised the regulation establishing the Ethiopian Railway Corporation (ERC), raising its registered capital to a whopping 221 Billion Birr.
The ERC was established in 2007 as a public enterprise with a mission of building railway infrastructure, in addition to operating passenger and cargo railways transport services.
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The Corporation found it difficult to attain the mission with the current registered capital.
The 141/2007 Regulation sets ERC’s authorized capital at 3 billion birr – of which 750 million Birr is paid up in cash and in kind.
According to the prime minister’s Office, the revised establishment regulation would raise both registered and paid-up capital.
Members of the Council of Ministers approved the draft regulation unanimously after a discussion.
The revised regulation will increase ERC’s authorized capital to 221 billion Birr and its paid-up capital to 120 billion Birr from 750 million Birr.
The capital increase, the PM Office says, would also allow the ERC to conclude ongoing railway infrastructure construction projects, effectively operate the existing ones and create the capacity to carry out future projects.
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The revised regulation will come into force on the date of publication in the Federal Negarit Gazeta.
3 bills were Referred to lawmakers for ratification
The council of ministers also deliberated on a draft Public Enterprises Proclamation. The revised bill, which governs state-owned public enterprises, aims to ensure transparency and accountability in their management system, as per the PM Office.
It is prepared to enhance the enterprises’ competitiveness and efficiency by modernizing their corporate finance management system, apart from enabling them to discharge their social responsibilities without affecting profitability.
The council of ministers passed the draft proclamation unanimously and sent it to parliament for ratification.
Double Taxation avoidance deals
Monday’s the Council of Ministers meeting also discussed two bills on double taxation avoidance and tax fraud prevention agreements Ethiopia signed with Luxembourg and the Swiss Confederation.
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Authorities believe the agreements signed with two European countries to have a significant impact in encouraging their businesses to invest in Ethiopia.
The draft proclamations have been subsequently sent to the House of People’s Representatives for further discussions and ratification.
