The Ethiopian Maritime Authority (EMA) has officially granted licenses to five new multimodal transport operators (MTOs), marking a major shift in the country’s logistics sector. This move comes one year after the government ended Ethiopian Shipping and Logistics’ (ESL) 15-year monopoly, allowing new players into the market.

The notice, sent to both domestic and international stakeholders, formally permits Panafric Global, Tikur Abay Transport, Cosmos MTO, Ethio-Djibouti Railway Standard Gauge Share Company, and Gulf Ingot FZC to operate. Gulf Ingot FZC, a UAE-based company, has drawn particular attention, as initial plans were to approve only four additional operators.

Despite the liberalization, ESL retains exclusive rights over key trade routes, including China and the UAE, which account for over 60% of Ethiopia’s imports. This has sparked concerns about fair competition, with experts warning that ESL’s continued dominance could limit opportunities for new entrants.

Yared Shiferaw, an international maritime lawyer, has previously argued that all operators should be allowed to compete on major routes. Similarly, Brook Taye, CEO of Ethiopian Investment Holdings (EIH), compared the logistics sector’s opening to Ethiopia’s telecom liberalization, stating that competition strengthens state-owned enterprises.

While EMA insists the move expands sector participation, industry stakeholders urge the government to ensure fair competition, address banking challenges, and formally notify key institutions to facilitate smooth operations. The success of this reform now hinges on effective implementation and policy adjustments.

Source: Capital Ethiopia