Fixed Asset Management Practice in Ethiopia
A Descriptive Study on Selected Federal Public Sectors
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Fixed asset management in public sectors is one of the most challenging areas in many countries of the world. Businesses are cautious in managing their long-term assets properly and avoid unnecessary holding of these assets. Moreover, they record, depreciate, and dispose of the assets properly. However, this is not practical in public sectors. The problem is manifold in Ethiopia. Excessive holding, failing to value, depreciate, and dispose of the assets are the main challenges, and due to these challenges the loss resulting from mismanagement of the assets is substantial. Thus, it is advisable...
Fixed asset management in public sectors is one of the most challenging areas in many countries of the world. Businesses are cautious in managing their long-term assets properly and avoid unnecessary holding of these assets. Moreover, they record, depreciate, and dispose of the assets properly. However, this is not practical in public sectors. The problem is manifold in Ethiopia. Excessive holding, failing to value, depreciate, and dispose of the assets are the main challenges, and due to these challenges the loss resulting from mismanagement of the assets is substantial. Thus, it is advisable to invest properly in fixed assets and design appropriate management system which will help the government in reducing investment costs in long-term assets and ensuring proper utilization of public properties.
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