Efficient logistics to boost export trade

Ethiopia aspires to achieve economic growth through increasing agriculture and industry products and exporting them to enhance garnering foreign currency.

Exporting needs the availability of modern logistic system, packaging and transporting and obtaining foreign markets at maximum level. Therefore, emphasis should be given to the sector.

Dawit woubshet is working in the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) as a vice president. He is the founder and owner of Wubget Holding which is working on logistics business for the last 20 years.

As to him, his association is engaged in three main tasks and the first one is working on advocacy and dedicated to promote the logistic works and get attention by all stakeholders. The second one is that it works cooperatively with the government to create enabling environment to the sector and engaged in advisory and coordinating works. The third one is it insists that the logistics works to be governed by knowledge and skill. In addition, it is engaged in organizing trainings, working visits and experience sharing.

It also works for creating better opportunity to the sector and knowledge and experience transfer and to that end has kept contact with internationally recognized logistics organization. The other task that must be mentioned here is that it creates connection between the nation’s logistic industry and the international logistics industries. It has connection with foreign organizations and associations engaged in goods’ transiting. It organizes meetings, conferences and advertising platforms. It also provides logistical works to other organization as a subcontractor.

For instance, a flower exporter company supplies its products to the world market needs not only the sales company which supplies the product to the market but also needs a company which preserves the product and deliver it to the end users in the recipient country. Hence, this task is facilitated by his organization.

For instance, the Wubget Holding facilitates situation that enables the Amsterdam Freight Forwarding Company to work with the freight forwarding company registered in Ethiopia.

There is consortium of freight forwarders in various corners of the world and Wubget Holding works to create connection with the consortium.

Currently, African Continental Free Trade Area is on its formative period and needs more trade connection. For example, if Ghana wants to load Ethiopian products, the task will not be conducted effectively unless there is contact with companies working on freight forwarding, and in this regard, Wubget Holding works steadily.

As to Dawit, (International Federation of Freight Forwarders Associations – FIATA) has 46 thousand members. He serves as a board member and manages the air cargo department as director. The department was established 50 years ago and for the first time, it appointed an African as Head of the Department.

The Association was established firstly to serve European countries but later stretched its services to America, Asia and Africa. Far East countries and Africa have huge population and market but could not get sufficient place as per their status.

The association, for many decades, was under the influence of European but later, their attitude towards other continents’ peoples were changed and began to regard them as eligible to deserve the position and lead the Association. The global program of the association began in Ethiopia with the great efforts exerted by Dawit and his colleagues and in the coming months, air cargo global program symposium will take place in Addis Ababa. Ethiopia obtains this chance for the first time and many gusts of honors and participants all over the world will attend the symposium.

Asked whether the freight services in Ethiopia face challenges due to security reasons or not Dawit said that, the freight suffered a great deal due to security reasons and instability witnessed in various parts of the country. In general, the freight works in Zeway and the surrounding places is done by the company on daily bases. The company loads from 100 to 110 tons and transports it to Addis Ababa to be transported by plane cargo to its destiny. As The Company mainly transports flowers on daily basis, it needs attention and doing the job strictly.

The freight is escorted by security forces. However, as the job is conducted repeatedly, the vehicles might encounter security challenges on the way back to Zeway at night after they are unloaded.

Drivers daily face problems when they return back to Zeway at night and coming across bullet fire has been a common phenomenon. Unless practical solution is reached on, the security problem might be intensified and becomes threatening to the freight business and the economy at large.

Even though the government has tried its level best to manage the security problem in that corridor, tangible outcome is not registered yet. Hence, more effort is needed to stabilize the situation. Most drivers felt uncertain and showed reluctance to go through that route due to the security problems prevailing there.

The Mojo-Zway road is well constructed and enables vehicles to reach to their destiny in very short time but due to various factors, for instance lack of packing materials or labor force, the flower that is going to be exported might be delayed. When such situation occurs, the freight will be transported and exported twice a day. But, due to the security reasons, transporting the freight twice a day is very challenging. Currently, the vehicles transport the freight only once a day because of the mentioned reasons. He hopes that the problem will be solved with in framed time.

Some of the damages occurred on the sector get insurance coverage but others not. For example, damages occurred by insurgents’ attack or violence flared up in the corridor do not get insurance coverage.

There are vast areas covered by fruits such as banana in the Southern Omo Zone, Arbaminch and Jima. As to him, 300 to 400 hectares of land is cultivated by banana. Avocado also is cultivated on 7000 to 8000 hectares of land.

In addition, Avocado is cultivated in Oromia, Sothern Nation and Nationalities and Amhara regions in the cluster farming. Farmers need an organization which receives their export products, packs and transports to port.

Big industries harvest, pack and export their products by their own. Wubget Holding Company intends to work together with the cluster farmers to pack and export their products. Preparing a place equipped with freezer which holds the products gathered from farms fresh for long is essential. Exporting avocado needs its own process. Before exportation, it needs a clean, dry and waxed factory.

Countries that receive Avocado products have their own interest on the kind of the products. Some countries demand to obtain it in the raw form whereas others want to get it in the processed form. Following harvesting, the fruits have to pass through various processes and it is a part of the sector’s job. But such kind of job does not get the necessary attention by all.

Avocado production is growing and its exportation is underway. Within the coming months, according to reports, the production will be increased. Therefore, it needs a center to prepare the product for export. Without it, the quality of the products might be compromised and make it incompetent in the world market which in turn deducts the nation’s hard currency gaining capacity. Export products must reach to their destiny on time with best quality. Otherwise, winning the market is impossible.

The neighboring country, Kenya, annually earns one billion Dollar from Avocado export. Similarly, countries such as Uganda, Ruanda, Tanzania and Zimbabwe are working on Avocado to gain maximum profit from foreign market. Most African countries are engaged in Avocado production. Ethiopia also has paid much attention to the Avocado production and has vast areas of land conducive for production.

Therefore, to enhance the nation’s competency in the world market in this regard, much effort should be exerted in providing efficient logistic and well processed products.  

 BY ABEBE WOLDEGIORGIS

The Ethiopian Herald July 20/2023

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