Djibouti offers over 80% discount on fee for Ethiopian Exports

[Suldaanka]

Djibouti reportedly offering Ethiopia over 82 percent discount in port fees

BORKENA.COM

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Ethiopian PM Abiy Ahmed says he got over 82 percent discount in port fees from Djibouti for all export products...Read more.

 

[Suldaanka]

Basically, Ethiopia will only pay the cost of printing papers, fuel for equipment and electricity for computers. The cost of labour, the cost of Storage, the Cost of handling, all free. 

This is apparently done in order to help Ethiopia's Corona affected economy.

 

[Old_Observer]

That is where Farmaajo is copying the face book style lies and exaggerations and outright unrelated issues.

First of all Ethiopia is taking responsibility for the debt Djibouti has Abiy will not tell you this unless he is made to look so generous from what he does not have.

The price reduction is built in every year the cost of capital is recouped and price is reduced that much

Djibouti does not want to show profit of anykind. Its bad with UAE case and bad for the public relations in Ethiopia.

Abiy has quietly signed to the deal Meles did, nothing for Eritrea. What ever is excess will be Berbera and Port Sudan. That Abiy will never even mention it.

Fake news and even true news, too much exaggeration  has become normal with Abiy.

 

Ghelleh is always light years ahead of these wannabe smarts in HoA. Ghelleh actually is trying to launch the food production projects in Ethiopia that benefit Somalis and Afar only. Offering free port services for any thing for these projects and 6 months for Potash to establish.

 

 

 

 

 

 

[Suldaanka]

Abiye is all smiles.

 

[Old_Observer]

Suldaanka,

The train/railroad is 50-50 not sure which country has 50.01
China cannot hand over the whole thing until a certain percentage is paid and there is a verifiable plan for the balance to be paid. Djibouti and Ethiopia are equally responsible.

I am amazed when I hear some Xabeshi that consider themselves knowledgeable state that the train is Ethiopian.

Regarding ports:
First plan was exactly like Berbera. Meles guaranteed Djiouti by volume and by percentage Ethiopian business and UAE invested.
I had posted here in another thread how it would take Ethiopia decades or billions of dollars to get out of Berbera.

Djibouti is a hundred times that. There are 3 ports that were built based on it. One for Animal and meat and one port totally for Potash.
Djibouti was also going to produce its food in Ethiopia, specifically where Somali and Afar regions are.

Electricity, water, garbage/waste management would be integrated corporations. Example Djibouti/Ethiopia 40/60 on Electrical corporation, 50/50 on waste, 30/70 on Water...etc. including Ethiopian airlines which would have a regional airline totally based in Djibouti.

As they recover money or make profit no reason to reinvest. Ports will not need investment next 25 years since it has latest and greatest technology. Train is enough just maintaining which is part of the cost, no need for new investment, it is also most modern.

What they charge each other gets reduced until certain level. Of course can never be zero since they have to keep milking the public investments.

Of course for commercial and competitive reasons Abiy or Ghelleh are not going to speak about deals. But its always safe to assume there is some investments and where ever there is investment there is guarantees.

Abiy has this capacity to smile even when he has lost totally.

I am certain Abiy is very disappointed, there is no business going to Eritrea. Even for an African dictator, there is nothing he can do about it.
He can of course pay some Somali or Afar to start war and close the road. That game was tried last year and was very quickly made clear that he will loose more than Ghelleh.