Private Firms Enter Ethiopia's Logistics Sector

Mar 16 , 2024


[ssba-buttons]

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.


Radar

New Directive Hikes Service Fees for Foreign Investors in Free Trade Zones

The Ethiopian Investment Board has issued a new directive revising the service fees from foreign investors payable in dollars to the Ethiopian Investment Commission (EIC), introducing updated rates for both the One Stop Shop and designated Free Trade Zones. The revised directive came into effect this April following its publication on the websites of the Ministry of Justice and the EIC. Issued pursuant to Article 23 of the Special Economic Zone Proclamation, the directive outlines charges for...


Radar

City Tables 350B Br Budget Plan for Upcoming Fiscal Year

The City Administration has approved a resolution to submit a proposed budget of 350 billion Br for the 2025/26 fiscal year to the City Council for deliberation. According to the Administration's statement on its official social media page, the draft budget is designed with a central focus on poverty reduction, encompassing targeted subsidies for sustainable development, investment in large-scale job-creating projects, and enhanced service delivery to address the growing demands of the reside...


Radar

Ethiopia, UN Launch Joint Plan to Drive Development Through 2030

The Ethiopian government and the United Nations (UN) have signed a five-year development plan outlining national priorities from 2025 to 2030. Signed on June 20 at the Ministry of Finance, the United Nations Sustainable Development Cooperation Framework (UNSDCF) with implications that it aligns with Ethiopia's reform goals and the Sustainable Development Agenda. The plan is backed by a projected 6.5 billion dollars, though only 1.5 billion dollars is currently secured. It focuses on closing t...