World Travel Market Exhibition in London

Linvestment news. Ethiopia participated in the World Travel Market exhibition in London last week (November 3-6). An opening ceremony was held at the Ethiopian stand by Ethiopia’s Ambassador to the UK, Ambassador Berhanu Kebede, the, Director General of the Ethiopian Tourism organization, Solomon Tadesse, and Ethiopian Airlines Area Manager , Michael Yared.

The World Travel Market (WTM) is an event which brings together professionals and decision makers representing the global travel and tourism industry. It is an important platform for promoting tourism internationally.

This year, Ethiopia was represented by a number of outstanding companies including Ethiopian Airlines, the Kuriftu Resort and twelve of the country’s best known tour operators.

The Ethiopian Tourism Organization, the Government’s tourist promotion arm, coordinated the participation. A number of other ecents were also organized in conjunction with the World Travel Market including a public lecture on the Rise and Fall of the Axumite Kingdom was given by Professor David Philipson, and a cultural music show and photo exhibition at the Royal Geographic Society.

The potential for tourism in Ethiopia and the efforts to improve it were also highlighted at a press conference which was addressed byMr. Talib Rifai, Secretary General of the United Nations World Tourism Organization who had recently visited the country.

Ambassador Berhanu Kebede said that the Government of Ethiopia attached great importance to the sector and had embarked upon the implementation of policies and strategies designed to exploit the country’s tourism potential and maximize the benefits from the sector.

He mentioned the construction of roads and airports to improve access to tourism sites as well as duty free privileges and other incentives to encourage the private sector to construct and operate hotels, resorts and recreation facilities. He underlined the importance of the tourism sector and the crucial role it played in generating foreign exchange and creating jobs.

Source: http://www.geeskaafrika.com/ethiopia-world-travel-market-exhibition-in-london/6334/

60 Years Ago - Ethiopia's Emperor Haile Selassie in Bonn

In 1954 Emperor Haile Selassie of Ethiopia became the first foreign head of state to visit the Federal Republic of Germany. His visit brought a breath of the exotic to provincial Bonn, then the provisional capital.

For the young Federal Republic of Germany it was both a great honor and a sensation when the Ethiopian Negus Negesti (King of Kings) paid a visit in November 1954 as the first foreign head of state to visit what was then generally referred to as West Germany (to distinguish it from the postwar German Democratic Republic or East Germany.) On his arrival, Emperor Haile Selassie, who was dressed in an ornate uniform and wearing a helmet embellished with hair from Ethiopia's heraldic beast, the black lion, attracted great attention.

Despite the historic significance of the visit, the government of the Federal Republic of Germany decided to show restraint in the welcome it extended to the royal guest. In the words of the German head of protocol at the time, Hans von Herwarth, "We said to ourselves, we have refugees here, there is great need in Germany [in the early postwar years], and heads would be shaken both in Germany and abroad if we were to display too much pomp and ceremony." For von Herwarth, what was most important was that "the Emperor of Ethiopia should feel comfortable during his visit." And so, elephants and camels were purchased from a traveling circus for the reception of the African head of state - since apparently no one knew that His Majesty was more interested in thoroughbred horses and took the opportunity to visit a number of stud farms while in Germany.

The intention was for the visit to be - as Chancellor Merkel would probably formulate it 60 years later - "a meeting of equals." The guest had come not to beg for assistance but as a partner. Diplomatic relations between Germany and Ethiopia had already existed for 50 years. Now, the world's last absolute monarch - "God's Chosen One," "Power of the Trinity," " Victorious Lion from the Tribe of Judah" - the man born as Tafari Makonnen, was coming to visit steelworks and hospitals and to hear from his German host

Belated winds of change

After meeting with Federal President Theodor Heuss and Federal Chancellor Konrad Adenauer, as well as with parliamentarians and captains of industry, the emperor also - unusually for him - faced the press. However he was not willing to answer any direct questions about current political issues.

"His Majesty has seen that fortunately, in His Majesty's country, this problem of the Cold War does not exist and His Majesty therefore does not wish to elaborate further on this issue," was the protocol official's translation from Amharic into German of the Emperor's tight-lipped reply to a political question. His Royal Highness was more open during a short trip to Hamburg where he presented surprised members of the public with gold coins before opening a hospital.

During the visit in November 1954 the Germans encountered a figure from a dynasty that had ruled for more than 3,000 years, a man who - despite the winds of change blowing in the rest of Africa - was seated firmly on his throne, supported by an alibi parliament and advised solely by the Abuna, the orthodox high priest. Although appearing friendly and open, the emperor was surrounded by the aura of the ascetic protocol of the court in Adids Ababa, where the daily routine was marked by prayers and fasting and conversations were conducted in whispers.

The Ethiopian monarch returned to Germany for a second visit almost 20 years later, on September 12, 1973. While Chancellor Willy Brandt entertained his guest with a sumptuous state banquet, hundreds of thousands of Ethiopians were in desperate need of food. Revolt was in the air; rumors of self-enrichment, corruption and nepotism at court were circulating. Exactly one year after the meeting with Brandt, Haile Selassie was ousted by the new military leaders in Addis Ababa and died a year later in a small palace room, aged 83, under circumstances that remain unclear to this day.

Practical help sought rather than professors

Back in November 1954 the Emperor of Ethiopia was still able to present himself as a pragmatic development strategist during his visit to Bonn. He requested the federal government to send farming experts to his country, to help develop the agricultural sector - "but, please, no professors." The emperor had already shown himself to be a man of action in his homeland. Declaring that farmland was more important than golf courses, he had a golf course that had been laid out specially for his British advisors dug up and reduced from eight holes to four - to the dismay of the foreigners who now had to look for somewhere else to play.

The emperor's visit to Bonn laid the foundations for close diplomatic ties between the two countries, ties that still exist today. Together with China and Switzerland, Germany is today the largest export market for Ethiopian goods. Germany is also one of Ethiopia's most important development partners. In the last three years, the German government has provided almost 100 million euros ($124 million) for development projects.

Ethiopia seen as haven of stability

Germany regards Ethiopia primarily as a strategic partner in the volatile Horn of Africa region and as a guarantor of stability, despite all the democracy shortcomings and human rights violations.

"Today Ethiopia is a very important partner for Germany on the Horn of Africa and is considered by the Germans to be an important partner for stability in the region," says Claas Dieter Knoop, German ambassador in Addis Ababa from 2006-2010.

There has been little change in Ethiopia's rulers' understanding of democracy in the 60 years since the emperor's historic visit to Bonn. He had then proudly proclaimed, "The king knows what the people need, the people do not." Today, shortly before parliamentary elections in Ethiopia in 2015, numerous opposition figures and journalists have been arrested. Once again, there is a sense of impending unrest

Source: Allafrica

Ethiopia’s hope lies in its wonderful people

Mark Twain had once, on coming back to New York, made this famous observation: “It’s not quite what it used to be and it appears decidedly better than when I was here last.” In true Twain honesty, he had wondered whether his going away had something to do with this progress as well.

I went to Addis Ababa last week after a gap of two years. I got reminded of Twain for understandable reasons. The airport was still an unholy mess. Large, rustic, disorganised and derelict. Yet, it was attempting to become the future aviation hub of the region and Africa. And Ethiopian Airlines does fancy itself. Its branding makes people believe in its service and promises. A bit like the rest of the country really. It is, after all, Sub-Saharan Africa’s largest country in numbers after Nigeria.

A history rich in culture and having a fairly unique status in Africa of never having been officially a colony does have its perks. By a sheer bit of diplomatic guile, it is also the host to the African Union HQ and hence, a natural destination for all African diplomatic efforts.

Ethiopia has etched itself as an African leader, a beacon of hope and a paragon of virtue. Yet, it’s essentially a fiefdom still; both at a political level and at a business level. The key sectors remain in the hands of the government or are restricted (example banking) with stringent local ownership rules. But this is a proud country with proud people, albeit with a rather horrible legacy of famine and an even more horrible legacy of deposing its own monarch and then being ruled by the junta and its ‘red terror’ for many decades. So why do people love Ethiopia?

The culture is rich, but not terribly well-marketed or understood. The people do look marginally different from their African peers but that’s hardly a big deal. The government is improving, but not overly private sector friendly. The population needs things, but the purchasing power is still abysmally low. The need for access to basic goods and services exists, but non-existent roads and rail roads are a major obstacle. It does not, unlike its African counterparts, have promises of large deposits of oil or minerals either.
I thought about this. And I found the answer in the people. As always, I suppose. A steely determination from the masses to rise, work and make things happen. An eerie focus around maintaining one’s food and culture amidst so many influences. A quiet determination in sharing it with visitors with no specific pride or consciousness around it. Friendly people who don’t seem to harbour too many grudges about the world or their ruling elite. Instead hope pervades and optimism rules in everyone. If patience is a virtue, then the country is perhaps the most virtuous country.
That is why I remain enamoured with my host Getu’s efforts to park the car in a busy Addis street exactly between two vehicles to make sure it was aligned and left space for another car to squeeze in. A self-imposed discipline to make one’s lot better and to not be unfair to others in the process. At the breakfast area of the hotel I was staying in, I felt the buzz of its political muscle as senior diplomats, including heads of states and their entourage, were discussing and conclaving around the rather tricky issue of peace in South Sudan.

Not in London, not in New York, neither in Johannesburg. Instead in Addis.
African leaders sitting and speaking to each other in their own territory without the prying eyes of Western media and more significantly without the ‘helpful’ hand of global powers. It was a sight to behold and cheer.
A generation of peace-makers, who till a few years back, were actually fighting it out in the jungles and killing each other. Now having given up their camouflage clothing and instead donned suits which are flashy and uniformly ill-fitting, but reflecting the new pride of the continent. The penchant for food and alcohol was in evidence too as those war veterans showed ample gluttony signs at the buffet and at the well-stocked bar in the evening.

Conspicuous by their absence were the ladies in these groups. Indicative of the many ills that African society still will have to confront. Equal rights and human dignity, both need a lot of work. But the pleasing scene was the politeness and the punctuality with which these leaders were going about their business, convinced that they could get things done and done their way. A true signal of self-sufficiency and the African renaissance perhaps, albeit green shoots of it? It was winter, which means all of 15 degrees. Yet, the locals were wearing heavy woolens and the business people I met drove in wearing overcoats. Illusions may be of some sort of misplaced grandeur, but the message of dressing up for the role manifested in its exhibitionism.
There are roughly 60 new hotels on the go in Addis with 20-odd built in the past three years alone. Yet, there are no modern hospitals even as the medical service croaks and creaks. The university building, a once-proud edifice, totters both in its physical and faculty strength. Another little sign of misplaced priorities is the fact that Addis was a destination and firmly in the corporate and political map of Africa. The world is keen to engage with and at Addis. So, the future can only be bright, as long as hubris and nepotism is gently nudged away by entrepreneurship and rule of law. The city that is home to the African Union cannot afford to ruin its own backyard.

The people I saw are realists and love their country and believe in their future. Peaceful, quiet, persevering and ambitious. In my own way of looking at things, I have come to learn that the way people drive is often a dead give-away of the national characteristic. A trifle unscientific maybe, but uncanny in my experienced eyes. And in Addis, they don’t honk, they don’t overtake recklessly and they don’t rush. They let things flow and work with the mayhem around them and the silliness of the traffic cops that would upset many a person from my part of the world only receives a disdainful stare. And no, I didn’t see it as a sign of resignation.
Instead, I saw it as a sign of social maturity and an acceptance that change takes time and patience is a virtue to bring sustainable change. Let’s hope their leaders, like in so many frontier markets, do not betray them. The world needs Ethiopia to realise its dream as it’s too important a nation to fail in that continent.

Source:  http://forbesindia.com/blog/business-strategy/ethiopias-hope-lies-in-its-wonderful-people/

Ethiopia: In Defence of Financial Protectionism in Ethiopia

Developing a culture of open dialogue in Ethiopia to entertain different views is paramount in our quest for individual and collective economic transformation. I have a great deal of interest in the subject of international political economy, especially when it comes to Ethiopia. I have thought a lot about the impact that liberalising the country's financial sector would have on the wellbeing of its people.

In an era of internet-driven globalisation, market exchange is now at our fingertips. The benefits of globalisation are irrefutable. But we must be cautious before rushing to liberalise Ethiopia's financial sector.

As David Ricardo, in his book On the Principles of Political Economy and Taxation, ascertains, people are better off with the free movement of trade. Free trade allows entrepreneurs to specialise in specific areas so they can develop a competitive advantage and thereby raise their living standards.

Indeed, I was once an advocate of loosening the policies in the financial industry and for allowing outside competition to enter the market. However, the more time I spend in Ethiopia, the more I am concerned with the potential consequences of the liberalised macroeconomic policies that I once hoped for.

Protectionist policies hide the weaknesses of domestic industries by shielding them from outside competition. Protectionist policies also hold back the rate of short term economic growth. Because when there is a lack of competition there is no pressure on businesses to be innovative and perform well.

Economists overwhelmingly disapprove of protectionist policies. Nonetheless, in order to remain in power, political elites tend to prioritise their constituents' interests overt the long term interests of their country. As a result, protectionist policies are instituted over data-supported economic policies. It is a symptom of the democratic system.

The longer Ethiopia's financial sector remains sheltered from outside competition, the harder it is for the private sector to grow. Because borrowing opportunities are limited economic activity is limited. The contributions of small and medium enterprises to an economy have a direct correlation with their ability to access credit. Increasing their access to credit by opening up the financial sector is surely the best solution.

In the West, where mature financial institutions are abundant, the way most businesses gain profit is by focusing on three areas: service, regulation and finance. Businesses seek to outperform competitors by providing exceptional customer service, often creating financial tools to make customers' lives cost effective and efficient. They also spend a lot of money on lobbyists to protect their industry's interests. Lastly, they master accounting laws in order to capitalise on regulation loopholes and benefit from tax avoidance. Indeed, at times, companies engage in illegitimate business practices that are not easily detectable, even by the West's sophisticated financial regulations.

There are areas of exploitation and corruption that I have observed Ethiopia is little prepared to manage. In the absence of sufficient numbers of trained and skilled regulators, I am afraid opening up Ethiopia's financial industry is a recipe for disaster.

The industry should remain protected from foreign capital for a long time yet. Ethiopia, at this early stage of an economic growth, cannot afford to have a single mishap. The 2008 global financial crisis is a reminder of the danger posed by a deregulated financial market. We should not underestimate the ingenuity of people who, if given the opportunity, will use their financial creativity to manipulate the market.

Granted, I concede that at present domestic financial firms are ill-prepared and unable to provide decent customer service. Our working culture is not yet fit to challenge the seamless business services of foreign competitors. I believe that if foreign financial institutions were welcomed into the domestic market the flow of customers to local banks would dry up immediately.

The greater foreign economic ownership is in Ethiopia, the more political influence foreigners will hold. Gains from profit could flow out of the country and capital flight would increase in times of economic and political uncertainty. Companies could also shut down their operations altogether.

Ethiopian ownership, on the other hand, has a reduced risk of flight and is also likely to expand Ethiopian investment in the country as entrepreneurs and businesses of all sizes prosper.

An open financial sector would give the private sector increased access to capital and spur growth. After all, economic growth is directly linked to the availability of capital and the frequency of monetary transactions. However, if the domestic financial sector is not on par with transnational financial institutions, the local businesses will be forced to close and foreign owners would take their place.

It is imperative that we approach financial opening up with caution. The Nobel prize-winning economist, Joseph Stiglitz (PhD), found that in Russia, a country that underwent such rapid economic change in the 1990s it was labelled 'Shock Therapy', that too much opening up creates unnecessary pain. Shock therapy was an economic therapy meant to bring about an end to state subsidies, immediate trade liberalisation and privatisation of publicly held assets. However, the impact was to further degrade Russia's economy.

Liberal market economies are dependent on a system that has solid institutional foundation, strong regulations and established practices. Russia did not have these. Its rush into financial liberalisation before these foundations were firmly established was simply 'putting the cart before the horse' and marching into an uncertain future. Ethiopia must avoid falling into a similar situation.

Source: AllAfrica

Smart Technology for smart family planing in Ethiopia

Over the past decade, Ethiopia has made great strides in meeting the family planning needs of its people, by increasing access to and use of contraceptives. From 2000 to 2011, married women’s modern contraceptive use increased from 6% to 27%. Building on this impressive success, the government of Ethiopia has made it a priority to expand family planning access even further with the goal of reaching modern contraceptive use by 66% of married women by 2015. A new effort by ICRW and the Family Guidance Association of Ethiopia (FGAE) tapping into the power of the latest information technology may help reach that objective.

The focus on increasing contraceptive use is a big step in the right direction for Ethiopia in meeting the family planning needs of women and couples, but it is the quality of family planning services that ultimately influences if and how clients make informed decisions about their sexual and reproductive health and whether or not they sustain a lifetime of positive sexual and reproductive health behaviors.

Recognizing the importance of client’s perspectives on the quality of care they receive, improvement of health services requires getting routine client feedback. Health services in Ethiopia have instituted different ways to measure clients’ experience or satisfaction, including conducting exit interviews and encouraging clients to leave suggestions or complaints in comment boxes. While this has provided health providers with some information for quality improvement, these methods can fall short in ensuring comprehensive feedback for health staff.

Self-administered, written surveys mean that clients with limited time may choose not to give their feedback. And it means that those who are illiterate are unable to participate at all. Additionally, health staff, whose resources are stretched thin, may not have the time to go through and act on feedback provided, leaving a gap between client satisfaction and improvements to services.

To address this need, ICRW and FGAE are teaming up to test the effectiveness of new technology – such as tablets or similar electronic tools –to improve client feedback, and importantly, the way in which health providers respond to that feedback.

The pilot project, which will be implemented in four of FGAE’s 56 nationwide family planning clinics, will employ a more expansive and cost-effective system that will record client feedback through an interactive interface, allow illiterate patients to participate, and provide clinic staff with on-going real time data and information that will help them improve the quality of services and ensure client-centered care. Information obtained from the four pilot sites will then help to inform how the new technology is rolled out to FGAE’s 52 additional health facilities throughout Ethiopia.

“We are excited to kick off this new project, which will allow ICRW and our partners at FGAE to test an innovative way of  helping Ethiopia’s women and couples access and continue to use improved family planning services,” says project director, Diana Santillán. “Our hope is that the new technology will amplify the voices of family planning clients and allow their voices to be heard by health providers, improving client-centered sexual and reproductive health services for decades to come.”

source: icrw.org/

Business Without Women

OPINION

By Mara Swan

The chief executive officer (CEO) of an internationally renowned technology company was forced to make a groveling apology recently after he was widely criticized for advising women not to ask for a raise but, instead, to have "faith in the system".

Having "faith in the system" has not helped women reach their full potential in the workplace. Women in account for only around one-fifth of CEOs at S&P 500 companies, just 4.6pc of Fortune 1,000 CEO positions and 14.6pc of executive officer positions.

The International Labour Organisation (ILO) reports that 862 million more women could be participating more fully in the global economy. As the Los Angeles Times bluntly put it, "Women, you'll likely die before there's gender parity among leaders."

Yet the evidence is clear - when women lead, businesses do better. Data from the World Economic Forum (WEF) suggest a strong correlation between those countries that are most successful at closing the gender gap and those that are the most economically competitive. Companies with a high percentage of women, particularly in board positions, fare better than their competitors. In fact, companies with the most female officers have 34pc better financial returns.

This makes a compelling business case for growing the pipeline of women in leadership, but companies' pipelines are suffering leaks that mean women are being funneled out. What is going wrong?

We have conducted extensive research on this issue. We surveyed over 20,000 employers in 42 countries and territories last year to understand perceived barriers to the advancement of women in the business world and what employers are doing about it.

Three out of 10 employers told us that a lack of development opportunities is holding women back and only slightly fewer pointed to the lack of access to high-visibility roles as a key obstacle. Exactly half of employers said they do not have a strategy in place to encourage the advancement of women.

Programs alone are not the answer. If organisations are serious about getting more women into leadership, they must perform a systematic, in-depth analysis of their culture and flow metrics.

Only then will they be able to craft a one-size-fits-one approach that identifies organisational and individual solutions that will increase the number of women in leadership and in the pipeline. These solutions must be as unique as a corporate culture and the individuals who are a part of it.

For example, with 65pc of women saying flexible working arrangements are important to them and only 28pc of employers providing this option, employers need to address this disconnect. Ever-evolving technology means it is less complicated and cheaper than ever to give employees flexibility, and more weight needs to be given to results achieved, regardless of location, than time spent in the office. When women are frustrated by inflexible work models they may very well leave, taking their human potential out of the door with them and working for - or as - your competitor.

Similarly, research shows that 47pc of women, compared to only 30pc of employers, identify lack of professional development opportunities as the reason hindering their advancement; and 51pc of women say they have no clear career path. Tackling this requires analysing career pathways to determine where they may necessitate unacceptable trade-offs for women - and then fixing them.

Unconscious bias also plays a part in preventing more women from moving into leadership roles. It is critical that businesses examine policies, language and processes that - often unintentionally - amount to gender bias. Take a close look at how people are perceived in the organisation and be particularly sensitive to how people's skills sets and contributions are valued.

Another significant problem is that women are not being assigned roles within companies that carry profit-and-loss responsibility. Without this experience, it becomes extremely difficult to reach the summit of an organization. It is a vicious cycle because there is no supply chain and not enough women leaders to mentor future successors.

Society, companies, educators and governments are still encouraging women to consider a narrow range of careers. We need to entice women into technology fields of career and study so that they are not left behind as the digitisation of jobs continues apace. There needs to be a collaborative effort from all stakeholders, working together to act as social engineers on the issue of gender equality to change legacy mindsets and behaviours.

We are faced with a changing workplace where access to the right talent is the key differentiator, as many companies report that their inability to attract and retain a skilled workforce is their biggest barrier to success. It is essential that organisations unleash the human potential of all people, especially women, who, despite being 50pc of the potential workforce, are still the largest untapped source of labour.

I cannot phrase it more simply than this: attracting, retaining and developing women leaders only matters if your business wants to win.

Mara Swan Is Executive Vice President of Global Strategy and Talent At Manpowergroup.

Source: AllAfrica

ADPI Launches Study On New Ethiopian Mega Airport Project

By Kaleyesus Bekele

Hired by the Ethiopian Airports Enterprise, ADPI, a French consultancy firm, recently commenced study on the mega hub airport development project.

The Ethiopian Airports Enterprise is planning to build a new mega international airport out of the capital Addis Ababa. Dukem, Modjo and Teji towns are proposed for the construction of the new international airport. A decision has not yet been made. The enterprise is also expanding the Addis Ababa Bole International Airport passenger terminal at a cost of USD 250 million.

Last July the enterprise hired ADPI which is tasked to supervise the construction of the Addis Ababa Bole International Airport passenger terminal and undertake a study on the new international airport. The second task includes conducting a study on the site location. The consultant will also undertake feasibility, technical, and financial studies as well as drafts airport master plan. The consultant is also tasked to study the integration of the new airport with the Addis Ababa Bole International Airport.

The Ethiopian Airports Enterprise has embarked on the construction of the Addis Ababa Bole International Airport passenger terminal expansion work. A senior official at the enterprise told The Reporter that ADPI deployed two groups in Ethiopia. The first group is supervising the Bole expansion project while the second group is undertaking a study on the planned international airport.

The official said the second group recently commenced the study on the site location. "Based on their recommendation a decision will be made on the site for the construction of the mega hub," the official said.

The Ethiopian Civil Aviation Authority (ECAA) is also involved in the project. It is the authority that approves the site and inspects the new airport. The Chinese government has given a green light to confer loan for the construction of the mega hub.

Based on the recommendation of ADPI the Ethiopian Airports Enterprise will select the site. After the site is selected the detailed study will commence. Before commencing the detailed study the enterprise, and the Ministry of Transport will hold a launching ceremony in which they will officially unveil the multi-billion dollar project.

Industry experts believe that the mega hub project will help Ethiopia become a regional hub. It will also accommodate the fast growth of Ethiopian Airlines. Ethiopian Airlines has a strong vision of making Addis Ababa a major hub in Africa. Addis Ababa is already a major hub in East Africa. Its arch rival, Nairobi, is expanding the Jomo Kenyatta International airport at a cost of 650 million dollars.

Modjo is preferred for low altitude which will enhance the pay load of aircraft by improving fuel efficiency. The recently opened Addis-Adama Expressway is a plus for Modjo. But still the distance and the integration is one area of focus the consultant will work on.

Teji and Dukem are the other prospective areas for the new airport construction because of their proximity to Addis Ababa but their altitude is almost the same as Addis Ababa, which will not make aircraft fuel efficient during take offs.

Dukem is located 37 km east of Addis Ababa while Modjo is 66 km south east of Addis Ababa. Teji is a small town located 43 west of the capital. Addis Ababa's elevation is 2300 m above sea level and aircraft take a lot of fuel to take off Bole International Airport due to the high elevation. This entails a reduction on the amount of load an aircraft can lift. The high altitude also stresses aircraft engines. According to aviation experts, going down to Modjo in the rift valley will enable airlines especially Ethiopian Airlines to reduce fuel cost. Yet there are others factors to be considered to select the site.

The Ethiopian Airports Enterprise has asked the International Civil Aviation Organization (ICAO) for technical assistance on the site selection process and the later expressed its willingness to help.