In a decisive move to revitalize its logistics sector, the Ethiopian federal government has granted operational licenses to three companies, effectively dismantling the long-standing monopoly held by the state-owned Ethiopian Shipping & Logistics Services (ESLS). This policy shift heralds a new era of competition, aiming to address critical inefficiencies and high costs that have impeded the nation’s economic progress.
Licenses Granted:
- Ethio-Djibouti Railway S.C.: This state-majority-owned company, presently managing the crucial railway line connecting Ethiopia and Djibouti, has received a license to transition into a comprehensive multimodal logistics operator. The company is investing significantly to expand its capabilities.
- Ethio-Railway Logistics Plc: A joint venture between the Ethiopian Railway Corporation and GetAs International Plc, this entity represents a strategic partnership between public and private sectors. It is poised to bring a blend of established infrastructure and private sector agility to the logistics landscape.
- Gulf Ingot FZC Multimodal Operator: A subsidiary of the Dubai-based Gulf Ingot FZC Plc, this company marks a significant foreign investment in Ethiopia’s logistics sector. With substantial capital backing, it plans to establish a robust multimodal operation, including maritime transport.
These licensing decisions underscore the government’s move to liberalize the logistics market, moving away from previous restrictions on foreign ownership and fostering a more competitive environment. This strategic move is anticipated to drive down costs, improve transit times, and enhance overall operational efficiency.
Source: Addis Fortune
