Ethiopia Logistics Market

Ethiopia Logistics Market Overview:

The Ethiopia logistics market size reached USD 6.26 Billion in 2024. The market is projected to reach USD 8.88 Billion by 2033, exhibiting a growth rate (CAGR) of 3.97% during 2025-2033. The market is driven by expanding infrastructure development and multimodal connectivity, increasing foreign direct investment (FDI), and rising urbanization rates. Besides this, the ongoing implementation of strategic policy initiatives and digital transformation programs by government agencies is significantly fueling the Ethiopia logistics market share.

Ethiopia Logistics Market Trends:

Digital Transformation and Technology Adoption

The logistics sector in Ethiopia is undergoing swift digital transformation, with businesses adopting technological solutions to optimize operations and improve efficiency. Government entities are encouraging the use of digital platforms for facilitating trade, customs processing, and managing supply chains. Sophisticated technologies, such as global positioning system (GPS) tracking systems, warehouse management systems, and automated inventory solutions, are being utilized throughout key logistics centers. The adoption of mobile technology and digital payment systems is enabling real-time tracking of shipments and electronic documentation, lowering processing times and operational expenses. The creation of digital platforms for e-commerce and e-procurement is enhancing business operations and increasing transparency in logistics activities. This technological advancement is especially important, as it tackles enduring inefficiencies in the Ethiopia logistics industry while establishing the nation as a competitive player in the region. As stated in a report published in October 2024 by the GSMA in collaboration with Ethio Telecom, Ethiopia's digital economy is projected to add ETB 1.3 Trillion to GDP by 2028, creating jobs and fostering growth via telecom and policy changes. This signifies a major transition towards updating the logistics infrastructure and generating considerable economic influence throughout the industry.

Infrastructure Development and Multimodal Connectivity

The expanding infrastructure development and multimodal connectivity are fueling the Ethiopia logistics market growth. The construction of new road networks, railway systems, and port facilities is creating integrated multimodal transportation solutions that reduce logistics costs and improve delivery efficiency. In August 2025, Deputy Prime Minister of Ethiopia, Temesgen Tiruneh, initiated the construction of a 144-kilometer Mieso-Dire Dawa Expressway, funded by 62.6 Billion birr from the World Bank. Major infrastructure projects are connecting landlocked Ethiopia to international markets more effectively. Investments in dry ports and cargo terminals are creating strategic logistics nodes that facilitate efficient cargo handling and distribution. The development of industrial parks and manufacturing zones is driving the demand for sophisticated logistics solutions and supply chain infrastructure. Government initiatives to improve border crossing procedures and customs facilities are reducing transit times and refining trade facilitation. New participants are entering the multimodal logistics industry, with stakeholders anticipating heightened efficiency, enhanced service delivery, and greater connectivity within Ethiopia's logistics ecosystem. This infrastructure broadening is creating opportunities for both domestic and international logistics service providers to expand their operations and capitalize on improved connectivity networks.

Ethiopia Logistics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on model type, transportation mode, and end use.

Model Type Insights:

• 2 PL
• 3 PL
• 4 PL

The report has provided a detailed breakup and analysis of the market by model type. This includes 2 PL, 3 PL, and 4 PL.

Transportation Mode Insights:

• Roadways
• Seaways
• Railways
• Airways

A detailed breakup and analysis of the market based on transportation mode have also been provided in the report. This includes roadways, seaways, railways, and airways.

End Use Insights:

• Manufacturing
• Consumer Goods
• Retail
• Food and Beverages
• IT Hardware
• Healthcare
• Chemicals
• Construction
• Automotive
• Telecom
• Oil and Gas
• Others

The report has provided a comprehensive analysis of the market based on end use. This includes manufacturing, consumer goods, retail, food and beverages, IT hardware, healthcare, chemicals, construction, automotive, telecom, oil and gas, and others.

Regional Insights:

• Addis Ababa
• Oromia Region
• Amhara Region
• SNNPR Region
• Tigray Region
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Addis Ababa, Oromia Region, Amhara Region, SNNPR Region, Tigray Region, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Ethiopia Logistics Market News:

• In June 2025, the British International Freight Association (BIFA) entered into a Memorandum of Understanding (MoU) with the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) to enhance and modernize Ethiopia’s freight forwarding and logistics sector. EFFSAA aimed to develop a competitive logistics industry that fostered Ethiopia’s economic advancement by enhancing workforce capabilities, promoting innovations, and establishing global connections.
• In June 2025, Global Mofy AI Limited declared that it finalized an investment in WETRUCK TECHENABLE SOLUTIONS PLC (Wetruck AI), an online freight platform based in Ethiopia. The group offered specialized knowledge in logistics operations, data technology, financial oversight, and business strategy.

Ethiopia Logistics Market Report Coverage:

Key Questions Answered in This Report

• How has the Ethiopia logistics market performed so far and how will it perform in the coming years?
• What is the breakup of the Ethiopia logistics market on the basis of model type?
• What is the breakup of the Ethiopia logistics market on the basis of transportation mode?
• What is the breakup of the Ethiopia logistics market on the basis of end use?
• What is the breakup of the Ethiopia logistics market on the basis of region?
• What are the various stages in the value chain of the Ethiopia logistics market?
• What are the key driving factors and challenges in the Ethiopia logistics market?
• What is the structure of the Ethiopia logistics market and who are the key players?
• What is the degree of competition in the Ethiopia logistics market?

Key Benefits for Stakeholders

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Ethiopia logistics market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Ethiopia logistics market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Ethiopia logistics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.