Ethiopia’s sovereign wealth fund, Ethiopian Investment Holdings (EIH), has announced plans to introduce competition into the country’s multimodal transport sector, marking a shift in an industry long dominated by state-owned Ethiopian Shipping and Logistics (ESL).
The Ethiopian Maritime Authority (EMA) recently granted operational licenses to three private companies—Panafric Global, Tikur Abay Transport, and Cosmos Multimodal Transport Operators. However, technical and procedural delays have stalled their entry, as the companies await official notification letters to begin operations.
Dawit Wubshet, CEO of Cosmos Multimodal Transport Operators, confirmed his company has requested formal notification from authorities to inform stakeholders. “To conduct business and issue bills of lading, we need permits from customs and the central bank,” he said, emphasizing the need for coordination with regulatory bodies.
Despite inspections by EMA experts to assess readiness, industry observers express concerns over the delays. Some speculate that regulatory bodies may be waiting for ESL’s input on the sector’s liberalization, potentially to protect the state-owned operator’s market share.
Speaking at a recent CEO networking event organized by the European Chamber in Ethiopia, EIH CEO Brook Taye highlighted the importance of fair competition. Drawing a parallel to the telecom sector’s liberalization, he argued that increased competition would strengthen ESL.
Source: Capital Ethiopia
