As Ethiopia seeks to expand its exports of clothing, fruits, and vegetables, the country is encountering significant challenges in the European Union’s fast-paced and highly competitive “fast fashion” market. Despite recent infrastructure investments and a track record of success in the U.S. market, logistics bottlenecks and supply chain inefficiencies are hampering Ethiopia’s ability to meet the EU’s demanding seasonal cycles and rapid turnaround requirements.
These issues took center stage at the National Logistics Conference, organized by the Ethiopia Freight Forwarders & Shipping Agents Association (EFFSAA) in partnership with Bahir Dar University. Industry experts and stakeholders gathered to discuss solutions for the country’s logistics sector, which is increasingly seen as the linchpin for Ethiopia’s export ambitions.
Matthew Crighton, Head of Trade & Investment at the international consultancy Triple Line, highlighted the stark differences between the U.S. and EU apparel markets. “The EU market for apparel is really different, it’s more fast-fashioned and trendy. The EU has four seasons, with buyers prioritizing fashion for each season. As buyers prioritize quick response and flexibility, suppliers need these to be done quickly,” Crighton explained.
Ethiopia’s current export model, however, is struggling to keep pace. Sourcing inputs from Asia can take 10–20 days, and garment production requires another 20 days. Shipping times to Europe, once around 25 days, have ballooned to more than 40 days due to disruptions in the Red Sea. This extended timeline makes it difficult for Ethiopian exporters to respond to the EU’s fast-changing fashion cycles and stringent delivery schedules.
While Ethiopia has made strides in infrastructure and attracted major international buyers such as Decathlon and Monoprix, its export growth in the apparel sector lags behind global competitors. Bangladesh, for example, has grown its apparel exports from $26 million to $40 billion, and Vietnam from $21 million to $30 billion over the same period. Even smaller economies like Cambodia and neighboring Kenya have seen significant gains, with Cambodia’s exports reaching $8 billion and Kenya tripling its clothing exports.
Industry insiders acknowledge that Ethiopia’s logistics remain a major bottleneck. “Although we have made progress, we have invested heavily into our critical infrastructure developments, and Ethiopia is still at a low level,” Crighton noted. Companies operating in Ethiopia report that the long-awaited rapid growth in apparel exports has been stymied by persistent logistics challenges.
To compete in the EU market, Ethiopia must urgently improve logistics efficiency. Crighton advocated for a shift toward “barrierless logistics,” where goods move seamlessly from production centers to borders without unnecessary delays. He called for solutions tailored to future needs, such as implementing “no-stop orders” instead of the current “one-stop” approach, which still introduces friction and slows down the supply chain.
Beyond apparel, Ethiopia is also targeting the EU, Middle Eastern, and Far Eastern markets for its horticultural products, including avocados, mangoes, bananas, and pineapples. However, the lack of a strong cold chain infrastructure remains a critical gap. Air freight is often too expensive for most fruits and vegetables, and while demand for sea freight is rising—especially for flowers seeking to reduce CO2 emissions—there is no integrated cold chain from rural production centers to ports.
This results in significant post-harvest losses, with up to 50% of horticultural products lost due to inadequate refrigeration and connectivity. The shortage of refrigerated trucks and the absence of links from rural transformation centers to cold ports further exacerbate the problem.
Crighton emphasized that the private sector will be the main driver of Ethiopia’s logistical transformation. “The real driver of innovation, the real driver of Ethiopia’s logistical transformation, will be the private sector,” he said. He urged rapid reforms to create a competitive logistics market, ensuring a level playing field for public and private, domestic and foreign companies. Expanding port options beyond Djibouti was also highlighted as crucial for fostering competition among service providers.
