ADDIS ABABA – Ethiopia which has recently liberalised its economy significantly is now on final stage to open up the logistics sector for foreign investors.
It is to be recalled that the country passed a legislation allowing foreign investors to take part in the finance and banking sectors.
Ministry of Finance yesterday announced that there have been policy amendments to pave the way for greater participation of foreign companies in the logistic industry.
“The government has been taking various reform measures to improve the sector including increased budget allocation, policy reforms, enhanced international cooperation, said ,” Finance Minister Ahmed Shide.
The minister also revealed plans to open up the sector for international investors during an event held yesterday to recognize entities engaged in the logistic sector.
Speaking at the occasion themed: “Logistics Transformation for Sustainable Growth and Prosperity”, Ahmed emphasized the importance of modernizing the sector for overall national development.
He stated, “Strengthening our logistics capabilities is essential for our country’s future.”
In his remarks, the minister noted that infrastructure development, particularly road construction, is receiving significant budget allocations.
“Different steps are being taken to enhance our logistics sector,” he said adding that in the effort of expanding the nation’s cargo capacity, the government is also progressing on plans for a new airport.
Looking ahead, Ahmed Shide underscored the necessity of enhancing Ethiopia’s competitiveness in the international market. He mentioned that beyond strengthening logistics ties with Djibouti, there are on-going efforts to address port access challenges.
Support from the World Bank has been pivotal in advancing road construction projects, which are in their final stages. “These infrastructure improvements will save time and reduce costs in the logistics sector,” he remarked.
Transport and Logistics Minister Alemu Sime (PhD) echoed these sentiments, stating that significant efforts are underway to position Ethiopia as a competitive player in the global logistics arena.
Alemu detailed the progress made. He noted that an independent assessment by the World Bank revealed improvements in Ethiopia’s logistics capabilities in 2023.
To attract trade and investment, a comprehensive policy and strategy for the logistics sector is currently being implemented. Alemu stressed that modernizing logistics is vital for economic development, and addressing existing challenges is crucial for optimizing resource use.
Recent assessments indicate a rise in Ethiopia’s Logistics Performance Index from 2.53 to 2.94, reflecting the growing efficiency and capacity of the country’s logistics operations.
It is also recalled that the Ethiopian Investment body announced that foreigners would be able to own 49 % or less in joint venture arrangements in the logistics sector.
BY EYUEL KIFLU
THE ETHIOPIAN HERALD WEDNESDAY 9 OCTOBER 2024
