The World Bank’s Logistics Performance Index (LPI), which measures the trade logistics systems of countries (including their access to ports), ranks Ethiopia 131 out of 167 countries in the Aggregated LPI 2012 – 2018.
This indicator of poor trade logistics and connectivity is attributed due to various factors, including its landlocked status, excessive dependence on one port and the associated high costs of trade.
Ethiopia depends on ports in neighboring countries to import and export goods. The landlocked country currently relies on maritime ports in Djibouti for 95% of its international trade.
Despite, commendable efforts to diversify Ethiopia’s access to other neighboring ports such as Assab, Massawa, Mombasa and Tadjourah – it is crucial that these measures are ramped up to ensure these efforts follow through.
Ethiopia is looking to liberalize the logistics and transport markets as contained in the National Logistics Strategy (2018 – 2028).
Expected entry of new foreign and domestic investors into the logistics and transport markets would likely boost the demand for time- and cost-efficient ports and other infrastructure.
Moreover, it will help Ethiopia reduce its excessive reliance on one port and the associated vagaries, including those caused by domestic instability, and facilitate the timely importation and exportation of goods.
Additionally the country would gain geopolitically from using the various ports of its neighbors as it continues to play its role as a major actor in the continent, particularly in the Horn of Africa. Its utilization of the various ports in the region can also positively contribute to regional stabilization because of the economic interdependence it will create among the countries of the region.
Source: https://ethiopianbusinessreview.net/the-imperatives-of-diversifying-port-access-for-ethiopia/
