70th year Anniversary of @flyethiopian & Annual Employees’ Day celebration

Ethiopian 70th Year Anniversary and Annual Employees’ Day Colorfully Celebrated!

The 70th Year Anniversary of Ethiopian Airlines and Annual Employees’ Day has colorfully been celebrated on June 5, 2016 at ET headquarters in the presence of Group CEO Ato Tewolde GebreMariam, the Executive Management Team, officials of partner companies and stakeholders as well as over 13,000 Ethiopian employees and retirees. The occasion brought Ethiopian partners, employees and retirees together to celebrate the achievements of the airline over the past seven decades and the irreplaceable role employees had in the success story. The ceremony was started with the Ethiopian national anthem performed by Ministry of Defense March Band followed by a minute of silence to honor the martyrs in the struggle which saw the ouster of the Dergue on Ginbot 20 back in 1991.

Speaking at the event, Ethiopian Group CEO Ato Tewolde GebreMariam congratulated all the staff, at home and abroad, on their unreserved and fruitful efforts which made the airline successful over the past 70 years. He also urged them to continue their efforts in unison to achieve the airline’s goals with a sense of common vision and team work.

Ato Tewolde pointed out that Ethiopian has been winning in the hyper-competitive aviation business and will continue its efforts to achieve yet greater victories. “We will never be intimidated by competition as long as there is a level playing field,” he said. The CEO also thanked partner companies for their support for Ethiopian in good and bad times. In their brief speeches, officials of the partner companies also congratulated all the staff on their success over the decades.

 

During the event, best performer staff members of 2015/2016 from across divisions received prizes from the Group CEO. A photo exhibition depicting the 70 years success story of Ethiopian was also opened by Ato Tewolde and Ato Tewodros Dawit, Airport Enterprise CEO.

The participants of the event were treated to delicious Ethiopian cuisine including kurt, tibs and kitfo as well as beer and soft drinks while enjoying live band performance by famous Ethiopian musicians including Helen Berhe, Semahegn Belew and Jonny Ragga. DJ Yemmi and Comedian Filfilu also entertained the audience.

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Receiving Employee of The Year 2016 award/prize from Mr. Fouad Attar (Executive Vice President – Managing Director, Airbus-Middle East), Mr. Tewolde GebreMariam (CEO, Ethiopian Airlines) & Mr. Van Rex Gallard (Vice President Sales – Africa, Latin America & Caribbean, Boeing) -(From left to right)

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Receiving Employee of The Year 2016 award/prize from Mr. Fouad Attar (Executive Vice President – Managing Director, Airbus-Middle East), Mr. Tewolde GebreMariam (CEO, Ethiopian Airlines) & Mr. Van Rex Gallard (Vice President Sales – Africa, Latin America & Caribbean, Boeing) -(From left to right)

Ethiopian Airlines First A350 XWB Rolls Out of Paint Shop

The first A350-900 for Ethiopian Airlines has been revealed in the airline’s livery following completion of painting in Toulouse. The aircraft is now set to move to the next stages of production, including the installation of engines and cabin furnishing, before starting ground and flight tests.

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Ethiopian will become the first airline from the Africa to fly the A350 XWB. The carrier will operate 14 A350 XWBs, of which 12 are directly purchased from Airbus and two are on lease from AerCap, including this first aircraft.

Ethiopian will deploy the aircraft on its expanding route network linking the East African nation with Asia and America.

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Ethiopian Airlines Group upgrades Aviation Academy

Ethiopian Airlines Group has revamped its Aviation Academy, investing US$100 million in the project. The Academy will have an annual intake capacity of 4,000 students, which will reinforce its position as the largest and the finest Aviation Academy in Africa.

Trainees

Ethiopian Airlines Group has inaugurated its recently upgraded Aviation Academy. The group invested US$100 million in the upgrade project. With an annual intake capacity of 4,000 students, thanks to the expansion, the school will reinforce its position as the largest and finest Aviation Academy in Africa according to a statement.

The refurbished academy has five training schools, which include the pilot training school, aviation maintenance training school, commercial and ground service school and leadership school.

The expanded academy also has several flight simulators, the B-777, B-787, B-737, B-767/757 and the Q-400, which enables the academy to offer full type rating trainings for pilots as an authorized training organization.

Tewolde GebreMariam, Group CEO of Ethiopian said, “We are proud to be in a position to avail the latest and next generation aviation technology training machines and facilities where we can train the continent’s youth and prepare them for the 21st century African Aviation development,”

“The Ethiopian Aviation Academy is positioning itself to be the catalyst leader in aviation training technology in supporting the African Union to realize its vision 2063”.

Last month, the Ethiopian Airlines Aviation Academy graduated 14 pilots, 53 aviation technicians, 38 marketing agents and 38 cabin crew, including nine trainee pilots from Rwanda three of which are female.

Ethiopian Airlines, which is the largest and most profitable airline in Africa, has continued to expanding as competing African airlines are mired in heavy losses. The airline has pursued an aggressive expansion strategy, which has quickly transformed the carrier into the continent’s leading airline, unrivalled in efficiency and operational success.

 

Ethiopian Airlines first A350 XWB takes shape

The first Airbus A350-900 for Ethiopian Airlines is taking shape on the Final Assembly Line (FAL) in Toulouse, France.  Ethiopian Airlines will be the first African A350 XWB operator when it takes delivery of the aircraft next year.

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Ethiopian Airlines will operate 14 A350 XWB of which 12 are directly purchased from Airbus and two are on lease from AerCap, including this first aircraft.

Mating of the various aircraft fuselage sections has begun and the vertical stabilizer (tail fin) has been attached.   Similarly, work has begun on joining the wings, and the horizontal tailplanes to the fuselage, after which its undercarriage will be fitted. All these activities are carried out in parallel with cabin interiors installation and the first electrical power–on, enabling a significant reduction in lead-time. Following this, the aircraft will undergo a comprehensive sequence of tests. Once those are complete, the aircraft will be painted, its engines installed and preparations for delivery will begin.

The carrier will deploy the aircraft on its expanding route network linking the East African nation with Asia and America. The Airbus A350 XWB MSN2 will be arriving at Addis Ababa’s Bole International Airport on 11th November as part of its Middle East-Ethiopia demonstration flight tour.

The A350 XWB (Xtra Wide-Body) will bring a step-change in efficiency compared with existing aircraft in this size category, as it uses 25 per cent less fuel and provides an equivalent reduction in CO2 emissions. To date, the A350 XWB has already won 787 firm orders from 41 customers worldwide.

SOURCE: airbus.com

Ethiopian Airlines wins “The Rising Star Carrier of the Year Award”

Ethiopian-Playload-AsiaEthiopian Playload Asia Award (credit: Ethiopian Airlines Facebook page)

Ethiopian Airlines (Ethiopian), the fastest growing Airline in Africa, has won “The Rising Star Carrier of the Year Award” at the 2015 Playload Asia Award held at the Crowne Plaza Changi Airport in Singapore, yesterday.

Rising star carrier of the yearOrganised by Payload Asia and supported by Logistics Insight Asia, the annual Awards is a celebration of excellence, highlighting the air cargo supply chain companies that have excelled in the industry – those that have risen above the challenges through market adeptness, innovative products or superior strategy – to make a positive impact on the market and in their own business.

Established in 1984, Payload Asia continues to be the respected voice of the air freight industry, offering unparalleled news and analysis of industry developments and trends from across the globe with a keen focus on the Asia-Pacific and India-Middle East regions.

International Job Openings @ Ethiopian Airlines

International Job Openings @ Ethiopian Airlines

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Position: Inflight Services
Location: Addis Ababa
Closing Date:  Open starting from October 08, 2015
ETHIOPIAN Airlines would like to hire experienced personnel for its Inflight Services.

Registration Date: Open starting from October 08, 2015

Location: Addis Ababa

Qualification required: Minimum completion of post graduate level (MA degree) in any field with at least five years of experience as management in the area of Inflight services with high level of competency in the profession within recognized Airlines.

Key skills required

  •          Result oriented, performance focused with good proficiency in people management
  •          Someone who can demonstrate track record of previous success

NB: Interested applicants can send their CV and relevant credentials by email to Recruitment@ethopianairlines.com . Applicants must attach documents showing their experience in similar areas.

Position: Airport Operation
Location: Addis Ababa
Closing Date:  Open starting from October 08, 2015
ETHIOPIAN Airlines would like to hire experienced personnel for its Airport Operation.

Registration Date: Open starting from October 08, 2015

Location: Addis Ababa

Qualification required: Minimum completion of post graduate level (MA degree) in any field with at least five years’ experience as management in the area of Hub Airport operation with high level of competency in the profession within recognized Airlines.

Key skills required

  •          Result oriented, performance focused with good proficiency in people management
  •          Someone who can demonstrate track record of previous success

NB: Interested applicants can send their CV and relevant credentials by email to Recruitment@ethopianairlines.com . Applicants must attach documents showing their experience in similar areas.

Position: Trainee Cabin Crew
Location: Brazil
Closing Date:  Open via email
ETHIOPIAN AIRLINES WOULD LIKE TO HIRE QUALIFIED CANDIDATES ON THE FOLLOWING POSITION.

Position:-Trainee Cabin Crew – Brazilian

Company Description

Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success.  And it attributes this success to its workforce. Take advantage of this prospect and the satisfaction of working from a land of 13 months of Sunshine.

Ethiopian welcomes you yet again to join its team in achieving its vision of becoming Africa’s World Class Airline.

Description

Perform duty under the direct supervision and direction of the Cabin Supervisor and   Senior Cabin Crew. Ensure that cabin safety and security is in accordance to Ethiopian Policy and standard and other regulatory requirements. Provide optimum comfort and service to passengers with courtesy, efficiency, thoughtfulness and ready assistance in conformity with the Ethiopian Airlines standard.

Qualification

–      Age:  20 – 35 years old inclusive;

–       Height:  1.59 cms and above

–      Weight: proportional to height.

–       Fluency in Portuguese and English

Desirable Criteria

  •   Knowledge of foreign language other than English is advantageous.
  •   Charming and friendly personalities are the requirements of the job.

Salary base: BRL 5,000 for 85 flight hour per month including allowances.

  •   There will be a training period in Addis Ababa, Ethiopia, during this period the accommodation will be provided at Ethiopian Airlines Aviation Academy’s compound.
  •   The cabin crew will be fixed in Sao Paulo, and will be flying initially the segments: Sao Paulo – Addis Ababa; Addis Ababa – Luanda; Addis Ababa – Maputo

N.B

Interested applicants must attach all original of their supporting documents, including passport along with one full size picture at saoet@ethiopianairlines.com

Position: B737EFIS to B737 NG  Captain
Location: Addis Ababa
Closing Date:  Open via email
Position: B737EFIS to B737 NG  Captain

Location: Addis Ababa

Age: Less than 58 years oldat the time of joining Ethiopian

Qualifications:

  • Hold a current and valid B737 type rating
  • Hold a JAA/FAA/ICAO current and valid license and medical
  • Minimum of 6000 Total hours and at least 2000 total PIC hours
  • Minimum of 1000 PIC hours on the B737-300/400/500
  • Last commercial PIC flight on EFIS within the last 12 months of commencement of application
  • Last PIC Sim Check on EFIS within 3 months of commencement of application

 Note: Applicants must be current and qualified i.e. within three months of their last proficiency check. They must have two years valid passport, current and valid medical, no history of      accidents or incidents and must have excellent standard of English language.

Term: One year and subject to extension

Date of Registration: Starting Monday, August 03, 2015

Documents:  The applicants are required to submit their CVs along with scanned copy of their substantial documents including but not limited to valid Medical Certificate, valid ATPL/CPL, log book copy that can show total flight hours and license authentication letter from the respective country’s Civil Aviation Authority, to the contact person through email address given below.

Contact: Email: recruitment@ethiopianairlines.com

Position: Command Captain for Boeing 777
Location: Addis Ababa
Closing Date:  Open via email
Age: Not more than 60 years old
Qualifications:
  • Must hold a current and valid JAA/FAA or ICAO ATPL/CPL
  • A current 777 type rating
  • Minimum Flight time
    • 3500 hours jet time
    • 2500 hours Pilot in command on jet aircraft
    • Command time in excess of 500 hours on 777
Note: Applicants must be current and qualified i.e. within three months of their last proficiency check. They must have two years valid passport, current and valid medical, no history of accidents or incidents and must have excellent standard of English language.
Term: One year and subject to extension
Date of Registration: Starting Tuesday, July 21, 2015
Documents: The applicants are required to submit their CVs along with scanned copy of their substantial documents including but not limited to valid Medical Certificate, valid ATPL/CPL, log book copy that can show total flight hours and license authentication letter from the respective country’s Civil Aviation Authority, to the contact person through email address given below.
Contact: Email: recruitment@ethiopianairlines.com
Position: Command Captain for Boeing 767/757
Location: Addis Ababa
Closing Date:  Open via email
Age: Not more than 60 years old
Qualifications:
  • Must hold a current and valid JAA/FAA or ICAO ATPL/CPL
  • A current B757/767 type rating
  • Minimum Flight time
    • 3500 hours jet time
    • 2500 hours Pilot in command on jet aircraft
    • Command time in excess of 500 hours on B757/767
Note: Applicants must be current and qualified i.e. within three months of their last proficiency check. They must have two years valid passport, current and valid medical, no history of accidents or incidents and must have excellent standard of English language.
Term: One year and subject to extension
Date of Registration: Starting Tuesday, July 21, 2015
Documents: The applicants are required to submit their CVs along with scanned copy of their substantial documents including but not limited to valid Medical Certificate, valid ATPL/CPL, log book copy that can show total flight hours and license authentication letter from the respective country’s Civil Aviation Authority, to the contact person through email address given below.
Contact: Email: recruitment@ethiopianairlines.com
Position: Command Captain for Boeing 737NG
Location: Addis Ababa
Closing Date:  Open via email
Age: Not more than 60 years old
Qualifications:
  • Must hold a current and valid JAA/FAA or ICAO ATPL/CPL
  • A current B737NG type rating
  • Minimum Flight time
    • 3500 hours jet time
    • 2500 hours Pilot in command on jet aircraft
    • Command time in excess of 500 hours on B737NG
Note: Applicants must be current and qualified i.e. within three months of their last proficiency check. They must have two years valid passport, current and valid medical, no history of accidents or incidents and must have excellent standard of English language.
Term: One year and subject to extension
Date of Registration: Starting Tuesday, July 21, 2015
Documents: The applicants are required to submit their CVs along with scanned copy of their substantial documents including but not limited to valid Medical Certificate, valid ATPL/CPL, log book copy that can show total flight hours and license authentication letter from the respective country’s Civil Aviation Authority, to the contact person through email address given below.
Contact: Email: recruitment@ethiopianairlines.com

Ethiopian Airlines 2014/15 fiscal year net profit hits 3.5 Billion Birr

Amid a turbulent time for African airline industry, Ethiopian Airlines made a record-high net profit of 3.5 billion birr in the 2014-2015 fiscal year that ended in June 2015.

Ethiopian made an operating revenue of 49.4 billion birr and an operating profit of 4.7 billion birr. In the 2013-2014 fiscal year the airline made an operating revenue of 46.5 billion birr and a net profit of 3.15 billion birr.

trends-airbus-boeing-slideshow1-2During the 2014-2015 fiscal year Ethiopian transported 6.4 million passengers and 329,000 tons of cargo. In the previous fiscal year the airline transported 6 million passengers and 187,000 tons of cargo. Ethiopian Cargo is growing fast. With nine dedicated cargo aircraft Ethiopian is the largest cargo operator in Africa. In June 2014, the International Air Transport Association (IATA)  declared that Ethiopian is the largest airline in Africa in terms of revenue and profit.

CEO of Ethiopian Airlines Aviation Group, Tewolde Gebremariam, attributed the record performance to the dedication of employees of the company and the management team.

Tewolde told The Reporter that Ethiopian has been implementing its Vision 2025 successfully. “We have just completed the first phase (five years) of the 15 years strategic road-map. The results show that we have exceeded all our targets planned for the period,” he said.

In 2004/05 Ethiopian revenue was only USD 0.49 billion. In just ten years’ time the airline increased its revenue by 500 percent to a staggering 2.42 billion dollars in 2014/15. In terms of route network and number of aircraft the airline grew five fold in seven years’ time.

Tewolde said that under the Vision 2025 the airline planned to fly to 90 international destinations by 2025; but it is now flying to 91 international destinations. “This means that we achieved this key performance indicator 10 years ahead of our target period. Again, in vision 2025, we planned to operate 63 aircraft by 2015 but we now have 77 aircraft in our services. The same is true to our profit; in our Vision 2025, we planned to earn net profit of 2.9 billion birr by 2014/15 fiscal year but actually we earned 3.5 billion birr net profit.”

Ethiopian made the record performance at a time when major African carriers declared spiral loses.

The 2014/15 fiscal year indeed was a turbulent year. Major African airlines such as South African Airways (SAA), Egypt Air and Kenya Airways (KQ) declared bankruptcy.

Two weeks ago Ethiopian arch rival KQ reported its largest annual loss ever, a pre-tax shortfall of 293 million dollars for the 2014-2015 year. South African Airways registered a net loss of 223 million dollars in the fiscal year ending March 2014 and Africa’s oldest airline, Egypt Air incurred a net loss of 350 million dollars in the fiscal year that ended June 2014.

“The fiscal year of 2014/15 was one of the most challenging year for the African Aviation Industry,” Tewolde said. “It started with one of the worst epidemic disease of Ebola which has negatively affected air travel demand in the continent. Although the decline in Crude oil price was a welcome event for airlines on the cost reduction side, it severely affected the economies of all of the oil exporting countries like Nigeria, Angola, and Gabon.”

Tewolde told The Reporter that the war in Yemen has affected Ethiopian flight paths that forced the airline to fly longer routes with an average extra cost of USD 2 million per month. “The depreciation of the Euro also affected African economies. The cumulative impact of all these daunting challenges in the African airline industry was a negative growth (-3 percent) in traffic),” he said.

However, Tewolde said Ethiopian Airlines has emerged stronger from these challenges and with record profit of 3.5 billion birr mainly because of the usual dedication, hard work and commitment of its employees; and strong strategic and operational leadership by the management team and the board of directors.

“I cannot comment on other airlines performance but I wish them the best of success and we would like to cooperate with all African sister airlines for the development of the aviation sector in the continent,” he concluded.

The national flag carrier which was established in 1945 will celebrate its 70th anniversary next year. Ethiopian has created 8,000 direct jobs and 20,000 indirect jobs. The airline has expanded its aviation academy which now has a capacity to train 4,000 students. Currently, the aviation academy is training 1,300 pilots, aircraft maintenance technicians, flight attendants and marketing personnel. The airline spent 80 million dollars on the aviation academy in the past five years. The airline is also investing heavily on its maintenance facility. The airline spent in excess of 500 million dollars in building its maintenance, repair and overhaul capacity. It is building new maintenance hangars, a state-of-the-art cargo terminal and catering facility.

http://www.reuters.com/video/2015/08/21/expansion-ahead-for-ethiopian-airlines?videoId=365358185

INTERVIEW-Ethiopian Airlines says expansion on course as profit jumps

ADDIS ABABA, Aug 20 (Reuters) – Ethiopian Airlines is powering ahead with a plan to expand its fleet and route network after exceeding its profit target for the 2014/15 year, its chief executive said in an interview.

The state-owned carrier is ranked the largest in Africa by revenue and profit by the International Air Transport Association (IATA), the global industry body.

CEO Tewolde Gebremariam said the firm had revenue of 49.4 billion birr ($2.39 billion) in its fiscal year ended July 7, exceeding a target of 43 billion birr.

It attributed the growth to a rise in passenger numbers and to expansion of maintenance, catering and aviation training services.

Passenger numbers for the period were not immediately available. Ethiopian Airlines flew six million passengers in the prior year, up from 5.22 million in 2012/13.

Net profit for the year ended last month rose to 3.5 billion birr for the same period, well above the expected 2.9 billion birr.

“This shows you that we have overgrown,” Tewolde said in the interview with Reuters.

Ethiopian Airlines plans to increase revenue to $10 billion by 2025 by nearly doubling its fleet of 77 aircraft and opening new routes.

It currently has 77 planes, including 13 787-8 Dreamliners by Boeing. It ordered six more Dreamliners in June.

It has 50 planes on order altogether, including 14 A350s by Airbus, and expects to increase its fleet of Dreamliners to 30 in 10 years’ time, he added.

Tewolde had a word of caution about the ongoing impasse in United States over the U.S. Export-Import Bank, which lends money to U.S. exporters and their foreign customers like Ethiopian Airlines.

The 81-year old Ex-Im Bank saw its charter lapse last month after conservatives in the U.S. Congress cast it as a promoter of “crony capitalism” for multinationals such as Boeing and General Electric.

“It is an essential financial instrument for us. We want the U.S. Exim Bank to reopen and that was our main point of discussion with President Obama,” Tewolde said, referring to the U.S. leader’s visit in July.

“We want to continue because that is our main, and perhaps only, means of financing our airplanes and financing our growth in the future.”

The airline has targeted the growing trade ties between Asia and Africa in recent years, as well as that with Brazil by inaugurating flights to Rio de Janeiro. It also launched flights to Los Angeles and Toronto this year.

Tewolde said Ethiopian Airplanes is planning Jakarta, Ho Chi Minh City and the Chinese cities of Chengdu and Shenzhen as its next Asian destinations, as well as adding Oslo in Europe and New York and Chicago in the United States.

Sources: Reuters, Ethiopian Reporter, CNBC & CCTV Africa.

US President held talks with CEO of Ethiopian

H.E. President Barak H. Obama and Group CEO of Ethiopian Airlines Mr. Tewolde GebreMariam held  discussions at Bole International Airport beside the B787 Dreamliner Aircraft.

Desktop-SELH.E President Obama & Group CEO of Ethiopian Airlines

The President was very happy to see the Boeing 787 Dreamliner in Ethiopian flag and he thanked Ethiopian Airlines for being a very good longtime customer of Boeing and the USA. He said he has visited the factories in which they are made. He asked for the number of B-787 Dreamliners’ ET operates and Ato Tewolde  replied to the President that Ethiopian has 13 in service and 8 on order.

They also discussed on the performance of the B-787 Dreamliners. Our group CEO explained as follows:

  • Very popular among customers,
  • More humidity in the air which reduces fatigue and dryness,
  • Largest windows in the air,
  • Quietest airplane in its category,
  • Saves 20% fuel burn from other airplanes in its category,
  • Most environmental friendly airplane.

There was also discussions in  honor of Colonel Robinson and in recognition to what he has done for Ethiopia and the Ethiopian people. Ethiopian Airlines has decided to name one of its airplanes after him.

The president was interested to know the most profitable routes in relation to Ethiopian’s vast network. Group CEO briefed him mentioning some examples including Washington DC, Beijing, Shanghai, Changzhou, Hong Kong, Luanda  etc..

Ato Tewolde further explained to H.E. President Obama that Ethiopian is flying to 91 international destinations in five continents, (Washington DC and Los Angeles in the USA and Toronto in Canada, 52 destinations in Africa, 24 destinations in the middle East and Asia and 12 destinations in Europe).

Group CEO Ethiopian Airlines has also emphasized  on intensifying further the already on- going efforts to re-open the USA Exim Bank as it is ET’s main guarantor of the loans used to purchase  Boeing Airplanes.

Finally, President Obama congratulated Ethiopian Airlines for successfully running the largest airline in Africa.

SOURCE: https://www.ethiopianairlines.com

AAU Signs MoU with EU

slide-300x95As part of its venture to educate leaders who can make a difference and create groundbreaking research efforts to the international marketplace, AAU has signed a Memorandum of understanding (MoU) with the European Union (EU) to establish Ethio-European International Business School at College of Business and Economics, AAU. Funded by EU, the school will be the first international business school in Ethiopia. The school will be housed together with business innovation center in the state of art new building at CoBE campus and will start to offer a range of full-time, part-time and distance learning postgraduate program in management, leadership and entrepreneurship and partnership with European, Chinese and USA business school from September 2016.

The school has immense advantage to equip trainees with knowledge, skills, and experiences that can seize opportunity in this rapidly changing and developing economy of the country and enhance leadership. This school is world class in its standard and offers a comprehensive, transformational learning experience that can prepare the most senior executive to lead and achieve sustainable competitive advantage in business enterprises.

This innovative program opens door to offer the latest research and academy and integrates key management concepts with best business practices to develop strategic thinking and leadership skills. Applying the principles of academic rigor, diversity, and impactful learning, the school will provide senior managers with the tools needed to succeed in today’s challenging business environment.

The ceremony is held at AAU, Sidist Kilo Campus, Senate Hall on 23 July/2015, Admasu Tsegaye (PhD), AAU president, and H.E Ambassador Chantal Hebberecht, Head of European Union Delegation in Addis Ababa, have signed the MoU on behalf of AAU and EU respectively.

source: AAU.edu.et

How Ethiopia is Becoming An African Economic Giant

The African Lion remains one of the fastest growing countries but not much is said or written about it.

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Addis-Ababa-Airport-650x400I recently attended a forum addressed by Mr. Stephen Jennings, the founder and CEO of Rendeavor group, which is the biggest urban development company in Africa. In his presentation, Jennings talked about the future of African countries and how the best countries will be those that are largely ignored. Today, the promising story of Africa has been told and retold and the key focus has been countries such as Kenya, Nigeria and South Africa. In his presentation, Jennings made a comparison between Africa and Asia in the 60s and 70s where countries such as South Korea and China were ignored. Focus was in countries such as Philippines. In this article, I will explain the strides Ethiopia is making to become the next African giant.

Economic growth

According to the World Bank, Ethiopian economy grew by 10.3% in 2014 making it one of the best performers globally. The IMF ranks it in the top 5 countries globally. This has been a result of a decade of continuous growth which has seen the GDP growth average to 10% annually. The country’s GDP is estimated by evaluating the key sectors of the economy. According to the IMF, all the sectors did well in 2014 with agriculture, industry, and services increasing by 5.,4%, 21.2%, and 11.9% respectively. Agriculture is the country’s main earner with a 40.2% share followed by industry and service which have 14% and 46.2% respectively. It is for this growth that economists have termed the country the ‘African lion’.

In 2014, the world experienced a period of slowdown in commodity prices. To caution the residents, the government succeeded in mitigating the annual inflation to 7.1%. This was achieved by a tightened monetary policy and the use of base money as the nominal anchor.

In Sub-Saharan Africa, Ethiopia is the 2nd largest in terms of population after Nigeria with more than 94 million people. The population is growing at a 2.6%. In addition, the country is also one of the poorest with a per capita income of $470 which is lower than the regional average. The per capita wealth of Egypt is $3,187 and $7,508 in South Africa.

Millionaires on the rise

African-millionaires_WEB

The growth in economy has created a lot of wealth to many Ethiopians. According to a report by consultancy firm New World Wealth, the number of dollar millionaires has grown from 1,300 in 2007 to 2,700 in 2014. This places the country ahead of Angola, Tanzania, Zambia and Ghana.

This growth comes from the growth of the economy with sectors such as agriculture and service achieving double digit growth in that period. Privatization has also led to the accelerated growth. Manufacturing, transport and agriculture have helped create most millionaires.

According to the New World Wealth report, the increase in the dollar millionaires is not correlated with that of the middle and low class. More people have become poorer during that period.

The richest Ethiopian is said to be Mohammed Al Amoud who owns companies in manufacturing, healthcare, energy, construction, hospitality and mining among others. Forbes estimated that he is worth about $11 billion. In the report, he was the send richest black person. He is also a registered Saudi Arabian national and one of the biggest investors in Sweden.

Growth Strategy

In 2010, the country launched a 5 year growth and transformation plan. In this plan, the government intended to use the vast land resources it has to grow and improve the economy. In the plan, the government intention is to make Ethiopia the leading agricultural economy in Africa. In addition, the government began a strategic decision to develop cities and real estate. Today, Addis Ababa is one of the largest and most modern city in Sub-Saharan Africa.

The government aims to achieve a middle-income country in the next 10 years. Whether this will be possible will depend on a number of things. Economists believe that the country will need to move from a public investment driven economy to a vibrant private sector economy. Also, there is an urgent need to keep the country away from terrorism activities because the country has the largest border with the unstable Somalia.

Source: http://moneymattersafrica.com