ADDIS ABABA - Ethiopia is ramping up efforts to modernize its logistics sector, recognizing its critical role in supporting the country's fast-growing economy and ambitions to become a regional trade hub.
The Ministry of Transport and Logistics (MoTL) emphasized the need for sustainable, competitive, and professional logistics service institutions during a recent panel discussion with stakeholders.
In his keynote address, MoTL State Minister Denge Boru highlighted that Ethiopia's economic transformation hinges on the development of a robust logistics sector. "We are working to build competitive logistics service providers that can sustainably meet rising demands while integrating into global trade systems," he said.
With the rapid expansion of global e-commerce, Africa -- and Ethiopia in particular -- has a unique opportunity to tap into the digital trade economy. The Minister noted that the country is developing specialized logistics systems to support e-commerce operations, ensuring efficient and reliable delivery channels.
Agricultural exports, especially perishable goods, are another focal point for logistics reform. "The government is pushing for more private sector involvement to improve the handling and transport of perishable agricultural products," Denge said. He added that while the current investment incentives in the sector are promising, challenges remain in building logistics institutions that are both effective and resilient.
To address these challenges and attract more foreign investment, Ethiopia is offering incentives to global logistics operators, with the goal of creating a sustainable logistics ecosystem that supports both domestic and cross-border trade.
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The State Minister also called on local logistics firms to upgrade their infrastructure, improve service quality, and embrace innovation. "Enhancing competitiveness and regional cooperation is essential. Our companies must be ready to meet international standards," he urged.
As part of the broader reform, six companies have recently been granted multimodal transport licenses, enabling them to provide end-to-end logistics solutions. However, the sector still faces a shortage of skilled professionals and expertise across the value chain.
To fill this gap, the Ministry of Transport and Logistics, in collaboration with the Ministry of Education, is developing a nationally recognized logistics curriculum. A Memorandum of Understanding (MoU) has been signed between the two institutions to design international-standard training programs, aiming to build a skilled workforce that can drive the sector forward.
Ethiopia's strategic focus on modernizing its logistics infrastructure and building institutional capacity is seen as a pivotal move to enhance export performance, reduce trade costs, and position itself as a key logistics hub in the Horn of Africa.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD THURSDAY 1 MAY 2025
