Ethiopia to acquire stake in Port of Djibouti
Ethiopia has announced plans to acquire a stake in the Port of Djibouti, its main system of trade.
Djibouti has sought after investors for its port since it terminated its agreement with Dubai-based DP World.
The two nations have agreed to swap stakes in strategic public enterprises in a bid to enhance economic integration.
The stake swaps would include airlines and telecommunication companies, as well as the port.
The nation of Djibouti is set to receive a stake in Africa’s largest airline (by revenue) – Ethiopian Airlines Enterprise.
Shares in Doraleh Container Terminal, Ethiopian Telecommunications Corp, and Djicouti Telecom SA are also included in the deal.
Ethiopia also revealed an agreement made with Sudan for a stake in its largest sea gateway port – Port Sudan.
“The leaders of both countries agreed to develop Port Sudan together,” Meles Alem, Ethiopia’s Foreign Ministry spokesperson, informed Reuters.
“This deal entails that Ethiopia will be a shareholder of the port as well,” he added.
“Access to a diversified range of ports is a strategic imperative for the government of Ethiopia,” noted Ahmed Salim, Vice President at the Teneo.
“That is perhaps one of its most important priorities in terms of trade and development.”