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.

SEE ALSO:

• DP World has won 30-year concession for deep-water port in Congo

• Somalia parliament rejects DP World Berbera Port deal

• Ethiopian government acquire 19% stake in Berbera Port from DP World

• Read the latest issue of Business Chief, Africa edition, here

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.”