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

Construction Sector Faces 'Serious Trouble,' Minister Warns

The construction industry in Ethiopia is in "serious trouble," said Chaltu Sani, Minister of Urban & Infrastructure Development, citing major challenges with finance, competitiveness and material costs. Speaking at the opening of the BIG 5 Construct Ethiopia expo and the inaugural East African Infrastructure & Water Expo at Millennium Hall last week, Chaltu stressed the need for concerted efforts from government, private sector, and international partners to support the 67 billion dol...


Radar

Wegagen Bank, Gift Real Estate Partner to Promote Diaspora Homeownership

Wegagen Bank S.C. and Gift Real Estate Plc. signed a Memorandum of Understanding (MoU) on June 23, to offer housing loans for homebuyers, with a special focus on the Ethiopian diaspora. The agreement enables eligible diaspora members to access loans covering up to 80pc of a home's value at reasonable interest rates. The bank's Deputy CEO Kidane Gebreselassie noted the deal will promote the real estate sector and expand homeownership options. Founder and CEO of Gift Real Estate, Gebreyesus Igata...


Radar

Jimma University Signs Sports Science Agreement to Strengthen National Programmes

Jimma University has signed a four-party Memorandum of Understanding (MoU) with the Ethiopian Academy of Sciences, Derartu Tulu Sports Training & Research Institute, and the Oromia Youth & Sport Bureau to advance Ethiopia's sports science and training capacity. Signed on June 26, the agreement includes joint research, shared facilities, and hosting of national and international competitions. It is expected to strengthen youth development, public health, and national pride through coor...