TRANSPORTATION & LOGISTICS

Until recently, the transport and logistics (T&L) sector in Ethiopia was closed to FDI. However, in 2020, we implemented a new investment law that opened many investment areas to FDI, including transport and logistics. Since then, a growing number of investors have been exploring the new opportunities this sector has to offer.

Despite being landlocked, Ethiopia offers significant advantages in the global value chain. We sit at the center of the global economy, with proximity to the Middle East, Europe, North America, and Asia. Our location gives us a strategic advantage to engage with any market in the world quickly—with access to over 4 billion of the world’s population in just 8 hours of flight. Our flag carrier, Ethiopian Airlines, the continent´s largest in terms of passengers carried and the world’s fourth largest in terms of nations served, connects us to 127 international passenger destinations and 44 freighter destination. These advantages have laid a fertile foundation from which new investors can explore and set up businesses in the T&L sector.

The value of our annual import-export trade is currently more than $20 billion. To support increasing trade and make Ethiopia a hub for regional trade, we have embarked on an ambitious journey to build transport and logistics infrastructure and improve services. Investors are invited to engage in various opportunities that contribute to this goal while reaping the benefits of a newly opened and growing investment opportunity.

• Engage in building logistics infrastructure, including infrastructure megaprojects (logistics cities, dry ports and cargo terminals) and services. Investors can engage in expanding the Modjo Green Logistics Cities, building a logistics hub in Indode across the Addis-Djibouti railway line, or developing dry ports to service import and export of cargos in Semera, Dire Dawa, Woreta, Mekelle, Kombolcha or Jijiga. Investors can also explore the potential of building and operating dry bulk terminals.
• Engage in providing logistics services. By leveraging existing infrastructure or developing their own, investors can engage in providing logistics services—including dry/fluid cargo road transport, agile supply chain services, cold-chain services for fresh produce transportation and storage, rail-freight cargo handing in the Addis-Djibouti railway route (including Indode, Modjo, Adama and Dire Dawa), freight forwarding and shipping, and maritime training institution and manning services.
• Build port-connecting transport infrastructure and connect inland dry ports to seaports via transport infrastructure and diversifying access to the sea. Investors can explore the potential for building port-connecting railway lines—for example, working on the 310-kilometer Ayisha-Berbera Railway Connection, the 976-kilometer LAPSSET project connecting Modjo to Moyale, or the 1,400-kilometer railway line connecting Ethiopia with Sudan. We are ready to explore public-private partnerships for these projects. In addition, there are emerging opportunities in building pipelines for the supply of oil and gas.