Ethiopia Unveil Country’s First National Logistics StrategyApr 9, 2015
Each year, Ethiopia spends heavily on trade logistics-related costs, a condition that is partly attributable to its land-locked status as of the early 1990s.
While the Government of Ethiopia clearly outlines that ease of transporting goods and services across the country is key in building its development trajectory envisioned for 2025, it is also apparent that the country needs an improved logistics sector.
Over the last two years, UNDP Ethiopia has been working closely with the Ministry of Transport and the Ethiopian Maritime Affairs Authority (EMAA), whose responsibilities include facilitating Ethiopia’s port utilization agreements and also monitors trade corridors performances.
UNDP provided technical support and one millions USD for the development of an diagnostic study, logistics intervention actions, blueprint, and an implementation strategy.
Ethiopia’s first National Logistics Strategy will be implemented over a period of five years. UNDP Ethiopia’s Resident Representative Mr. Eugene Owusu handed over the National Logistics Strategy document to H.E. Minister Workneh Gebeyehu, Minister of Transport of Ethiopia at a special ceremony held on 9th April 2015,
The strategy will enhance Government’s efforts towards safeguarding industry-led growth which has been identified as a vital pillar of the successor Growth and Transformation Plan of Ethiopia.
Speaking at the handover ceremony, Minister of Transport Workneh Gebeyehu, said that logistics is one the most dynamic sectors of Ethiopia’s economy but admitted that its, “performance is still at lower level compared with other economies set apart by significant challenges that must be overcome”.
Commending UNDP Ethiopia for its support and also urging continued support throughout subsequent processes, Minister Workneh Gebeyehu also disclosed that a high level Ethiopian National Logistics Council (ENALCO), led by Ethiopia’s Deputy Prime Minister, will guide the implementation of this strategy.
UNDP Ethiopia’s Resident Representative, Mr. Eugene Owusu noted that this strategy aimed to ensure the efficient transportation and storage of goods and recommends enhanced communication and information flow and continued infrastructure investments. The private sector is also expected to have a pivotal role to play in the execution of the strategy.
Director General of EMAA, Mr Mekonnen Abera said, “there are many opportunities that Ethiopia can tap into for future growth which could help transform the industry to a more efficient, effective, sustainable and competitive global business.”
The National Logistics Strategy is expected to improve Ethiopia’s maritime, air and road connectivity, which in turn will greatly enhance multi and unimodal logistics operating systems, Ethio-Djibouti Corridor Management, customs, maritime and transit administration structures.