By our staff reporter

French President Emmanuel Macron is set to return to the Horn of Africa for the first time in five years, with a visit scheduled to Djibouti and Addis Ababa from December 20 to 22, 2024. During this visit, President Macron will inaugurate the newly renovated National Palace on December 21, 2024, marking a significant milestone following a year and a half of extensive renovations.

The renovation project for the National Palace began in April 2023 and was originally expected to conclude by February 2024. Sources indicate that the palace will also be visited by the diplomatic corps in Addis Ababa on December 23.

Originally known as the Jubilee Palace, the structure was named in honor of Emperor Haile Selassie’s Silver Jubilee in 1955. Despite its historical significance, the palace has remained inaccessible to the public, serving solely as an official residence for the president and venue for state functions.

The renovation of the National Palace is part of the French government’s broader commitment to support Ethiopia’s cultural heritage. This initiative was solidified after President Macron visited Addis Ababa in March 2019. A formal agreement was signed on July 16, 2020, between Ahmed Shide, Minister of Finance, Valérie Tehio, Country Director of the French Development Agency (AFD), and Frederic Bontems, then Ambassador of France to Ethiopia and the African Union. This agreement secured €12 million in financing from AFD for the first phase of the renovation project.

The rehabilitation efforts aim to preserve the palace’s original architectural beauty while also implementing additional construction work to transform it into a premier tourist attraction in Addis Ababa.

The first phase of the renovation project, which costs €20 million, focuses on making the palace accessible to the public. The palace administration is overseeing this project with support from French experts and organizations renowned for their expertise in international technical cooperation, including those involved with Versailles Palace.

In line with efforts to expand tourism and boost revenue, Ethiopia has previously opened other historical sites to the public, such as Menelik Palace in 2019 after extensive renovations. Similarly, France is providing funding and technical support for ongoing renovation projects at Lalibela’s rock-hewn churches, a UNESCO World Heritage site in Ethiopia.

By Eyasu Zekarias

The Ethiopian Railway Corporation (ERC) has announced a new strategy aimed at addressing its significant debt burden, which has been exacerbated by recent economic challenges. The corporation has reported a staggering loss of 264 billion birr, primarily due to loans taken out for various projects. As a result, ERC is actively seeking new project financing to alleviate its financial pressures.

Getu Gizaw, Deputy CEO of ERC, stated that the corporation is currently negotiating foreign loans while also exploring alternative project financing options. He emphasized the urgency of initiating these financing efforts, warning that without action, the corporation’s debt will continue to escalate. Unlike previous funding methods that relied heavily on loans, ERC is now focusing on attracting private investors to support its projects.

In a significant development, the Ethiopian Railway Corporation has signed a memorandum of understanding with Italy’s COIPA Capital OU to enhance railway and logistics capacity. This agreement aims to strengthen infrastructure development and connectivity, marking a strategic phase in modernizing Ethiopia’s railway system.

Among the key projects included in this collaboration are the Endode Logistics Center, Mojo Dry Port, and a Multimodal Center designed to handle foreign cargo. Additionally, the agreement encompasses the Ogaden-Djibouti railway line project.

Vito Favorito Samarella, CEO of COIPA Capital, expressed confidence in leveraging sector experience and financing options to support Ethiopia’s extensive infrastructure development. He highlighted COIPA’s role in ensuring economic growth through adherence to international practices and standards for logistics and rail lines.

By our staff reporter

Ethiopia has made notable strides in resolving the issue of blocked airline funds, according to a recent report from the International Air Transport Association (IATA). As of October 2024, the amount of airline funds blocked from repatriation has decreased to $43 million, down from $149 million reported in April, marking a 71% decrease.

The IATA’s report highlights a global total of $1.7 billion in airline funds that remain inaccessible due to government restrictions, reflecting a slight improvement from the $1.8 billion reported earlier this year. Ethiopia, along with countries like Pakistan, Bangladesh, and Algeria, has seen reductions in blocked funds, indicating successful efforts to facilitate smoother repatriation processes.

Willie Walsh, IATA’s Director General, emphasized the critical need for airlines to repatriate their revenues to maintain aviation connectivity, which is vital for economic prosperity. “If airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses,” he stated.

The reduction in blocked funds is crucial for Ethiopia’s aviation sector and overall economy. Airlines depend on the ability to access their earnings to continue operations and provide essential services. The Ethiopian government’s initiatives to address these issues align with broader economic goals, including enhancing trade and tourism.

The report notes that nine countries account for 83% of the airline industry’s blocked funds, totaling approximately $1.43 billion. Ethiopia’s improvements contribute positively to this statistic, showcasing the effectiveness of recent measures taken by the government.

Despite these advancements, challenges persist in other regions, particularly in countries like Mozambique and those within the XAF/XOF zones, where blocked amounts are on the rise. The IATA continues to call for governments worldwide to eliminate barriers preventing airlines from repatriating their revenues in accordance with international agreements.

By Eyasu Zekarias

SantimPay, a leading payment system operator in Ethiopia, has announced that it processed more than 18 billion birr in transactions through its online payment system during the 2023/24 fiscal year. This milestone highlights the growing acceptance of digital payment solutions in the country.

In its annual report, SantimPay Financial Solutions SC revealed a revenue of 152 million birr for the current fiscal year, with a net profit after tax of 57 million birr. CEO Tensaye Desalegn commented on the impressive growth, stating that the significant increase in revenue reflects the company’s strong business performance and success in the market.

According to Desalegn, the balance sheet has also shown considerable improvement, with total assets reaching 240 million birr and a debt-to-equity ratio of 14.95%, indicating robust financial health and stability.

During the fiscal year, SantimPay processed a total of 18,764 transactions through its QR payment solution. The company experienced substantial growth in its merchant network, onboarding 5,500 new QR merchants—a remarkable 195% increase compared to the previous fiscal year when it added 2,823 new merchants. The total amount processed through the QR payment system reached 30 million birr, demonstrating the increasing acceptance and usage of this payment method among customers.

SantimPay has formed strategic partnerships with six banks to enhance transaction processing efficiency. This collaboration is part of the company’s broader efforts to strengthen its position as a leader in Ethiopia’s fintech landscape.

As a payment system operator, SantimPay offers a variety of services including mobile point of sale (mPOS), unified payment interface (UPI), payment gateway solutions, and loyalty systems for merchants and businesses. The company is committed to providing user-friendly, secure, and reliable payment solutions suitable for all business sizes.