Ethiopia to invest directly in the Port of Djibouti
Tigrai Online, May 1, 2018
Ethiopian Prime Minister Dr. Abiy Ahmed visiting Djibouti
According to Reuters news agency Ethiopia and Djibouti has agreed for Ethiopia to have a stake in the Port of Djibouti. The deal was signed when the new Ethiopian Prime Minister Dr. Abiy Ahmed visited Djibouti last week. Djibouti also will have access to directly invest in Ethiopian government owned businesses and firms.
Ethiopia uses the port of Djibouti for 90% of its import and export needs. Djibouti on the other hand makes about two billion dollars a year which amounts to about 80% of Djibouti’s national income. On top of this Ethiopia supplies electric power, water, food and other daily consumer goods to Djibouti.
The report didn’t disclose the Ethiopian share in the Port of Djibouti, but the two countries agreed to develop joint facilities.
Not long ago Ethiopia has obtained 19% share in the Port of Berbera in Somaliland. As the Ethiopian economy continues to grow the need for stable port accesses is becoming extremely important.
A few months ago Djibouti terminated a deal with DP World which is owned by Dubai. Djibouti was looking for investor to replace DP World.
Year after year Ethiopia and Djibouti’s economic integration is becoming reality.