• Ethiopian Airlines Group generated USD 4.4 billion in revenue in the first half of its current fiscal year. 

• Half-year revenue increased 14% versus last year’s record. 

• The airline added seven aircraft during the six-month period.

• Total fleet reached 147 aircraft over the period. 

• Ethiopian logged nearly 334,000 flight hours and carried 10.64 million passengers. 

• Cargo transported was 451,000 tons, up 19% year-on-year.

Why it matters?
Half-year revenue growth signals expansion of Ethiopian Airlines’ operations, including fleet size, passenger volumes, and cargo throughput, affecting airline industry performance metrics. 

• FIATA says future global trade depends on integrated multimodal logistics systems. 

• Multimodal logistics integrates sea, rail, road and air transport. 

• FIATA promoting UN Model Law on Electronic Transferable Records (MLETR) for digital documents. 

• UN convention on negotiable cargo documents ratified end of 2025 supports e-documents use. 

• FIATA collaborating with Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) on training programmes. 

• Ethiopia is host of the 64th FIATA World Congress in 2027 with ~2,000 expected attendees. 

• Logistics digitalization and legal standards alignment highlighted as priorities. 

Why it matters?

• Ethiopian Petroleum Supply Enterprise faces 208 billion ETB losses linked to foreign exchange reforms. 

• Government officially classifies fuel subsidies as direct budget spending and  it will be lifted soon.

• Fuel subsidy cap set at 100 billion ETB per fiscal year. 

• Loss valuation reflects accelerated birr devaluation under market-based FX system. 

• National Bank of Ethiopia implemented market-based FX reforms from July 2024. 

Why it matters?

• Government to phase out fuel subsidies for petrol and diesel by February 2026. 

• Policy aims to raise retail petrol and diesel prices to cost-recovery levels. 

• Subsidy removal part of broader cost-recovery and economic reform agenda. 

• Phase-out follows IMF advice to end fuel subsidies under reform programs. 

• Previous subsidy elimination moves included partial diesel/petrol price deregulation in 2025. 

• Reform expected to reduce government fiscal burden from subsidised fuel. 

Why it matters?

Phasing out fuel subsidies shifts price setting to market signals and is scheduled by February 2026. The policy affects transport and logistics cost structures and public finances. It stems from IMF-linked reform directives to lower fiscal pressure. The  steady rise of fuel prices has been the single fundamental factor for cost increment across diverse sectors in the Ethiopian market.

• Ethiopia piloted rail transport of 120,000 litres diesel via Ethio-Djibouti Railway. 

• Pilot uses specialised wagons at Indode Railway Depot, Addis Ababa outskirts. 

• Initiative directed by Prime Minister Abiy Ahmed to reduce road haulage reliance. 

• Ethio-Djibouti Railway JSC and National Oil Company oversee fuel rail trial. 

• Trial validates safety standards, logistics procedures, regulatory framework. 

• Government plans to expand rail fuel transport to gasoline and jet fuel. 

• Project aligns with Ethiopia’s transport master plan to expand multimodal freight. 

why it matters?
Rail diesel transport trial could lower Ethiopia’s fuel supply logistics costs and reduce foreign-exchange outflows from road tanker dependency. It advances multimodal freight use along the Djibouti corridor.

• Ethio-Djibouti Railway (EDR) and National Oil Company (NOC) launched a pilot to transport 120,000 liters of diesel by rail from Indode depot on January 27, 2026. 

• Initiative follows a directive from Prime Minister Abiy Ahmed to begin petroleum transport via rail to modernize logistics. 

• EDR has 110 underutilized fuel tank wagons; missing connections to oil terminals have limited use. 

• Negotiations ongoing for a 1.5 km rail link from Horizon Djibouti Terminals fuel jetty to the train station. 

• Doraleh Multipurpose Port first-mile trucking (1.9 km) costs Ethiopia about USD 10 million annually. 

Why it matters: This pilot marks the first operational test of bulk petroleum movement by rail in Ethiopia, aiming to reduce logistics costs and enhance supply chain efficiency for strategic imports. If successful and scaled, it could set a precedent for transporting fuel and fertilizer via rail.

1. EDR plans to double its freight rolling stock by year-end.
   The Ethio-Djibouti Railway Share Company will expand its fleet of freight wagons and electric locomotives to increase cargo capacity. 

2. Current fleet includes about 1,100 wagons and 35 locomotives.
   Doubling these assets aims to significantly raise freight handling on the cross-border corridor. 

3. This expansion supports higher cargo throughput.
   Increased rolling stock directly boosts the railway’s ability to move more goods between Ethiopia and Djibouti. 

1. Ethiopia’s trucking industry is largely manual.
   The sector — valued at about 800 million Birr — still depends on phone calls, paper, and cash deals, causing inefficiencies.

2. TOLO FREIGHT is digitizing freight matching.
   The homegrown multilingual digital marketplace connects shippers, carriers, and brokers via an app to streamline load matching.

3. Documentation and tracking are being digitized.
   Contracts, tracking and paperwork are transitioned into the platform, reducing reliance on informal systems.

4. The platform separates load matching from payment settlement.
   TOLO FREIGHT’s design accommodates Ethiopia’s cash-based market by keeping matching and payment distinct.

5. Smaller shippers and drivers will benefit.
   The digital solution aims to cut costs, improve utilization, and help independent drivers and exporters access better freight options.

• The AfDB approved 214.47 million dollars for phase two of the South Sudan-Ethiopia-Djibouti Transport Corridor.
•  Ethiopia receives the largest share at 181.5 million dollars, Djibouti 29.71 million dollars, and South Sudan 1.96 million dollars, with an additional 1.3 million dollars for South Sudan’s fragile state needs.
•  The project will build a 67Km expressway in Ethiopia, upgrade 18Km of road in Djibouti, and fund studies for 280Km of road in South Sudan.

• The 392-km Awash–Kombolcha–Hara Gebeya line was designed to connect central Ethiopia with the north,
• while the 268-km Hara Gebeya–Mekele line was intended to extend the network into Tigray.
• Both projects were financed largely through external loans

• A 2025 report by the European Commission’s Joint Research Centre ranks the corridor among eleven African routes considered most attractive for infrastructure funding under Global Gateway, the EU’s 300 billion euro programme to reinforce global supply chains.
• The proposed corridor would lower costs, ease congestion and provide alternative outlets through Berbera in Somaliland and Dar es Salaam in Tanzania

• The losses were caused by 197 vehicle collisions, of which 53 occurred on ring roads and 144 outside ring roads
• The city has expanded its road network rapidly in the past two decades, with more than 2,700 kilometers of asphalt and cobblestone roads.
• Heavy traffic volumes, estimated at over 500,000 registered vehicles in Addis Ababa alone, continue to put pressure on infrastructure.

• ESLSE, which currently operates in vessel operations, inland transport, and freight forwarding, is exploring the addition of a new division focused on rail transport.
• ESL aims to create a seamless, multi-modal network that enhances efficiency, lowers costs, and strengthens supply chain resilience
• ESL plans to operate on the railway line connecting Ethiopia and Djibouti
• ESL invested 750 million birr to acquire 100 Sinotruk trucks. This investment is part of a broader plan to grow its truck fleet to 1,000 vehicles within two years