ADDIS ABABA- Ministry of Transport and Logistics has reformed the legal and structural policy in a bid to enhance investor engagement in the sector and improve the international trade competitiveness as well.
During the workshop on Railway and Logistics Reform in Ethiopia held yesterday, Transport and Logistics Minister Alemu Sime (PhD) said that the government has implementing reform measures strategies and policies in the sector with promising results, but much work needs to be done in the railway sector.
Railway transportation enhances global supply chain efficiency reducing environmental impact. Ethiopia has the potential both economically competitive and alternatives on flights and passengers transport. So contributing significantly to the continents economic development, Ethiopia is one of the fastest growing economies in Africa. However, it remains one of the weakest in rail logistic globally, he said.
Addressing the inadequate capacity and policy frameworks in rail transportation in Ethiopia are crucial pillars of the modern logistics and economy, he said.
The integrated logistics sector reform roadmap aims to transform the railway system, introduce competition, and address identified issues for effective rail and surface transport reform. The reform enhances trade efficiency and achieves the nation’s transport perspective plan, crucial for socio-economic and political development in the Horn of Africa (HoA), according to the Minister.
Finance State Minister, Semereta Sewasew also remarked that the government has developed a comprehensive logistics reform roadmap aimed to transform logistics sector through targeted investment regulations, and the strengthening public private partnership.
The government recognized that in order to foster sustainable economic growth, there must be modernize and strengthen logistics infrastructure which is the cornerstone of the economy.
“And, it is the realm that we have undertaking the logistic sector reforms that have been clearly stimulated within the home-grown economic reform. But we have made significant strides in recent years. We must acknowledge the challenge of persist our railway and dry ports are currently operating below their potentials. They are hampered by inefficiencies and prevent us from meeting the growing demands of the growing economy,” she noted.
Infrastructure inadequacy, outdate regulatory frameworks impact, incapable technology are just a few challenges. The ultimate goal of the reform is to create an integrated logistics network and ensure that official improvement of goods and services throughout the nation, she said.
The World Bank Group Country Director Mariam Salim on her part, appreciated the reform saying “This is a significant accomplishment reflecting the hard work collaboration, and commitment of all stakeholders.
“I commend everyone from the minister of Transport and Logistics, Ministry of Finance and related agencies for coming together to tackle the logistics challenge- a critical development agenda,” she said.
One of the key challenges undermining Ethiopia’s international competitiveness is inefficient trade logistics. Several World Bank reports are highlighted the railway sector in Ethiopia as a significant constraint and a major bottleneck for future economic growth, she underlined.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD FRIDAY 4 OCTOBER 2024
