The Ethiopian Investment Holdings (EIH), the country’s sovereign wealth fund, has announced its commitment to fostering competition in the multimodal transport sector when new operators enter the market alongside the state-owned Ethiopia Shipping and Logistics (ESL).
This decision represents a significant shift in Ethiopia’s logistics landscape, which has long been dominated by ESL.
However, despite the Ethiopian Maritime Authority (EMA) issuing operational licenses to the selected companies weeks ago, technical and procedural delays have hindered the commencement of their operations.
Three private companies—Panafric Global, Tikur Abay Transport, and Cosmos Multimodal Transport Operators—have been chosen to participate in the sector and are currently awaiting official notification letters to begin operations.
These letters will be sent to relevant authorities and stakeholders to formalize their participation.
Dawit Woubeshet, CEO of Cosmos Multimodal Transport Operators, confirmed that his company has requested formal notification from the authorities to inform stakeholders about its licensing.
“To conduct business and issue bills of lading, we need permits from customs and the central bank,” he explained. “Additionally, other stakeholders, including security, standards, and health authorities, must be informed about our operations.”
EMA experts recently conducted inspections of the selected companies to assess their readiness to meet licensing standards.
However, industry experts have expressed concerns regarding the delay in notifying relevant authorities about the new operators.
Some speculate that the regulatory body may be awaiting feedback or consent from ESL, the state-owned logistics giant, regarding the extent of the sector’s liberalization. “There may be a desire to protect certain areas of the market for the state-owned operator,” noted one expert.
During a recent CEO networking event organized by the European Chamber in Ethiopia, Brook Taye, CEO of EIH, which oversees ESL and other major public enterprises, emphasized the importance of fair competition in the sector.
Drawing parallels with the liberalization of Ethiopia’s telecom sector, Brook highlighted how increased competition has strengthened Ethio Telecom.
“The full opening of the multimodal sector will allow the state-owned operator to become stronger and more competitive,” he stated.
The introduction of private operators into the multimodal transport sector is viewed as a step toward modernizing Ethiopia’s logistics industry and enhancing efficiency. However, delays in formalizing the entry of new players have raised questions about the pace of implementation. Stakeholders are now awaiting further clarity from the authorities to ensure a smooth transition and a level playing field for all operators.
Sources indicate that the relevant government body is expected to meet with the new operators in the coming days or weeks.
