Transport Associations Bewildered Amid Reestablishment

May 13 , 2023

Reestablishing transport associations under commercial entities has created confusion among the associations over the implementation. The Ministry of Transport & Logistics put forth a proclamation ratified by the Parliament nine months ago, compelling associations and service providers to reestablish if they are to continue in the public transport business. However, the absence of a directive has led drivers to be denied payments by their consignees and face frequent detainment from passing through the Djibouti border. The law required 65 trucking associations to invest in acquiring a minimum of 50 trucks in four months. Yegna-Helm Transporters S.C. was incorporated with 15 million Br in equity raised from 117 shareholders. The company, under Dejene Luche, had bought three truck vehicles and hopes to raise 100 million Br in the next few years. "There is no directive for a smooth transition," Dejene told Fortune. According to Dejene, even though the company has finished all the preparation, they are still waiting for the directive to see the light of day to get their operational licenses. Dejene believes despite the benefits of reestablishing transport associations as commercial entities; the execution has been rushed. One early re-formed corporate transport firm is Fetan Logistics & Trading S.C., incorporated a month ago with 100 million Br in equity raised from 221 shareholders. "The directive will be ready in a short time," said Yirga Tadesse, the Ministry's road transport monitoring and regulator. According to Yirga, drivers in the meantime, are allowed to cross the border and receive their payment without being detained. "We've started to give out operational licences to the incorporated associations," he told Fortune.



A street lamp around Addis Abeba Stadium melds into the concrete backdrop emblematic of the capital's ageing infrastructure. Over the past few years, Ethiopia's electric grid has been subject to destruction and theft, subjecting the public treasury to hundreds of millions in losses. Nearly half of the country's population does not have access to electricity. A series of projects by the World Bank has contributed to the slight but essential upgrade to the nation's grid, including a 500 million do...



A trio of donkeys drag along the main road in front of Menlik School around the Arat Kilo area. While the four-legged domestic animal is a venerated member of the Ethiopian labour force, its skin and meat are increasingly valued in the international markets. Rhong Chang, a donkey slaughterhouse operating in Assela Town, Oromia Regional State reopened its services after a seven-year break two years ago. Public outroar has often accompanied the entrance of donkey abattoirs into Ethiopia since anot...



A bustling market emerges under a bridge in the boroughs of the Bole Michael area. Addis Abeba City Administration has launched a series of aesthetic initiatives embalmed in themes of beautification and urbanisation that have removed thousands of shops built with makeshift tents. Above a quarter of Addis Abeba's labour force is engaged in the informal economy, which while often associated with connotations of illegality, remains a sizeable employer in emerging economies across the world. Calibra...