Boeing, the world’s largest aerospace company, has picked Ethiopia for its new Africa headquarters.
South Africa and Kenya were passed over as preferred locations, losing out on the resulting investment.
On The Money Show, Bruce Whitfield notes that Boeing once had its Africa head office in Johannesburg, shutting that down ‘quietly’ during the second Zuma administration.
He gets comment from Africa business specialist Rutendo Hwindingwi, founding director of Tribe Africa Advisory and author of ‘Rumble in the Jungle Reloaded’.
Hwindingwi points out that the aerospace giant has a relationship with Ethiopia dating back to 2009.
“Ethiopia was manufacturing basic components for airline seats… Also, bear in mind, last year Boeing actually approached Ethiopia to put in an investment of about $15 million with regards to manufacturing.”
Rutendo Hwindingwi, Founding Director – Tribe Africa Advisory
Further strengthening the business case is the fact that Ethiopian Airlines is making a profit and has an outstanding safety record.
The country’s capital Addis Ababa is also considered the best-connected airport for travel on the continent
“Ethiopian Airlines making a profit is a big thing, whether from an African context or a worldwide context… It showed a 20% rise in profits to $6.1 billion (during its previous fiscal year).
“They’re probably at about 140 planes, and they’re going to purchase another 20 from Boeing.”
Rutendo Hwindingwi, Founding Director – Tribe Africa Advisory
Source: Eyewitness News
