The massive amount of wealth flowing annually into Ethiopia’s pastoralist areas from international aid organizations (donors) and domestic government capital budgets is raising serious questions, as it fails to align with tangible improvements in the livelihoods and drought-resilience of the pastoralist community. For decades, Ethiopia’s arid and semi-arid lowlands—home to millions whose livelihoods depend on livestock rearing and seasonal mobility—have been the focus of high-value development and humanitarian interventions. Millions of dollars flow every year to improve food security, animal health, water infrastructure, and climate adaptation.

Data gathered from policymakers and sector experts indicate that the “unbelievable” macro-budget mobilized in the name of pastoralists and the socio-economic reality on the ground are as far apart as heaven and earth.

Tezera Getahun, Executive Director of the Pastoralist Forum Ethiopia (PFE), told *Capital* that the metric for a project or policy’s success should not be the amount of money spent, but rather how much the community has improved on the Multidimensional Poverty Index and how much its capacity to withstand drought hazards (Climate Resilience) has grown.

“We have calculated the resource flow,” Tezera stated. “An unbelievable, massive budget provided by the government, donors, and NGOs is allocated and put to work. But what is the metric? It must be the living conditions of the pastoralists. However, when you look at the Multidimensional Poverty Index and their vulnerability during droughts, a fundamental question must be asked: Where did all those resources go?”

The executive director points out that real development indicators—such as a reduction in poverty rates, the number of pastoralist children receiving quality education, and the community’s capacity to withstand severe natural disasters without needing emergency food aid—do not match the financial figures presented at glamorous project-closing ceremonies. The fact that the failure of a single rainy season can still devastate an entire regional economy shows that there is a deep-rooted gap in the way these massive budgets are utilized.

Rather than always viewing pastoralism as a failing system in need of aid, interventions should invest in the existing strengths within the community—such as their strong traditional governance institutions, deep knowledge of rangeland management, and community-led livestock markets. The top-down approach currently implemented by many donors is incompatible with the mobile lifestyle of pastoralists, causing infrastructure to fall into disuse and deteriorate once the project’s funding cycle ends.

On the other hand, climate change has now escalated into severe heatwaves, and worsening environmental imbalances have created a new challenge for pastoralists. The primary solution adopted to tackle this is the recently ratified Proclamation No. 1324/2024. Although this proclamation guarantees land tenure security for pastoralists and protects communal rangelands from illegal encroachment, significant gaps remain in its implementation.

This issue was widely reflected at a national multi-stakeholder policy dialogue focusing on pastoral land tenure, rangeland management, and climate resilience, held on June 25, 2026. The forum was organized by Land for Life (LfL) Ethiopia in collaboration with the National Land Coalition-Ethiopia (NLC).

It is understood that this platform aimed to address the pressing challenges facing Ethiopian pastoral communities by bringing together government institutions, civil society organizations, the academic community, pastoralist representatives, and development partners.

Data shows that there are over 50 million pastoralists in the IGAD region, accounting for 21% of Africa’s pastoralist population; pastoralism continues to play a central role in livelihoods, food security, and biodiversity conservation. However, frequent climate shocks, insecure land tenure, restricted mobility, and competing land uses continue to weaken the resilience of pastoralists and serve as drivers of conflict.

Focusing on Ethiopia’s latest legal framework proclamation (1324/2024) designed to strengthen land tenure administration, the discussion extensively raised issues regarding generating evidence-based policy recommendations, enhancing recognition for traditional institutions and communal tenure systems, as well as strengthening multi-sectoral collaboration and regional experience sharing.

Ethiopian Shipping and Logistics (ESL) has taken another significant step in its fleet expansion program, with a high-level technical delegation traveling to China to conduct preliminary negotiations with potential suppliers as the state-owned logistics company moves forward with a major vessel acquisition plan.

The visit follows government approval of ESL’s revised procurement strategy, which is intended to strengthen the national carrier’s maritime capacity and expand its presence in international shipping. Sources at the Ministry of Finance told Capital that the ministry has authorized the procurement of the vessels, recognizing the strategic importance of enhancing Ethiopia’s maritime transport capacity. They added that the China mission forms part of the approval granted for the acquisition process.

The delegation is led by ESL Chief Executive Officer Abdulber Shemsu and is expected to hold discussions with industry stakeholders while assessing the availability and suitability of second-hand vessels that meet the company’s revised operational requirements.

ESL recently overhauled its vessel acquisition strategy after encountering delays in securing medium-sized ships, including container vessels. Under the revised framework, the company will procure second-hand vessels through internationally recognized shipbrokers, while new vessels will be sourced directly from shipyards through a separate competitive tender process. Earlier this year, the company issued an international Expression of Interest inviting qualified shipbrokers to identify suitable second-hand vessels for acquisition.

“We have floated a bid to secure brokerage services,” Abdulber Shemsu previously told Capital. “The board recognizes that second-hand vessel procurement is best handled through professional shipbrokers, so we have invited qualified brokers to identify suitable ships. For brand-new vessels, we will proceed through a distinct tender process directly with shipbuilders.”

The procurement process was launched after receiving approval from the company’s Board of Directors, chaired by Birhanu Tsegaye, State Minister at the Ministry of Finance.

Alongside the revised procurement approach, ESL has also adjusted its financing strategy. The company has been in discussions with the state-owned Commercial Bank of Ethiopia to finance approximately half of the total acquisition cost, with the remaining balance expected to be covered through the company’s internal resources. Previously, ESL planned to finance only 30 percent of the procurement cost through bank borrowing. Industry observers say the revised financing structure reflects a broader effort to accelerate fleet expansion while maintaining financial flexibility.

ESL currently operates ten international vessels, including the recently acquired Ultramax bulk carrier Abay II. Under its five-year strategic plan, the company aims to expand its fleet to sixteen vessels. The acquisition package includes two brand-new heavy-lift Ultramax multipurpose vessels, one medium-sized second-hand container vessel, and three second-hand Ultramax bulk carriers.

According to the Expression of Interest issued for brokerage services, the container vessel must have a capacity of between 3,000 and 5,000 TEUs and be no more than ten years old. The company also revised its earlier plan to purchase two container ships, opting instead to increase the number of second-hand Ultramax bulk carriers to three. The targeted bulk carriers are required to have a deadweight tonnage of between 60,000 and 65,000 metric tons and be no older than eight years.

For the construction of the two new heavy-lift Ultramax multipurpose vessels, each with a carrying capacity of between 60,000 and 65,000 metric tons, ESL has introduced a two-stage procurement process. Shipbuilders will first submit detailed technical proposals and vessel specifications before shortlisted companies proceed to the final stage of the tender. Construction of the new vessels is expected to take at least two years following contract award.

In contrast, the delivery of the four second-hand vessels is expected in the near term once shipbrokers identify vessels that meet the company’s technical and operational requirements. Payment arrangements will also differ, with new vessels financed through milestone-based installment payments during construction, while second-hand vessels will be paid for upon completion of each purchase.

Sources familiar with the procurement process said the current visit to China is primarily focused on evaluating the second-hand vessel market and holding discussions with potential suppliers and other industry stakeholders. China remains one of the world’s leading shipbuilding and ship trading hubs, making it a strategic destination for sourcing both new and pre-owned commercial vessels.

Maritime experts say recent regional and global developments have further highlighted the strategic importance of maintaining a stronger national fleet.

They point to the recent voyage of MV Assosa, which transported medical equipment and other commercial cargo from Port Khor Fakkan in the United Arab Emirates, near the Strait of Hormuz.

“By late May, Assosa was calling at Port Khor Fakkan when no other operator was willing to take the risk of sailing to that highly challenging destination,” an industry expert who was based in Dubai at the time told Capital. “Its successful voyages later encouraged other operators to berth at the port and begin serving the route.”

According to the experts, the operation demonstrated the critical role Ethiopian-flagged vessels play in ensuring the uninterrupted movement of strategic cargo during periods of regional uncertainty.

“Ethiopia’s recent experience has reinforced the need for a stronger and more capable national shipping fleet,” one industry source told Capital. “For a landlocked country with a rapidly growing economy, expanding the national carrier is not only a commercial necessity but also a strategic investment in logistics security and resilience.”

ESL has increasingly shifted its focus toward acquiring larger and more efficient Ultramax vessels to replace its aging fleet of smaller Handysize ships. The company’s recent acquisition of the Ultramax bulk carrier Abay II reflects that long-term strategy.

Efforts by Capital to obtain additional comments from CEO Abdulber Shemsu regarding the China mission were unsuccessful.

Africa’s aviation sector is lagging behind global improvements in baggage handling, recording the highest mishandling rate of any region at 12.1 bags per 1,000 passengers, according to the 2026 SITA Baggage IT Insights Report.

The findings come at a time when the global aviation industry is showing strong recovery and operational progress. In 2025, airlines carried 5 billion passengers worldwide, up from 4.8 billion in 2024, while mishandled baggage rates dropped significantly by 23 percent to 4.9 per 1,000 passengers. Total mishandled bags also fell 19 percent to 24 million, both metrics now below pre-pandemic levels.

Yet Africa stands out as a region where structural and operational constraints continue to undermine performance. Capacity pressures, ageing airport infrastructure, and complex international travel routes—often involving multiple airlines and baggage handlers—are driving higher rates of disruption across the continent.

Industry analysts say Africa’s challenge is not only about infrastructure deficits but also system fragmentation. International journeys involving transfers remain the single largest cause of mishandling globally, accounting for 39 percent of cases in 2025, a factor particularly relevant for African routes that depend heavily on multi-leg travel.

Despite these setbacks, the report identifies Africa as a region with significant potential for rapid improvement. Greater adoption of end-to-end baggage tracking, enhanced data sharing between airlines and airports, and the deployment of biometric systems and artificial intelligence could sharply reduce mishandling rates.

Globally, the industry is moving in that direction. Baggage tracking compliance under IATA Resolution 753 has surpassed 50 percent, with full implementation targeted by 2027. Airlines are increasingly investing in predictive technologies, with three in four planning AI deployments within the next two years and half aiming to provide real-time baggage updates to passengers.

The financial stakes are high. Mishandled baggage cost the airline industry $6.3 billion in 2025—about 15 percent of total sector profits. The average cost per mishandled bag has risen to $260, significantly higher than the long-standing estimate of $150. With airline profit margins averaging just $8 per passenger, even a small number of lost or delayed bags can erase the profitability of an entire flight.

“Baggage is shifting from a logistical problem to a digital service,” said Nicole Hogg, Portfolio Director for Baggage at SITA. “The next phase is about connecting every step of the journey and delivering full visibility to passengers.”

Technological integration is already yielding results elsewhere. Apple’s integration with SITA’s WorldTracer system reduced permanently lost luggage by 90 percent and cut recovery times for delayed bags by 26 percent in its first year. Similar innovations, including AI-driven rerouting systems, are enabling airlines to process disrupted baggage in seconds rather than minutes.

For Africa, the path forward appears clear but requires coordinated investment. As passenger numbers continue to rise faster than airport expansion, experts argue that digital transformation—not physical infrastructure alone—will determine whether the continent can close the performance gap.

With delayed baggage accounting for roughly 70 percent of total mishandling costs, much of it tied to recovery and delivery logistics, targeted improvements in tracking and coordination could deliver outsized gains.

As global aviation edges closer to seamless, data-driven operations, Africa’s opportunity lies in leapfrogging legacy systems and embracing integrated digital solutions—turning one of its weakest operational areas into a potential driver of efficiency and passenger trust.