Ethiopian Investment Holdings (EIH), a recently established sovereign wealth fund (SWF) that has teamed up with a dominant global security printing firm, is making its first greenfield investment. By 2026, the initiative aims to transform the security printing industry.

The facility called Toppan Gravity Ethiopia (TGE), established by Toppan Gravity, EIH, Berhanena Selam Printing Enterprise, and Education Materials Production and Distribution Enterprise, both of which are under EIH, will be equipped with cutting-edge technology and stringent security measures to produce high-quality passports, ID cards, and banking cards, setting new standards for security and integrity.

Kalkidan Arega, CEO of TGE, amplifies the strategic partnership between Toppan Gravity and Ethiopian companies as a collective commitment to revolutionize the security printing sector, not only within Ethiopia but across the African continent.

Ahmed Shide, Minister of Finance and Board Member of EIH, underscores the transformative potential of the security printing facility.

Abdurehman Eid Tahir, CEO of EIH, highlights the project as a successful Public-Private Partnership (PPP), demonstrating EIH’s commitment to collaborative ventures that address critical gaps in the economy. “The project’s contribution to knowledge transfer and skills development empowers future generations of Ethiopians,” he emphasized. Abdurehman acknowledges the project as EIH’s inaugural greenfield investment, symbolizing the SWF’s commitment to innovation and strategic growth.

Selamawit Dawit, Director General of Immigration and Citizenship Services, emphasizes the critical role passports play in national security and international relations. She highlights ongoing efforts to enhance services and underscores the significance of the groundbreaking ceremony and factory project in advancing Ethiopia’s capacity to produce passports domestically.

The facility, to be constructed as part of this venture, will specialize in manufacturing security printings. Equipped with advanced technology and stringent quality control measures, the facility is poised to exceed industry standards and cater to the evolving needs of the market, according to the statement of TGE.

The groundbreaking ceremony included the unveiling of the new Ethiopian E-Passport, showcasing its security features, cover page, and distinctive characteristics setting it apart from its predecessor.

With the launch of the manufacturing plant that will consume USD 55 million in Bole Lemi Industry Park, the Toppan Group plans to harness its technologies and solutions to establish capabilities for the provision of a full range of government ID solutions in the African market, with a view to producing IDs and passports for neighboring countries in the future. The government of Ethiopia, meanwhile, will ensure operational design aligned with local needs by establishing rules and regulations for passports and IDs.

Toppan Gravity is a subsidiary of Toppan Next, serving as the international development arm of the Toppan Group in the security domain. Being part of the most prestigious conglomerate in the industry with decades of experience and multiple well-known references, Toppan Gravity benefits from the Toppan Group’s strong market position and extensive expertise.

As a global solutions provider primarily focused on the payment and identity industries, Toppan Gravity aims to develop the next generation of virtual and physical security solutions.

The Toppan Group’s security business traces its roots back to the security printing that was core to its operations at the time of its founding in 1900. Backed by this extensive track record, the Toppan Group has provided government IDs for more than 40 countries.

Regarding the Ethiopian investment, the Toppan Group holds a 51 percent stake in the company via Toppan Gravity’s UAE-based subsidiary Gravity Group Ind. L.L.C and one other company, while the Ethiopian government holds a 49% stake through the national printing press and the two other enterprises.

In a recent survey conducted by the International Air Transport Association (IATA), it has been revealed that significant progress has been made in the global aviation industry to reduce baggage mishandling.

The survey, which focused on the implementation of baggage tracking according to IATA Resolution 753, provides valuable insights into the current state of baggage handling practices among airlines and airports worldwide.

Out of the 155 airlines and 94 airports surveyed, the results indicate that 44% of airlines have fully implemented Resolution 753, while an additional 41% are in the process of doing so.

However, there are notable regional variations in the adoption rates of this resolution. China and North Asia lead the pack with an impressive 88% of airlines having fully implemented the tracking requirements.

In the Americas, the adoption rate stands at 60%, followed by Europe and Asia-Pacific at 40%, and Africa at 27%.

Moreover, the survey found that 75% of the airports surveyed have the necessary capability for Resolution 753 baggage tracking.

When considering airport size, the findings reveal that mega airports are leading the way, with 75% of them already capable of implementing the tracking requirements. Major airports follow closely at 85%, while large airports stand at 82%.

Medium airports, on the other hand, show a slightly lower readiness, with 61% having the capability for Resolution 753.

In terms of tracking technology, the survey indicates that the majority of airports (73%) rely on optical barcode scanning as the dominant method of tracking baggage. However, a more efficient technology, Radio-Frequency Identification (RFID), is being implemented in 27% of the surveyed airports. Notably, mega airports demonstrate higher adoption rates of RFID technology, with 54% of them already employing this advanced tracking system.

Monika Mejstrikova, the IATA Director of Ground Operations, highlighted the progress made in baggage mishandling reduction from 2007 to 2022, which amounted to nearly 60%. While this is good news, Mejstrikova emphasized that the industry aims to make further improvements to meet traveler expectations.

The implementation of Resolution 753, which enables baggage tracking at acceptance, loading, transfer, and delivery, plays a crucial role in achieving this goal.

Mejstrikova stated, “Tracking bags throughout the journey reduces mishandlings and enables airlines to reunite mishandled bags with their owners more efficiently.

With 44% of airlines fully implementing Resolution 753 and 41% in progress, travelers can have increased confidence in the timely delivery of their baggage.”

According to SITA, the global rate of mishandled bags in 2022 was 7.6 per 1,000 passengers, with the majority of bags being returned within 48 hours.

The implementation of Resolution 753 and the improved tracking measures are expected to further reduce these numbers, ensuring a better travel experience for passengers worldwide.

To accelerate the adoption of modern baggage messaging, IATA is leading the industry’s transition from legacy technologies to XML standards.

The current baggage messaging infrastructure relies on costly Type B messaging, which hampers the implementation of Resolution 753 and contributes to message quality issues and baggage mishandling.

IATA plans to launch the first pilot for testing modern baggage messaging between airports and airlines in 2024.

This transition to modern messaging will enable effective communication about passenger luggage, reduce mishandled bags, and pave the way for ongoing innovations in baggage management systems.

As the industry continues to make progress in reducing baggage mishandling, the results of this survey demonstrate a concerted effort to enhance the passenger experience and ensure the smooth and reliable delivery of baggage at the final destination.

With the implementation of Resolution 753 and the adoption of advanced tracking technologies, airlines and airports are working together to minimize the inconvenience caused by mishandled bags and provide a more seamless travel experience for passengers worldwide.