Civil Aviation prepares incentive to woo private investors
The Ethiopian Civil Aviation Authority (ECAA) announces that it is preparing an incentive for private sectors eying the aviation industry. The Authority now calls on the private sector to invest in the aviation industry.
“Airport infrastructure in the country is at a very low level compared to other African countries in terms of development of small airports used for domestic air transport services. This is because the construction and management of airports falls mainly on the shoulders of the federal government,” said ECAA Director-General Getachew Mengiste, adding, “The government believes participation of the private sector in the industry is low, hence, we are preparing an incentive amendment in collaboration with the investment commission to encourage the private sector engagement in the sector including in construction and management of small airports and heliports.”
Currently, there are 22 airports, including four international airports that are providing regular services in Ethiopia. Apart from these, there are a handful of small airstrips that provide various services for mega projects, mining, agriculture, recreation, humanitarian and other uses according to the authority.
“Even though there are some private players in the industry, almost all of them are working with a focus on chartered air transport service. That said the private sector engagement in the cargo transport service is also improving,” explained Getachew.
“The authority is ready to provide training, research and consulting services in relation to aviation industries private sector airport developers,” the Authority head added.
Getachew stressed that the involvement of private investors and regional governments in the sector will support and lay the foundation for the country’s efforts to increase the number of standard airports and in the construction and management of small airports and heliports.
According to him, expanding infrastructure of airports is key and of great importance to ensure the development of air transport.
“It is also vital to ensure accessibility and efficiency for development as the air transport’s contribution to the GDP is increasing,” Getachew stated, adding, “Expansions of airport are vital to increase accessibility of air transport services, transport passengers and high-value and perishable products in a safe and quality manner.”
The latest civil aviation amendment proclamation no 1179/2020 relaxes investment of bottlenecks in the air transport sector. The bill enables citizens to participate in domestic and international flight operations, maintenance and aircraft repair, consultancy service, aircraft design and manufacturing, education and training, import, distribution and leasing of aircraft parts.
Ethiopia, which has been a member of the International Civil Aviation Organisation since 1952, has 13 private investors operating in the air transport sector. The companies engage in consultancy, aviation training, domestic flight operation, flight facilitation and cargo handling.
Aviation in Ethiopia is a high-growth sector with increasing demand for air transportation, both passenger and cargo, with the sector expanding at an average 20% growth rate.
According to the Ministry of Transport and Logistics’ ten years plan, within the coming ten years, the ministry has planned to build six standard airports stretching the 22 number to 28 by 2030. It also aims to build six passenger terminals and 10 raved air strips. The plan aims to fly high by increasing the number of international flights passengers from 10.2 million annually to 48 million in 2030 and local travelers from 2 million to 11 million.
Source: Capital Ethiopia
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