Ethiopia to acquire portion of Djibouti port.

[cadnaan1]

 

[Old_Observer]

OoDweyne,

What did I tell you? Djibouti will be shareholder in Berbera through Ethiopia, which regardless of the optics is good for both of you.

Bravo Ghelleh, it took 15 years, but finally looks like he succeeded. He even proposed some kind of confederation with Ethiopia.

Advice to Ghelleh from a small man:

Improve the port agreement 80% in volume not in money in case Eritrea wants Ethiopian business.

Take shares in Ethiopian shipping lines, Ethiopian airlines (swap shares)

Invest own money in farms in Afar and Somali kilil only full Djiouti leased owned farms just like Saudis

Buy shares later in Electric corporation when hydro dams in Somali kilil are built.

 

[Old_Observer]

6 minutes ago, Oodweyne said:

Old_Observer, 

You putting a brave face in here, my friend. But this is not about Berberra, or Djibouti getting a slice of the action from it. But it's a way for Mr Ghuelleh to get himself a good lawyer against first from whatever the Americans do for the Eritrea strongman. And secondly in-terms of getting an "insurance policy" against the UAE, just in case they persuade the likes of Trump's folks to punish the tiny Djibouti over the DP World and the cancellation of its Dorraleh Container terminal (DCT). This is all there is to it, really.  

That is the reason speeded up, but really Ghelleh has been working in Ethiopia having a stake in Djibouti more than just port customer. You see. Ghelleh knows that Eritrea is useless unless Ethiopia uses it and if Ethiopia uses Eritrea Ghelleh will loose a lot. He has worked hard for him to have a stake in Ethiopia and Ethiopia to have a stake in Djibouti.

Now is perfect timing. Ethiopia is short of dollars and does not want to pay US$ for anything. Even the Berbera share will be in infrastructure deveopment only roads, uildings etc.

Djibouti also wants badly airlines and shipping lines. These are two businesses where Ethiopia excels.

The timing maybe what Rahm Emanuel said" Never let a good crisis go to waste", but the plan has been there all along.

[Holac]

Oodweyne, China is a powerful country that any African country (shit-hole as Trump calls them) needs to have on its side. Ghuelleh did that right thing by selling a portion of his business to Ethiopia to lock and guarantee this giant client aka Ethiopia. But the question I have is, what does this mean for the Berbera deal? Why would Ethiopia use undeveloped Berbera, with all its troubles (Somalia's sovereignty, etc), when Djibouti with the right infrastructure (highways, world class ports, train system, closer distance, etc) is right there waiting to supply the massive Ethiopian market?

Do you not think Ghuelleh's move is a blow to Berbera port?

[Old_Observer]

5 minutes ago, Holac said:

Oodweyne, China is a powerful country that any African country (shit-hole as Trump calls them) needs to have on its side. Ghuelleh did that right thing by selling a portion of his business to Ethiopia to lock and guarantee this giant client aka Ethiopia. But the question I have is, what does this mean for the Berbera deal? Why would Ethiopia use undeveloped Berbera, with all its troubles (Somalia's sovereignty, etc), when Djibouti with the right infrastructure (highways, world class ports, train system, closer distance, etc) is right there waiting to supply the massive Ethiopian market?

Do you not think Ghuelleh's move is a blow to Berbera port?

Not entirely a blow to Berbera port. Berbera port has a lot of advantage to Ethiopia that cannot be covered by Djibouti. The kilil has more benefit from Berbera even Bassaso than from Djibouti. Most of the kilil is south of the Djibouti-Addis Ababa line.

Ghelleh also knows this and is more than happy to accomodate.

The Oromo also unwittingly showed the Southern that they block the Djibouti line. Everyone is now wanting to diversify roads.

[Old_Observer]

On 5/1/2018 at 4:36 PM, Oodweyne said:

Incidentally, now that Oromo is power in Ethiopia, I very much expect the Tigrean's political elites to start "agitating" for the "normalization" of the political atmosphere between Eritrea and Ethiopia so that the ports of Eritrea could be brought-in on-stream soon after that to service the Ethiopian's huge markets. 

The Tigreans are deep to their knees in Djibouti themselves and do not want competition from their Tigray brothers in Eritrea for Ethiopian market.

In Djibouti they have themselves, they have the Afar and also good friendship with the Somali, cant ask for more. It will take ages for the Oromo to do that, and some of it is historical that is hard to undo.

Tigreans have also another comfortable place, Sudan. They will actually be blocking Eritrea and expanding to Somaliland and Somalia.