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Ministry Opens Logistics Sector to Full Foreign Ownership

Oct 8 , 2024

The Ministry of Transport & Logistics (MoTL) has fully opened the logistics and transport sector to foreign investors, a major policy shift boosting foreign investments, which the authorities hope will improve efficiency in the industry.

Transport Minister Alemu Sime (PhD) announced the policy shift, which permits 100pc foreign ownership of logistics companies operating.

Alemu's move follows macroeconomic reforms introduced two months ago and marks a departure from previous regulations that limited foreign operators to a maximum 49pc stake in joint ventures with domestic firms.

"This'll pave the way for increased foreign investment," said Alemu during an event at the Skylight Hotel on Airport Rd.

According to the Minister, opening up the sector for external competition can address inefficiencies among freight operators leading to reduced costs and improved service times.

The Ministry of Transport conducted a study, in partnership with the Ethiopian Investment Commission (EIC) to assess the prospects of opening the logistics sector. While final approval for implementation is pending, the announcement signals a clear intent to liberalise the industry.

According to Abdulber Shemsu, director of the Ethiopian Maritime Authority (EMA), services such as multimodal transport, dry ports, and transportation are now open to foreign operators. The Ministry floated a second tender two days ago for private freight forwarders, following the entry of three operators in the first round.

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