Newsletter, Vol. 01, No. 018

Newsletter, Vol. 01, No. 018

Ethiopia and Djibouti agree to expand Logistics and Transportation Cooperation.

During March 4–7, 2023, a delegation led by Dr. Alemu Simie, Minister of Transport and Logistics for the FDRE, visited Djibouti for the purpose of expanding bilateral cooperation in the transportation and logistics industries.

The President of Djibouti, Ismail Omar Guelleh, and the Minister of Transport and Logistics met to address matters of mutual interest, including the urgent need to finish the Dikil-Galafi route to allow smooth movement of cars and goods before the rainy season, and an agreement was reached.

Dr. Alemu Simie also spoke with Djibouti’s Minister of Infrastructure and Equipment, Hassan Houmed Ibrahim, and the President of the Djibouti Ports and Free Zones Authority (DPFZA), Abubakar Omar Hadi, in addition to the country’s President.

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A 350-million-birr cold storage facility take root in Modjo

A private firm with the largest market share in the horticultural logistics industry is moving on with plans to build a 350 million Birr cold storage facility in Modjo town, Oromia.

Dawit Woubishet, an investor from Ethiopia, owns WoubGet Holdings, which has already obtained a loan to pay for the project’s development. It has already formally asked the area to lease property in the town.

The company’s managers see an opportunity to build the facility in the increased demand for cold storage facilities among horticultural businesses for the export of flowers and fruits.

The firm can put up the cold storage facility with all the necessary equipment in just three months when the regional state grants the company the right to lease property, according to Dawit, director of WoubGet Holdings and chair of the Air Freight Institute (AFI).

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Customs operations impede incoming Ethiopian cargo from Djibouti

During the most recent visit of an Ethiopian delegation led by Alemu Simie, Minister of Transport and Logistics (MoTL), to Djibouti, a significant maritime outlet for Ethiopian cargo, customs activities that hinder arriving Ethiopian goods from Djibouti to the center have been the topic of discussion.

The stack of products in Djibouti has been attributed to customs-related issues that have largely arisen in the most recent few months, which Ethiopian operators alleged has resulted in an additional expense for cargo, according to information obtained from both the Djiboutian and Ethiopian authorities.

According to the Ethiopian Maritime Authority (EMA) Djibouti Branch, the matter has been addressed in order to coordinate Ethiopian cargoes with the committee, which is made up of Ethiopian governmental offices and stakeholders with a Djibouti headquarters.

Even though the problem started a few months before the committee meeting, it wasn’t brought up until lately.
Abebe Tefera, the head of the EMA branch in Djibouti, asserted that Djiboutian Customs is requesting documentation such the HS Code and Area Code, which are useless to them, in order to expedite shipments heading to Ethiopian customers.

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Private operators poised to join multimodal logistics sector

Four logistics firms are competing to become the first group of private multimodal logistics service providers under the conditions of “Free on Board,” (FoB) signaling the end of the government’s monopoly in the industry

A commission within the Ethiopian Maritime Authority is getting closer to announcing the four companies planned to enter the industry after numerous businesses indicated interest in doing so. These businesses will compete on the market with the large, state-owned Ethiopian Shipping and Logistics Service Company, which has been around for six decades (ESLSE).

The Authority’s director general, Yehualashet Jemere (Eng), has stated that the selection process is now taking place in his office and that “the selected firms will soon be published.”

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Suppliers and exporters of coffee are upset about the unusual theft.

The infrequent theft of export coffee that is loaded onto trucks and transferred to the export preparation site in the capital frustrates exporters and suppliers in the coffee sector. After passing through security checkpoints, the trucks carrying coffee disappeared without a trace.

Exporters and officials from the Ethiopian Coffee and Tea Authority told The Reporter that three coffee-carrying trucks were robbed in the past few weeks. The trucks were eventually located, but the coffee had vanished.

As said by exporters and representatives of the Ethiopian Coffee and Tea Authority, three trucks containing coffee had been stolen recently. After some searching, the vehicles were discovered, but the coffee was gone.

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The private sector is thought to be essential for realizing the promise of the AfCFTA.

The private sector’s role is vital to fully unlock benefits of the AfCFTA as it offers huge opportunities for the private sector, financial experts emphasize.

The Pan African Chamber of Commerce and Industries (PACCI) hosted a business roundtable on the advantages of the AfCFTA on March 20. The gathering, which intended to raise awareness about the implementation and acceleration of the Africa continental free trade agreement and its advantages, was attended by a number of business executives from throughout Africa as well as senior officials from regional and international organizations.

According to experts, difficulties are encountered when conducting cross-border trade because of non-tariff barriers like complicated customs procedures, a lack of access to finance, high costs for transportation and logistics, and a lack of information. Other obstacles include inadequate infrastructure connectivity, rudimentary productive capacity, and risky or expensive payment systems, among others.

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African nations are urged to improve infrastructure connectivity in order to maximize the advantages of regional integration

According to Stephen N. Karingi, director of the Regional Integration and Trade Division of the UN Economic Commission for Africa (ECA), African countries should make greater efforts to connect their infrastructure in order to fully exploit the advantages of regional integration dimensions that are arising at varying rates following the implementation of the African Continental Free Trade Area (AfCFTA).

As stated by the director, the AfCFTA’s implementation and the subsequent initiation of trade by nations like Ethiopia are largely responsible for the continent’s significant development in trade and market integration.

He remarked, “We have seen that the different wheelers are moving at different speeds.” He said that regional integration has multiple aspects, highlighting trade and market linkages, infrastructural connectedness, mobility of people and products, and social integration as the primary ones.

The director emphasized that in order to fully capitalize on the advantages of the regional integration elements that are rising up after the implementation of the AfCFTA, African nations should make more efforts to integrate their infrastructure.

He emphasized the need of efficiently implementing the African Continental Free Trade Area and said that accelerated integration is a foundation of growth for Africa (AfCFTA).

Stephen N. Karingi pointed out that the COVID-19 pandemic’s effects and the shock brought on by the war in Ukraine made it challenging for African countries to gather the local and global resources required for infrastructure development.

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Galamo-Moloud Road Completion Agreement Reached Between Ethiopia and Djibouti

Galamo-Moloud Road Completion Agreement Reached Between Ethiopia and Djibouti
Galamo-Moloud Road Completion Agreement Reached Between Ethiopia and Djibouti

A deal has been reached between Ethiopia and Djibouti over the development of a vital route that will link the two nations. The 35-kilometer route between Galamo and Moloud will facilitate the efficient movement of people and goods, improving transportation between the two nations.

During the February visit of Alemu Simie (PhD), Ethiopia’s Minister of Transport and Logistics, and his meeting with Ismail Omar Guelleh, President of Djibouti, an agreement was reached. To supervise the agreement’s execution, Alemu Simie is now in Djibouti.

Alemu Simie met with Abubakar Omar Hadi, the president of the Djibouti Ports and Free Zones Authority, and his staff in order to accelerate the road’s construction. The agreement guarantees that the 35-kilometer Galamo-Moloud road will be finished within a year and that the Ethiopian Construction Works Corporation will get the necessary payments (ECWC).

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Ethiopian delegates visit Djibouti to iron out customs issues

A delegation from the Ethiopian Customs Commission (ECC) has been to Djibouti to address issues with customs documents that have arisen during the past week.

When Alemu Simie, the Minister of Transport and Logistics, visited Djibouti a few weeks ago, it was stated that one of their main conversational subjects was customs documents.

The issue that prevented Ethiopian freight from arriving from Djibouti to the center in recent weeks was caused by the customs office in Djibouti’s request for the HS Code and Area Code of Ethiopian cargo.

President Ismail Omar Guelleh of Djibouti has now extensively investigated the situation and ordered that it be resolved quickly.

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Ethiopia is importing 40 refrigerated containers for the shipment of fresh fruits and vegetables.

Ethiopia is importing 40 refrigerated containers for the shipment of fresh fruits and vegetables.
Ethiopia is importing 40 refrigerated containers for the shipment of fresh fruits and vegetables.

It is said that the refrigerated containers bought by Ethiopian Shipping and Logistics to ensure that perishable vegetables and fruits are transported to their destination freshly will arrive in Djibouti at the end of next week.

It is said that thirty forty-foot containers purchased from China are loaded onto ship Jigjiga and om the way to Djibouti. It is also reported that a special terminal has been set up at Mojo Port to accommodate these refrigerated containers.



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