Ethiopia: USD 2.6 billion logistics roadmap to boost national infrastructure
Context and objectives: overcoming geographical isolation
With no direct access to the sea, Ethiopia aims to strengthen its logistics infrastructure to alleviate the constraints of its landlocked status. The Ethiopian Ministry of Transport has unveiled a strategic roadmap that estimates the national logistics investment needs at USD 2.6 billion. The plan aims to improve the supply chain linking Ethiopia to neighboring coastal countries such as Djibouti, Kenya and Sudan.
Priority projects: railway modernization and new connection lines
One of the major projects is to upgrade the 752 km railway line linking Addis Ababa to the port of Djibouti. Other strategic rail connections are being considered, including the Dire Dawa – Harar – Jigjiga – Togochale – Berbera, Aysha – Berbera, and Woldiya – Wereta – Metemma – Gadarif – Port Sudan lines. These new lines will connect Ethiopia to the Red Sea ports via Sudan. In addition, a feasibility study for a Sebeta – Jimma – Boma line (in the DRC) is underway, marking Ethiopia’s ambition to diversify its transport routes.
Terminal development and reforms to modernize the sector
The project also includes the construction of terminals in dry ports and operational, regulatory and institutional reforms aimed at improving the management of the logistics sector. These infrastructures will help to alleviate the burden on the road network, which is heavily used due to the current capacity limits of the railway network.
Diversification of supplies and economic impact
The logistics plan comes at a time when Ethiopia is seeking to diversify its sources of supply, especially in the context of imports, 80% of which transit through Djibouti. Ethiopia recently signed agreements for the operation of ports in Somaliland and obtained authorization from Djibouti for the use of a port on the Indian Ocean, in the Gulf of Aden.
Conclusion
By strengthening its logistics infrastructure and diversifying its supply routes, Ethiopia hopes to reduce transportation costs and delays while increasing the resilience of its economy. This ambitious project is expected to boost regional interconnectivity and improve logistics efficiency, helping to unlock the country’s economic potential.
