Dubai and Ethiopia Boosting Business and Bilateral Ties
An Ethiopian delegation of over thirty business representatives, headed by Shisema Gebresilassie, Head of the Addis Ababa City Government Trade and Industry Development Bureau and Getachew Regasa, Secretary General, Addis Ababa Chamber of Commerce and Sectoral Associations, has met with forty private sector businesses in Dubai.
The meeting was addressed by Atiq Juma Nasib, Senior Vice President, Commercial Services Sector, Dubai Chamber of Commerce and Industry and Dr Abdulkadir Risku Ethiopia’s Ambassador Extraordinary and Plenipotentiary to the United Arab Emirates. Welcoming the delegation, Mr. Nasib said: “Over the years there have been numerous visits and exchanges by high level Dubai Chamber and Addis Ababa Chamber officials which have strengthened the long serving ties between our two business destinations.
This latest visit will help us highlight Dubai’s position as a safe and stable hub besides strengthening African and Emirati ties.” He said the DCCI was actively seeking ways to develop mutually beneficial business relations with key global partners, adding that the markets of Eastern and Southern Africa were important to it. He said the DCCI had opened its second international office in Addis Ababa in 2013 in order to bring the business communities closer together and increase two-way business and investment. The Dubai Chamber had 371 Ethiopian companies among its members, he said, and non-oil trade between Dubai and Ethiopia in 2014 was valued Dhs1.75 billion, and increase of 6% over the previous year. Dr Abdulkadir said that bilateral relations between the two countries had flourished after the opening of Dubai Chamber’s representative office in Addis Ababa. He noted Ethiopia’s openness for UAE investment in the most promising sectors of its economy.
He said the UAE could benefit from Ethiopia’s agricultural and organic products, and halal food investments and Ethiopia could take advantage of the UAE’s expertise in developing different economic sectors in light of the enormous investment opportunities, growing economic development and the peace and stability Ethiopia enjoyed. Ato Shisema Gebresilassie noted that Ethiopia’s exports to the UAE included meat, dried beans, vegetables and flowers, and imports from the UAE include petroleum oils and machinery, but he said there was still a lot to be done by both sides to exploit untapped potential. [Ethiopian Government]
Ethiopian to lease eight Dreamliners from Boeing
Executives of Ethiopian Airlines are in talks with bigwigs of Boeing to lease six to eight Boeing 787-8 early build Dreamliner aircraft.
These aircraft were manufactured by the American airframer, Boeing, in the early days of production of Dreamliner aircraft. The early build aircraft are heavier than those that are being assembled now and have shorter range because of their weight. The aircraft are currently parked at Boeing’s manufacturing plant in Everett, near Seattle, Washington state. The original customers were said to have balked because the aircraft were too heavy, limiting their range.
Ethiopian Airlines Group CEO Tewolde Gebremarim, told The Reporter that his airline is discussing with Boeing to lease about 6-8 early build B787 Dreamliners. “We want to lease them but we will not purchase them. The issue is still under discussion,” Tewolde said.
Ethiopia’s national flag carrier is the third airline in the world to own and operate Dreamliner next to All Nippon Airways and Japan Airlines in August 2012. Currently, Ethiopian operates 11 Dreamliner aircraft making it the largest Dreamliner fleet operator in Africa.
Tewolde said that B787 was a very good airplane. “It is fuel efficient and it is very comfortable,” Tewolde told The Reporter. He adds, “It is our core fleet and very popular among our customer. We have more load factor on the routes we operate Dreamliners.”
Though Ethiopian needs to order for more Dreamliners it was unable find slot at Boeing as the US aircraft manufacturer is fully booked. Subsequently, the airline leased three B787 from ILFC. The first one was delivered to the airline last month and the other two will arrive in Addis Ababa in the coming weeks.
Boeing has been trying to sell the overweight aircraft around half the cost of the catalogue price of 218 million dollars in order to free them from the drag on Boeing’s balance sheet. Another African carrier, Air Austral, is also said to be in discussion with Boeing to buy two early build 787-8 Dreamliners.
Ethiopian fleet is dominated by Boeing aircraft. Currently, the national flag carrier operates B787, B777, B767, B7575, B737, MD11 and Bombardier Q400 aircraft. For the first time in its long history Ethiopian placed orders for Airbus aircraft in 2009. Ethiopian ordered 14 A350-900, Airbus’ new jetliner. Delivery of these aircraft would begin next year.
Currently, Ethiopian is evaluating the B777x and Airbus A350-1000. The airline operates 81 aircraft and plans to boost the number to 140 by 2025.
Ethiopian is scaling up its operation by opening up more destinations and this has prompted the airline to acquire more jetliners. At the moment the airline has 43 aircraft on its order book. [reporter]
Ethiopia eyes gas production, exports by 2017 – PM
Ethiopia expects to start producing and exporting natural gas from under-developed reserves in its southeast by 2017, Prime Minister Hailemariam Desalegn said on Friday.
Several firms have already acquired licenses to explore more than 40 blocks throughout Ethiopia in the past four years, the vast majority of them in the southeastern Somali Region.
“Studies show the existence of natural gas reserves in several places, and they will all be gradually developed,” Hailemariam told a press conference in the Ethiopian capital.
Officials from the mines ministry say the Calub and Hilala fields in the Ogaden Basin have deposits of 4.7 trillion cubic feet of gas and 13.6 million barrels of associated liquids, both discovered in the 1970s but not yet exploited.
“For the time being, a Chinese firm is carrying out activities on the Calub and Hilala reserves,” Hailemariam said. “In the next two years, we plan to start exporting and using the natural gas from these areas.”
Hailemariam did not give further details, but China’s GCL-Poly Petroleum Investments signed a production sharing deal with Ethiopia’s mines ministry in late 2013 to develop both fields.
The prime minister was speaking a month after the Horn of Africa country signed an agreement with neighbouring Djibouti to construct a pipeline stretching from the same region to the Red Sea state’s port.
“GCL-Poly Petroleum Investments will fund the pipeline that will transport the Ethiopia gas to Djibouti for a total cost of more than $4 billion, of which $3 billion will be invested in the Djibouti section,” said Mohamed Nour, a communications adviser at Djibouti’s energy ministry.
A number of firms have filed requests to explore oil and gas in the country’s Abay, Mekelle, Metemma, Gambela and the Southern Rift sedimentary basins in addition to the Ogaden, including Tullow Oil and SouthWest Energy.