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Ethiopia – African Business Exchange https://africanbusinessexchange.com We provide solutions to businesses that are interested in exploring various opportunities in Africa Thu, 22 Sep 2022 12:56:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://africanbusinessexchange.com/wp-content/uploads/2022/11/cropped-icon-32x32.png Ethiopia – African Business Exchange https://africanbusinessexchange.com 32 32 Ethiopian Prime Minister Abiy Ahmed: Africa’s Renewed Hope in Leadership https://africanbusinessexchange.com/ethiopian-prime-minister-abiy-ahmed-africas-renewed-hope-in-leadership/ Sun, 22 Sep 2019 12:53:49 +0000 https://314159.it/?p=2416 For a long time, the mention of Ethiopia conjured images of conflict, famine and poverty. However, over time, this African country has made strides to change and one of the main significant changes is the election of the countries and perhaps the continents youngest Prime Minister Abiy Ahmed: A man whose Charisma, energy and inclusive approach to politics has so far earned him comparison to some of the greatest leaders the world has and will ever have.

Prime Minister Abiy has been compared to notable leaders like Barack Obama, the first black American president, the late Nelson Mandela of South Africa who is also credited with having led the African people in South Africa in a successful fight against apartheid and Former President of the Soviet Union Mikhail Gorbachev who is credited for his openness and reorientation of the Soviet strategic aims which led to the end of the cold war, among others.

Abiy who was born in western Ethiopia, joined the resistance movement against the regime of the former leader Mengistu Haile Mariam as a teenager before enlisting in the army where he quickly rose to the rank of lieutenant-colonel. He later served at the cyber-intelligence service before getting into politics and rising through the ranks of the Oromo faction of the EPRDF.

His achievements in only five months are not only unprecedented at least in the region in Africa where peace and stability has been elusive for many decades but also commendable for a young Democracy like that of Ethiopia. His pacifistic leadership style that has been hailed both at home and abroad has given optimism and a renewed hope to a region once ravaged by war.

The 41 year Old Abiy took over a country that was in the brink of a major economic catastrophe on April 2 2018 from Hailemariam Desalegn Boshe who resigned surprisingly after a series of protests by various interest groups mainly led by the youth who represent about 70% of the population and who have been desperate for a paradigm shift from the repressive leadership that has seen the country degenerate to become one  of  the poorest and least economically capable of giving jobs to its mainly young population some of whom have  graduated but  are without jobs.

He quickly embarked on one of the most ambitious reform agendas ever with a remarkable speed and scale starting with the release of thousands of political prisoners including a British national by the name Andargachew Tsege who was on death row for four years for alleged terrorism charges and apologising for heavy handedness and torture by the government officials and promising change for the better.  He proceeded to fire the head of prison services after allegations of torture on the prisoners. He also removed the names of three opposition parties from the list of terrorist organisations. Abiy further lifted the unpopular state of emergency which earned him favour and eased discontentment especially among the youth and other political opponents who were feeling disenfranchised by the limitations to freedom. He has also liberalised the media which had been stifled by the previous regimes for fear of criticism.

On the economic front, he has begun the privatisation of major government owned cooperations  including state owned Ethiopian Airlines  and state run telecoms which will be open to private domestic and foreign investment. Many other sectors such are meant to follow suit except for the finance sector which may be privatised only after the country stabilises and comes out of its current volatile situation partly caused by a severe foreign currency shortage which almost brought the country to its knees.

The situation has however been improved by an intervention by Abiy after he secured a 3 billion Dollar aid package from the AUE, part of which (1 billion) has already been injected into the economy to ease the shortage. He has also made a remarkable and bold move of extending a hand of peace to the neighbouring countries, notably Eritrea with whom Ethiopia has had a 20 year diplomatic stand off after a two-year war between the two countries that killed at least two thousand people and injured a score of others.

All these reforms have not been popular with the entire nation, especially the peace deal with Eritrea which has caused a lot of the minority groups such as the Irob people who are unhappy about the decision to normalise relationships with people they see only as enemies. Infact the botched terrorist attack on the 23rd of June 2018 at a pro Abiy rally at the vast Meske Square in Addis Ababa at which 2 people died and many others were injured was allegedly carried out by hardliner minority who are discontent with some of the reforms he has put in place.

The recent incident which took place in Shashemene , in which a person was hung upside down from a tree by a local mob after rumour circulated that he had carried a bomb at a rally to mark the return to Ethiopia of activist Jawar Mohammed  and the killing of 23 people following ethnic violence targeting minorities in Oromo heartland on the outskirts of Addis Ababa are clear signs of rising ethnic tensions which have  drawn criticism from  many quarters  who see Abiy’s failure to address security challenges and sectarian violence as something that might hinder his efforts for reconciliation, inclusion, national unity and healing.”

Even the large aid package from the United Arab Emirates (UAE) has been seen by some critics as a wrong move that would amount to Abiy not only siding with Saudi Arabia and its allies in the Gulf crisis, but also subscribing to some form of participation in the power game in the region which may taint the image of the country and compromise his role as one of the most Democratic and independent leaders in Africa. With only five months in power, one can only hope that he will finish what he has started and become the true face of a new Democratic Africa lead by young visionary leaders that will steer Africa to achieve its full potential and reclaim its titled that has long been denied, “the richest continent on planet earth.” This dream however may be dead on arrival if Ethiopians of good will from all ethnic groups do not rally behind him to form a unified and all-inclusive Ethiopia.

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The Historic Peace Deal Between Ethiopia and Eriterea https://africanbusinessexchange.com/the-historic-peace-deal-between-ethiopia-and-eriterea/ Sat, 29 Dec 2018 11:11:00 +0000 https://314159.it/?p=2412 Ethiopia and Eritrea recently inked an historic peace deal to end a 20-year stalemate caused by a state of war between the two countries through an initiative by the new young and charismatic Ethiopian Prime Minister Abiy Ahmed.  The signing which took place on the 9th of July 2018 in Asmara- Eritrea was met by celebrations by Ethiopian and Eritreans both at home and abroad opened a new chapter in relationship between the two countries that are located in this the horn of Africa.

Ethiopian Prime Minister Abiy Ahmed and his counter President Isaias Afwerki of Eritrea, agreed to restore a cordial relationship, open Embassies in both countries and also restore flight services between the two countries as well as allow the use of the Eritrean port by Ethiopia.

“The march toward peace might have been a long time coming but we have faith in the love and solidarity of our people,” said Abiy Ahmed, “we can now imagine a future where we see no national boundaries or high walls dividing us. The people of our region are joined in common purpose.”

Scores of Ethiopians and Eritreans took to the social media immediately after the signing to express their excitement. One Samson Haileysus wrote on Facebook, “The events of these past days between Ethiopia and Eritrea are like the fall of the Berlin Wall. Only amplified 1,000 times.”

The peace deal also marked the lifting of a ban on the telecommunication line between the two countries which was celebrated by citizens of both countries who started calling immediately from across the two countries to talk to their relatives and friends marking the beginning of a new era of freedom.

The UN secretary-general, Antonio Guterres who was at the time visiting Ethiopia also hailed the peace agreement saying that the resumption of relations between the two countries was a sign of a new wind of hope that is sweeping across Africa.

In the back drop of the cross border hostility that is far from over, it might be too early to celebrate. The two sides must see this as the beginning and not the end. They must work hard so that this peace that has been so elusive for so long does not once again slip through their hands as this would mean that they lose all the gains brought about by one of the most peace loving prime ministers in the region. What is left to be seen is whether President Abiy will be smart enough to contain the discontentment among the minority groups such as the Irob people who are against the peace deal and will try to do everything to derail it.

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Chatting the African Skies with Ethiopian Airlines https://africanbusinessexchange.com/chatting-the-african-skies-with-ethiopian-airlines/ Wed, 04 Jul 2018 09:12:00 +0000 https://314159.it/?p=2377 Ethiopian Airlines, Ethiopia’s national carrier is one of the fastest growing airlines out of Africa. The airline solely owned by the government has become a force to reckon with not only in the region but in the World’s aviation industry. Our staff writer sat down with the airline representative for a chat.

Tell us a bit about Ethiopian Airlines by giving us a short background

Ethiopian Airlines (EAL) is a flag carrier of Ethiopia. Ever since its establishment in 1945, EAL has become one of the continent’s leading carriers, unrivalled in Africa for efficiency and operational success, turning profits for almost all the years of its existence. Operating at the forefront of technology, it has also become one of Ethiopia’s major industry player and a veritable institution in Africa. It commands a lion’s share of the pan African network including the only daily East-West flight across the continent. Currently, EAL serves 95 international destinations and is fully owned by the government.

How much of Africa do you cover?

Ethiopian covers 55 points in Africa starting with its debut flight to Cairo with C-5 aircraft in 1946. Ever since, Ethiopian successfully introduced new aircraft technology and system to the African sky providing the first jet service with B767 to the continent. Ethiopian continues its unrivalled pace by introducing the technologically advanced B787 Dreamliner in 2012 being only second to Japan. The inclusion of the Airbus A350 and the latest B787-900 to its growing fleet demonstrates Ethiopian thirst for new generation aircrafts and its culture to remain at the forefront of African aviation.  It is the first to acquire the aircrafts in Africa maintaining its old age tradition of introducing new aircrafts to the continent. Currently Ethiopian operates 97 aircrafts with an average age of 5years which is remarkably below the industry average.

What is your experience with doing Business in Africa and what advice would you share with those looking to invest in the continent?

The African Aviation is not growing as much as its body mass. There are structural and policy problems in Africa like for instance the Yamassakouru Declaration that calls for the African Air to be open to all African carriers which is not yet implemented. This lack of enforcement has produced limited intra-African air connections. There are other infrastructure problems and fuel cost is also very expensive in Africa compared to the rest of the world.  In much of the sub-Saharan Africa the required infrastructures to support and lift the African economy are missing. The human resource lacks the required skills and competent professionals leading to bad governance and poor administration that hinder business in the continent.  However, the future looks bright as we have already started training our young professionals, building the roads, airports, power grids and IT backbone needed to boost the African economies. It is my hope that once this is completed we will see growth in imports, exports, and regional business which will make Africa strong economically and socially.

Any advice to Africans out in the Diaspora looking to go back home to invest and build the continents economy?

No doubt Africa is rising. Studies show that the African diaspora is increasingly viewed as a key to realizing the development potential for Africa. Though there are visible challenges, it is a high time that the diaspora plays its role in developing Africa. It is believed that there are a number of professionals in the aviation industry who can play a major role for the betterment of  their beloved continent’s aviation Industry. Therefore, the initiative has to be from both the diasporas and their Governments in participating to build a strong economy.

What are some of the things in your opinion that make Africa special?

In my opinion the factors that drive connectivity and make Africa special include the fact that Africa is versatile and continuously growing, its location positions it to have a good working relationship with other continents, the continent has plenty of unexploited natural resources as well as its immense youthful population.

There has been a lot of talk about Africa rising, what is your opinion, do you have specific examples?

Yes, it is rising. Africa has been a continent known for famine, war and dictatorship. There have been outbreaks of civil wars in the continent with far reaching consequences. There was displacement and famine which affected the majority of people. This has immensely reduced an many Africans are now leading a better life. Governments have started practicing democracy and good governance. This has brought much of investment both foreign and local. There is a great deal of focus on education, health care and other infrastructures which help build the economy. As a result, we have seen a decline in some of the deadly diseases like malaria and AIDS, an increase in the life expectancy of the population and a child mortality rates decline across Africa. We have also witnessed social justice inequalities being wiped out with just a mobile phone with which anyone in any part of rural Africa can transact in e-finance E-learning, E-commerce, Telle Medicine and Video Conferencing or other basic activities.

What is the future of doing business in Africa?

There is more hope than concern. Africa’s future is booming as it lays foundations to attract more investment. Africa has the youngest population size and a large body mass with unexploited resources. There is a huge investment opportunity for those who dare to invest in Africa. On top of this there is a good start in practicing democracy and good governance which leads to security and stability and create an environment for business investment and tourism.

What has been your highlight as a company in doing business in Africa?

It is all about the ease to do business in Africa. Though the opportunity is growing, the fact that non-African carriers manage more than half of the African sky is something that has got to do with lack of commitment from the African side to the Yamassakourou declaration. Despite these problems, Ethiopian Airline has managed to turn the problems into opportunities and recorded a continuous success story in the African Aviation industry.

What can be improved in terms of doing business in Africa?

As I said before more needs to be done on policy framework that is compatible with the global standard. The business regulations need to be the least cumbersome. In addition, African countries have to practice good Governance and build democratic culture.

What can Africa do to be better and as strong as other international blocks like the EU and the ASEAN?

In simple terms commitment to the one united Africa concept and pursuing policies as such is vital to become as strong as the other international blocks. In fact, in his famous speech at a meeting in Addis Ababa in May, 1963, Dr Kwame Nkrumah of Ghana emphasised the need to establish a strong Union of Africa States in order to secure stability in the continent to produce social justice and economic well-being. Though they couldn’t agree at the time on the formation of AU from OAU decades later it has become a reality and a very good start which I believe  may also lead in the future for a common currency like EU.

Any interesting upcoming products for the African Market?

In line with our growth strategy, we will inaugurate various new points in Africa, Europe and America in the year 2018. Nosy Be in Madagascar, Barcelona & Geneva in Europe, Orlando in the United States and Buenos Aires in Latin America are some of the new routes we are planning to add in to our extensive global network.

Particularly Ethiopian will launch Buenos Aires on the International Women’s day to commemorate and be part of the social justice movement that is celebrated every year globally on March 8. The inaugural flight will be an All Women Operated Flight in order to mark this important occasion and as part of our commitment of mainstreaming gender into our core business. We believe there is no better way to celebrate women’s economic, political and social achievement than this.

Compiled by Linda Ogwell-Teunissen

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