Ethiopian Freight Forwarders and Shipping Agents Association

EFFSAA Weekly Newsletter, Vol. 02, No. 083

13th Round FIATA Diploma Training Started

The 13th round of FIATA Diploma training has been started on 12 December 2022.

The program which is taking place in the evening session has 24 trainees with various educational and professional background.

Ethiopian Freight Forwarders and Shipping Agents Association currently has two classes in the evening and weekend programs.

The Association has been running FIATA diploma training program in Ethiopia for more than 5 years and is the only representative of the International Federation of Freight Forwarders Associations (FIATA) in Ethiopia.

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The Second Phase of the Training Program Has Been Completed

The Second Phase of the Training Program Has Been Completed

EFFSAA has successfully completed the second phase of a training program on the operation of a free trade zone that was held in Dire Dawa city.

The program was delivered in collaboration with Trademark Africa Limited for two weeks.

On the final day of the program, trainees visited Dire Dawa Free Trade Zone, various factories found in the Industrial Park and the dry port. Ato Kamil Ibrahim, who is currently serving as the CEO of the free zone, gave a briefing to trainees regarding the status of the free zone and other related matters prior to the field visit.

The closing ceremony took place at the MM Hotel in Dire Dawa on Saturday, November 24, 2015 and Deputy Mayor and Head of Trade, Industry and Investment Office of Dire Dawa, Ato Harbi Bouh, President of the Ethiopian Freight Forwarders and Shipping Agents Association, W/ro Elizabeth Getahun, member of the board of directors of the EFFSAA, Ato Dawit Tedla, Country Director of Trademark Africa Limited, Ato Ewnetu Taye, Program Officer (for the Horn of Africa) of Trademark Africa Limited, Ato Yetmgeta Girma, the representative of the European Union, Ato Abiy Tesfaye, CEO of Dire Dawa Free Trade Zone, Ato Kamil Ibrahim, trainees, invited guests and the media of the city were present.

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Draft Proclamation Proposes USD 75m Capital Threshold for Special Economic Zone

A minimum USD 75 million capital is needed to establish Special Economic Zone (SEZ) in Ethiopia, according to a draft proclamation.

Applicants wishing to get approval to develop an SEZ from the government will have to commit the required capital threshold in the form of equity, debt access, as well as evidenced capital in due time.

However, the Ethiopian Investment Board, along with the Ethiopian Investment Commission (EIC) will determine through directives and regulations the maximum and minimum capital requirements depending on the unique features of the zones.

Regional and federal governments, commercial developer, or public-private partnership can submit an application to create a Special Economic Zone. The request will be reviewed by the Board, which is led by Prime Minister Abiy Ahmed (PhD).

While already existing industrial parks aren’t required to go through the processes for designation of SEZ unless having a desire to expand type of business or area land, other companies wishing to upgrade and convert to SEZ are required to make application at the EIC.

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Canadian Firm Completes Feasibility Studies on Railway to Port Sudan

A railway line from Addis Abeba to a Sudanese port is afoot under the two governments after a Canadian consulting firm completed a feasibility study.

Pacific Consulting Services, which won the bid for consultancy services for close to 1.2 million dollars, has submitted the study for a project covering 1,522Km, with 918Km confounded in Sudan. The African Development Fund has provided the finance to pay the consultant. The initial finance for the study was granted from NEPAD-Infrastructure Project Preparation Facility (NEPAD-IPPF).

The Ethio-Sudan railway project is part of the far-fetched Lamu Port Southern Sudan Ethiopia Transport (LAPPSET) corridor development. It is expected to connect the two countries with Kenya in logistics and transport. The development of Lamu Port, a standard gauge railway line between Port Sudan and Addis Abeba, three airports, port cities, an oil refinery and multiple road networks are all part of this ambitious project.

The LAPPSET project was conceived in 1975, and the Kenyans revived it in the 2000s. The total completion cost is estimated to reach 40 billion dollars if it is realised by 2045. The China Communications Constructions Company broke ground on the development of the Lamu Port in 2012, which will have 32 berths, with three beginning operation last May.

Kassahun Abberu (PhD), general manager of Akakas Logistics Plc, does not mind seeing the construction of a railway track. However, he believes the layout should consider the resource base and industry concentration along the track lines.

“The critical element is voluminous inter-linkage of the industry, not an extension of railway tracks,”

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DP World to Upgrade Port of Bosaso

DP World and Somalia’s Government of Puntland signed a construction agreement for expansion and upgrade work at the Port of Bosaso.

The 12-month project, which is expected to start in early 2023, will include the development of a 150-meter quay, as well as repairs to the current 215-meter quay. Other infrastructure will include the development of a new 3,000-square-meter container yard, and a 4,000-square-meter container stripping yard. The gate area to the port will also be upgraded to improve access control.

Once complete, the port will be able to handle container vessels and attract more direct calls from feeder ships from Dubai and other regional hubs. It will also become an important hub for dhow transport serving the Somali coast.

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