africa Aviation Economy Ethiopia Infrastructure Logistic Port Trade

Ethiopia: an aspiring logistics hub in the horn of Africa

One of the main goals of every nation is the maintenance and improvement of the living standards of its citizens. The attainment of this goal depends on the nation’s ability to enhance capital investment, labor productivity as well as the constant development of those industries in which it contests on a global scale.

As an economy that functions predominantly on primary and secondary economic activities, countries in the Horn of Africa are employing various strategies that focus on the inherent economic strengths of their own jurisdictions. The importance of these regional development initiatives as a means of enhancing the economic potential of the region involves developments of dry ports and logistics facilities specifically in Ethiopia.

Of course, infrastructure that is both well-organized and productive is one of the key features of a growing economy in local as well as regional level. This type of infrastructure investments and logistics networks would enable regions and localities to increase levels of development within their jurisdictions and thereby, assist the creation of economic prospects through increased competitiveness in the region.

Logistics infrastructure development in the Horn of Africa is generally seen as an enabling business as it is a catalyst for growth and guarantees local, regional and international integration. It has the capacity to ensure that national economic goals are met, thereby becoming a decisive input for those potential industries in the Horn of Africa region. Ethiopia, which is investing hugely on the development of new dry ports and logistics facilities, is aspiring to become the central logistics hub in the region with full dedication and capital investment.

The ongoing and future potential port developments in the Horn of African countries including but not limited to Mombasa in Kenya, Berbera in Somaliland and Assab in Eritrea are potential ports that create geographical advantage to Ethiopia in its path towards the creation of huge potential hub in the region. The strong commitment of Ethiopia on the way to dry port developments and management will create a potential to attract operators and potential users.

Ethiopia has embarked on several dry port projects that are already completed and other projects expected to be finalized in the coming years. In line with this, the dry ports will definitely attract logistics related businesses not only in Ethiopia but also in the neighboring states since Ethiopia is the only country that shares border with all countries in the Horn of Africa.

Accordingly, the Ethiopian Shipping and Logistics Services Enterprise is the result of this vision by merging and combining companies came into being following a regulation by the Council of Ministers. This merged entity is vested with a huge responsibility of providing shipping transport as well as logistics services to the country’s export and import operations in a more efficient and effective way. Further, it is tasked with reducing transit time and cost in its services by providing viable logistics & shipping services in an effort to become top African logistics company within short period of time.

Ethiopia’s strategic measure of merging the former different public entities in maritime sub-sectors that handle shipping, transit, transport and dry port services aspire to achieve better economic growth and creating an African brand, which equals to Ethiopian Airlines, in the logistics sub-sector. The country’s current intention to further liberalize the economic system will be a potential market for the international business community. It definitely links transactions towards this promising regional logistics facilities and structures by taking geographical advantages in the Horn of Africa that upgrades regional supply chain capacity.

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