Ethiopia Infrastructure Modjo Green Logistics City Expansion

Rapid infrastructure expansion and logistics reforms are creating new opportunities for U.S. companies at Ethiopia’s largest inland port, Modjo Dry Port. Located about 75 kilometers southeast of Addis Ababa, Modjo has long served as the country’s primary gateway for import cargo moving along the Djibouti-Ethiopia corridor. Recent upgrades, combined with development of the Modjo Green Logistics City, are transforming the area into a modern logistics hub capable of supporting both import and export operations.

In May 2026, the World Bank reported that improvements at Modjo Dry Port significantly reduced processing times, cutting clearance intervals in some cases from 60 days to 15 days. This progress reflects increased container yard capacity, expanded warehouse facilities, upgraded gate systems, and more efficient cargo flow management. With these enhancements, Modjo is playing a greater role in export processing, supporting sectors such as agriculture, manufacturing, and cold chain distribution.

The Government of Ethiopia (GOE), through the Ethiopian Investment Commission (EIC), has designated Modjo Green Logistics City as a priority investment zone. The initiative aims to integrate dry port operations with advanced logistics infrastructure, industrial facilities, temperature-controlled storage, and modern distribution centers. This comprehensive approach is intended to reduce transport costs and strengthen Ethiopia’s trade competitiveness as the country prepares for accession to the World Trade Organization (WTO).

Although the expansion creates meaningful opportunities, U.S. companies should remain aware of ongoing operational constraints, including variable customs processing, evolving digital systems, and capacity gaps across logistics service providers. Even with these challenges, Modjo Dry Port and the Modjo Green Logistics City stand out as some of the strongest areas for U.S. commercial engagement in Ethiopia’s logistics sector. Demand continues to grow for automated warehousing technologies, temperature-controlled storage, container handling equipment, warehouse robotics, inventory management systems, packaging and labeling solutions, and export logistics services. As Ethiopia modernizes its trade infrastructure, American firms with advanced logistics technologies and strong implementation experience are positioned to secure early advantages.

For more information, contact: Siraj Mustefa, Commercial Assistant, U.S. Commercial Service, U.S. Embassy Addis Ababa. Email: Siraj.Mustefa@trade.gov