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Publish Date : 06-Apr-2017

The Washington-headquartered World Bank on Friday has offered its clearance for a new project worth $150 million intended for the enhancement logistics efficiency in Ethiopia.

The global donor has announced in a media release that the newly approved project will direct its attention towards enhancing the capabilities of the Modjo Dry Port, one of the major transportation hubs of Ethiopia. Though the port accounts for 95% of the overall trade in the country, it is a key blockage on the crucial Ethio-Djibouti trade corridor, added the release.

The World Bank has further said in its release that the project will support investments in physical infrastructure and ICT system developments, and regulatory enhancements, which will boost exports, create job opportunities, and ensure better incomes for the manufacturers and traders.

The World Bank Country Director for Ethiopia Carolyn Turk stated, The logistics sector is the backbone for industrial and agricultural growth, the success of which is crucial if Ethiopia is to meet its goals as articulated in the Growth and Transformation Plan.

The World Bank official further said, The success of Ethiopias large-scale investment in industrial parks and the new rail line to Djibouti will depend on their connectivity to different logistics nodes along trade corridors.

Active involvement of a range of logistics providers is essential for shifting to an advanced logistics system. Thus, the project supports public investment in crucial infrastructure, and expanding the job of the private sector related to the logistical services provisions.

The Modjo complements the Logistics Strategy of Ethiopia, as it envisages growing to a multi-user, multi-purpose facility to allow third party logistics providers collaborate for the delivery of modern services from just being a single-user dry port now with focus on customs clearance.

The World Bank Group Director for Trade & Competitiveness Global Practice Klaus Tilmes revealed, Higher-than-average trade costs are undermining Ethiopias international competitiveness.

Tilmes added, By enhancing the performance of the Ethio-Djibouti corridor through improvements in the range and quality of logistics services at Modjo Dry Port, and reducing burdensome regulations in customs, trade finance and trade facilitation, the government will be able to reap the benefits of trade that help to drive growth and reduce poverty.

The twin-target of trimming down intense poverty and improving shared prosperity of the World Bank Group has been complemented by this project.

Enhanced transport and logistics facilities for fertilizers and grains will facilitate the smallholder farmers to boost their agricultural output and improve food security.

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