Page 16 - LUA July - August 2023 Magterz and Online

COUNTRY REPORT

the premier eCommerce parcel gateway THE ROAD AHEAD
for Africa and its surrounding areas. This Apart from ethnic conflicts, major
partnership will look to establish Ethiopia as challenges for Ethiopia, include the rising
a prominent player in Africa’s eCommerce costs of fuel needed for transportation and
market, amidst a thriving digital economy the weakening currency resulting in lower
that is taking off there. import volumes.
This year also saw Ethiopian Cargo & As per the ITA report, the Government
Logistics Services flagging off two weekly of Ethiopia (GOE) aims to boost exports
freighter flights connecting Xiamen with We are sending out and trade through a $1 billion investment
São Paulo and Santiago via Addis Ababa. a few things and in agro-processing industrial parks to
Ethiopian also announced two weekly make Ethiopia a top manufacturing hub on
freighter flights between Shenzhen and bringing in so many the continent.
Liège from February 17, 2023. A company imports, making us The report also highlighted challenges
release cited that Ethiopian will deploy a highly dependent on in the agro-processing sector, which also
B777 Freighter on the new cargo routes. included the need for effective supply
Ethiopian Airlines had also inked perishable traffic as chains, better cold chain facilities, and
a strategic partnership agreement to we do not have other integration of smallholder farmers and food
jointly commence sea-air multimodal exports and finished processors into the commercial value chain
transportation with International Djibouti apart from other issues.
Industrial Park Operation (IDIPO) and goods to send. Alemu said, “The solution that we
Air Djibouti in March for expeditious DAWIT WOUBISHET believe will assist in improving the growth
transportation of goods to Africa last year. WOUBGET HOLDINGS of the logistics network is the development
Based on the agreement, the cargo will of policies that focus on sustainability e.g.
be transported from China to Djibouti Free Ethiopia, especially leveraging Ethiopian environmentally safe inputs like Sustainable
Zone by sea and will be uplifted by air from Airlines’ services. With the construction of Aviation Fuel (SAF), lowering costs of air
Djibouti International Airport, thereby a new eCommerce warehouse, Ethiopian connectivity among countries, and a growing
facilitating trade between Africa and China Airlines is building substantial potential number of partnerships in the industry.”
through fast and easy movement of cargo. for eCommerce in Ethiopia. This potential Woubishet mentioned the imbalance
The deal enables traders to order their extends to the rest of Africa as well, of cargo and market liberalisation as some
products from China to Africa via Djibouti since the Addis Ababa hub is very well of the major challenges for air cargo but
port and with Ethiopian facilitating the connected to the entire continent.” also listed Ethiopia’s proximity to major
air movement of goods to different parts Talking about the country’s eCommerce markets like the Middle East and Europe
of Africa through its vast network, cited a potential, Alastair Tempest, CEO of as an opportunity.
company release. E-commerce Forum Africa said, “At He said, “We are sending out a few
In yet another significant development present, it is a reasonably small eCommerce things and bringing in so many imports,
this year, Ethiopian Airlines Group partnered market (in Ethiopia), concentrated in making us highly dependent on perishable
with MailAmericas (MA), a private postal the main cities. However, with the rapid traffic as we do not have other exports and
operator in January to establish competitive growth of internet connections, driven by finished goods to send. With Kenya starting
cross-border eCommerce services between competition in telecoms, Ethiopia is set to sea shipments of perishables, it will bring
Africa and the Middle East, with Addis become a bigger player in eCommerce at a some competition on that front, while
Ababa serving as a hub. national level. Ethiopian Airlines was very competing with Middle Eastern airlines
Alemu said, “The partnership with fast in pivoting from passenger to cargo can become a challenge for ET especially to
postal companies such as Mail America from the start of the pandemic. It, therefore, compete on their low freight prices.”
enables us to serve our customers established itself as a major air cargo Lawrence too emphasised that
better by leveraging the expertise and provider particularly in East Africa and in Ethiopian Airlines' plan to transform
the huge postal network while also Africa-India trade.” Addis Ababa into a smart logistics hub is a
complementing our efforts in making Meanwhile, Mekbib added that smart move.
Addis Ababa the eCommerce logistics Ethiopian Airlines (ET) seems well-placed He said, “Addis Ababa is strategically
hub for Africa and its surroundings. to support the current eCommerce demand. located in the heart of Africa, making
Cooperation across the supply chain is He said, “As the largest African carrier, ET is it an ideal hub for cargo operations. Its
a must and our partnership with MA is responsible for the majority of movements central location provides easy access to
an important step towards strengthening into and out of Ethiopia. Its plans include multiple African markets, enabling efficient
our activity in this area.” expanding its warehouse capacity to an connections and distribution of cargo across
Penseel of CEVA Logistics said, area of 15,000m2 (150,000 tonnes/annum). the continent. This geographical advantage
“Locally, we are in continuous discussions This expansion will include automated and positions Addis Ababa as a gateway for
with eCommerce sellers on how to bring mechanised ULD storage, retrieval system cargo flows between Africa, Asia, Europe,
our eCommerce logistics solutions to ETV, and package sorting.” and the Americas.”

14 LUA JULY - AUGUST 2023