Ethiopia Emerges as Africa's Leading Wheat Producer
Prime Minister Abiy announced this development during a national address, highlighting the government's concerted efforts to boost domestic wheat production through investment in modern farming techniques, improved seed varieties, and expanded irrigation infrastructure. Ethiopia's agricultural transformation aligns with its broader strategy to reduce dependency on imports and bolster self-sufficiency in staple crops, particularly wheat, which remains a key dietary component across the country.
Wheat production in Ethiopia has experienced sustained growth over the past decade, driven by a combination of favourable climatic conditions, government policy support, and increased mechanisation of farms. According to official figures, Ethiopia's wheat output now stands at approximately 6 million tonnes annually, compared to Egypt's 2 million tonnes, reflecting a tripling in production levels. This dramatic rise places Ethiopia at the forefront of wheat cultivation in Africa, a region that has historically relied heavily on imports to meet demand.
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Agricultural experts point to the Ethiopian government's Green Revolution initiative, which has prioritised the dissemination of high-yield seeds, fertiliser subsidies, and expanded access to credit for farmers. These measures have helped smallholder farmers increase productivity, contributing significantly to the national wheat harvest. Furthermore, irrigation projects such as those along the Awash River basin have mitigated the effects of erratic rainfall, enabling more consistent and scalable wheat farming.
Ethiopia's ascent in wheat production has broader implications for regional food stability. As a net importer of wheat for decades, the country's enhanced capacity can potentially reduce its reliance on international markets, shielding it from global price volatility. This shift is particularly relevant given the rising global demand and supply disruptions that have characterised agricultural commodities in recent years.
Egypt, long the continent's largest wheat producer and consumer, has faced its own agricultural challenges, including water scarcity linked to the Nile and limitations on arable land. Despite ongoing efforts to boost domestic wheat output, including investments in research and improved cultivation practices, Egypt's production growth has been comparatively modest. The country remains the world's largest wheat importer, sourcing heavily from Russia, Ukraine, and other international suppliers.
Ethiopia's wheat boom is not without challenges. The sector faces risks from climate variability, pest outbreaks, and logistical constraints in transportation and storage. Additionally, ensuring that increased production translates into improved livelihoods for rural communities requires ongoing attention to market access, fair pricing, and agribusiness development. Experts stress the need for continued investment in extension services and rural infrastructure to sustain productivity gains.
On the international front, Ethiopia's growing wheat production positions it as a potential exporter within the East African region, where several countries depend on imports to satisfy their domestic consumption. Neighbouring nations such as Kenya, Sudan, and Djibouti could benefit from more reliable and affordable wheat supplies sourced from Ethiopia's expanding agricultural base.
The government has also indicated plans to promote value-added processing industries linked to wheat, including flour milling and bakery sectors, to maximise economic benefits domestically. Developing these downstream industries aligns with Ethiopia's industrialisation agenda and aims to create employment opportunities while reducing food price inflation.
While Ethiopia's agricultural transformation has gained global attention, it remains critical to balance intensification with sustainable land management practices. The Ministry of Agriculture has emphasised the integration of conservation agriculture principles to preserve soil fertility and biodiversity. International development partners continue to support these efforts through funding and technical assistance, recognising the importance of climate resilience in ensuring long-term food security.
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Zawya
a day ago
- Zawya
Healthy growth of listings on major African bourses
The Ethiopian Securities Ex- change (ESX) has seen more than birr 377bn ($2.6bn) worth of money market transactions in five months since it started providing a trading platform for interbank short-term lend- ing last October. At the time of going to press, trading in equities and bonds had not yet started on the ESX. The National Bank of Ethiopia (NBE) runs the interbank overnight and the 7-day lending market on the ESX's Capizar automated trad- ing platform, and Ethiopia's commercial banks are keen market participants. Prime Minister Abiy Ahmed launched the ESX in January. At the same time, Wegagen Bank listed by introduction, providing the first listed se- curities. Other listing applica- tions are in the pipeline. The ESX and the NBE signed an MoU in March for further cooperation, exchange of in-formation and disclosure. Mamo Mihretu, governor of the NBE, said: 'The interbank money market is a critical component in modernising Ethiopia's financial markets, ensuring greater market ef- ficiency, and strengthening monetary policy transmis- sion.' In April, the ESX then signed an MoU with develop- ment agencies FSD Africa and FSD Ethiopia, both funded by the UK government, which outlines a five-year collabo- ration with the aim of listing over 50 companies, creating platforms for active trading in government and corporate bonds, and enabling the in- troduction of Islamic sukuk securities and other innovative products. Also in March, the Ethio- pian Capital Market Authority (ECMA) licensed the first trad- ers for the ESX. In addition, the regulator licensed two investment advi- sors, further to the four previ- ously licensed. The new licensees are: • CBE Capital S.C. - invest-ment bank (CBE is a sub- sidiary of the state-owned Commercial Bank of Ethi- opia which dominates the financial sector) • Wegagen Capital Invest- ment Bank S.C. – invest- ment bank • Ethio-Fidelity Securities S.C. – securities dealer • HST Investment Advisory Services Plc – securities in- vestment advisor • Equation Securities Invest- ment Advisor Plc – securi- ties investment advisor. The next step for the in- vestment banks and securities dealer involves applying for ESX membership. This is being done in parallel to the ECMA licence applications. Training steps up By end March, the ESX was training the trading and oth- er teams as the prospective dealers and brokers. Accord- ing to the ESX, this involved trading rules, risk manage- ment, compliance and auto- mated systems, and providing valuable insights into how the ESX will operate. Practical sessions on the ESX Automated Trading Sys- tem (ATS), broker back-office systems, and the Central Se- curities Depository (CSD) gave hands-on experience to ensure 'a smooth transition into the market.' NCBA Group in Kenya also sent a team to train market participants in investment banking and custodian op- erations, in a five-day in- tensive programme provided by FSD Ethiopia, designed to equip financial professionals with practical skills in invest- ment banking, valuation, as- set management, brokerage, custody and trustee services. n (Tom Minney was also proud to lead a team for Cowater Inter- national Germany, funded by the European Union, which also trained ESX staff during March - Editor.) EGYPT'S EFG HERMES SUBSIDIARY SET FOR $300M LISTING Finance giant EFG Hermes is preparing to list its subsidi- ary, a financial technology specialist called U Consumer Finance S.A.E. (branded ValU) on the Egyptian Exchange (EGX). The application and regulatory processes were in progress as we went to press, and no date was set. Advisor BDO Keys Financial Consult- ing has set the value of ValU as E£15.6bn ($306m). ValU has provided financ- ing for 7.8m transactions, particularly buy-now, pay- later for up to 60 months, across 8,500 stores and online shops, including home appli- ances, electronics, furniture, residential solar, healthcare, education, travel and fashion. It has a 24% share in Egypt's consumer finance market and offers investments, savings and financing for expensive items up to E£60m, various credit and prepaid cards, and B2B solutions. After the listing EFG Hermes will still hold just under 20.5% of the shares directly and at least 67% in- directly, according to reports. EFG Hermes will distribute shares in ValU to its share- holders instead of cash divi- dends as part of its distribut-able profits for the 2024 fiscal year. EFG Holding has a 40-year history and operates in sev- en countries. It includes an investment bank called EFG Hermes, a group of non-bank financial institutions called EFG Finance, and a commer- cial bank, NXT. EFG Finance is still grow- ing and includes Tanmeyah (microfinance), EFG Corp-So- lutions (leasing and factor- ing), ValU, Bedaya (mortgage finance), Kaf (insurance), Fatura (a technology-backed business marketplace) and EFG Finance SMEs (financial services for small and me- dium enterprises). Government pledges 10 new listings The planned listing adds to the 10 companies that the Egyptian government is planning to list during 2025, according to Prime Minister Mostafa Madbouly. In March, EFG Hermes was reported to be working on two listings. The 10 planned listings are: • Banks - shares will be offered in Alexbank and Banque du Caire • State-owned enterprises – PM Madbouly pledged to offer shares in projects such as the Gabal El-Zeit wind farm, Alamal Alsharif Plastics, Misr Pharma and Chemical Industries Development Company (CID) • Companies affiliated to the Armed Forces - Wataniya, National Company for Pro- ducing and Bottling Water (Safi), SILO Foods, and Chill Out. He added that the govern- ment is developing, restruc- turing and improving govern- ance at 28 of the 59 entities that it oversees. Some will be prepared for public share offers and listing for trading on the EGX, others are being readied for equity sales to strategic in- vestors, some may be merged or liquidated and closed down, and others converted to public entities with improved gov- ernance. NIGERIA'S BOURSE PROFITS SOAR Profits for the Nigerian Ex- change Group (NGX Group) before tax, soared to N13.6bn ($8.5m), up 157% compared to the previous year. Gross earn- ings more than doubled for the year to 31 December 2024, to N24.0bn, up from N11.8bn in the previous year. There was strong growth across the exchange's key revenues and the group man- aged its costs, streamlining its workforce and pushing for efficient operations. NGX Group has declared a dividend of N4.4bn ($2.8m), or N2 per share. By mid-April the shares were trading at N33.05 each, up 38% in price over a year. Key revenue increases: • Transaction fees rose 64% as trading volumes in- creased • More listings meant that fees from initial and annual listings were up by 397%. The NGX Invest platform for paperless investment and capital raising has facilitat- ed N1.8trn ($1.1bn) in capital raises for the banking sec- tor, enhancing liquidity and investor participation • The group offers technology services, and tech-related income also doubled, up by 105% • Market data revenue grew by 101%, contributing to a 103% rise in other income, which now accounts for 30% of gross earnings • Treasury investment in- come climbed 45.6%, high- lighting NGX Group's effec- tive asset management. Alhaji Dr Umaru Kwairanga, Group Chairman of the NGX Group, said the results were 'a pivotal moment' in the growth of the group, since it stopped being an exchange owned by its members and be- came a company which listed its shares for trading. He said the exchange would continue to invest in market infrastruc- ture and innovation: 'The NGX Group under my leadership is focused on harnessing the entrepreneurial and innova- tive spirit of Nigeria's private sector to drive the economy to greater heights.' Temi Popoola, CEO of the NGX Group (below right), told shareholders at the annual general meeting in April that the exchange plans to deepen the market by creating oppor-tunities for private an facilitate private companies to raise capital, in addition to the current market for listed or public securities. He said this aligns with global trends, especially in the technology sector, where private equity and venture capital are pre ferred sources of fi nancing for businesses. He said: 'There is a global increase in the de- mand for private capital, and Nigeria is not ex- empted. All our unicorns, about six of them, are powered by private capi-tal. These companies are rais- ing significant funds without tapping into the public mar- kets, and that's the direction the world is going in.' He added that the bourse would be more proactive af- ter recent de-listings, when securities are removed from trading: 'We might position ourselves to provide private capital access, so that NGX is not just seen as a platform for public equity but as a gateway for all forms of capital. This is how exchanges across the world are adapting, some are seeing de-listings, but they are also landing large listings or tapping into private deals that keep market value intact.' Popoola explained that the NGX is working closely with the Securities and Exchange Commission (SEC) Nigeria to explore institutional reforms to make the market more at- tractive. He added that people are seeking to invest not only in private companies, but also offering private funds for listed companies, which may encourage them to del- ist. However, these growing capital flows could be an op- portunity for the NGX. The NGX is working with major Nigerian firms, includ- ing the Nigerian National Pe- troleum Company (NNPC), to encourage future listings and other opportunities. The exchange has made a strategic equity investment in the recently launched Ethio- pian Securities Exchange (ESX) and supplies training and sup- port. Popoola said: 'The 157.3% increase in profit before tax underscores the strength of our execution strategy and the dedication of our team. By leveraging technology, expanding market data solu- tions, and strengthening our partnerships, we have built a more resilient and diversified business model.' When will the NNPC list? The Nigerian National Petrole- um Company (NNPC) is keep- ing investors guessing on the timing of its eventual initial public offffering (IPO) and list- ing on the Nigerian Exchange (NGX). The listing has been on the cards since it was mandat- ed in the Petroleum Industry Act of 2021 and capital market regulations, but it has also al- ready been put onto the back burner several times. Olugbenga Oluwaniyi, NGX Chief Finance and Investor Relations Offifficer, said on 27 March that the company was in the 'fifinal stage', working with investor relations execu- tives and investment banks in preparation. However, the announcement was then withdrawn and shortly af-terwards a new Group CEO and other top management were announced. The aim of the listing would be for the state-owned NNPC to become a commercial entity and raise funds in the market instead of relying on govern- ment. Preparations for the IPO include improved corporate governance and transparency, to attract domestic and inter- national investors to Nigeria's oil and gas industry. According to the NNPC's latest annual results (to 31 De- cember 2023), net profit was N3.3trn ($2.1bn), up 28% from N2.5trn in 2022. The share- holders approved a dividend of N2.1trn ($1.3bn). Total revenue for the group was N24.0bn, up from N8.8bn in 2022. This continued the turna- round from 43 years of loss- es. The company lost N803bn in 2018, reduced the loss to N1.7bn in 2019 and then went into profit, achieving N287bn profit in 2020, ris- ing to N674.1bn in 2021. The company was changed from a corporation into a limited liability company in 2022. The new Group CEO, an- nounced in early April, is Ba- shir Bayo Ojulari, Rowland Ewubare is Group COO and Adedapo Segun is CFO. ANGOLA'S BODIVA EXPECTS TO MORE THAN DOUBLE LISTINGS Angola's Bolsa de Dívida e Va lores de Angola stock exchange (Bodiva), expects to increase the number of listed companies from four to 10 by 2027. Major state-owned enterprises, including diamond company Endiama and oil giant Sonangol, and other large organisations seem keen for their shares to be traded on the exchange. Walter Pacheco, CEO of Bo diva (right), said that the listings could include Banco de Fomento Angola, the Angolan unit of South Africa's Stand- ard Bank Group, and Unitel, a telecommunications company. The government has men- tioned plans to divest some or all of the ownership of 200 state-owned firms and other enterprises. The government is trying to reduce the state's domina- tion of the economy, increase transparency, and attract foreign investment into the economy. Sonangol is An- gola's largest company and a key part of the economy. It has shareholdings in Banco Com- ercial Português SA and Galp Energia, an oil company. Sonangol is working to- wards an initial public offering (IPO) of up to 30% of its shares. The IPO has been delayed un- til the government stops pro- viding fuel subsidies, after it was initially planned for 2022. Pacheco hopes that the list- ing will be completed by 2027 and will attract major foreign investors to the Angolan mar- ket. Bodiva itself was the fourth listing in November 2024 after an IPO of 30% of its shares. The share offer was heavily oversubscribed, according to the bourse. Bodiva released its financial results for 2024 in early April. Turnover for the year was 5.1bn kwanzas ($5.5m), down 27% compared to 2023. Profit measured by EBITDA (earnings before interest, taxes, depre- ciation and amortisation) was down 49% and net income was 1.3bn kwanzas. The value traded was 6.1trn kwanza ($6.6bn) and there were over 10,000 transactions in the year. BIG INCREASE IN CAPITAL-RAISING IN SOUTH AFRICA South Africa's JSE stock ex- change saw a small 1% in- crease to R21.6bn ($1.1bn) in trading activity in 2024, measured as the value of eq- uities traded, reversing a year of 9.5% decline in value traded during 2023. Some 70% of the trading activity was from high fre- quency and other traders us- ing the JSE's colocation servic- es, where they can rent space to use computers on racks that are located very near to the JSE's trading systems. A total of R103bn ($5.4bn) of capital was raised in the equity market through eight initial public offerings (IPOs), up considerably from the R41bn raised with three IPOs in 2023. However, there were 12 delistings, down from 20 companies which removed their securities from trading lists in 2023. Valdene Reddy, Director of Capital Markets, said: 'South Africa's equity market ended the year as a top performer, outstripping the S&P 500 and many emerging market peers. 'Growth in new listings during the year and anticipated listings in 2025 have showcased increased interest in the JSE as a capital-raising and trading destination. 'We saw an increase in listings largely through corporate unbundling highlighting the exchange's proposition as a preferred platform for value unlocking and growth. We also saw a significant increase in additional capi- tal raised, high issuance in our sustainability segment and strong interest in listing structured products.' On the bond market there were 780 new listings (up from 742 in 2023), including 28 new bonds in the sustain- ability segment. The face value of the bonds listed was R5.0trn ($262bn) and the total face value of bonds traded was up 7% to R48trn compared to the previous year. The JSE also offers post- trade services and handled 363,000 transactions, up from 327,000 in 2023. Robust growth for JSE JSE Ltd, a listed company which operates the exchange, enjoyed a year of robust growth with an increase in net profit after tax of 10.4% to R918m for the year to 31 De- cember 2024. JSE shareholders enjoyed a return on equity of 20.2%, up from 19.4% in 2023, and a 30% increase in the JSE's share price. The JSE board declared an ordinary dividend of 828c a share for 2024, up from 784c in 2023. Total income at the JSE in- creased by 6.5% to R3.17bn, and the JSE managed to in- crease revenues from most other services, offsetting muted trading activity in the equity market. Leila Fourie, JSE Group CEO, said: 'We recorded rev- enue growth across most of our asset classes off the back of sustained positive market sentiment following the for- mation of the Government of National Unity (GNU). 'Our strategy to build a diversified and resilient ex- change group resulted in non- trading income increasing to R1.2bn and it now contributes 38% of operating income, up from 37% in 2023.'. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
Zawya
6 days ago
- Zawya
Ethiopia: Financial sector opening up promises renewed dynamism
In December 2024, Ethiopia's parlia- ment passed legislation opening up the country's banking sector to com- petition from foreign companies, end- ing the decades-long domination of state-run entities. Ethiopia's banking sector is dominated by the state-owned Commercial Bank of Ethiopia, which in 2021, held two-thirds of the total bank deposits in the country and accounted for over half of all bank loans. Furthermore, all 29 banks which currently operate in Ethiopia are locally owned, with many under the direct con- trol of the government or state bodies. This is because Ethiopia has long con- sidered banking, along with other sectors such as telecommunications, a strategic industry to be protected from foreign influence or competition. However, since coming to power in 2018, Prime Minister Abiy Ahmed has sought to open up these strategic sectors with the hope of attracting greater levels of foreign direct investment into Ethiopia and boosting growth. Abiy has started to move Ethiopia away from the 'state-led growth model', partly because of the need to comply with con- ditions imposed by the World Bank and International Monetary Fund (IMF) in return for financial assistance. Since defaulting on a $33m Eurobond payment in 2023, Addis Ababa has been negotiating with these institutions for an external financing package of around $10.7bn to stabilise the Ethiopian economy – but they have required Ethiopia to take demonstrable steps towards liberalisa- tion in return. As a result, in July last year, the Ethio- pia central bank agreed to stop interven- ing in markets to protect the value of the Ethiopian birr, which depreciated by around 60% against the dollar within the first few months of trading. Fur- thermore, in January, the Ethiopian Securities Exchange resumed trading after a 50-year hiatus, with many of the country's state-owned enterprises set to be privatised and floated on the stock market. Now, the government has taken a fur- ther step towards liberalisation by al- lowing foreign companies to enter the Ethiopian financial services market for the first time, though it is expected that foreign ownership of banks will still be capped at 40%. The IMF publicly welcomed the move, with its deputy managing director Ni- gel Clarke commenting that 'continued implementation of financial sector re- forms, including modernising the bank regulation framework... will support financial sector stability.' Hilina Resom, founding partner at the Kazana Fund in Addis Ababa, is also optimistic that this liberalisation will 'open up a whole lot of opportu- nity' for both domestic and foreign financial services firms. On the domestic front, Resom notes that the recent legislation removes restrictions on foreign companies or individuals investing in Ethiopian fi- nancial services companies. 'We have spoken to venture capital investors across the Middle East and Africa that have been interested in Ethiopian com- panies within the finance space for some time but could not invest in them because they are foreigners,' she told African Banker. 'Local start-ups need financing, but money has so far been limited be- cause they had to just raise from angel investors,' Resom adds. 'Even when raising from angel investors, they had to make sure that the investors were Ethiopians; if they were living abroad those investors would need to have 'yellow cards' allowing them to invest in protected industries. Given this, the recent legislation is game-changing in terms of mobilising more capital into the country and catalysing investment into the fintech space in particular. We are very excited about the opportunity.' Attractive fundamentals Banks and fintechs operating in other parts of East Africa, and across the con- tinent are also likely to see this move as an opportunity for expansion. After all, despite facing a difficult macroeco- nomic situation for the last few years, Ethiopia's fundamentals remain at-tractive in many ways. Ethiopia is Africa's second largest country by population size, offering a market of over 125m people – a population that is likely to continue rapidly growing given that the average Ethiopian is aged just 19. With the IMF projecting GDP growth of 6.5% this year, Ethiopia is also one of Africa's fastest-growing economies. Resom told African Banker that 'this is an opportunity that most players in the region's finance space are excited about – this is the second largest market in Africa, and there is obviously a huge opportu- nity for them to increase their revenues. I would expect that banks in Kenya and other parts of East Africa will see this as an opportunity they cannot ignore.' While it is still too early for foreign banks to have made firm plans to enter the Ethiopian market – the legislation was only passed in late December – there have already been signs that some major players are already taking the opportunity seriously. FirstBank of Nigeria, which is based in Lagos and has over 40m retail banking clients across West Africa, has suggested that it will be looking to expand into Ethiopia. FirstBank's deputy managing director Ini Ebong has said that 'there are a number of large economies with large banking pools that are of interest to us because their financial markets are open- ing up. You look at countries like Ethiopia and Angola... the market opportunity is there, and we seek to exploit it.' Chinese interest Mirkarim Yakubov, an asset manager based in Addis Ababa, previously told Af- rican Banker that regional African banks, including multinationals from Kenya and South Africa, could be among the first foreign banks to enter the Ethiopian market, but also predicted strong interest from Chinese institutions. There have also been rumours of banks in Morocco and the United Arab Emirates considering their options in Ethiopia, although this will become clearer in the coming months. While it is hoped that the move to lib- eralise Ethiopia's financial services sector will be successful in attracting greater amounts of foreign capital, Resom also hopes that the move will lead to much higher levels of competition within the domestic banking space and therefore drive up outcomes for consumers. 'We have seen it before in other markets – whenever players become comfortable in maintaining a certain amount of market share, it is positive to see disruption so that consumers can be the beneficiaries in terms of improved services,' she says. 'Ethio- pians will soon have more options to shift to new banks if existing institu- tions do not offer better services – I am sure the local banks are well aware of this.' Mamo Mihretu, the governor of the National Bank of Ethiopia (NBE), has similarly suggested that increased competition will help local lenders by encouraging them to improve their services and standards. While this recent legislation is a significant step towards liberalising the Ethiopian economy, Resom ex- pects that we will see similarly large strides this year – including in the re- tail and logistics industries, which have also traditionally been protected by the government. 'The retail sector is currently closed in Ethiopia, but I expect that it will be opened up soon – indeed the govern- ment has indicated it is interested in doing that,' Resom says. 'This gives us as VCs a huge opportunity to not only invest in the retail and the fintech space individually, but to invest in companies that provide the infrastructure for other companies in those sectors to build on. 'If we see both the financial sector and the retail space open – as I think we will – we are going to see a huge number of start-ups emerge in these sectors. That will be a huge opportunity to tap into.' n Mamo Mihretu, the central bank governor (above), has suggested that increased competition in the finance sector will help local lenders by encouraging them to improve their services and standards. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
Arabian Post
09-06-2025
- Arabian Post
Etihad and Ethiopian Airlines Expand Global Connectivity
Etihad Airways and Ethiopian Airlines have launched a strategic codeshare partnership designed to broaden travel options and enhance connectivity across their global networks. This collaboration enables passengers to access a wider array of destinations with seamless transfer options, utilising the complementary routes of the two carriers. The agreement allows Etihad, based in Abu Dhabi, and Ethiopian Airlines, headquartered in Addis Ababa, to offer joint flight services where each airline sells seats on the other's flights under their own flight numbers. This integration facilitates smoother travel for customers by synchronising schedules and improving booking efficiency. The codeshare spans multiple regions, including Africa, the Middle East, and Asia, bringing more destinations within reach for travellers across the two networks. Etihad has been pursuing partnerships to strengthen its footprint across Africa and beyond, capitalising on Ethiopian Airlines' extensive reach as Africa's largest carrier by fleet size and destinations. Ethiopian operates over 60 passenger routes across the continent, as well as significant long-haul services to Europe, the Americas, and Asia. This codeshare allows Etihad to tap into new African markets that would otherwise require complex routing, enhancing its appeal to both business and leisure travellers seeking efficient connections. ADVERTISEMENT The deal is set to improve passenger experience by providing better coordination of schedules, baggage handling, and streamlined ticketing processes. This is critical in a region where connectivity often faces logistical challenges. For Ethiopian Airlines, the partnership enhances its access to the Middle East and onward connections via Etihad's global network, which includes significant hubs in the Gulf region, Europe, and beyond. Joint codeshare agreements like this reflect an industry trend where airlines seek to offer greater convenience through network alliances rather than costly route expansions. Given the competitive aviation landscape post-pandemic, airlines are leveraging collaborations to rebuild passenger confidence and improve load factors. Both Etihad and Ethiopian are looking to capitalise on growing travel demand, particularly the increasing economic ties between the Middle East and Africa. This arrangement also comes at a time when air traffic between Africa and the Middle East is recovering from the disruptions caused by the global health crisis and geopolitical uncertainties. Enhanced cooperation between carriers such as Etihad and Ethiopian Airlines supports the broader goal of facilitating smoother trade and tourism links across these interconnected regions. Travel industry analysts have noted the potential benefits of this partnership in creating more direct routes, reducing layover times, and offering customers a more consistent service standard across flights operated by either airline. Improved connectivity can also foster business growth, as companies in Africa and the Middle East increasingly require reliable travel options for corporate and cargo purposes. Both carriers have committed to leveraging their respective strengths: Etihad's reputation for premium service and advanced fleet, including its recent expansion with fuel-efficient aircraft, and Ethiopian Airlines' robust regional presence and operational expertise. Ethiopian has also invested in modernising its fleet with Boeing 787 Dreamliners and Airbus A350s, positioning it as a key player in African aviation. ADVERTISEMENT Further, this partnership aligns with Ethiopian Airlines' vision to be the leading aviation group in Africa, enhancing its hub status in Addis Ababa while connecting with global markets more efficiently. For Etihad, this codeshare is part of a broader strategic plan to deepen ties with African markets, which are expected to see significant passenger growth over the next decade due to demographic trends and economic development. Both airlines emphasise that customer benefits include more options to book single tickets across both carriers, improved flight connections with less waiting time, and streamlined travel processes such as through-checking of baggage. These improvements reflect ongoing efforts in the aviation sector to raise service quality and passenger convenience amid rising competition. The codeshare covers flights connecting Etihad's Abu Dhabi hub with Ethiopian's African network, facilitating travel to key African cities like Nairobi, Lagos, Accra, and Johannesburg, among others. This effectively expands Etihad's reach into high-demand African markets, supporting tourism, business travel, and diaspora communities. Regulatory approvals for the partnership have been secured from relevant aviation authorities, and the two airlines are moving quickly to integrate reservation systems and coordinate marketing efforts. Industry observers see this as a model for future collaborations between Middle Eastern and African carriers, with potential for further joint ventures or equity partnerships down the line. While the partnership is expected to bolster passenger volumes, it also has cargo implications. Both airlines operate significant cargo services, and improved network coordination can enhance freight movement efficiency, which is vital for trade and supply chains across the regions involved. This development highlights the strategic importance of partnerships in the aviation industry, especially for carriers seeking to optimise resources and enhance competitiveness without the high costs of route duplication. For travellers, the collaboration between Etihad and Ethiopian Airlines offers a practical solution to accessing a broader range of destinations with improved connectivity and reliability. The initiative also coincides with broader trends where Gulf carriers are strengthening ties with African airlines, reflecting the rising economic and geopolitical importance of Africa. Enhanced air connectivity is a key driver of investment, tourism, and cultural exchange between these regions. Both Etihad and Ethiopian Airlines have underlined their commitment to safety, operational excellence, and sustainable growth, indicating that this codeshare will be part of a long-term strategy rather than a short-term tactical move. They aim to leverage this partnership to capture emerging opportunities as global travel patterns evolve, particularly in linking Africa with global markets through efficient hub-and-spoke systems.
