Ethiopian Airlines Group will ramp up investment in cargo services and infrastructure and is looking to become a logistics hub for Africa’s growing e-commerce market. The continent’s largest airline is considering an order for about five Boeing Co. 777 freighters and may also take upcoming Airbus SE A350s. E-commerce is growing especially between China and Africa, and we want to continue the leadership. While Ethiopian has long been a major operator in freight, the Covid-19 pandemic has elevated demand as stay-at-home rules triggered a boom in online retail. Carrying goods during the past two years helped many airlines stay afloat, as border closures hammered demand for air travel.
China is a major investor in Africa and Safaricom Plc, Kenya’s biggest mobile operator, has a partnership with a unit of internet group Alibaba Group Holdings Ltd. to facilitate electronic payments. Cargo now accounts for half of Ethiopian’s revenue, compared with about 15% before the coronavirus, Tewolde said. That figure may drop to 30% as passenger services recover, which he said is likely to accelerate when China opens in the second half of 2022. Ethiopian is finalizing the creation of new airline in the Democratic Republic of Congo and will own 49% of the company. It has similar partnerships with the governments of Zambia, Chad, and Malawi. However, a previous plan to order narrow-body A220 planes that would have helped connect the continent has been shelved.