Latest news with #AhmedShide
Zawya
6 days ago
- Business
- Zawya
Remarks by Dr. Akinwumi A. Adesina President and Chairman, Boards of Directors, African Development Bank Group at the Signing Ceremony for Mandated Lead Arranger New Bishoftu Airport of Ethiopia
Protocols Honorable Minister of Finance and Governor of Ethiopia to the African Development Bank Group, Ahmed Shide. Honorable Ministers and senior officials of the Government of Ethiopia. Honorable Ministers, including the Honorable Minister of Finance for Malawi, Simplex Banda. The Chairman of the Board of Directors of the Ethiopian Airlines Group, H.E. Lieutenant General Yilma Merdassa. Chief Executive Officer, Ethiopian Airlines Group, Mesfin Tasew Bekele. The Chief Commercial Officer and the Deputy Chief Executive Officer of Ethiopian Airlines Group. The Chairman of the Board of Directors, Ethiopian Airline Group. The Management and staff of the Ethiopian Airlines Group. Vice Presidents Nnnena Mwabufo and Vice President Solomon Quaynor of the African Development Bank Group. The Country Manager for Ethiopia and Deputy Director General for Eastern Africa of the African Development Bank Group, Leandre Basole, who is now the Director General of the Bank for Central Africa. The Country-Manager Designate for Ethiopia and Deputy Director General for Eastern Africa, Olajide Oyewusi. All staff of the African Development Bank. All staff of the Ethiopian Airlines Group. Members of the Media. Ladies and gentlemen. Good morning! I am delighted to be back in Addis Ababa, a city that is witnessing incredible transformation under the visionary leadership of Prime Minister Abiy Ahmed. If the transformation is happening in years, I can understand, but it is happening every hour, every day, every week, at scale. Speed and scale are now the hallmarks of Ethiopia. And scale is what we are signing onto today: the start of the pathway for the construction of the mega Bishoftu international airport. It is a testament to the power of vision, determination and resolve to put Africa at the top. Ethiopia airlines has put Africa at the top in global aviation. I am writing these remarks onboard the ET flight from Abidjan to Addis Ababa. In the air, on top, across 130 destinations, across 5 continents, Ethiopia Airlines makes Africa proud. With its 75 years of operational history, Ethiopian Airlines is Africa's oldest and best airline. It is critical for regional economic integration, connecting capitals, people and markets, with its globally rated cargo facilities. This was remarkable during the Covid19 pandemic. When many global airlines stopped flying., Ethiopian Airlines was in the air. It innovated by turning passenger cabins in its fleets to cargo facilities, moving goods, vaccines, medicines and equipment, across the world. Ethiopian Airlines have won the Skytrax 'Best Airline in Africa' award for seven consecutive years. I applaud the CEO of Ethiopian airlines, Mr. Mesfin Bekele, who is doing an outstanding job, and the Board of Directors, Management and staff of the airline for their incredible top-notch performance and for making Africa proud. I understand that Mr. Mesfin Bekele had wanted to retire twice and twice he has been encouraged to stay on a little longer. That is not surprising, for as the saying goes, the price for great work is more work. I understand that he will be retiring in another year, and you already have a clear succession plan. There will be no surprises. That is the mark of a great institution. I wish to commend you, the Board of Directors, Management and staff for making Ethiopian Airlines such a profitable company, with $7.2 billion in revenues in 2024, an increase of 14% from 2023. I learnt that you also increased your passenger numbers by 24%, to 19 million passengers. What a performance! The African Development Bank is proud to partner with Ethiopia in its vision to expand the operational and fleet capacity of the Ethiopian Airlines. That's why in 2016, one year after my election as President of the African Development Bank, we provided a $160-million corporate loan to Ethiopian Airlines for its expansion and fleet modernization. I was delighted on one of my trips from Addis to Abidjan, when suddenly the CEO of Ethiopian Airlines showed up and said they had changed the aircraft we would use to the new Airbus which was purchased with the financing from the African Development Bank. What a flight it was, for me and all my accompanying staff! I can still recall my photographer, Roland (who is here today), sitting comfortably and enjoying the flight, in the brand-new aircraft. From then, Ethiopian Airlines has not looked back. Today, its fleet expansion program will acquire an additional 114 aircrafts, to bring its fleet capacity to 240 aircrafts. To stay dominant, the government of Ethiopia is also expanding its airport facilities, especially for international flights. The Bole International airport, which currently is at 19 million out of its 25 million passenger capacity per year is no longer enough for the ambition of Ethiopia to be on top. The Prime Minister looks forward again! The new Bishoftu international airport will be a game changer for air transport in Africa and globally. The phase one of the Bishoftu airport will handle 60 million passengers per annum, which will rise to 110 million passengers per annum, in phase 2. The Bishoftu airport will enable Ethiopian Airlines to reduce its fuel consumption by 15%. It will also accommodate 3.7 million tons of cargo and provide parking for 270 aircrafts. The construction of the new Bishoftu airport will cost a total of $10 billion. The African Development Bank is delighted to have been selected as the Mandated Leader Arranger, Global Coordinator and Book Runner to mobilize $8 billion of debt financing towards the construction of the new airport, including up to $500 million of debt from the Bank. You can understand why. The African Development Bank is the largest financier of infrastructure in Africa. In the past ten years under my Presidency, the Bank has financed over $55 billion in infrastructure. We will do all we can to support Ethiopia to achieve its dream. I wish to highly commend the Honorable Minister of Finance, Ahmed Shide, for his strong leadership, for believing in the African Development Bank and for working closely with my staff to make this day a reality. You were with me in Abidjan on March 24, 2025, along with the the CEO of Ethiopian airlines, when you signed the Letter of Intent for the project with Vice President Nnenna Mwabufo. I am proud that the team of the Bank moved with speed and deployed a project preparation mission to Addis Ababa from 5th-9th May, 2025. And here we are today, signing the Mandate letter for the African Development Bank to mobilize the $8 billion for the construction of the new airport. I wish to commend the Government of Ethiopia for moving rapidly to relocate and financially settle all the 2,800 households that will be affected by the project, with transparency and accountability. I wish to assure you that the African Development Bank will deliver, so that this project can be delivered by Ethiopia for its people. As this will be my last official visit to Ethiopia, as President of the African Development Bank, I wish to use the opportunity to express my deep appreciation to Prime Minister Abiy Ahmed, as well as the Government of Ethiopia for all your support for the African Development Bank, my staff and I, over the past ten years. I wish to commend the Minister of Finance for his excellent support. I also wish to commend all my staff, especially my senior Vice President, Vice Presidents, General Counsel and our exemplary legal staff, Directors of the Bank, as well as the country manager and deputy director general and his team at the Bank's office in Addis Ababa. I wish to use this time to specially commend Leandre Bassole, the Country Manager for Ethiopia and the Deputy Director General, who is now taking on a new role as the Director General of the Central Africa region for the African Development Bank. Under you, Leandre, and with your leadership and strategic partnership, the Bank was able to secure this mandate. Well done! I have no doubt that you will excel in your new role. I am equally pleased that Olajide Oyewusi, the new Country Manager designate for Ethiopia and the Deputy Director General is here at the event. Given his extensive experience as a commercial banker, he will be able to put this to use to accelerate the Bank's delivery on the project. This will ensure a smooth leadership transition and stability in the operations of the African Development Bank in Ethiopia. I look forward to flying Ethiopian Airlines to come back here in few years and land at the Bishoftu International Airport. What a great day that will be! I will always have Ethiopia in my heart. Thank you very much. Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Daily News Egypt
6 days ago
- Business
- Daily News Egypt
Ethiopian Airlines, AfDB Sign $10bn Bishoftu Mega-Airport Deal to Boost Africa's Aviation Hub Ambitions
Ethiopian Airlines and the African Development Bank (AfDB) have signed a landmark $10 billion financing agreement to build a state-of-the-art international airport in Bishoftu, in what is being hailed as one of Africa's most ambitious aviation infrastructure projects. Under the agreement, signed on Monday in the Ethiopian capital, the AfDB will act as the lead arranger for financing. The ceremony was attended by senior officials including Ethiopia's Minister of Finance Ahmed Shide, Ethiopian Airlines Group Board Chairman Lt. Gen. Yilma Merdassa, and AfDB President Dr. Akinwumi Adesina. The Bishoftu Mega-Airport, to be developed in five phases, will feature four runways, cutting-edge passenger terminals, advanced cargo handling facilities, and capacity to handle over 100 million passengers annually once completed. Covering an estimated 3,975 hectares, the facility is expected to quadruple Ethiopia's current aviation capacity and position the country as a premier African transit hub. Officials say the project will significantly boost employment, regional trade, and tourism, while strengthening Ethiopia's role in connecting Africa to global markets. The mega-airport will also enhance the country's ability to compete with major transit hubs in the Gulf, Europe, and Asia, capitalising on its strategic geographic location. Ethiopia's aviation sector, anchored by its award-winning national carrier, has experienced rapid growth over the past decade. The Bishoftu project is a central pillar of the government's long-term economic development strategy, aimed at leveraging aviation to drive foreign investment and cross-continental connectivity.
Zawya
04-07-2025
- Business
- Zawya
The Government of the Federal Democratic Republic of Ethiopia and the World Bank Sign USD 1 Billion Financing Agreement to Support Economic Reform and Inclusive Growth
The Government of Ethiopia and the World Bank have signed a Financing Agreement amounting to USD 1 billion under the Second Sustainable and Inclusive Growth Development Policy Operation (DPO) in a grant and concessional loan. This critical operation reflects the World Bank's continued commitment to supporting Ethiopia's bold and far-reaching reform agenda. The program aims to bolster recent government efforts to ensure financial sector stability, enhance trade competitiveness, strengthen domestic resource mobilization, promote transparent and effective public sector governance, and ensure the sustainability of social services, all of which are integral pillars of Ethiopia's macroeconomic and structural transformation. The Government of Ethiopia expresses its profound appreciation to the World Bank for its steadfast and constructive partnership in supporting reform priorities under the Homegrown Economic Reform Program. The support under this agreement underscores the strong and enduring collaboration between Ethiopia and the World Bank in pursuit of shared goals of inclusive and sustainable development. The Agreement was formally signed by H.E. Ato. Ahmed Shide, Minister of Finance, on behalf of the Federal Democratic Republic of Ethiopia, and Ms. Maryam Salim, World Bank Division Director for Ethiopia, Eritrea, Sudan, and South Sudan, on behalf of the World Bank Group. Distributed by APO Group on behalf of Ministry of Finance, Ethiopia.
TimesLIVE
11-06-2025
- Business
- TimesLIVE
Ethiopia forecasts faster growth next fiscal year
Ethiopia's economy will grow slightly faster in the fiscal year that starts next month, while its budget deficit will increase marginally, its finance minister said on Tuesday. The East African nation, which is restructuring its external debt, is implementing far-reaching economic reforms backed by an International Monetary Fund (IMF) loan programme. Finance minister Ahmed Shide told parliament that the government is forecasting economic growth of 8.9% in the fiscal year that runs from July 8 2025 to July 7 2026, up from an estimated 8.4% in the current fiscal year. A budget deficit of 2.2% of gross domestic product (GDP) is expected versus 2.1% this fiscal year, while overall spending will be about 1.9-trillion birr (R248.16bn) next year, he said. Ethiopia's export revenue over the past 11 months of this fiscal year stood at $7.2bn (R127.62bn), Ahmed said, up 118.2% from the previous financial year. Prime Minister Abiy Ahmed has told domestic media outlets in recent days that the country's coffee and gold exports have surged.
Arabian Post
10-06-2025
- Business
- Arabian Post
Ethiopia Targets 8.9 % Growth as Budget Widens
Ethiopia's finance minister has announced that the economy is projected to expand by 8.9 % in the fiscal year beginning 8 July 2025, alongside a modest increase in the budget deficit amid structural reforms. Finance Minister Ahmed Shide addressed parliament on Tuesday, outlining the forecast for the next fiscal year, citing an acceleration in real GDP growth from an estimated 8.4 % this year to 8.9 % next year. The state budget deficit is expected to rise slightly to 2.2 % of GDP, compared to 2.1 % in the current year. Total government expenditure is projected at 1.9 trillion birr, equivalent to around US $14 billion. This positive outlook is deeply anchored in ongoing reforms backed by an International Monetary Fund programme. These include the liberalisation of the exchange rate, debt restructuring negotiations, and the establishment of the Ethiopian Securities Exchange, which opened in January after a 50‑year absence. ADVERTISEMENT The cabinet's approval of the new budget earlier this month signalled a strategic reallocation of resources, with spending set to increase by 31 % compared to the previous year's 971 billion birr. A significant portion is earmarked for national security, productivity enhancement, and disaster relief, including continued subsidies for fuel, fertiliser, oil and medicines—a move aimed at dampening inflationary pressure on households. Reforms and their impacts The IMF programme that began in July 2024 has been a linchpin in the reform agenda. In April, State Finance Minister Eyob Tekalign reported that the third review of the four‑year US $3.4 billion loan arrangement had reached staff‑level agreement, with approval by the IMF executive board anticipated this month. Subsequent draws will hinge on continued reform progress, notably debt restructuring. Debt, inflation and exchange rate liberalisation remain pressing concerns. A draft budget revealed that 463 billion birr—nearly 39 % of recurrent expenditure—will go towards debt servicing, surpassing planned capital outlays. The government intends to restructure approximately US $3.5 billion in external liabilities through agreements in upcoming weeks. Bondholder writedowns are expected as part of a broader debt resolution strategy. Monetary reforms have lessened inflation, which reached 29.2 % in 2022/23, and narrowed the spread between official and parallel exchange rates. Foreign reserves have rebounded, tripling to US $3.6 billion, easing foreign exchange shortages. These financial indicators have been central in IMF assessments. Policy makers are awaiting formal debt restructuring talks this summer with official and private creditors alike, guided by the G20 Common Framework. Iran‑timed agreements with Chinese policy banks, the U.S. International Development Finance Corporation and other funders are being explored to support infrastructure and development needs. Regional comparisons and strategic outlook Ethiopia remains one of sub‑Saharan Africa's highest growth economies, although still below the pre‑covid annual average of around 10 %. The country's trajectory continues to be shaped by recovery from the Tigray war, covid‑19 disruptions, droughts and locust invasions, but ongoing reforms are expected to unlock further expansion. The imminent fiscal year budget, combining a steep rise in expenditure with a stabilising deficit, underscores a cautious but ambitious strategy: focusing on debt management, reform momentum and public service delivery, rather than unfettered spending. Key stakeholders, including opposition figures such as Desalegn Chane of the National Movement of Amhara, have voiced concern over rising tax burdens amid steady living costs and a depreciating birr. Criticism has targeted new levies on motor vehicles and excise taxes, with claims these conflict with subsidy policies. The finance minister, however, defended these as necessary for fiscal resilience and revenue expansion. Broader reform dynamics have been influenced by Prime Minister Abiy Ahmed's economic agenda, including the launch of Ethiopia's first stock market since the Haile Selassie era, currency liberalisation, and opening the banking sector to foreign investment. These steps have been deemed essential to securing up to US $27 billion in external funding from IMF, World Bank, UAE, China and others over the next four years. Looking ahead The projection of roughly 8.9 % GDP growth signals confidence that reforms are gaining traction, even as the government prepares to finance a wider budget and service rising debt. The success of the IMF programme's next review, debt restructuring outcomes, and reform implementation will determine whether Ethiopia can sustain its economic momentum and weather domestic and global headwinds.
