Ethiopian Shipping and Logistics (ESL), the state-owned logistics giant, has secured a 750-million-birr deal to acquire new freight trucks as part of its ambitious plan to expand its domestic transport fleet to 1,000 vehicles within the next two years, nearly doubling its current capacity.

Currently operating over 600 trucks, ESL announced this week the successful procurement of 100 heavy-duty 6×4 truck tractors, each equipped with 3-axle semi-trailers capable of carrying 40-ton loads.

Wondimu Denbu, ESL’s Deputy CEO for Corporate Services, confirmed to Capital that Sinotruk International Co., a leading Chinese heavy-duty vehicle manufacturer, won the contract with a highly competitive bid, surpassing proposals from prominent European brands.

Sinotruk, known for producing cost-effective and durable trucks, has previously supplied ESL with 373 vehicles through three separate contracts in recent years.

According to Wondimu, the 750-million-birr investment is a strategic move to strengthen ESL’s position as Ethiopia’s primary cross-border freight carrier, particularly along the crucial Djibouti trade corridor.

“We aim to expand our fleet to 1,000 trucks within two years,” he stated, adding that another tender for 150 additional trucks will be launched soon.

Despite ESL’s dominant market presence, logistics experts note that Ethiopia’s domestic freight demand continues to exceed supply. “Even with our current fleet, we still lease a significant number of trucks annually to meet cargo transport needs,” Wondimu explained. “The country’s inland freight requirements are enormous, and this expansion will help bridge the gap.”

To support its growing fleet, ESL has established a modern truck servicing center at Mile 530, east of Addis Ababa along the Djibouti route. Initially focused on tire repairs, the facility has been upgraded to enhance maintenance efficiency, addressing challenges posed by rough road conditions and vehicle upkeep.

ESL has been gradually phasing out older trucks to optimize long-haul operations. “We are assessing the economic viability of continuing to use our aging Renault-model trucks and determining their remaining service life,” Wondimu added.

In addition to its expanding land transport division, ESL operates a fleet of 10 vessels, which significantly contribute to the company’s revenue and foreign currency earnings through international shipping operations. The company also manages several dry ports across the country.

Industry experts say the latest fleet expansion underscores ESL’s commitment to strengthening Ethiopia’s logistics infrastructure and meeting the nation’s growing freight demands.

As the dominant player in multimodal transport—encompassing sea, air, and land—ESL has long held a monopoly in the sector.

Although the multimodal transport sector was recently opened to competition, ESL retains exclusive rights to China and the UAE, key international trade routes for Ethiopia.

This strategic expansion solidifies ESL’s role as a cornerstone of Ethiopia’s trade and logistics network, ensuring it remains well-equipped to handle the country’s escalating cargo needs, according to experts in the logistics sector.

Ethiopian Investment Holdings (EIH), the state-owned sovereign wealth fund overseeing 40 enterprises, has ended its partnership with Japan’s Dodai Group Inc. to deploy battery-swapping stations for electric motorcycles. The decision, announced on March 22, 2025, marks a strategic pivot toward a broader venture capital (VC) fund to support Ethiopia’s sustainable transport sector.

The terminated Memorandum of Understanding (MoU), signed on October 21, 2024, aimed to establish 100 battery-swapping stations in Addis Ababa within a year and expand to 300 stations nationwide over three years. The initiative sought to promote clean energy transport and reduce reliance on fossil fuels.

EIH cited the need for a dedicated VC fund to manage such investments, emphasizing better risk mitigation, targeted returns, and operational support for startups. “Pursuing the battery-swapping initiative directly through EIH is not feasible at this stage,” the organization stated. The fund, currently under development, will prioritize structured investments in early-stage ventures rather than single partnerships.

Dodai Group, meanwhile, attributed the termination to a shift toward “alternative strategic opportunities” in global markets. The company plans to leverage its technology and resources in evolving sustainable mobility ecosystems.
The partnership’s collapse follows EIH’s broader reforms to modernize state-owned enterprises (SOEs) and align with global competitiveness. At least five SOEs under EIH are slated to list shares on Ethiopia’s nascent securities exchange
While the battery-swapping project will not proceed, EIH acknowledged Dodai’s contributions to sustainable transport innovation. Dodai founder and CEO Yuma Sasaki told Capital that the termination was mutual but declined to elaborate further.

Analysts note that the decision reflects Ethiopia’s cautious approach to foreign-led infrastructure projects. Critics argue that reliance on imported batteries and foreign investors could undermine local sustainability goals. Others view the VC fund as a pragmatic step to diversify investments and attract multiple players.