Ethiopia Transport Sector
The country’s 10-year transport sector plan creates massive trade and investment opportunities for U.S. companies seeking to do business in Ethiopia.
The Ethiopian government formed a National Transport Council to reform the sector. The transport council is composed of various ministers and stakeholders and is led by the Minister of Transport and reports directly to the Prime Minister. The council formulated and endorsed a national transport policy (March 2020), a national logistics strategy (2020 to 2030) and policy, and a transport sector’s 10-year perspective plan (2020 to 2030).
The reform program opens up room for more private sector engagement in port and railway development and operation, maritime and logistics services, and road infrastructure. In the coming years, international and domestic private investors can engage in the Ethiopian transport sector in the form of full private ownership, joint ventures with the government or other local entities or in public private partnership (PPP) modalities.
The 10-year transport perspective plan projects and investment of 3.04 trillion Birr (a little over 74 billion dollars) in the sector and identifies the private sector as an engine and active participant in this development plan. Various funding sources are planned to be used for this ambitious plan with 70 Billion Birr to be generated from the revenues of the Ministry while the rest is planned to be sourced from government budget subsidies, private sector involvement, and foreign support and grants.
The plan identified about 44 projects that will be open for private sector investment covering these areas of development:
- Dry ports and terminals
- Freight forwarding and shipping agency services
- Railways development and rolling stock spare parts manufacturing
- Pipe line transport
- Express road ways
- Air transport and aviation services
- ICT development for port shipping and logistics sector
- Bus rapid transit corridor system and cable car system .
U.S. companies can engage in this development plan either as an investor or providers of technology, equipment and know-how as contracting partners in the implementation of the plan. For more information Please contact Tewodros (Teddy) Tefera at Tewodros.Tefera@trade.gov.