Ethiopia and USAID Initiate Fleet Management System to Enhance Trade with Djibouti

Addis Ababa, Ethiopia – In a significant move to bolster Ethiopia-Djibouti trade, Ethiopia, in collaboration with the U.S. Agency for International Development (USAID), has introduced an integrated fleet management system (iFMS). The initiative, led by SmartWatch Solutions Ltd and under the supervision of the Ethiopian Ministry of Transport and Logistics, aims to optimize fleet operations along the critical Ethio-Djibouti corridor. The project, which was developed at a cost of $550,000, is part of a broader effort to enhance the efficiency of trade logistics between the two countries.

According to Ethiopian News Agency, the iFMS project is a key component of a larger strategy, supported by a $2 million grant from USAID to TradeMark Africa (TMA) in 2023. This strategy focuses on improving food security by enhancing agricultural trade along the Ethio-Djibouti corridor. The integrated fleet management system is designed to provide real-time visibility of freight traffic, offering a comprehensive view of transport corridor operations and enabling targeted interventions to alleviate bottlenecks.

During the launch ceremony, Ethiopia’s State Minister of Transport and Logistics, Bareo Hassen, highlighted the importance of fleet management for the logistics sector’s efficiency. “The project represents a significant investment in our future, bringing numerous benefits to our organization, the transport and logistics community, and the country’s trade logistics,” Hassen stated.

Amber Lily Kenny, Director of the Office of Economic Growth and Resilience at USAID Ethiopia, echoed these sentiments, emphasizing the system’s role in enabling efficient tracking and freight management through data-driven coordination and supervision of trucks. “This effort is expected to increase the availability of food, fertilizer, and other related goods across key markets in Ethiopia, improving the lives of Ethiopian brothers and sisters in the country,” Kenny added. She reaffirmed USAID’s commitment to supporting food security in Ethiopia and expressed optimism that the fleet management initiative would contribute significantly to these efforts.

Nicholas Ogoma, CEO of SmartWatch Solutions, expressed enthusiasm about the collaboration with the government and stakeholders to ensure the project’s completion within less than seven months. The Ethio-Djibouti corridor, which accounts for over 95 percent of Ethiopia’s import-export trade and involves the operation of approximately 15,000 trucks, with an additional 3,500 trucks required during peak seasons, is set to benefit immensely from the implementation of this system.