Private Sector Invited to Invest in the Aviation Industry of Ethiopia

The Ethiopian Civil Aviation Authority (ECAA) is responsible for regulating and licensing aerodrome operators. The ECAA has the authority to review and issue licenses, certificates, or other legal documents to applicants who are qualified to operate an aerodrome, as per Civil Aviation Proclamation No 616/2008 and its amendment Proclamation No 1179/2020. To carry out its mandate, the ECAA has developed a Procedure for the Application and Issuance of Airstrip/Heliport Permits, Approval, and Business License in September 2022 (hereafter referred to as the ‘Procedure’). This article briefly examines the purpose of the Procedure, the eligibility criteria for investors, and the steps and requirements involved.

The Procedure has the objective of encouraging private investors to build and operate Airstrips and Heliports. The Procedure sets out a clear and streamlined process for applying for and obtaining airstrip/heliport investment permit, construction & operation approval. Increasing the number of standard airports is essential. Therefore, private sector participation in developing small airports as an investment is expected to accelerate the country’s development.

To apply for an investment permit for building and running an airstrip or heliport, you need to be an Ethiopian national over 18 years old and/or a domestic investor as per Investment Proclamation No.1180/2020. Domestic investors who want to operate an airstrip or heliport for business reasons can also apply. Domestic investors as defined by the Investment Proclamation No 1180/2020 Article 2(5) include a) An Ethiopian National; b) An Enterprise incorporated in Ethiopia and wholly owned by an Ethiopian National; c) The Government; d) a Public Enterprise e) a cooperative society established as per the relevant law; f) A Foreign National or Foreign Enterprise treated as domestic investor as per the relevant law or international treaty ratified by Ethiopia; g) An Enterprise incorporated in Ethiopia jointly between any of the investors specified in paragraphs (a) to (f); h) A Foreign National or Foreign Enterprise accorded a domestic investor investment permit as per law; i) Descendant of a foreign national specified under Sub-article (5) paragraph (h) of this Article, provided that this applies only in respect of investments specified in the same Sub-article. This Procedure does not allow foreign investors, whether alone or with domestic partners, to invest in airstrip or heliport construction and operation.

The first step in investing in Airstrip/Heliport is to apply to both ECAA and EIC at once. You have to give them these documents: a) Completed application form of EIC; b) Completed application form of ECAA and other documents as mentioned in the Application Form. The Application Form asks for details such as rights concerning the site, written evidence that you got permission to make the site an airstrip or heliport, and Environmental Impact Assessment for creating Airstrip/Heliport approved by the proper authority; c) a Certificate of Principal Registration; d) Original and copies of valid identity card or passport of the applicant; e) Two passport size pictures taken within six months, which show the clear identity of the applicant; and f) If a lawyer makes the application; original and copy of power of attorney from all of the founders, copies of valid identity card or passport of the lawyer and the manager.

The Applicant can start building after meeting the aerodrome and flight operation standards of the site, as approved by ECAA. ECAA will check the finished construction for compliance and issue a Compliance Certificate if satisfied. ECAA will then approve to operation if the safe air navigation requirements are fulfilled. The airstrip or heliport that got the approval to operate will be registered accordingly. According to Article 21(4) (d) of the Commercial Registration and Licensing Proclamation No 980/2016, air transport services and other aviation service business licenses are issued by the relevant government organs. ECAA has the mandate to issue business licenses for aviation-related services. Therefore, the Procedure gives ECAA the power to issue and renew business licenses for airstrips or heliports.

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