Ethiopia Declines 60% Tadjoura Port Stake, Seeks Corridor Access Instead

• Djibouti offered Ethiopia a 60% equity stake in the Tadjoura Port, according to Finance Minister Ilyas Moussa Dawaleh.
• Ethiopian government declined the proposal, seeking corridor access in addition to the equity stake.
• The statement was made during a press conference in Djibouti.
• In October 2025, Djibouti entered a 30-year concession agreement with Red Sea Gateway Terminal International (RSGTI), a subsidiary of Saudi Arabia’s Jeddah-based Red Sea Gateway Terminal (RSGT), to operate port facilities on the Red Sea.
• Discussions aimed to deepen bilateral cooperation in port and logistics infrastructure.
• The development reflects ongoing negotiations over Ethiopia’s maritime trade access.
• On March 10, DPFZA issued a notice instructing shipping agents not to impose additional surcharges on cargo loaded prior to the onset of the Gulf crisis.

Why it matters?

The proposed 60% stake in Tadjoura Port highlights Djibouti’s willingness to deepen economic integration. Ethiopia’s preference for corridor access underscores its priority for guaranteed and efficient trade routes critical to its import-export activities.

• Sixteen Dutch companies visited Ethiopia to explore investment opportunities in the horticulture value chain.

• The mission focused on floriculture, fruits, vegetables, logistics, and agricultural technology.

• The visit was organized with support from the Embassy of the Kingdom of the Netherlands.

• Meetings were held with Ethiopian government institutions and private sector stakeholders.

• Ethiopia promoted investment incentives, including tax benefits and access to industrial parks.

• Discussions highlighted opportunities in cold-chain logistics and export-oriented production.

• The initiative aims to strengthen trade ties and attract foreign direct investment into Ethiopia’s agriculture sector.

Why it matters

The mission signals renewed European investor interest in Ethiopia’s horticulture sector, supporting export diversification, technology transfer, and foreign currency generation for the economy.

• New ship repair yard inaugurated in Djibouti to service regional and international vessels

• Facility developed to reduce reliance on foreign ship maintenance hubs

• Yard positioned near strategic Red Sea and Gulf shipping routes

• Targets servicing commercial vessels, tankers, and container ships

• Project strengthens Djibouti’s role as regional maritime logistics hub

• Supports growing traffic through East Africa–Asia–Europe trade corridor

Why it matters?
Expansion of ship repair capacity in Djibouti enhances regional logistics efficiency and could lower maintenance costs for vessels serving Ethiopia’s trade corridor.

• Three vessels docked in Djibouti carrying 143,000 metric tons of jet fuel and gasoil. 

• Deliveries included 73,000 metric tons of gasoil and 70,000 metric tons of jet fuel between March 28 and April 1. 

• AL BETROLEYA delivered 31,544 metric tons of diesel and 17,991 metric tons of jet fuel from India on March 28. 

• Brave arrived on March 30 with 52,000 metric tons of jet fuel from Oman’s Port of Duqm. 

• Andiamo docked on March 31 carrying 41,734 metric tons of gasoil from Jeddah, Saudi Arabia. 

• IMF said one-third of global fertilizer shipments pass through the Strait of Hormuz, raising food price risks. 

• IMF warned Horn economies face higher import bills, freight, insurance, and delivery delays from prolonged Gulf instability. 

Why it matters?
The article shows a short-term fuel relief of 143,000 metric tons, but the IMF warning points to continued exposure to Gulf shipping risks, higher logistics costs, and pressure on Ethiopia’s fuel, food, and foreign-exchange position. 

• Alemu Sime urges GAC Group to establish manufacturing plant in Ethiopia

• Proposal raised during GAC Juntu EV showroom launch in Addis Ababa

• New facility spans 2,300 sqm; introduces four EV models: AION UT, AION V, HYPTEC HT, HYPTEC HL

• Government targets local EV production to support industrialization policy

• Initiative aligns with shift to electric mobility and reduced fuel imports

• Local manufacturing expected to support technology transfer and job creation

why it matters?
Local EV production could reduce import dependency, support industrial policy, and strengthen Ethiopia’s position in emerging electric mobility markets.

• Ethiopian Airlines to launch cargo flights to Nigeria’s Gateway Airport
• New route strengthens air cargo connectivity between Ethiopia and West Africa
• Expansion targets growing intra-African trade and logistics demand
• Gateway Airport positioned as emerging cargo hub in Nigeria
• Move supports airline’s broader African cargo network expansion strategy
• Enhances export-import logistics efficiency across regional markets

why it matters?
Expansion into Nigeria strengthens Ethiopia’s logistics footprint in West Africa, supporting trade flows and reinforcing Ethiopian Airlines’ dominance in African cargo transport.

• International Islamic Bank Group receives license from National Bank of Ethiopia

• Representative office to be established in Addis Ababa

• Approval aligns with Ethiopia’s financial sector liberalization reforms

• Office will focus on market research and business liaison activities

• No direct banking services allowed under representative office license

• Move signals rising foreign investor interest in Ethiopia’s banking sector

why it matters?
Entry of foreign banking groups under representative licenses signals gradual financial sector opening, increasing competition and potential future capital inflows into Ethiopia’s banking industry.

• Deals signed with Sany International and Hangzhou Trumax

• Sany to supply wheel loaders and excavators in SKD form

• Trumax to supply batching plants and crusher plants in SKD form

• Equipment to support public and private construction projects nationwide

• Agreements include plans for parts localization and after-sales service expansion

• Trumax Ethiopia operates local branch with equipment fleet and service team

• Initiative supports industrial localization and reduced finished goods imports

Why it matters?
SKD assembly agreements support local manufacturing capacity, reduce import dependency, and improve equipment availability for Ethiopia’s construction and infrastructure sectors.

• Agreement focuses on bilateral financial collaboration frameworks

• Discussions include cross-border payment systems and settlement mechanisms

• Cooperation targets improved trade financing and liquidity support

• China remains one of Ethiopia’s largest trade and financing partners

• Huge potential to increase RMB reserves through revenue from Ethiopian Airlines and other sectors, as well as by transitioning key exports toward RMB settlement.

• Engagement aligns with Ethiopia’s efforts to diversify financial partnerships

• No specific monetary value disclosed for the agreement

Why it matters?
Strengthened financial ties with China can support RMB-based trade settlement, improve forex alternatives, and facilitate financing for Ethiopian businesses engaged in import and infrastructure sectors.

• Bank of China and African Development Bank reviewing financing for Bishoftu Airport

• Project estimated at $5–6 billion total investment cost

• Planned capacity: 60–100 million passengers per year (long-term)

• Initial phase targets tens of millions passenger capacity

• Airport to complement Addis Ababa Bole International Airport capacity limits

• Designed to handle large-scale cargo volumes for export logistics

• Financing structure under discussion includes multi-lender participation

Why it matters?

A $5–6B airport with up to 100M passenger capacity would significantly expand Ethiopia’s aviation and cargo logistics capacity, supporting trade and forex growth.

• 180,000 metric tons of fuel shipments stalled near Strait of Hormuz

• Global fuel prices tripled (≈3x increase) following supply disruption

• Ethiopia imports nearly 100% of its fuel needs, increasing exposure

• Supply disruption affects major portion of monthly fuel imports

• Fuel costs directly impact transport tariffs and logistics pricing nationwide

• Ethiopia’s fuel imports rely on single Djibouti corridor route

• Shock follows recent fuel price adjustments, compounding cost pressures

Why it matters?

A 3x global price spike significantly raises Ethiopia’s import bill, tightens forex demand, and increases transport and logistics costs across all sectors.

• Ethiopia earned $6.76 billion export revenue in first 8 months of FY 2025/26

• Export performance achieved 101% of government target

• Coffee exports generated over $1.5 billion, leading all commodities

• Gold exports exceeded $1 billion, driven by increased deliveries

• Oilseeds and pulses contributed over $1.2 billion combined

• Horticulture exports surpassed $500 million, showing steady growth

Why it matters?

Stronger export performance improves forex liquidity, easing import constraints and supporting trade, logistics, and industrial supply chains in Ethiopia.

• National Bank caps interbank transfers, restricting fund movement between banks
• Industrial park tenants report operational disruptions due to transfer limits
• Companies unable to pay suppliers and service providers across different banks
• Manufacturers cite delays in import payments and raw material procurement
• Policy affects firms operating in multiple banking relationships
• Industrial park investors raise concerns over production continuity risks
• Businesses request policy revision or exemptions for industrial operators

Why it matters?

Interbank transfer restrictions are directly affecting industrial operations, disrupting payments and supply chains. This raises concerns over manufacturing stability and investor confidence in Ethiopia’s industrial parks

• Guangzhou Automobile Group Co., Ltd launched four EV models in Ethiopia

• New flagship GAC JUNTU showroom opened in Addis Ababa

• Showroom spans 2,300 square meters with full 4S sales and after-sales services

• EV rollout aligned with Ethiopia’s green mobility and low-carbon transition policy

• Minister Alemu Sime confirmed push toward national e-mobility shift

• GAC to provide maintenance, spare parts, and trained local technician support

• Vehicles available for sale via JUNTU dealership starting immediately

• Company plans mobile apps for vehicle management in coming years

Why it matters?

GAC’s entry strengthens EV competition and after-sales infrastructure in Ethiopia. It supports government policy on electrification while expanding local service capacity and customer confidence.

• 140,000 electric vehicles currently operating nationwide
• Only 150–200 charging stations installed across Ethiopia
• Ethiopian Electric Utility leads charging infrastructure rollout
• First phase investment estimated at $10 million
• Plan to build 40 charging stations in initial phase
• 32 stations allocated in Addis Ababa, 8 in regional cities
• One charging station construction cost reaches 170 million ETB
• 6 stations built in Addis Ababa, 3 already operational
• 34 additional charging projects under preparation
• 26 sites selected in Addis Ababa, 18 near completion
• Second phase expands to 6 cities including Adama, Hawassa, and Bishoftu
• 2,300 fast charging stations planned over 10 years
• Addis Ababa requires 1,176 fast charging stations alone
• Off-peak tariff set at 14.85 ETB per kWh (10 PM–6 AM)
• Mid-level tariff set at 16.57 ETB per kWh (10 AM–5 PM)
• Peak tariff reaches 18.28 ETB per kWh (6–10 AM, 5–10 PM)

Why it matters?

A gap between 140,000 EVs and fewer than 200 stations signals urgent infrastructure demand. Planned 2,300 stations and structured tariffs open large-scale investment and energy market opportunities.

(Source: Tikvah Ethiopia Telegram Channel)

• African Continental Free Trade Area creates market of 1.3 billion people
• Combined GDP of AfCFTA countries estimated at over $3.4 trillion
• Intra-African trade currently accounts for about 15–18% of total trade
• AfCFTA aims to eliminate tariffs on 90% of goods
• Non-tariff barriers remain major constraint to trade expansion
• Private sector identified as main driver of cross-border trade growth
• Logistics, financing, and infrastructure gaps limit participation
• SMEs represent over 80% of businesses across Africa
• Trade facilitation reforms required to increase intra-African trade share
• Ethiopia positioning to benefit through export diversification efforts

Why it matters?

A 1.3 billion market with $3.4 trillion GDP offers scale, but low intra-African trade (15–18%) shows untapped potential. Private sector participation is critical to unlocking AfCFTA benefits.

• Government estimates $2 billion annual loss from logistics inefficiencies
• Ministry of Transport and Logistics leads investment mobilization effort
• Logistics costs reach 30–35% of total import-export value
• Over 90% of Ethiopia’s trade moves through Djibouti corridor
• Djibouti route handles nearly all maritime imports and exports
• Multimodal transport share remains below 20% of total cargo movement
• Dry port utilization exceeds capacity in key hubs like Modjo
• Average cargo dwell time ranges between 15–20 days
• Truck turnaround time significantly exceeds regional benchmarks
• Initiative targets billions in private and foreign investment inflows

Why it matters?

High logistics costs (30–35%) and long delays (15–20 days) increase import prices and reduce export competitiveness. The $2 billion gap signals large-scale investment opportunities in Ethiopia’s logistics sector.

• National Bank of Ethiopia expands regulatory oversight across insurance sector

• New directive extends supervision beyond shareholders to agents and intermediaries

• Insurance agents now subject to stricter licensing, reporting, and compliance requirements

• Insurers required to ensure accountability across entire distribution chain

• Directive strengthens enforcement on misconduct and regulatory breaches

• Reform aims to improve transparency, governance, and consumer protection

• Applies to all insurance companies operating in Ethiopia

Why it matters?
The directive increases compliance costs and operational control requirements for insurers, while tightening oversight of distribution networks and improving market discipline.

• Afreximbank backs 8 African startups through its innovation program

• Each startup eligible for funding up to $250,000

• Gebeya Inc. selected as Ethiopia’s representative

• Program targets digital innovation, trade facilitation, and industrialization

• Startups selected from multiple African countries after competitive screening

• Funding includes mentorship, market access, and business development support

• Initiative aligns with Afreximbank strategy to support intra-African trade and digital economy

Why it matters?
The funding expands access to capital for African startups and supports Ethiopia’s digital sector through Gebeya’s inclusion, with potential implications for skills, outsourcing, and tech-driven exports.

• International Finance Corporation committed $6.9 billion to Ethiopia over five years

• Investments targeted infrastructure, manufacturing, agribusiness, and financial sectors

• Funding period spans FY2020 to FY2025

• Significant allocations directed to private sector development projects

• IFC financing includes loans, equity investments, and advisory services

• Projects aim to support job creation and export capacity expansion

• Ethiopia among largest IFC investment destinations in Sub-Saharan Africa

why it matters?
Large-scale IFC financing strengthens private sector capacity, improves access to capital, and supports export-oriented industries in Ethiopia.

• Import clearance period proposed to extend from 30 days to 45 days

• Importers allowed partial cargo release before full documentation completion

• Reform targets reduction in port dwell time and storage costs

• Commission expanding enforcement scope across multiple contraband corridors

• Increased inspections focused on high-risk cargo categories and routes

• Policy designed to shift more trade into formal customs channels

• Measures aim to improve customs revenue collection and compliance rates

Why it matters?

Extending clearance to 45 days eases importer cash flow and reduces demurrage costs. At the same time, tighter enforcement raises risk and cost for informal operators, pushing more volume toward formal logistics and regulated trucking networks.

• Insurance pressure is intensifying, with costs up 35pc and war-risk cover being withdrawn from key routes.

• Djibouti banned retroactive freight surcharges on cargo loaded before Iran war escalation 

• Order issued by Djibouti Ports Authority dated March 10, 2026 

• Shipping lines had begun charging up to $2,000 per TEU surcharge 

• Directive separates pre-war cargo from higher-risk post-war shipments 

• Policy aims to prevent spillover of geopolitical risk costs into existing trade flows 

• Ethiopia relies on Djibouti corridor for over 90% of external trade (contextual dependency)

• Measure protects importers from unexpected cost escalation and contract disputes

Why it matters?

This decision stabilizes freight costs on Ethiopia’s main corridor, limiting sudden logistics inflation. It directly protects importers, truck operators, and LC-based trade flows from war-driven pricing shocks.

• Ethiopian Investment Holdings (EIH) proposed a fuel depot project in Djibouti to strengthen regional fuel logistics.

• The depot is planned to support Ethiopia’s fuel import supply chain via the Djibouti corridor.

• Ethiopia currently imports 100% of its fuel through Djibouti port infrastructure.

• The project aims to reduce logistics bottlenecks and improve fuel storage capacity.

• It is expected to enhance supply stability and lower distribution risks.

• The proposal aligns with Ethiopia’s strategy to secure energy supply chains and reduce disruptions.

Why it matters?
Fuel is Ethiopia’s largest import bill. Expanding storage and control in Djibouti directly impacts costs, supply reliability, and logistics efficiency for transport, industry, and trade.

• Mohan Plc completed Ethiopia’s first merchant trade transaction through the Dire Dawa Free Trade Zone on March 22, 2026. 

• The transaction shipped kitchenware from Spain directly to India, while documentation and banking were processed in Ethiopia. 

• The Dire Dawa Free Trade Zone launched in August 2022 and operates outside Ethiopian customs jurisdiction. 

• Under the zone’s framework, goods entering the facility are not treated as imports into Ethiopia. 

• The model allows Ethiopian firms to earn foreign exchange from third-country trade without using domestic resources or importing into Ethiopia. 

• An exporter cited missed deals about five years ago because Ethiopia lacked transferable letter of credit rules. 

• The missed transactions included paradise seeds with a $3 per kg margin and purple tea with a $4 per kg margin. 

Why it matters?
This opens a new foreign-exchange earning channel for Ethiopian firms through service-based trade rather than only domestic production exports. For traders, banks, logistics operators, and free-zone investors, it signals a broader role for Ethiopia in regional and global trade intermediation.

• Coffee export earnings approach $3bn, up from about $1.4bn–$1.5bn in prior years
• Export volumes increased, exceeding 300,000 tonnes, driven by improved supply and pricing
• Global coffee prices declined after peaking, with futures falling from recent highs
• Brazil expected to produce over 60 million bags, increasing global supply
• Coffee accounts for over 30% of Ethiopia’s total export earnings
• FX inflows from coffee support import financing and reserve accumulation
• Price decline risks could reduce export earnings despite higher volumes

Why it matters?

Coffee drives a large share of Ethiopia’s FX inflows, directly financing imports. A global price decline, despite higher export volumes, could reduce FX availability, affecting trade balance, logistics demand, and import capacity.

• All licensed banks authorized to operate in SEZs; prior access limited to selected lenders
• SEZ firms gain access to full banking services: FX, trade finance, loans, and payments
• Policy targets increased export volumes from industrial parks and SEZ-based manufacturers
• Expanded FX access supports import of raw materials and intermediate goods
• Increased lender participation expected to reduce borrowing costs for exporters and traders
• Broader credit access enables financing for logistics assets, including trucks and equipment
• Reform aligns with FX liberalization and rising export growth trends

Why it matters?

Opening SEZ banking expands access to FX and credit, directly supporting import flows and export production. Increased competition among banks improves financing conditions for trade and logistics, enabling truck acquisition and supply chain expansion linked to industrial zones.