EIH, Puma Energy Discuss Investments in Ethiopia’s Energy, Aviation Sectors

[Deeq A.]

Puma Energy, a global downstream energy business, hold talks about investment opportunities in Ethiopia’s energy and aviation sectors.

The discussions on Thursday centered on advancing infrastructure development to meet the demands of Ethiopia’s rapidly growing aviation and energy industries.

Both sides emphasized the importance of strategic partnerships in unlocking the potential of these key sectors to drive economic growth and regional competitiveness.

EIH CEO Brook Taye said, “To support the aviation sector’s immense growth potential, we seek forward-thinking partners to help establish world-class infrastructure that meets rising demand and positions Ethiopia as a global hub for aviation, transport, and tourism.”

Per the International Air Transport Association (IATA) estimates, Ethiopia’s aviation industry will also triple in size by 2040, with an average annual growth rate of 6% in passenger traffic.

The projection is also promising for the tourism industry which, according to the Economic Commission for Africa, is poised to contribute over USD 5 billion annually to the nation’s GDP by 2030.

To support this growth, Ethiopia recently announced plans to construct a new international airport with the capacity to accommodate 110 million passengers annually.

Ben Ouattara, Chief Operating Officer and Interim Head of Africa at Puma Energy, highlighted Puma Energy’s long-standing partnership with Ethiopian Airlines.

And, Ouattara said, “We are eager to explore further opportunities to invest in aviation infrastructure in Ethiopia.”

The company is also keen on building on some of Puma Energy’s existing investments.

“Expanding jet fuel storage capacity and leveraging our parent company Trafigura’s investments to improve security of supply and access through port infrastructure in neighboring Somaliland, for example, is critical to supporting the sector’s expansion,” said Ouattara.

Since 2020, Trafigura has invested in upgrading the Berbera Oil Terminal facilities with the goal to integrate oil logistics across the Horn of Africa by improving and storage expanding capacity, facilitating the import of jet and other fuel products to meet local and regional demand whilst ensuring international health and safety standards.

“Beyond aviation,” Ouattara said, “Puma Energy sees significant opportunities across Ethiopia’s energy market.

“As part of our commitment to Africa’s second-most populous country, which is undergoing unprecedented economic reforms, we remain focused on investing in energy infrastructure that can power sustainable growth and development,” he added.

This collaboration, according to EIH, “underscores Ethiopia’s commitment to leveraging strategic partnerships to unlock its full economic potential, creating opportunities for global investors to participate in the country’s transformation.

Established as Ethiopian sovereign wealth fund in 2022, EIH also serves as the government’s strategic investment arm, seeking to attract foreign investment through a co-investment platform, among others.

Ethiopian monitor

Qaran News