Kenya has missed out on a lucrative deal after US-based Global Aerospace Company, Boeing selected Ethiopia as the preferred country to host its African headquarters.
Kenya, South Africa and Ethiopia were in the race to host the continental offshoot but the American giant eventually settled on Ethiopia for its aviation safety record, which places it amongst the best in Africa.
In preparation for the move, the US aerospace company had appointed Henok Shawl to lead its Africa division.
Shawl, who formerly served at Ethiopian Airlines, was picked for his vast experience in the aviation and telecommunication sector. His rich experience in Africa also counted in his favour.
"Africa's abundant natural resources and burgeoning young workforce are poised to drive significant growth in air traffic and airplane demand over the next two decades," read the statement in part.
Boeing is a leading aerospace company that designs, manufactures and services commercial planes.
In the past year, the company delivered 528 commercial airplanes and received 1,576 net orders. The company is estimated to have a market capitalization of Ksh14 trillion (USD107 billion) as of May 2024.
The company projects that African carriers will require an estimated 1,030 new aircraft in the next 20 years to uphold international standards.
Ethiopia now gains a significant reputation as a key diplomatic hub in the continent as it already hosts the African Union's (AU) headquarters.
Further, Boeing and Ethiopia Airlines had signed a strategic Memoranda of Understanding to enhance airline operations and develop four key areas: Industrial development, advanced aviation training, educational partnership and leadership development.
On the other hand, Kenya has a history of working with Boeing, including securing orders for aircraft and landing gear exchange services in 2022 to enable more cost-effective operations.
Boeing currently serves nearly 70 per cent of the airplane market in Africa as over 60 airlines operate about 500 Boeing airplanes.
