Ethiopia’s Transport sector

As a landlocked country, Ethiopia uses Djibouti port as its main gateway for international trade. Rapid economic growth for over a decade coupled with the creation of the African Continental Free Trade Area and growth of Ethiopian cities has increased demand for freight and public transport. The Ethiopian transport sector is heavily dominated by the public sector with road infrastructure development, railway sector, maritime, and logistics as well as aviation sectors heavily monopolized by the government. Private sector involvement in the transport sector was limited to public and freight transport services, freight forwarding and chartered flight services with small passenger aircrafts. This situation will change in the coming years as the current administration has shown a promising commitment to liberalize the sector for private sector engagement in different modalities. 

The Government of Ethiopia identified the transport sector as a game changer to maintain the country’s impressive economic growth trajectory, and it formed a National Transport Council that will lead the reform program in the sector. The Council chaired by the Minister of Transport reports directly to the Prime Minister, and it comprises various other Ministers including Agriculture, Finance, Trade and Industry, and Mines in addition to other stakeholders . In its two years life span, the Council formulated and endorsed a national transport policy (March 2020), a national logistics strategy (2020 to 2030) and policy, and the transport sector’s 10-year perspective plan (2020 to 2030).