Ethiopian Freight Logistics System: Grounds & The Way Forward Mekonnen Abera Director General, Ethiopian Maritime Affairs Authority (EMAA)

Grounds for low performance of the Ethiopia’s trade logistics 1.Inadequate Logistics Services Capability/Insufficient Competency and Poor Coordination 2.Transit and Trade Facilitation in efficiecny 3.Unregulated Services under Exclusive Operators/Monopoly Practice 4.Trade Finance and Trade System 5.Inadequate Infrastructure/Facility and Poor Management Transport infrastructure Port and Cargo handling facilities Inefficient ICT utilization and unavailability of facilities Inefficient Management of available facilities

Way forward... 1.Improve logistics services offering Objective: Strengthening the capability and efficiency of public and private logistics stakeholders and promoting better logistics services provision with emphasis on quality, reliability and synchronization across the chain Strengthen capability of logistics service providers and logistics systems: Create Leading Logistics Companies,.... Enhance Transport Capacity: Integrate Cargo flow Deregulate logistics services: shipping, dry port freight forwarding, transport, etc. Phase by phase

Panel Session 3: Freight forwarding logistics sector capacities for meeting the demands of growing economies As stated in the discussion points in this panel – Promote Transporter Companies to Provide end to end/complete/ Logistics Service – Foster Establishment of Effective Freight Forwarding Entities Provide a comprehensive legal framework for the industry. Strengthen freight forwarding associations Establish standard practices for freight forwarding companies Establish well-organized management systems: structure, etc.

Way forward... 2.Institute an Efficient Transit and Trade Facilitation Objective: Improved, simplified procedures and controls governing the movement of goods across borders are in place to reduce associated cost trouble, documentary requirements & maximize efficiency Establish an effective trade facilitation and regulatory programs: National Single window System, Reduce transit check points..... Develop/strengthen sea port facilities and service utilization to expedite transit process. Promote port development and creating regional hub Develop a reliable system for corridor performance measurement and monitoring.

Way forward Improve/Develop logistics Facilities & Infrastructure Objective: Establishing an integrated transport system, corridor facilities as well as a well performing logistics system (in terms of quantity and quality) Develop/strengthen transport infrastructure in the corridor. Promote 100% ICT utilization in the end to end logistics operation and services. Develop a strategy for efficient planning and management of logistics infrastructure and facilities to match the current freight demand as well as in line with best practices.

Way forward Improve Trade Finance and trade system Objectives: Creating a strong trade finance system and procedures so as to improve access to foreign exchange and address credit constraints by increasing financial products and services to improve the trade system in line with global practices. Improved trade finance systems for increased predictability and availability of foreign exchange reserves. Introduce new terms of payments. Develop/review and implement banking strategy to reduce the higher transaction cost and time.

Way forward Set Up Logistics Governance Objective: Establishing a logistics governance structure that oversees the national logistics transformation efforts anchoring and spearheading the logistics industry developments and provide strategic leadership as well as devising policy to support the efforts. Establish a high-level full-fledged logistics sector leadership and experts arm: Council, LTO, Regional & admin. councils, etc.

Thank you!