Frontieri has taken part in improving the Ethiopian trade facilitation through leading the “Ethiopian Trade Logistics Baselines Collection” project of the World Bank Group.
International trade is among the many ways of increasing interactions between people, governments and supply chains across countries and regions. As this increasing interaction is a beneficial for many of the countries it requires high level of growth in infrastructure of roads, rail, and sea, and existence a sophisticated system in managing trade-related activities.
In this regards, the Government of Ethiopia, through the Ethiopian Maritime Affairs Authority (EMAA), has prepared a National Freight Logistics Strategy (NFLS) that provides an assessment of Ethiopia’s logistics sector, identifies the main logistics impediments, and provides key recommendations to transform the sector. The NFLS has outlined key strategies along with corresponding interventions for implementation in five areas: improving logistics service offerings; improving trade finance, production and the distribution network; improving and developing trade logistics facilities and infrastructure; implementing an efficient transit and trade facilitation; and setting up effective logistics governance.
The Ethiopian Trade Facilitation Project is a continuation of the first phase, Project by International Finance Corporation (IFC). Ethiopia Trade Facilitation Project under Component 1- supports Ethiopian Customs Commission and other stakeholders, such as Ministry of Trade and Industry, Ethiopian Food and Drugs Administration, and Ministry of Agriculture. Whereas, Component 2 of the project–supports the Ethiopian Maritime Affairs Authority (EMAA) in realizing relevant parts of National Logistics Strategy and Ethiopian Revenue and Customs Authority (ERCA) in facilitating trade environment.
In line with the goal of increasing the capacity of leading and managing a better trade- logistics, the World Bank Group works with developing country policymakers and private sector leaders funding different projects for successful change in the sector. Hence, the project “Ethiopian Trade Logistics Baselines Collection “ and implemented by Frontieri will be of support for the necessity to draw data that can serve as a baseline measure, and enable collection of the much needed baseline information from the target groups; logistics operators, customs brokers, exporters, importers and various decisive agencies in Ethiopia.
The project Ethiopian Trade Logistics Baselines Collection mainly intends to meet the general objective of identifying key performance indicators and benchmark factors that govern time, direct cost saving and institutional arrangements of logistics operators, custom brokers, exporters, and importers.
The specific objectives of this project include:
- Assess the duration of customs declaration clearance by the time it takes after lodging customs declaration until its release, including the time spent in inspection, delays (if any), and time over queues to submit;
- Evaluate the time it takes to inspect by various agencies (including ECC, Ministries of Agriculture, Trade, Health, Telecommunication, and others) for goods cleared in the red channel for both imports and exports;
- Evaluate the harmonization of inspections by the different government bodies and agencies (Institutional coordination) and bring the common reasons for significant delays in terms of getting clearance for export and import goods;
- Measure the time it takes for goods imported and exported during border crossing through Galafi (for imports and exports carried by trucks) and Dewele (for imports through railway); and
- Assess the duration it takes to get different permits and documents from various agencies.
Frontieri takes pride in its commitment to remain the leading research and advisory institution for informed decision making. As we remain the first inline of choice of collaboration for many of national and international organizations, our quality driven and innovative way of delivering research outputs continue to be our unique strength.
Funder: IFC-The World Bank Group, Washington, DC
Frontieri Project Manager:
Senior Researcher Officer
More on Ethiopia Trade logistics project