Officials at the Ethiopian Civil Aviation Authority (ECAA) have unveiled ambitious plans to steer the country’s aviation industry into the new frontier of aerospace manufacturing.
The Authority is partnering with Addis Ababa University to draw up a transformation strategy in no less than 10 areas under aerospace manufacturing, according to its officials. These include air transport, maintenance, and airport development, among others. The strategy is expected to be finalized in the next seven months.
The plans were made public during a seminar organized at the Skylight Hotel this week. Representatives of the Ethiopian Airlines Group, executives of private aviation operators, and officials from the ministries of Transport and Agriculture joined ECAA heads and industry experts for the half-day event.
Government officials want to see aviation and aerospace manufacturing grow to become top foreign currency earners within the coming 15 years.
Getachew Mengistie, ECAA director-general, sees an opportunity to tap into the central and east Africa aerospace manufacturing market.
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“The Ethiopian manufacturing sector is close to nonexistent,” he said. “We have walked back the progress made by generations that preceded us. We need to make up for that and get involved promptly.”
He cited that efforts to develop a domestic aerospace manufacturer in the 1970s and 80s bore two small aircraft before the venture was shut down as a result of regime changes.
“The Ethiopian Airlines Group manufactures a very small amount of wires and blankets. That is not enough,” Getachew said.
The Director-General and his team envision a two-way partnership with the likes of Boeing and Airbus, where Ethiopian can also play a role in supplying manufactured parts to the global manufacturing giants.
“The markets in the southern and northern parts of the continent have already been taken up by Morocco, Tunisia, and South Africa,” said Getachew. “Unless we start making our move right now, we will miss the opportunity and won’t be able to stand our ground and compete with the others.”
Others who attended the seminar argued the proposed transformation needs to be led by adequate aviation regulations and fitting human resource capabilities.
“The country’s human resource capacity in this sector casts a huge doubt on our ability to take on manufacturing. On the other front, regulations are not attractive enough for many,” said one expert.
Although the ECAA boasts an impressive track record in safety and regulation, experts see there are gaps in keeping up with the latest advancements in the industry.
“The biggest issue with our regulations is that they are only focused on permission and prohibition,” Getachew said.
Dehenge Boru, a state minister of Transport, noted the private sector could get involved in lines outside of air transport. He observes the industry is heavily burdened by the lack of incentives, weighty tax rates, and issues of access to finance, crippling private operators.
Getachew conceded there is a need to adjust regulations to lift the unnecessary burdens imposed on industry actors and assist their efforts towards growth.
The State Minister disclosed that the Transport Ministry and the Investment Commission have partnered to prepare two sets of legislation pertaining to the country’s air transport and logistics sectors.
He and his team expect the investment board led by the Prime Minister to approve one of the drafts in the near future, while the other document is slated for review by the government’s macroeconomic committee.
“When these two drafts take effect, the aviation industry market will open up,” said Dehenge.
The legislation is expected to open up the Ethiopian aviation industry to foreign investors.
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