Ethiopian Supply chain and logistics sector
Ethiopia’s logistics and supply chain sector plays a critical role in supporting trade, agriculture, manufacturing, and national development. As a landlocked country, Ethiopia relies heavily on the Port of Djibouti, which handles over 90% of its imports and exports. This reliance has made efficient logistics systems a national priority.
The government, through initiatives like the Ethiopian Maritime Affairs Authority and the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), has been working to modernize transport networks, warehousing, customs procedures, and freight handling. Key infrastructure projects like the Modjo Dry Port, Addis-Djibouti Railway, and road corridor improvements have aimed to reduce costs and delivery times.
Despite these efforts, the sector still faces challenges such as high logistics costs, limited private sector participation, inefficient customs processes, and a shortage of skilled professionals. However, the National Logistics Strategy and the involvement of development partners aim to improve the sector’s competitiveness and integration with regional and global value chains.
A strong logistics and supply chain system is essential for Ethiopia’s ambition to become a manufacturing and export hub in Africa. Improved coordination, digitalization, and investment will be key to achieving that goal.
Key actors
Ethio Logistics Sectorial Association (ELSA) represents the major Ethiopian logistics supply chain customers, service providers, infrastructure owners and suppliers. Their members span the entire supply chain, incorporating road, rail, sea, air, sea ports and dry ports.
Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) is a strong national association of professional logisticians striving since 1998 G.C, to achieve change in the sector of freight forwarding and shipping in Ethiopia. Formed by a group of logistics professionals, EFFSAA aims to enhance the sector to have more power and voice.
RAME 2016 is organized under FIATA with full cooperation and sponsorship. The global voice of freight logistics, FIATA is a non-governmental organisation, representing logistics industry covering approximately 40,000 forwarding and logistics firms and employs around 8 – 10 million people in 150 countries.
The Ministry of Transportation vested EMAA with the responsibility and authority to ensure the standards of Ethiopia’s maritime training and seafarer certification, marine & dry ports, and transport logistics infrastructure. EMA is a Transport Ministry agency, managed by the Office of the Director-General. The Authority is based in Addis Ababa, Ethiopia, and operates separate departments for the accreditation of training centers & seafarer certification, registration of Ethiopia’s national fleet, and maritime security and safety.
The Ethiopian Shipping and Logistics is a merger of four enterprises which were working independently in the sea transport sector. These were Ethiopian Shipping Lines Share Company, Ethiopian Maritime and Transit Service Enterprise, Dry Port Enterprise; and the former Comet Transport Share Company which was consolidated in to the new company, August, 2016.
Ethiopian Airlines Cargo, officially Ethiopian Cargo and Logistics Services, is Africa’s largest air cargo network operator. Operating from its hub at Addis Ababa Bole International Airport, the division connects over 140 global destinations, employing both belly-hold capacity across passenger flights and a fleet of more than 17 dedicated freighters, including Boeing 777‑200Fs, 767‑300Fs, and 737‑800Fs. The cargo operation supports a major logistics hub, backed by modern infrastructure including a cargo terminal and e-commerce warehouse capable of handling up to 150,000 tons annually.
Established in 1947, AACCSA is a voluntary, non-governmental, business membership organization with more than 17,000 member companies. The chamber serves as a credible voice of business and advocates for the creation of a conducive business environment. It also promotes trade and industry, disseminating business information, consulting government and members on economic development and business issues, establishing friendly relationship with similar chambers in other countries, and exchanging information as well as engaging in arbitration in times of disputes among businesses.
Ethiopian Chamber of Commerce and Sectoral Association is a unified voice for the private sector, fostering inclusive economic growth through policy advocacy, business networking, and capacity building.