Ethiopia, Djibouti to Step up Cooperation in Transport & Logistics

ADDIS ABABA – Ethiopia and Djibouti agreed to enhance cooperation in transport and logistics as the two neighboring nations seek to cement bilateral ties.

The agreement was reached during a meeting between Transport and Logistics Minister, Dagmawit Moges, and Infrastructure & Equipment of Djibouti, Hassan Houmed Ibrahim, in Addis Ababa.

The chairman of Djibouti Ports & Free Zones Authority, Aboubaker Omar Hadi on, was also a part of the discussion.

They were a part of President Ismail Guelleh’s delegation who was on an official visit in Ethiopia earlier this week.

MoU signed

According to Dagmawit, the meeting with the Infrastructure minister “reviewed the progress of the agreed activities” during their discussion in Djibouti.

“We further agreed to enhance our cooperation on the transport and logistics sector,” Ethiopia’s Transport Minister said.

In addition, the two sides have also signed a Memorandum of Understanding on Cross Border Transport System Integration Platform.

The agreement, said Dagmawit, will integrate Ethiopia’s Freight Transport Management System with the Djibouti Port Community System.

It will also “enhance data sharing for efficient use of resources, help drive economic value & will enable better service delivery for the transport and logistics community,” the minister added.

This is the second logistics-related agreement signed between the two nations in March. Ethiopian inked the Sea-Air Logistics Model agreement with International Djibouti Industrial Park Operation (IDIPO) and Air Djibouti on March 3, 2022.

PM Abiy Ahmed described the ties between the two nations as “historical and broad-based” after his meeting with President Guelleh.

The two leaders explored ways to further strengthen economic ties in trade and agricultural investments, and the scale-up joint infrastructure development.

Djibouti’s economy and 85% of its gross domestic product rely on the service sector particularly its port and related services to which Addis Ababa is the main customer. The port also handles about 90% of all inbound trade for landlocked Ethiopia.