Ethiopia Seeks Foreign Capital in Bold Push to Unseat Logistics Monopoly

Three companies have received licenses to enter Ethiopia’s multimodal logistics sector, marking another step in the federal government’s push to open the industry to private and foreign participation.

Ethio-Djibouti Railway S.C., Ethio-Railway Logistics Plc, a joint venture between Ethiopian Railway Corporation and GetAs International Plc, and Gulf Igot FCZ Multimodal Operator secured their multimodal operation licenses at a ceremony held at the Radisson Blu Hotel, on Marshal Tito Rd, today, March 14, 2025. Alemu Sime (PhD), minister of Transport & Logistics, and Abduber Shemsu, director general of the Ethiopian Maritime Authority, handed over the license certificates.

“Our logistics performance needs to improve in cost and time," Alemu said. "Competition is crucial for that.”

For decades, logistics has largely been dominated by the Ethiopian Shipping & Logistics (ESL), a state-owned enterprise that has historically handled roughly 90pc of the country’s cargo.

However, this monopoly began to loosen last year when the Ethiopian Maritime Authority first opened the sector to local private firms. Seven companies, including Cosmos Multi-Modal, Tikur Abay, and Panafric Global, were granted licenses.

The recent decision to license more companies comes alongside a major policy shift that now permits foreign investors to fully participate in Ethiopia’s logistics sector. Previously, foreign ownership in joint ventures with local firms was capped at 49pc. This change, part of broader macroeconomic reforms introduced eight months ago, signals the authorities' push to liberalise the logistics industry and attract international capital.

According to Minister Alemu, expanding private-sector involvement is essential to Ethiopia's long-term economic goals. He hopes that increased competition will reduce the costs and inefficiencies currently slowing down trade and economic growth.