Ethiopian Airlines has voiced its apprehension regarding the United Nations’ proposed tax reform for the aviation industry, stating that it could have severe repercussions on the sector.

The airline’s CEO, Mesfin Tasew, expressed concerns about the potential consequences of the reform during the 12th Aviation Stakeholders Convention held in Addis Ababa.

The UN tax reform proposal revolves around revising the double taxation law, which suggests that airlines should pay taxes in all the countries they operate.

This proposition has raised alarm in many nations, with industry experts warning that it may not only harm the aviation sector but also lead to the withdrawal of airlines from the market.

Speaking to journalists at the convention, CEO Mesfin Tasew highlighted that the UN’s tax reform could pose a significant threat to the very existence of the aviation sector.

If implemented, airlines could be forced to exit the market or substantially increase ticket prices for passengers.

This, in turn, would likely result in declining passenger numbers and reduced revenue for countries.

The recent discussions within the United Nations Tax Committee regarding the tax on income from international shipping and air transport, in line with Article 8 of the UN model, have further fueled concerns among industry stakeholders.

The 12th Aviation Stakeholders Convention, held from May 12th to 15th, brought together over 500 representatives from the aviation industries across Africa, Europe, the Middle East, Asia, and North America. The event served as a platform for deliberating and finding solutions to expedite the development of air transport in Africa while fostering cooperation among participating nations.

Mesfin emphasized the importance of accelerating air travel services in Africa and improving African airlines’ ability to enhance their foreign exchange reserves. This would facilitate bank loans, aircraft payments, spare parts purchases, and maintenance service payments.

The convention also aimed to create growth opportunities and foster discussions on the advancement of the aviation industry in Africa. The African Airlines Association (AFRAA) highlighted the meticulous program of the convention, which aimed to achieve results that promote a successful and sustainable aviation industry on the continent.

Furthermore, the CEO stressed the need for policy formulation to facilitate the growth of African aviation. This includes encouraging competition in aviation services, liberalizing traffic rights, reducing tax burdens, and streamlining business operations through strategic investments in aviation infrastructure such as airports, maintenance facilities, and aviation training academies.

As the debate surrounding the UN’s proposed tax reform continues, the aviation industry and stakeholders are closely monitoring the situation, hoping for a solution that strikes a balance between revenue generation and the sustainable growth of the sector.

The Ethiopian Institute for Agricultural Research (EIAR), said thta its research centers are being forcibly taken away by regional officials. Feto Esimo, the Director General of EIAR, informed the Agricultural Affairs Standing Committee at Parliament that various research centers in different cities are being taken over by city administrations, resulting in the displacement of these centers. Feto mentioned that the research station in Oromia region, which had been giving service for over 30 years, was recently compelled to vacate its premises due to pressure from the city administration. Despite attempts to negotiate a resolution, no response has been received thus far.

Currently, EIAR operates approximately 17 research centers, including those in Ambo, Debre Zeit, Assosa, Bako Maize Research Center, Chiro Sorghum, and Fogera Rice Research and Training Center. 

Feto explained that three locations in the Amhara region, where research stations were situated, have been demolished, and the centers have been evacuated. These sites have been handed over to an investor since last year, resulting in the destruction of the property owned by EIAR. Despite these actions the research center owns legal title deeds. The Director General added that they are re-evaluating the situation.

The Ethiopian Agricultural Research is one of Africa’s oldest and largest agricultural research systems, dating back to the late 1940s with the establishment of agricultural and technical schools in Ambo and Jima. EIAR is responsible for coordinating agricultural research at the Regional Agricultural Research Institutes (RARIs), which are managed by federal research centers and state governments. Alongside its national coordination role, EIAR utilizes federal research centers to conduct research in various fields and provides advice to the government on agricultural research direction and policy formulation, based on data from the institute.

The first Djibouti Forum is said to have set the stage for future deals to increase investment in the Horn of Africa country.

Djibouti’s president, Ismaïl Omar Guelleh, declared that his nation was prepared to collaborate with foreign investors in order to expand its private industry and broaden its economic base.

 During his speech at the Djibouti Forum, where he was greeted by world-renowned leaders, the president cordially encouraged investors who were eager to explore the many facets of the nation’s economy.

 He assured them that they would discover a plethora of unexplored prospects, an atmosphere conducive to business, and the resolute backing of his administration.

According to a statement from the Sovereign Wealth Fund of Djibouti sent to Capital, the inaugural Djibouti Forum brought together nearly 400 delegates, including international institutional investors collectively overseeing a staggering USD 2.5 trillion in assets.

Describing the forum as a “resounding success,” Slim Feriani, CEO of the Sovereign Wealth Fund of Djibouti, noted that it was evident that there “is great and growing interest in Djibouti.”

During the closing ceremony of the two-day event held from May 13 to 14, Feriani signed a memorandum of understanding with Tamini Insurance, part of the influential Salaam Group, a leading financial conglomerate in Djibouti. Tamini Insurance’s CEO, Mohamed Bahdon, announced that under the agreement, their clients—numbering over 4,000—will now have access to Djibouti’s first crowdfunding platform, Inclufin.

Through this platform, Tamini Insurance clients can invest in socially impactful entrepreneurial ventures in the country while earning returns on their savings. “It’s an opportunity for our clients to invest in promising businesses, including startups and SMEs, and contribute to the country’s entrepreneurial future,” he said.

The Djibouti Forum also witnessed the signing of an agreement between PAIX Data Centres, a prominent data center solutions provider, and Djibouti’s sovereign wealth fund to establish a cutting-edge, cloud-and-carrier-neutral data center in the country.

Feriani expressed confidence that the first Djibouti Forum had laid the groundwork for future deals in additional sectors.

He invited international partners in attendance to join forces with the country’s sovereign wealth fund to unlock the country’s promising economic potential, stating, “To achieve our goal of doubling the economy in ten years, consistent 7% growth is essential. This can be achieved through mutually beneficial partnerships and economic diversification.”

The two-day forum included panels on various topics such as ports, logistics, technology, connectivity, energy, tourism, financial services, and agro-processing. Additionally, it facilitated lively discussions among leading economists, policymakers, and investors about the macroeconomic landscape in Djibouti and Africa.

Speaking on the macroeconomic outlook for Africa and Djibouti, Sampawende Tapsoba, Deputy Chief Economist and Director of Data Management and Model Development at Afreximbank, acknowledged that the country of 1.12 million people was punching above its weight.

 “Djibouti is growing faster than many African economies and has comparatively lower levels of debt-to-GDP,” he said, emphasizing that low levels of debt meant that Djibouti has the fiscal room to meaningfully invest in transformative sectors of the economy.

Charlie Robertson, Head of Macro Strategy at FIM Partners UK, says, “The three things that stood out for me in this forum are ambition, opportunity, and safety.” “The leadership’s ambition in Djibouti is palpable,” he observed, saying that Djibouti is a safe country that remains a beacon of stability in a volatile neighborhood.

The Djibouti Forum was hosted by the Sovereign Wealth Fund of Djibouti (Fonds Souverain de Djibouti), a fund created in March 2020. It is currently under the stewardship of CEO Slim Feriani, a former Tunisian Minister with over 30 years of experience in international capital markets.

The Africa’s Business Heroes (ABH) Prize Competition, a philanthropic initiative sponsored by the Jack Ma Foundation and Alibaba Philanthropy, hosted 40 participants in Hangzhou, China, between April 20-27. This diverse group included top 10 Heroes and other finalists of the annual entrepreneurial competition as well as its partners from across Africa. The participants were treated to an immersive experience at Alibaba’s headquarters, enriching them with valuable insights to bolster their entrepreneurial endeavors on the continent.

During their stay, the ABH Heroes, spanning cohorts from 2019 to 2023, engaged in a plethora of activities. These included deep dives into various aspects of the digital economy, from cloud computing to AI-driven logistics and e-commerce villages. Workshops and site visits were organized to elevate the entrepreneurs to greater heights of success. The exchange of knowledge and exploration of collaboration opportunities with Alibaba’s business leaders and among the participants proved invaluable, offering new perspectives to overcome challenges and scale their businesses.

Diarra BOUSSO, Founder & Creative Director of Diarrablu and ABH 2020 top 10 Hero, expressed her gratitude for the enriching experience, stating: “This trip was so inspiring in so many ways. First, meeting all these entrepreneurs who are the top entrepreneurs on the African continent and spending a week together was an incredible experience. And second: being immersed in the world of Alibaba and all the companies Jack Ma and his team built over time and understanding the vision behind it was like a dream come true.”

In another exciting development, ABH has extended its deadline for 2024 entries from May 19 to June 9, accommodating more entrepreneurs eager to participate in the competition. The top 50 candidates will gain access to training, mentorship, networking opportunities, a supportive network of fellow African business leaders, as well as pan-African publicity. A total of US$1.5 million in grant funding will be distributed among the top 10 finalists, with the first prize winner receiving an award of US$300,000.

ABH urges entrepreneurs not only in Ethiopia but across Africa, to apply for the free grant and capitalize on the array of benefits provided by the ABH Prize Competition. Submit your application by June 9, either in English or French, at: https://AfricaBusinessHeroes.org/en/apply-now.

This year, ABH has also organized information sessions and community events across the continent to facilitate the application process and foster a vibrant entrepreneurial community. These events, conducted in partnership with local entrepreneur organizations and key ABH stakeholders, have taken place in South Africa, Kenya, Zambia, Cameroon, Ghana, Nigeria, Ivory Coast, Egypt, Senegal and Ethiopia, among other countries. Entrepreneurs from all 54 African countries are invited to participate, regardless of sector, age or gender.