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News - Transport

Ethiopia to Open Core Logistics Operations to Foreign Investors

May 25, 2026
Ethiopia to Open Core Logistics Operations to Foreign Investors

Key Takeaways:

• End-2026 directive will open Ethiopia’s core logistics operations to foreign investors.
• Government authorities are finalising legal steps to liberalise the logistics sector.
• Ahmed Shide announced the opening decision at a logistics industry event.
• Ethiopia handles fewer than 300,000 containers annually, according to logistics experts.
• Logistics costs account for 22–27% of final product prices, according to USTR data cited.
• Shipping and freight costs are roughly 60% higher than neighbouring countries.
• Legal frameworks for dry ports, freight forwarding and logistics services are expected by December.

Market Impact:
The directive marks a significant opening in a sector previously reserved for local operators. For foreign logistics companies, the reform could create entry points in dry ports, freight forwarding, multimodal transport and logistics services.

The local industry response is cautious. Ethiopian operators argue that limited cargo volumes, financing constraints and weak institutional support could expose domestic firms before they have built sufficient capacity.

The reform also carries a trade-policy dimension. Capital reports that some observers link logistics liberalisation to WTO accession requirements and foreign government pressure, while officials frame it as part of broader economic reform.

Key Numbers:

  • End-2026 — expected implementation period — logistics liberalisation timeline

  • Fewer than 300,000 containers — annual Ethiopian container volume — market-size constraint

  • 22–27% — logistics cost share of final prices — trade-cost burden

  • 60% — higher shipping and freight costs — regional competitiveness gap

  • 49% — existing foreign ownership allowance — previous logistics liberalisation step

  • 6 operators — additional multimodal licences — ESL monopoly reduction

  • December — legal framework deadline — dry port and freight forwarding reform timeline

Business Signal:
Ethiopia is moving to liberalise logistics, but market size, cost structure and domestic operator readiness will determine whether foreign entry improves competitiveness.