Monday, June 27, 2022
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From Ethiopia a national transport policy to promote untapped investment opportunities in the sector

The Ethiopian Ministry of Transport has published its national transport policy, a strategic plan to address for the next decade the increasing demand for transportation infrastructure and services in the country. The document, which was announced during the March 2021 Ethiopian Transport Investment Summit (read our post), provides a general overview of transport services and transport infrastructure and will serve as a basis to formulate more detailed transport sub-sector policies.

The government of Ethiopia attaches great importance to the transport sector, which plays a central role in fostering the economic and social development of the country, as well as regional and continental integration. This sector, however, is still characterized by some weaknesses, including gaps in infrastructure quality and limitation in implementing existing transport regulations particularly in the area of allowed load, speed limit and road safety. Moreover, it suffers from a lack of resources for infrastructure expansion and from clear demarcation between regulatory and executive bodies. Hence, the need to scale up and modernize the sector. In this regard, the plan points out that joint development of ports with neighbouring countries having access to the sea, the expansion of dry ports and inland water transport services, the construction of new cargo handling and cargo vehicle terminals, and strengthening the logistics system, will be the key priorities for the Ethiopian government in the next years.

The national transport policy also sets the path and goals for transport infrastructure expansion and for linking and integrating the different transport modes (roads, rail, aviation, water transport), for both passenger and freight transport, in view of developing an efficient, safe, sustainable and environmentally-friendly transport system. Integrated transport and logistics service is also considered key to facilitate manufacturing industry development.

The plan, which covers new types of infrastructures (cable car, pipe transport, electric mobility, etc.), promotes the introduction of innovative technological solutions, exploring alternative financing mechanisms, such as public and private partnerships (PPPs), to involve the private sector in the design, monitoring and funding of projects in the transport sector.





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