• 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.

• 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. 

• 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.

• 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.

• 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.

• Lamu Port recorded a surge in ship calls in 2026 following Red Sea and Middle East disruptions.
• Vessel traffic increased significantly compared to prior months as ships rerouted from conflict-affected corridors.
• Port handled multiple additional vessels per month beyond previous baseline levels.
• Cargo throughput volumes rose in parallel with increased vessel arrivals.
• Lamu is part of the LAPSSET corridor linking Kenya, Ethiopia, and South Sudan markets.
• Red Sea route disruptions forced global shipping lines to seek alternative East African ports.
• Increased utilization highlights Lamu’s capacity as a strategic regional logistics hub.
• Shift in routes may divert a share of Ethiopia-bound cargo from Djibouti corridor.

why it matters?

Rerouting of global shipping could reshape regional logistics routes, potentially diverting cargo from Djibouti to Lamu and affecting Ethiopia’s trade corridors.

Addis Ababa raises public transport tariffs effective 16 March 2026

• Addis Ababa Transport Bureau revised public transport tariffs after the latest retail fuel price increase.
• New tariffs take effect on 16 March 2026 across minibuses, midibuses, city buses, and Bajaj services.
• Minibus taxi fares remain 10 ETB up to 2.5 kilometers and rise to 55 ETB for 20 kilometers.
• Midibus fares are set at 15 ETB up to 8 kilometers and 45 ETB for 28 kilometers.
• City bus fares start at 10 ETB up to 7.5 kilometers and rise to 70 ETB for 50 kilometers.
• Bajaj services will keep a flat 10 ETB fare across all routes in Addis Ababa.
• The Bureau said operators charging above legal rates face enforcement; violations can be reported via hotline 9417.

why it matters?

The tariff revision raises commuting costs for households and workers in Addis Ababa from 16 March 2026. It also sets updated fare ceilings for transport operators following the recent fuel price increase.

• Ministry of Trade and Regional Integration raised petrol price to ETB 132.18 per litre. 

• Diesel price increased to ETB 139.64 per litre under latest national fuel price adjustment.

• Adjustment is part of government policy to gradually remove fuel subsidies. 

• Price revision aims to align domestic fuel prices with international import costs. 

• Retail fuel prices are periodically revised by the Ministry of Trade and Regional Integration. 

Why it matters?
Fuel price adjustments directly affect transportation, logistics, and operating costs across Ethiopia’s economy. Higher pump prices can influence inflation, freight rates, and business expenses.

• Ethio-Djibouti Railway Corporation reaffirmed commitment to expand railway infrastructure using domestic expertise.

• CEO Takele Uma made remarks during Adwa anniversary site visit.

• Leadership and staff toured the AMG–Indoode Link Railway Project.

• Project executed by corporation’s engineers, technicians and operational teams.

• Corporation stated it is delivering projects without external contractors.

• State Minister of Transport and Logistics Dhenge Boru highlighted railway expansion priority.

• Government investing in transport corridors and railway connectivity.

• Expansion aims to improve freight efficiency and reduce transport costs.

• Projects expected to enhance network integration and regional logistics role.

why it matters?
Railway expansion using domestic capacity supports freight efficiency and corridor integration. It aligns with Ethiopia’s strategy to strengthen logistics competitiveness and regional trade positioning.

• Ethiopian Petroleum and Energy Authority implemented a revised fuel market share framework.

• Framework reallocates fuel volumes based on verified sales performance.

• Companies required to submit audited fuel sales and operational data.

• Allocation linked to actual station activity and distribution capacity.

• Authority aims to address fuel diversion and illegal trading practices.

• Revised system applies to oil marketing companies operating nationwide.

• Implementation follows sector compliance monitoring and data verification measures.

• Authority stated the framework supports regulated fuel distribution.

why it matters?
The revised allocation system ties fuel supply to verified sales data. Oil marketing companies must align reporting and operations with compliance requirements. This affects fuel distribution volumes across Ethiopia.

• Tigray Trade and Export Agency said fuel supply to Tigray has been completely cut off since January.

• The agency reported no fuel deliveries have entered the region for over one month.

• fuel inflows decreased from around 5.2 million litres in May to just about 2.09 million litres in June, indicating a sharp contraction. 

• Public and private vehicles face operational disruptions due to supply halt.

• Businesses dependent on fuel report constrained activity.

• Agency called for restoration of fuel distribution to the region.

Why it matters?

• Disrupts trade flows and regional supply chains.

• Increases operating costs for transport and logistics businesses.

• Adds pressure on local markets and essential service delivery.

• Oil and Energy Authority to supply Kalub LNG through three distribution stations in Somali Region and major cities.

• First phase capacity: 111 million liters LNG annually; distribution to start within one month.

• Second phase capacity: 1.33 billion liters LNG annually; additional stations planned nationwide.

• Three stations under final construction in Qaliti, Adama, and Dire Dawa by private companies.

• Poly Golden Concord Group (GCL) leading LNG project; Qaliti station built in partnership.

• LNG stored at -161°C; tankers arriving via Djibouti within five days for installation.

• Government fuel subsidies exceeded ETB 33 billion in recent years.

Why it matters?
Kalub LNG rollout may reduce fuel subsidy burden and reallocate fuel supply across regions.