In this issue of our legal update, we share with our readers how the Ethiopian government’s recent policy drive to privatize key state-owned enterprises, referred to in the Ethiopian legal regime as Public Enterprises (PEs), may be implemented legally and the broad regulatory issues that may need to be considered. The decision to privatize is a reflection of the policy that is current at the time of its making. It is inherently a political decision and demonstrates a major shift in policy at the highest executive organ of the government. Execution of this decision may necessitate the amendment of existing laws. It may also require a gap filling exercise on the assumption that existing laws do not cater for some of the PEs targeted for privatization. Such is the case, in our considered view, on the privatization of, for example, the Ethiopian Airlines, Ethio-Telecom and Ethiopian Electric Power (EEP). On the other hand, the privatization of Ethiopian Shipping and Logistics Services Enterprise (ESLSE), the Sugar Corporation and Railway Corporation, may be executed on the basis of existing laws on privatization. Further, legislative amendment of current investment laws including relaxation of rules restricting sectors for private and foreign investment, and enhancing clarity on regulatory mandates will be critical.