Addis Ababa, Ethiopia, March 15, 2024 – The United States government, through USAID’s Economic Recovery and Reform Activity (ERRA) program implemented by TradeMark Africa (TMA), with funding from Feed the Future, has committed US$550,000 towards the development and implementation of an integrated Fleet Management System (iFMS). Spearheaded by Smartwatch Solutions Ltd and supervised by the Ethiopian Ministry of Transport and Logistics, this project will streamline fleet operations along the Ethio-Djibouti corridor. The project commenced today with a signing ceremony at Skylight Hotel.
In 2023, USAID awarded TradeMark Africa (TMA) US$2 million to improve food security through agricultural trade along the Ethio-Djibouti corridor. Logistics are at the center of these efforts. Every truck that goes to Djibouti already has a tracker, according to government regulations. This new activity ensures that each truck will share its location data with the Ministry of Transport and Logistics so they can have an overall view of the transport corridor and target bottlenecks accordingly.
The Ethio-Djibouti corridor serves over 95% of Ethiopia’s import-export trade, utilizing 15,000 trucks, with peak season necessitating an additional 3,500 trucks. The new iFMS promises to alleviate bottlenecks and speed trade. Ewnetu Taye Chufa, TradeMark Africa Country Director for Ethiopia, expressed confidence that this investment will advance regional integration and stimulate economic growth by enhancing the corridor’s appeal to investors.
According to Bareo Hassan Bareo, the State Minister for Transport and Logistics, the Ministry will utilize the new technology to create a centralized and transparent fleet oversight system. “Fleet management is essential for the efficient operation of the logistics sector. This system will precisely track truck locations, offering essential data that will assist authorities in strategically planning, managing, and coordinating Ethiopia’s fleet operations.” He further reiterated the government’s commitment to collaborate with partners, such as TMA and USAID, to optimize the sector’s efficiency.
Amber Lily Kenny, Director, Office of Economic Growth and Resilience, USAID Ethiopia, highlighted the transformative potential of the iFMS, emphasizing its role in promoting food security. “USAID is proud to support this innovative tool. After it is launched later this year, we expect that both the public and private sectors will quickly see the value in utilizing this platform to increase the availability of food, fertilizer, and related goods across Ethiopia.”
For 120 years, the United States and Ethiopia have partnered in health and education, agriculture and food security, science and the environment, and many other areas to improve the lives of all Ethiopians.
. ENDS.