2merkato

Leaders from Ethiopia and Djibouti inaugurated the substation linking Djibouti to the Ethiopian power grid on Wednesday. It was described as a milestone in linking the economies of the two countries by Meles Zenawi, Prime Minister of Ethiopia.

More than 90% of the project was financed by loans and grants from the African Development Bank (AfDB). The project is thought to be very crucial to Djibouti which generated energy from diesel generators.

The memorandum of understanding for power purchase agreement was signed in April 2008 but it took two years to finalize the 25-year agreement.

Djibouti’s Government disclosed it has made a 45 percent price reduction on all port service fees for customers using the newly constructed Doraleh Multipurpose Port.

Djibouti signed a 15 million euro ($21.7 million) financing deal with the European Union for the development of an electricity interconnection project with neighbouring Ethiopia.

African investors based in Djibouti have expressed intention to open a state-of-the-art abattoir in Ethiopia. The group of investors made the announcement during a three-day investment tour to Ethiopia, which aimed at assessing and adding value to the enormous and untapped massive livestock resource Ethiopia has.

Djiboutian bank, Red Sea Trade & Industry Bank (BCIMR), opened a representative office here in Ethiopia. The inaugural ceremony which was held in Sheraton Addis was attended by the Bank’s director general Jean Pierre Gianotti.