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Knowingly, transportation infrastructure is one of the most important factors for the progress of a country. The importance of transportation cannot be overemphasized than calling it the “lifeline” of a nation. Good physical connectivity in urban and rural areas is essential for economic growth. Therefore, investment in transport is essential for the economic development of a given country.
Investing in transportation is believed to be an effort that connects generations. Investing in this sector could also mean leaving a momentous legacy towards sustainable and resilient development that eventually yields multiple environmental, social and economic benefits.
In Ethiopia, the dominant role of the government has been to provide transport infrastructure and services. The already prepared ten-year transport sector outlook plan (2020-2030) is being implemented with the claim that the transport sector would play the main catalytic role in the country’s overall prosperity journey, Ministry of Transport documents indicated. from Ethiopia.
And the path to that development requires the strong financial and technical involvement of the private sector, which is believed to bring not only profound and flawless changes, but also changes the belief that it is the sole task of government.
As governments play a central role in mobilizing various investments in transport infrastructure and service delivery, the Ethiopian Ministry of Transport has taken the initiative to prepare this investment portfolio thus far.
Along with the preparation of the portfolio, the ministry also held the first Ethiopia-2021 Transport Investment Summit last week to present the investment opportunities that are ready for local and foreign investors in transport and logistics service. in Ethiopia.
In her keynote address at the event, President Sahlework Zewdie said that the active participation of investors in transport and logistics investment in Ethiopia is of the utmost importance to modernize the sector.
The president further stated that modernizing the sector is important to realizing Ethiopia’s vision of becoming a middle-income economy. As for it, it will not be possible to achieve national growth without efficient transport and logistics services.
The president affirmed that the modernization of the transportation sector, the expansion of transportation infrastructure and safer transportation services, and the strengthening of the sector’s capacity have been prioritized in the 10-year Outlook Plan. Consequently, the private sector must capitalize on the government’s priority in the transport sector, thus playing its role in the success of Ethiopia’s prosperity goals.
Appreciating the investment opportunities provided by the ministry for investors, Sahlework asked the ministry, investors, and all stakeholders to actively work hand-in-hand for its successful implementation.
At the event, Transport Minister Dagmawit Moges, for her part, said the ministry has opened up about 44 sectors as areas of new opportunities for local and foreign investors, following a revised investment law enacted last year.
According to the Minister, amending the Investment Proclamation and promulgating regulatory regulations, as well as facilitating clear policies and strategies, along with the adoption of a 10-year development plan, can clearly indicate the government’s commitment to involve the private sector in the economy.
In addition, he called on the private sector to take advantage of this opportunity by reducing the supply and demand gap in the sector by indicating that the transport summit is vital to create transparency about investment opportunities in the sector.
He also said that his office is at a critical juncture, as it prepares this investment and portfolio notion in parallel with the investment summit. The policies, strategies and outlook plans adopted have shown the ministry certain realities that it would remain difficult for the government to continue to provide infrastructure services on its own.
Furthermore, without advanced skills and knowledge shared with private actors, it would be difficult to meet the growing public demand. “Therefore, we now have different projects open for the active participation of local and foreign investors,” he said.
“In addition, as we seek to increase our infrastructure assets and renew our services, the fusion of state-of-the-art technological inputs and the enjoyment of a belated advantage of accessing all contemporary transportation-related inventions and mechanisms will only happen, through of the opening of the sector, “said the minister.
As Ethiopia is a country of more than 100 million people and is located near one of the world’s busiest trade corridors in the Gulf of Aden, its geographical position would make it a preferable place to access the continent of Africa, for any trade. activities related to the Far East, South Asia and the Middle East.
While the Ethiopian Herald, Director of the Security Facilitation Directorate of the Ethiopian Civil Aviation Authority, Debebe Girma, said that since its inception in 1944, Aviation is working intensively to provide safe air traffic and aviation service. .
According to Ethiopia’s Investment Proclamation No. 1180/2020, the aviation under the Ministry of Transport has opened its doors for local and foreign investors to work together with the authority, he added.
As for him, the Ethiopian aviation industry is ready to welcome investors to work in harmony. Investing in Ethiopia’s rich aviation sector is certainly an attractive venture from which one would benefit through all the available investment offerings.
As Ethiopia is among the founding states that brought the aviation industry, to the country and also to the continent of Africa, the rich experience, the branded service and of course being the number one aviation destination in Africa connecting the continent with the rest of the continent. continents; It would definitely make it a favorable destination for further endeavors.
Be it cargo transportation, domestic air services, international aviation through joint ventures and other consulting services and aircraft spare parts, the Director warmly invited investors to take advantage of this great opportunity.
As for him, transport of terror with a capacity of up to 25 tons, aviation academy, hot air balloons, air services that include agricultural aerosols, aeronautical consultancy, supply of spare parts, equipment and accessories for aircraft are among the areas open to national investors. and foreigners. .
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In addition, aircraft maintenance, repair and overhaul (MRO) services, aircraft ground assistance and airport facilitation are open only to national investors, while international air transport services of national air transport are open to joint investment with foreigners, he noted.
Documents from the Civil Aviation Authority also indicated that foreign investors must own up to 49 percent of the capital stock of the joint venture, adding that any foreign investor who is allowed to invest must allocate a minimum capital of USD 200 thousand for a investment project only. .
As Ethiopia is also in an equidistant global position, a few hours of flights would also make it a favorable investment destination. A fast growing economy; abundant and flourishing investment potentials; including the plan to increase the share of GDP and foreign exchange earnings from the manufacturing, agriculture, mining and tourism sectors are considered viable reasons to invest in catalytic transport and logistics companies, he said.
Regarding the Minister, the Ministry has created an environment conducive to anchoring the participation of investors in the sector by approving the implementation of the National Transportation Policy and other policies and strategies following the reforms underway in the country during the last three years.
Simply put, if the government works together with domestic and foreign investors and every stakeholder in the sector works extensively on modernizing the transport and logistics sector in Ethiopia, it will be of utmost importance to increase domestic growth, they all agreed. .
