Privatization has been embarked since the late 1970's in the belief that the private outperforms the government in handling and controlling enterprises. Since its introduction however there arose so many controversial feelings on its performance throughout the world. What enhances the public enterprises in developing countries for privatization is their economic incapability and governments of these countries expressed their successes in implementing it. Researchers and economists are hence very busy in identifying the successes or failures of privatization. Irrespective of the elucidations and conclusions given by the governments of developing countries which have enjoyed from the privatization platform, most research findings showed privatization in these countries are alarming. The main objective of this study is therefore to identify and analyze the challenges, limitations and other scenarios of privatization so as to evaluate the post-privatization performance of privatized industrial establishments in Ethiopia.