Private Firms Enter Ethiopia's Logistics Sector

Mar 16 , 2024

Cosmos Multi-Modal, Tikur Abay and Panafric Global have etched their names in history as the inaugural recipients of certificates for multimodal operations, marking the private sector's participation in the logistics sector. The ceremony, held at Sheraton Addis on Taitu St, saw the presence of Alemu Sime (PhD), minister of Transport & Logistics, and Abduber Shemsu, director general of the Ethiopian Maritime Authority. Alemu emphasised the pivotal role of increased private sector involvement in driving Ethiopia's logistics strategy forward over the next decade. "Our logistics performance needs to be competitive," he said, "at least within Africa if not globally." Historically, Ethiopian Shipping & Logistics (ESL) has held a virtual monopoly over the country's logistics sector, facilitating nearly 90pc of all operations. The state-owned enterprise reported a substantial revenue of 23.7 billion Br in the first six months of the year, underscoring its dominant position in the market. However, the Maritime Authority opened the doors to private sector participation last year where 13 local companies, including notable entities such as the Ethiopian Railways Corporation, Maccfa Freight Logistics, Panafric Global, and National Transport Plc, expressed interest. This strategic move comes as Ethiopia charts a new course in its trade routes, exemplified by its inaugural shipment of fertiliser through the Lamu port. It aims to reduce reliance on traditional ports in Djibouti and diversify trade pathways.