Ethiopian Airlines Eyes Stake in Equatorial Guinea’s CEIBA Intercontinental Amid Privatization Plans
Ethiopian Airlines is positioning itself as a potential stakeholder in CEIBA Intercontinental, the national airline of Equatorial Guinea, as the Central African nation moves forward with its privatization strategy. The Vice Presidency and Press Office of Equatorial Guinea announced that discussions on the sale of a portion of CEIBA Intercontinental’s shares to Ethiopian Airlines took place between Vice President Teodoro Nguema Obiang Mangue and the airline’s Director General Agnes Khunwana on March 18, following an official expression of interest from the African aviation giant.
During the meeting, Khunwana outlined the pressing challenges faced by CEIBA Intercontinental since her leadership began in July of the previous year. She cited a critical lack of liquidity as the primary barrier to the airline’s development objectives, which include the creation of a hub, route expansion, and the reactivation of aircraft. The financial predicament has stalled progress and necessitated urgent measures to revitalize the airline’s operations.
Vice President Nguema Obiang described the airline’s situation as “alarming” and, despite a governmental infusion of XAF9 billion CFA francs (USD14.8 million), concluded that privatization remains the viable solution to CEIBA Intercontinental’s woes. He has directed the civil aviation authority of Equatorial Guinea to commission an expert valuation of the airline to facilitate informed negotiations with interested parties.
The initiative to engage Ethiopian Airlines as a potential investor aligns with previous considerations to involve the airline in managing both CEIBA Intercontinental and the country’s airport operations. This approach underscores Equatorial Guinea’s commitment to revitalizing its aviation sector through strategic partnerships, leveraging Ethiopian Airlines’ extensive experience and success in the industry.
This development is part of a broader effort to privatize several state-owned enterprises in Equatorial Guinea, in line with a 2019 agreement with the International Monetary Fund (IMF). The privatization of CEIBA Intercontinental is seen as a critical step towards enhancing the airline’s competitiveness and operational efficiency, drawing on Ethiopian Airlines’ expertise to achieve these goals.
Additionally, the meeting touched upon the progress of the new Bata airport, projecting completion within seven months. This infrastructure project is another key element of Equatorial Guinea’s aviation strategy, aiming to enhance the country’s connectivity and support the growth of its airline industry.
As negotiations continue, the aviation community watches closely, anticipating a partnership that could reshape CEIBA Intercontinental’s future and contribute to the dynamic growth of aviation in Africa.