Page 15 - LUA July - August 2023 Magterz and Online

transport within the continent, AfCFTA
will aid the growth of airlines and boost
intra-Africa trade and tourism in Africa.
Aklilu Mekbib, Director of Global Sales
at ASI said, “As Ethiopia is a major aviation
hub, the adoption of SAATM will likely
lead to increased connectivity, more flight
options, and enhanced competition among
airlines. But SAATAM by itself will not
guarantee growth, the AfCFTA needs to be
in place so that new and current African-
based carriers can compete with the large
non-African carriers that currently have
company WoubGet Holdings and many challenges including Ethiopia being a majority over African air space. The
Vice President at EFFSAA (Ethiopian land-locked, having a shortage of containers, AFCFTA is a landmark agreement that
Freight Forwarders and Shipping Agents and having to use the Djibouti and Berbera establishes a single market for goods and
Association) puts the start of Ethiopia’s ports route, making it a time-consuming services across Africa, aiming to boost intra-
horticulture or perishables trade boom process. An unbroken cold chain, getting African trade. Ethiopia, with its strategic
in 2004-5 when the flower trade began big shipping vessels, and handling are other location and strong air cargo capabilities, is
to flourish amidst government subsidies challenges we might face.” well-positioned to benefit from the AfCFTA.
and support. The agreement will likely lead to increased
“Rose, Carnations, and Gypsophila are PROMISING AVIATION trade volumes, including air cargo, within
three major export varieties of flowers. We REFORMS Africa. As a result, the demand for air cargo
are also doing well in fruits and vegetables The Single African Air Transport Market and logistics services in Ethiopia is expected
and command a huge market. We are also (SAATM) and African Continental Free to grow, creating opportunities for the
growing Strawberries, while Avocados Trade Area (AfCFTA) agreements are country's aviation industry.”
are being grown on over 7500 acres of expected to have a transformative effect on Woubishet added, “The idea of these
land in Ethiopia planted and will be ready the aviation and logistics landscape agreements is good but the documentation
for the export market from the end of of Ethiopia. is going to take a long time to make such
August this year. 90% of our perishables While SAATM aims to liberalise reforms operational and there are countries
are transported via air shipments primarily the African aviation market, promote who are yet to sign on. I have seen instances
using Ethiopian Airlines, which does 17 connectivity, and remove barriers to air where Ethiopian and Kenyan flowers have
charters in a week to Europe apart from gone to Amsterdam, Paris, and then finally
existing belly capacities and small charter to Gabon or parts of Western Africa, and
planes flying to the Middle East.” such reforms can create intra-African links
Interestingly a joint programme by and reduce transit time, which is better for
USAID, Israel’s MASHAV, and Ethiopia’s the life of the flowers as well.”
agricultural ministry introduced an
imported Hass variety of avocados over FOCUS ON ECOMMERCE
the last four years to the Ethiopian farm China being a major investor in Africa is
community. Their growth and exports in one factor while another is the boom of
recent trial runs to encouraging results Locally, we are electronic payments which is leading to a
to the European market has made it a potential for the growth of eCommerce in
commodity to watch out for. in continuous the country.
Talking about the potential of the first- discussions with An indicator of the sector’s growth
ever Ethiopian avocado exports hitting the eCommerce sellers is the Ethiopian government’s digital
markets this year, Woubishet says, “Ethiopia strategy called ‘Ethiopia 2025’ following an
is currently doing $570 million worth of on how to bring our increasing number of online retailers and
perishable exports in the last 9-11 months, eCommerce logistics consumers taking the e-commerce route.
compared to $500-520 million worth of solutions to Ethiopia, In line with this, Ethiopian Airlines
exports, showing growth in this vertical. and Ethiopost, the designated postal
These numbers are set to grow owing to especially leveraging operator of Ethiopia, recently signed a
avocado production that will be exported Ethiopian Airlines’ memorandum of understanding (MOU)
to China, Europe, the Middle East, and the services. to enhance e-commerce capabilities and
US. Estimates put the avocado production at position the country as the gateway for
12,000 containers (ocean freight in 40 foot PETER PENSEEL e-commerce in Africa.
containers) in the first season and the sea CEVA LOGISTICS The MoU will likely ensure that Addis
route will be explored. However, there are Ababa Bole International Airport becomes

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