With major projects, Ethiopia shedding famine stereotype

Ethiopia’s economy has grown at an average of 11 percent a year over the past decade, spurred by huge energy and infrastructure projects such as a mega-airport, a railway, roads and a US$4.2 billion dam

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Construction continues at Ethiopia’s Grand Renaissance Dam during a media tour along the river Nile in Ethiopia’s Benishangul Gumuz Region on Tuesday. Photo: Reuters

Ethiopia’s planned airport on the outskirts of the capital is still years from becoming a reality, but Ethiopian Airports Enterprise chief executive Tewodros Dawit can already envision how grand it will look.

“The airport we are planning to build is going to be huge. Very huge,” Tewodros said one recent afternoon as he examined project plans in his office in Addis Ababa. “It will be one of the biggest airports in the world. I don’t know what other countries are planning in this regard for the future, but no country has created this much capacity so far in Africa.”

Ethiopia, once known for epic famines that sparked global appeals for help, has a booming economy and big plans these days. The planned airport is one of several muscular, forward-looking infrastructure projects undertaken by the government that have fueled talk of this East African country as a rising African giant.

Addis Ababa increasingly looks like an enormous construction site, with cranes and building blocks springing up in many corners of the city.

Britain, long a source of charitable aid for Ethiopia, last month announced that Ethiopia’s growing economy means the time has come for “transitioning support toward economic development to help generate jobs, income and growth.”

Over the past decade, Ethiopia’s economy has grown at an average of 11 percent, more than double the rate for sub-Saharan Africa, according to UN figures. The growth is fueled in part by huge public expenditure on energy and infrastructure projects that make the country attractive to long-term private investment. The projects are being funded mostly through loans obtained from partners such as China, India and the World Bank.

Tewodros said the planned new airport would have the capacity to handle up to 100 million travelers per year, a figure that he said dovetails with the ambitious plans of national carrier Ethiopian Airlines. He said the new airport would relieve Addis Ababa’s Bole International Airport, whose passenger terminal is undergoing a US$250 million expansion amid growth in passenger numbers from 900,000 in 2000 to more than 7 million last year.

The old airport has been engulfed by residential areas — a major reason behind the decision to build a new airport on the capital’s outskirts.

Ethiopian Airlines, Africa’s largest based on fleet size and its most profitable, has been rapidly expanding over the years as it focuses mostly on the booming Africa-Asia market, according to the aerospace consulting firm CAPA Aviation Centre.

“Ethiopian’s expansion in Asia has been much faster and its pursuit of Asia-Africa transit passengers is much more aggressive” than its big rival, Kenya Airways, the firm said.

Ethiopian Airlines now has daily non-stop flights to the Chinese cities of Beijing, Guangzhou and Shanghai. China has become Africa’s biggest trading partner.

Tewodros said the planned new airport, expected to be complete within a decade, would cost several billion US dollars, but offered no specific figure.

The government is still assessing potential financiers, with a loan from Export-Import Bank of China a strong possibility.

The government is expected to announce in the coming weeks which of three locations under consideration has been picked as the site, Tewodros said.

“It is only natural that Ethiopia plans on having a mega airport, not only to host Ethiopian Airlines, but also to host a lot of transit traffic that passes through Addis,” said Zemedeneh Nigatu, a managing partner in Ethiopia with accounting firm Ernst & Young who is also a consultant for Ethiopian Airlines.

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