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South Sudan and Ethiopian Airlines Resume Strategic Partnership Talks

South Sudan and Ethiopian Airlines Resume Strategic Partnership Talks
Renewed Cooperation to Strengthen Aviation and Regional Connectivity
South Sudan and Ethiopian Airlines have revived discussions aimed at expanding the aviation sector in South Sudan through a strategic partnership. On August 27, South Sudanese President Salva Kiir met with Ethiopian Finance Minister and Special Envoy Ahmed Shide Mohammed in Juba to explore avenues for enhanced economic cooperation. Central to these talks was the proposal for Ethiopian Airlines to serve as a key partner in bolstering South Sudan’s aviation services and improving connectivity within the region, according to a statement from the South Sudanese presidency.
The agenda also encompassed broader infrastructure initiatives, including the development of a trade and transport corridor linking South Sudan, Ethiopia, and Djibouti. Discussions extended to joint projects in roads, electricity, telecommunications, and banking sectors. Minister Shide conveyed a message from Ethiopian Prime Minister Abiy Ahmed Ali, reaffirming Ethiopia’s commitment to strengthening bilateral relations.
Background and Strategic Significance
These renewed talks build upon a 2023 Memorandum of Understanding (MoU) between Ethiopian Airlines and South Sudan, which envisaged the establishment and management of a new national carrier for South Sudan. Under the terms of the MoU, Ethiopian Airlines would provide technical expertise, training, and management oversight, including the administration of South Sudan’s airspace during its transition. The concept of a joint venture dates back to 2014, when Ethiopian Airlines considered acquiring a 49 percent stake in the proposed airline, with the South Sudanese government retaining majority ownership. In 2019, the South Sudanese government allocated SSP100 million (approximately USD 768,000 at the time) to conduct feasibility studies for the project, then referred to as South Sudan Airways.
The partnership aligns with Ethiopian Airlines’ broader strategy of establishing joint-venture carriers across Africa, aiming to enhance regional connectivity and expand its market presence.
Challenges and Regional Implications
Despite the promising prospects, the resumption of these talks occurs amid considerable challenges. South Sudan continues to face political instability and economic difficulties, which may hinder the implementation of a joint aviation venture. Additionally, Ethiopian Airlines’ financial position is under scrutiny, particularly following a significant loan from the African Development Bank. These factors could influence the airline’s capacity to manage new partnerships effectively.
The evolving dynamics may also prompt reactions from regional competitors such as Kenya Airways, Turkish Airlines, and EgyptAir, who could seek to exploit any instability in South Sudan or shifts in Ethiopian Airlines’ strategic focus. Currently, Ethiopian Airlines remains the leading international carrier serving Juba, operating at least two daily flights from Addis Ababa International Airport using Boeing 737-700 aircraft, while other international airlines maintain less frequent services to the South Sudanese capital.
If successfully concluded, the partnership would mark a significant milestone in South Sudan’s long-standing efforts to establish a national flag carrier and could reshape the competitive landscape of East African aviation, with important implications for regional connectivity.

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