Ethiopian Airlines
and the United States announced a new partnership agreement that will enable
the nation’s flagship carrier to source locally grown produce and ingredients
for preparing in-flight meals for global passengers.
These new business linkages will help farmers and local agribusinesses
reach a prominent new market and increase their revenue streams
Ethiopian Airlines
Group CEO Mr. Tewolde GebreMariam and U.S. Ambassador Michael Raynor signed a
memorandum of understanding in which the U.S. Agency for International
Development (USAID) will provide Ethiopian farmers and food producers technical
assistance and access to financing in order to ensure they are able to meet the
airlines’ standards of quality and volume to serve its customers. These new business
linkages will help farmers and local agribusinesses reach a prominent new
market and increase their revenue streams – with annual sales as high as $10
million in total – while providing Ethiopian Airlines farm-fresh ingredients
sourced directly from Ethiopia, reducing the need for foreign suppliers’
processed foods for their catering services.
USAID support will help Ethiopian Airlines identify local suppliers
for the list of catering materials the airline might potentially require
USAID support will
help Ethiopian Airlines identify local suppliers for the list of catering
materials the airline might potentially require, as well as provide support to
farmer cooperative unions, youth groups, women groups and other local
agriculture businesses to enable them to meet production requirements. A U.S.
government loan facility also will expand access to financing for local
companies, farmer cooperative unions, and others to expand their operations as
needed to meet the Ethiopian Airlines quality and supply demands.
The new partnership to continue providing high-quality inflight meals
to global passengers
“We deeply value
our relationship with USAID and extend our appreciation to USAID for all the
support. The new partnership consolidates our effort to continue providing
high-quality inflight meals to global passengers while intensifying our effort
in creating an enabling environment for local farmers across the value chain.
We would like to maintain our partnership with USAID on a range of spheres,”
said Mr. Tewolde GebreMariam.
“The partnership
we’re launching today demonstrates what’s achievable when prominent businesses
like Ethiopian Airlines invest in other Ethiopian businesses and individuals,
resulting in truly home-grown economic success that has the potential to be a
model for other sectors,” said Ambassador Raynor
This partnership agreement will run through December 2022
This partnership
agreement will run through December 2022 and will help pave the way for
Ethiopian Airlines and local producers and farmers groups to continue these
supply linkages and partnerships into the future.