Friday, November 8, 2024

Ethiopia’s strategic focus: Enhancing livestock and cold supply chains for global agribusiness growth

By Mohamed Aref Mohamed

It is necessary to emphasize the importance of developing the livestock export chain and Ethiopia’s cold supply chain to strengthen Djibouti’s position in the global export of flowers, fruits, and vegetables to gain more market share in the global agribusiness. This is not just about improving logistics; it is a strategic move that could exponentially increase Ethiopia’s competitive standing in international markets.

Ethiopia is at a crucial crossroads in its quest for modernization and optimization of production. To fully leverage its abundant resources, the country must specialize its training and learning hubs across all production sectors. With strong foundations in coffee, teff, spices (such as ginger and turmeric), horticultural products (fruits and vegetables), oilseeds (such as sesame and soybeans), pulses (like lentils and chickpeas), livestock and livestock products, honey, cotton, wheat, all types of products arising from agriculture, construction materials, and the burgeoning industries of gas production and mineral processing (such as gold, tantalum, lithium, potash, gems including opals and sapphires, copper, iron ore, marble, gypsum, calcium carbonate, and many more), Ethiopia has the tools to further bolster its economy.

The country has made strides toward adding value to its mineral resources before export, a move highlighted in the World Bank report (2021) which underscores the critical role of resource transformation in economic development. By focusing on value-added activities, Ethiopia can generate employment, foster economic growth, and strengthen its global standing.

It is perplexing and counterproductive that producers, exporters, and the entire logistics chain in Ethiopia do not fully prioritize meticulous attention to detail and quality management in agricultural products. This stands in stark contrast to Ethiopia’s considerable potential in agriculture, which benefits from vast arable lands, diverse climates, and abundant natural resources. These assets could make Ethiopia’s agricultural sector highly competitive internationally, but without careful attention to quality and logistics, this potential remains largely untapped. This applies to all types of production.

Ethiopia’s logistical advantages further heighten this paradox. The country boasts some of the best connectivity on the African continent, giving it unmatched access to global markets. Consider these points:

– Ethiopian Airlines offers the best air connectivity in Africa, with direct flights to major global airports, facilitating access to the world’s largest markets. This unrivaled network not only boosts tourism but also supports the transport of high-value agricultural products.

– With Ethiopian Shipping & Logistics, the country enjoys one of the strongest maritime shipping networks in Africa, ensuring seamless ocean logistics for Ethiopian exports.

– Additionally, Ethiopia benefits from direct rail links to Djibouti’s state-of-the-art ports, which connect to the world’s largest shipping lines. This infrastructure, vital for Ethiopia’s global competitiveness, is essential for facilitating efficient and cost-effective export logistics.

– Through the synergy of multimodal transport, combining sea and air, multiple Asian ports, including those in India (Mundra), China (Dalian, Guangzhou, Hong Kong, Ningbo, Qingdao, Shanghai, Shenzhen, Xiamen), and Malaysia (Klang), are currently directly connected to the deep-water terminal dedicated to containers at Doraleh (SGTD). The Djiboutian Sea-Air Cargo network facilitates smooth connections from the aforementioned Asian ports to 24 African countries (Burkina Faso, Benin, Botswana, Cameroon, Chad, Côte d’Ivoire, D.R. Congo, Equatorial Guinea, Ethiopia, Gabon, Guinea, Madagascar, Mali, Namibia, Niger, Nigeria, Rwanda, Somalia, South Africa, Sudan, and Togo) and 27 cities (Abidjan, Addis Ababa, Antananarivo, Bamako, Conakry, Cotonou, Douala, Entebbe, Gaborone, Goma, Harare, Johannesburg, Kano, Khartoum, Kigali, Kinshasa, Lagos, Libreville, Lomé, Lubumbashi, Lusaka, Malabo, Mogadishu, N’Djamena, Niamey, Ouagadougou, and Windhoek), primarily thanks to Rwandair, EgyptAir, and mainly Ethiopian Airlines.

Despite these impressive logistical achievements, the lack of attention to product quality, handling, packaging, and smooth movement of goods continues to limit Ethiopia’s growth in global markets in general. As competition intensifies and global standards for quality and sustainability rise, Ethiopia risks missing valuable opportunities if it fails to meet expectations. Moreover, neglecting these crucial elements diminishes the nation’s reputation as a reliable exporter and leads to economic losses across the entire supply chain.

Beyond agriculture, Ethiopia has taken proactive steps in mineral transformation before export. As noted in a World Bank report, such efforts are essential for economic diversification and growth. By embedding these industries within well-defined value chains, Ethiopia can secure a smooth, synchronized logistics network, enhancing its global competitiveness.

This path aligns with Ethiopia’s larger vision of becoming a central player on the world stage. With its best-in-class air and sea connectivity, Ethiopia is poised to become a key hub for Africa, not just for its own economy but for the wider continent through the African Continental Free Trade Area (AfCFTA). Ethiopia’s commitment to growth in these industries solidifies its role as a leader, transforming it into the economic granary of the region, including for the Middle East and beyond.

Ethiopia has already demonstrated its capabilities to excel in education and skill development, a crucial factor for sustaining its growth. A prime example is the Ethiopian Airlines Aviation Academy, which has trained countless professionals, shaping the future of aviation in Africa. Ethiopian Airlines was recognized by the International Air Transport Association (IATA) as Africa’s top-performing airline and currently remains the best in terms of network, passenger, and cargo transportation, illustrating the effectiveness of its integrated model.

By strengthening its cold supply chain, Ethiopia could significantly enhance its export capabilities. The country’s wealth in resources, whether agricultural, mineral, or industrial, can only reach its full potential through a holistic and strategic approach to logistics, production, and human capital development.

Ethiopia shines like a white light, radiating from the harmonious fusion of diverse wavelengths. It is a nation rich in diversity, where the coexistence of monotheistic faiths is a testament to its unity and peaceful pluralism. The cultural and physical diversity of its people, united under one flag, creates an atmosphere where all Africans can feel at home; it is similar to Malaysia with its “Truly Asia.” This plurality offers fertile ground for constructive dialogue and respectful exchanges with other African nations, underscoring Ethiopia’s significant diplomatic and economic role on the continent and beyond.

It is both legitimate and essential for Ethiopia to diversify and strengthen its maritime access, especially given its vast production potential. The country plays a crucial role in serving landlocked nations such as South Sudan, which is going to connect Melut to Djibouti Damerjog Industrial Park and the Central African Republic via the ports of the Horn of Africa. Far from being rivals, these ports foster a mutually beneficial dynamic for regional trade and international commerce. Together, we form a harmonious and diverse ecosystem, united by common interests.

In conclusion, Ethiopia’s path to modernization, its focus on logistical excellence, and its commitment to professionalizing its human capital will allow the nation to harness its full potential and emerge as a pivotal player in the global economic arena.

Strengthening and improving the value chain and the logistics chain are essential. It is also advisable, in all areas, to emphasize greater synergy for efficiency.

In recognition of our great shared history and our collective responsibility to the African continent and the broader community, we all must remain deeply committed to supporting regional growth.

Peace and stability are the most valuable ingredients to achieve sustainable development on both the continental and global stages.

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