Lufthansa has started a new non-stop flight between Addis Ababa and Frankfurt. The enhanced service reduces the trip to just 6 hours 4 minutes, because it no longer stops over in Jeddah. A modern Airbus A340-300 will operate the route with a configuration of 30 Business Class, 28 Premium Economy and 221 economy class seats.
This flight is also a codeshare flight with Ethiopian Airlines and is complementary with their connection, a passenger can use their ticket on a total of 12 weekly flights.
During the press conference last Thursday Tobinas Ernst, General Manager Sales Regional East Africa Lufthansa Group said,” we are delighted to now offer our passengers in Ethiopia a fast , non-stop and premium quality flight connection between Addis Ababa and Frankfurt .’’
Lufthansa non-stop to Frankfurt
Insurance coverage starts for vehicles traveling to Eritrea
Insurance companies have responded to the recent peace accord between Ethiopia and Eritrea by providing coverage for vehicles transporting goods to Eritrea.
As members of COMESA, both countries respect yellow card insurance, requiring vehicles to have insurance coverage when they cross into another country. The COMESA Yellow Card is a motor vehicle insurance scheme valid in all participating countries. It covers third-party liabilities and medical expenses for the driver of a vehicle and their passengers, should they suffer any bodily injury as a result of an accident to an insured vehicle.
United, Awash, and Ethiopian Insurance Companies are registering trucks to provide motor insurance coverage, which will cover bodily injury and property damage.
Meseret Bezabih, CEO of United Insurance told Capital that the new insurance coverage will benefit both economies.
“Of course cargo trucks are carrying products to be sold which means money for both buyer and seller so an accident means loss not only to the truck but the product as well, thus insurance gives confidence in the transaction in both countries.”
She went on to explain how accident reports will be filed.
“When an accident happens in an Ethiopian vehicle we will ask for a clarification report about the accident from the Eritrean government based on their internal policy and then we will pay compensation for damage.”
Birhane Zeru, President of the Ethiopian Transport Employers’ Federation said starting the insurance will be a shot in the arm for the economy in both nations.
“You never know what will happen when you drive so it is safer to have insurance coverage. Our vehicles are starting to transport goods to Asmara and we are glad to see that insurance companies have committed themselves to providing insurance coverage.’’
In 1998 the two nations fought a bloody war but thanks to a peace agreement in July, relations between the two countries have quickly thawed and many sectors have restarted. Transportation, telecom, trade and borders have all re-opened which has restored relationships and given a boost to the regional economy.
Investors in Gambella cry foul over maladministration, corruption
Commercial farm investors in Abobo Werada, Gambella are complaining about corruption and maladministration in the area which is hindering their businesses and preventing them from expanding.
Agro businesses in corn, sorghum, mug bean, and sesame, said the unsafe environment has delayed thirty businesses from opening.
One investor who asked to be anonymous said that his corn is frequently vandalized and stolen by migrants coming from South Sudan. “The government really wants to have more commercial farming but in order to do that the environment needs to be safe to attract more commercial investors. Abebeo has fertile land suitable for many crops but there is a problem with security. Many migrants have come with their animals, damaged my farms and stolen my corn. Another problem that occurs is that I am asked to give money to government workers when I pay taxes, renew my license and sell my products. All these hinder my business.”
Guay Sissay who received 500 hectares in the area said that when he cleared trees to till land, he tried to make charcoal out of the wood he cut. However, the bureau confiscated his license.
“When they gave me the farm for commercial agriculture work, it was full of tree and other plants so I had to cut the trees and clear the place to plant the sesame and mug bean and they told me that I could use the cut trees for charcoal so I got the proper letter to do that. Then I began to make charcoal with the trees and pay royalty payments to the region. However, a few months ago they came to my farm and confiscated over 5,000 quintals of charcoal worth over 1.3 million birr.”
“I asked them why they took the charcoal out of my yard and they told me that I was indulging in illegal charcoal making and I said that they were the ones who gave me the permission to do that but they didn’t want to listen me and instead seized the coal and one of my cars and I saw that the tires of the car was moved into the Abobo Wereda and then they were chasing me in order to arrest me although I did nothing wrong.”
Okre Omud, head of Abebeo Werda said “Yes we gave investors a license to make charcoal but it was illegally given by some people so we stopped this and confiscated the charcoal. In terms of cases of corruption and maladministration we have done many things to improve this situation now over 90 investors including the billionaire Mohamed al-Amoudi are working here safely.”
In related news, journalists who went to Gambella to report about the issue including Capital’s reporter were detained for three hours by the region’s police and were ordered to delete any recordings.
Road to Djibouti Ports to be improved
The Djibouti Ports Corridor Roads (DPCR) has come into effect to improve the road network with the port logistics hub.
DPCR, an entity established in 2017, is in charge of the planning, building, operations and finance of Corridor-roads connecting its port system to the neighboring countries.
This company is jointly owned by Djibouti Ports and Free Zones Authority (DPFZA) 65 percent and Djibouti Road Agency (ADR) with 35 percent. Both shareholders fully owned by Djibouti government.
“To ensure efficient, cost-effective, well serviced and maintained connecting roads it is important to exert a better control on the corridor roads connecting the ports to our neighboring countries,” Aden Douksieh, Project Manager at DPFZA told Capital via email.
Ethiopian transporters have complained about the road quality on the way to Djibouti, but the new company is expected to improve the road safety and efficiently in the country, according to experts.
“Our port system, is globally recognized for their modern and state-of-the-art facilities, and needs to be further strengthened with an efficiently functioning and well-maintained road network,” Aden said.
“It is important to mention that that road is not the core business of DPFZA. The transport is a chain whereby the port is only the interface of the sea and the land transportation (Road/Rail). If one component is broken, it will definitely affect the overall chain,” DPFZA Project Manger added.
The emailed response of DPFZA indicated that the vertical integration of the services is the rationale behind the involvement of the port authority.
“The port services don’t end at the gate of the port but starts from the gate, the road being only a continuity of that service. The overall quality of the service will depend on the enhanced integration of the different components of the chain, most importantly the road,” it added.
DPCR will be in charge of the planning, construction, financing, operating and managing seven road corridors with the total length of 567km.
It added the advantage of the new entity is the creation of fully functioning intermodal transport system, efficiently operating corridor roads system; better management and more transparent logistics cost, and well serviced and maintained roads.
