Business & Economy

Ethiopia diversifies trade access with Sudan and Kenya port investments

ETHIOPIA will take a stake in Port Sudan in its latest deal to boost and diversify its maritime business.

The deal was reached at a meeting between Ethiopia’s Prime Minister Abiy Ahmed and Sudan President Omar al-Bashir.

‘The leaders of both countries agreed to develop Port Sudan together,’ said Meles Alem, spokesman for Ethiopia’s Foreign Ministry, The Sundanese Media Centre reported.

Alem added: ‘This deal entails that Ethiopia will be a shareholder of the port as well.’

No financial details of the agreement were disclosed.

Lamu deal

Ethiopian diplomats and Kenyan leaders have also announced an agreement to give Ethiopia a lease at Kenya’s new Lamu Port for logistics purposes, according to the Maritime Executive.

The agreement comes with a joint commitment to improve the road and rail links between Addis Ababa and the Kenyan border.

Ethiopia also reached a deal in April to take a share in Djibouti’s Port of Djibouti under an agreement reached by both countries — though the size of the stake has not been confirmed.

In February DP World stated Ethiopia would take a 19 percent stake in the Port of Berbera in Somaliland, however Somalia later said the deal was unlawful, sparking ongoing pressure on DP World to scrap the deal.

Ethiopia, which is a landlocked country and Africa’s second-biggest in terms of population, currently sees Djibouti handle roughly 95 percent of all inbound trade for it.

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