Plan to export natural gas via Djibouti suspended for now, Ethiopian PM told the parliament
By: Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia – Prime Minister Abiy Ahmed addressed Parliament during its 42nd regular session, discussing key national issues including the economy, security, infrastructure, and foreign policy.
He announced plans to build a fertilizer factory within 40 months in partnership with Nigerian businessman Aliko Dangote. He also made claims that “23 million people have exited the safety net program this year.” The current beneficiaries are said to be only 4 million. He further claimed that “the country is moving closer to food self-sufficiency.”
He also announced to the members of parliament that “Ethiopia plans to bring gas to market for the first time by September and begin exports next year.” According to the Prime Minister, Infrastructure in the Somali region, location of the reported gas reserve, has been completed. However, there seems to be security concerns in the area to start operation but the prime minister did not specify the nature of it and as to what group constitutes a threat in the region.
Notably, Al-Shabab operates in the neighboring Somalia. Within the Ethiopian border, a faction of the Ogaden National Liberation Front (ONLF) has rejected a peace deal with the Federal government and resorted to armed struggle.
The plan to export is also impacted by economic factors and local consumptions. It is indicated that the government has suspended plans to export natural gas from the Ogaden Basin due to financial constraints and rising domestic energy demands. The previously planned export via Djibouti, projected to earn $8 billion annually, has been put on hold. Instead, the gas will now be redirected to the local market, with infrastructure expected to be completed by September 2025. The shift includes deals with major players, including the Dangote Group.
On the broader economy, Abiy said reforms were prompted by inflation, unemployment, and trade imbalance. While the IMF downgrades global growth to 2.8% and warned of rising inflation and falling aid, he said Ethiopia is pushing forward with self-reliance. He reported 8.1% growth last year and projected 8.4% for this year.
Gold production also surged—jumping from 4 tons last year to 37 tons—earning the country $3.5 billion in foreign exchange.
Edited by Dimetros Birku
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