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Ethiopia to acquire part of Djibouti’s port.
Djibouti have reach an agreement with Ethiopia concerning the acquisition of part of its port by Ethiopia. This agreement comes after Djibouti on its own invalidated a contract with the United Arab Emirates’ giant Dubai Ports World (DP) two(2) months ago.
According to Ethiopian Minister of Transportation Ahmed Shide, determination of the percentage apportioned is till ongoing. As experts are still assessing the value and profit margins of the port.
Both parties will sign a formal agreement in two(2) months time. But this will be after experts from both countries have finished the paperwork.
Ethiopia also agreed to apportion to Djibouti shares in its major firms of their choice, including Ethiopian Airlines. Djibouti also showed interest in agricultural activities in Ethiopia.
Previously Ethiopia have allowed Djibouti to pump about 200 metric cubes of drinking water daily from its Somalia region.
More than 95% of Ethiopia’s import and export trade passes through Djibouti’s Port. Ethiopia and Djibouti are connected by a railway and a Liquefied Natural Gas (LNG) pipeline project was underway to export gas from the Somali region.
Ethiopia, with an estimated 100 million population, lost its access to the sea after Eritrea pulled out in 1991.
Apart from Djibouti, Ethiopia also uses Port Sudan and Berbera for its import and export activities.