Group photo of the Djibouti delegation with MAGERWA staff Djibouti’s unique position at the crossroads of Africa, the Middle East, and global trade routes has made it a major hub for regional and international trade. As the main gateway for Ethiopia’s trade, the Djibouti-Ethiopia corridor handles about 95 percent of Ethiopia’s imports and exports. Despite its world-class port infrastructure, inefficiencies in trade facilitation, institutional coordination, and transport logistics continue to slow trade, leading to high costs, long transit times, and lost economic opportunities for businesses and traders that rely on the corridor. To address these challenges, Djibouti and Ethiopia are in the process of creating a Corridor Management Authority and a Transport Observatory. The Corridor Management Authority will support coordination of institutions, address trade bottlenecks, and improve the movement of goods. At the same time, the Transport Observatory will collect and analyze real-time trade data, enabling authorities to monitor performance, identify inefficiencies, and implement timely solutions. Together, these initiatives will lower trade costs, shorten transit times, and enhance the competitiveness of businesses operating along the corridor. To build an effective system, Djibouti is learning from successful trade corridor management models in East Africa. A technical team recently visited The Northern Corridor Transit and Transport Coordination Authority, the Port of Mombasa, Mariakani Weigh In Motion bridge under Kenya National Highways, Taveta OSBP in Kenya, the Central Corridor Transit and Transport Facilitation Agency and Holili OSBP in Tanzania, and the public bonded warehouse of Rwanda (MAGERWA) Rwanda. The delegation was able...
Djibouti–Ethiopia Trade Corridor to Benefit from New Management Authority and Transport Observatory
Posted on: March 10, 2025
Posted on: March 10, 2025