EFFSAA’s Participation in the BRICS Business Forum 2024
The Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) proudly represented Ethiopia’s logistics sector at the recent BRICS Business Forum in Moscow, Russia.
Held from 17-18 October, 2024, EFFSAA President Ato Dawit Woubishet participated in the forum alongside representatives from other BRICS member countries. As a government-appointed representative, Ato Dawit is also a board member of the BRICS Business Council. The council’s primary objectives are to:
• Promote trade and investment flows between BRICS member countries.
• Strengthen economic cooperation through logistics connectivity.
• Identify and address challenges within the BRICS business community.
At the forum, Ato Dawit presented Ethiopia’s trade, logistics and investment landscape to participants. He also participated in a panel discussion on key industry issues.
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EFFSAA receives approval for FIATA Advanced Training Program to boost logistics sector skills
The International Federation of Freight Forwarders Associations (FIATA), a global logistics association, has given the Ethiopian Freight Forwarder and Shipping Agents Association (EFFSAA), the industry’s lobbying body, the go-ahead to offer internationally accepted advanced training in the logistics field.
It has been said that having skilled labor on hand will encourage potential investors, especially those from abroad, to make investments in the nation as it is one of the most important components.
The Ethiopian association was founded in the late 1990s and has supported its members and carried out many lobbying operations in addition to conducting multiple capacity development trainings on its operational scope.
According to the association’s most recent announcement, FIATA has given EFFSAA permission to offer Ethiopian students a FIATA advanced diploma program.
The EFFSAA President, Dawit Woubishet, states that his organization and FIATA have reached an agreement to launch the higher training program in the logistics industry, which he claims is “the first for the continent.”
According to industry experts, one of the obstacles to improving the logistics sector, which is essential for economic growth, is the shortage of qualified labor in the field.
Dawit claims that the new scheme will start this Ethiopian year.
He noted that EFFSAA had previously established the 14-module FIATA diploma program and had worked on several short-term training initiatives. “The upcoming advanced training will be the highest at the FIATA,” he said. All modules will be included in the advanced program.
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Djibouti, Ethiopia strengthen logistics collaboration to boost trade
At their meeting in Addis Ababa, the lobby organizations representing Djibouti and Ethiopia in logistics discussed how to best utilize their collaboration to boost trade between the two countries.
For the majority of its foreign trade, Ethiopia, the most populous country without a maritime exit, depends on Djibouti.
According to Anteneh Alemu, CEO of Pave Logistics and Trading PLC and Vice President of the Ethiopian Freight Forwarder and Shipping Agents Association (EFFSAA), improving ties and collaboration between EFFSAA and the Association of Djiboutian Freight Forwarders (ATD) is essential for the effectiveness of the industry.
The Ethiopian counterpart has addressed a number of topics with the ATD team, which included President Robleh Mohamed Barreh and Secretary General Robleh Abdillahi Abdi, during their meeting on Thursday, October 17.
The majority of Ethiopian freight forwarders collaborate with their ATD-member counterparts in Djibouti while handling Ethiopian cargoes.
In the past, member logistics companies or organizations operated independently, but today, the Vice President of EFFSAA said, “The two sides have agreed to sign a memorandum of understanding (MoU) and work jointly to enhance relations and establish a formal communication platform between the two sides. We used to act independently when there were changes, like new procedures being implemented or tariffs changed, but now we will work together and share information on the ongoing activity between the two countries,” he continued.
He emphasized that ATD will receive support from the Ethiopian organization that was established in 1998. They are doing there, in part, what EFFSAA is doing, which is to say, “We will share our experience on capacity building and training programs.”
EFFSAA was founded by a group of logistics experts with the goal of giving the industry a greater voice and power.
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Logistics firms urge government to implement incentives ahead of full liberalization
Local logistics firms voiced their need for the government to implement various incentive programs to comply with the industry’s eventual opening up to international competitors.
The government permitted foreign companies to hold up to a 49 percent stake in Ethiopia’s logistics industry around six years ago. Additionally, it has been said that the entire liberalization would be adhered to.
The Ministry of Transport and Logistics alluded to the sector’s involvement in the process of opening up Ethiopia’s economy to international investors during the most recent panel discussion.
Local logistics firms that Capital accessed on the matter said that foreign investment in the industry is essential to maintaining sophisticated logistics operations, which, in turn, supports the economy.
One of the few experts on maritime law and a consultant, Yared Shiferaw, stated that completely opening up the industry to competition is an important step.
He noted that a few years ago, the government made certain decisions on the industry: “it was also a very big step taken by the government.”
“However, the performance did not meet expectations because there were foreign players involved to a certain extent,” he continued.
The administration has often expressed its willingness to welcome international actors; yet, the industry is still not fully open.
With the assistance of international partners, the government has conducted many studies to liberalize the industry in an effort to relieve the bottleneck impeding overall economic growth.
Regarding the significant policy change, the administration is allowing foreign competitors to enter the economy. The commerce and telecommunications industries have formally opened to foreign investors thus far.
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Saudi Arabia to Invest US$267 Billion in Logistics Sector by 2030
Saudi Arabia is set to invest over US$267 billion in its logistics sector, with a clear ambition to become a global hub by 2030, according to senior officials. During the Global Logistics Forum 2024, held on October 13 in Riyadh, Saudi Minister of Transport and Logistics Services, Saleh bin Nasser Al-Jasser, confirmed that US$53 billion has already been deployed towards this goal.
Al-Jasser explained, “These investments have enabled Saudi Arabia to rise significantly in global rankings, including a jump of 17 ranks in the Logistics Performance Index and 14 places in the Global Connectivity Index by the International Air Transport Association.”
This momentum aligns with the country’s long-term Vision 2030 strategy, spearheaded by Crown Prince Mohammed bin Salman, which aims to modernise transportation and logistics networks across the Kingdom.
The Kingdom’s strategy focuses on integrating transport systems, enhancing logistics operations, and positioning Saudi Arabia as a vital trade and logistics hub that connects Asia, Europe, and Africa. Al-Jasser emphasized the importance of the logistics industry at this time, stating,
“Current global disruptions highlight the need for a resilient supply chain that guarantees the seamless flow of goods and services across borders.”
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