BY HIZKEL HAILU
Knowingly, transport infrastructure is one of the most important factors for a country’s progress. One cannot overemphasize the importance of transportation than call it the ‘lifeline’ of a nation. Good physical connectivity in the urban and rural areas is essential for economic growth. Therefore transport investment is essential for economic development of a given country.
Transport investment is believed as an effort that connects generations. Investing in this sector could also mean putting a momentous legacy towards sustainable and resilient development that eventually yields multiple environmental, social and economic benefits.
In Ethiopia, it has been the government’s dominant role to provide transport infrastructures and services. The ten years transport sector perspective plan (2020-2030) already prepared is under implementation with the assertion that the transport sector would play the leading catalyst role in the overall prosperity journey of the country, documents from the Ministry of Transport of Ethiopia indicated.
And the journey towards such development, requires the private sector’s robust financial and technical involvement, which is believed to bring not only profound and impeccable changes, but also shifts the belief that it is the sole task of government.
As governments have a central role in mobilizing various investments in transport infrastructure and services provision, the Ministry of Transport of Ethiopia has taken the initiative to prepare this investment portfolio so far.
Coupled with preparing the portfolio, the ministry has also conducted the first ever Ethiopian Transport Investment Summit-2021 last week so as to introduce the investment opportunities which are ready for local and foreign investors in the transport and logistics service in Ethiopia.
On her key note speech at the event, President Sahlework Zewdie said that the active engagement of investors in the transport and logistics investment in Ethiopia is paramount importance to modernize the sector.
The president further stated that modernizing the sector is significant to materialize Ethiopia’s vision of becoming a middle income economy. As to her, it will not be possible to achieve the national growth without efficient transportation and logistics services.
The president stated that modernizing the transport sector, expanding transport infrastructure and safer transport services and strengthening the capacity of the sector have been given priority under the 10 years Perspective Plan. Accordingly, the private sector needs to capitalize on government’s priority to the transport sector thereby playing their part in the success of Ethiopia’s prosperity goals.
Appreciating the investment opportunities provided by the ministry for the investors, Sahlework called on the ministry, investors and all stakeholders to actively work hand in glove for its successful implementation.
At the event Transport Minister, Dagmawit Moges for her part said that the ministry has opened about 44 sectors as areas of new opportunities for both local and foreign investors, following a revised investment law enacted since last year.
According to the Minister, amending the Investment Proclamation and enacting regulatory regulations, as well as facilitating clear policies and strategies coupled with adopting a 10-year development plan can clearly indicate the government’s commitment to engage the private sector in the economy.
She further called on the private sector to take advantage of this opportunity by narrowing the supply and demand gap in the sector through indicating the transport summit is vital in creating transparency on investment opportunities in the sector.
She also said that her office is at a critical juncture, while preparing this investment notion and portfolio parallel with the investment summit. The policies, strategies and the perspective plans adopted have shown the ministry certain realities that, it would remain difficult for government to continue providing infrastructure amenities alone.
Besides, without the advanced skills and knowledge share with private actors, that it would be difficult to satisfy the ever-increasing public demand. “Therefore, we are now opened different projects for the active engagements of both local and foreign investors,” she noted.
“Moreover, as we seek to increase our infrastructure assets, and renovate our services, the amalgamation of state of art technological inputs, and enjoying a late comer advantage of accessing all contemporary transport related inventions and mechanisms would only happen, through opening up of the sector,” the Minister said.
As Ethiopia is a country of more than 100 million populations and as it is located near to one of the world’s busiest trade corridor of the Gulf of Aden, its geographic position would make it a preferable location to access the continent of Africa, for any trade activities linked with Far East, South Asia and the Middle East.
While approached by The Ethiopian Herald, Ethiopian Civil Aviation Authority, Security Facilitation Directorate Director, Debebe Girma said that since its establishment in 1944 the Aviation is working keenly in order to provide safe air aviation and air trafficking service.
According to Ethiopia’s Investment Proclamation No.1180/2020, the aviation under the Ministry of Transport has opened its door for local and foreign investors to work jointly with the authority, he added.
As to him, the aviation industry of Ethiopia is ready to welcome investors to work in harmony. Investing in Ethiopia’s rich aviation sector is without doubt an attractive venture that one would benefit through the all-available investment offers.
As Ethiopia is among the founding states that brought aviation industry, to the country, and to the continent of Africa as well, the rich experience, brand service, and of course being Africa’s number one Aviation destination that connects the continent with the rest of the continents; would definitely make it a favorable destination to do exercise further ventures.
Be it freight transport, domestic air services, international aviation via joint venture, and other consultancy and aircraft spare parts provision the Director warmly invited investors to take their great chance.
As to him, fright transport with a capacity up to 25 tones, aviation academy, air ballooning, aerial services including agricultural spray, aviation consultancy, supplying aircraft spare parts, equipment and accessories are among the areas which are open for both domestic and foreign investors.
Besides, aircraft Maintenance, Repair and Overhaul (MRO), aircraft ground handling and airport facilitation services are open only for domestic investors while the international air transport domestic air transport services are open for joint investment with foreigners, he noted.
Documents from the Civil Aviation Authority also indicated that foreign investors shall hold up to 49 percent share capital of the joint venture adding that any foreign investor to be allowed to invest shall be required to allocate a minimum capital of USD 200 thousand for a single investment project.
As Ethiopia is also located at an equidistant global position, few hours of flights would also make it a favorable investment destination. A rapidly growing economy; abundant and flourishing investment potentials; including the plan to increase the GDP share and foreign exchange earnings of the manufacturing, agriculture, mining and tourism sectors have all are considered viable reasons to invest in the catalytic transportation and logistics ventures, he noted.
As to the Minister, the Ministry has created suitable environment to anchor investors’ involvement in the sector through approving the implementation of the National Transport Policy and other policies and strategies following the ongoing reforms in the country over the past three years.
In a net shell, if the government works jointly with both domestic and foreign investors and each stake holder in the sector work exhaustively in modernizing the transport and logistics sector in Ethiopia, it will be paramount importance to increase national growth, all agreed.
The Ethiopian Herald March 31/2021
