Ethiopia, USAID Launch Fleet Management System to Boost Ethiopia-Djibouti Trade

Addis Ababa, March 15 /2024 (ENA) Ethiopia and  U.S. Agency for International Development (USAID) have launched integrated fleet management system (iFMS) to boost Ethiopia-Djibouti trade.

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 integrated fleet management system developed with a cost of 550,000 USD, it was learned. 

In 2023, USAID awarded TradeMark Africa (TMA) 2 million USD 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 21 overall view of the transport corridor and target bottlenecks accordingly. 

Ethiopia's State Minister of Transport and Logistics, Bareo Hassen said on the launching ceremony that fleet management is essential for the efficient operation of the logistics sector. 

"The project represents a significant investment in our future and it will bring about numerous benefits to our organization, the transport and logistics community and the country's trade logistics." 

Amber Lily Kenny, Director, Office of Economic Growth and Resilience at the USAID Ethiopia said on her part the integrated fleet management system will enable real time visibility on freight traffic flowing between Ethiopia and the port of Djibouti. 

The system will provide efficient tracking and freight management through data driven coordination and supervision of the trucks, she added. 

"Together USAID hopes that these efforts will increase the availability of food, fertilizer and other related goods across key markets in Ethiopia to improve the lives of Ethiopian brothers and sisters in the country." 

She reiterated that USAID is remain committed to supporting food security in Ethiopia and we hope that fleet management will help with this these endeavors. 

Smartwatch Solutions CEO Nicholas Ogoma said  “We are eagerly looking forward to collaborating with the government and all stakeholders in the next few days to ensure that the project is delivered in less than seven months.” 

The Ethio-Djibouti corridor serves over 95 percent of Ethiopia's import-export trade, utilizing 15,000 trucks, with peak season necessitating an additional 3,500 trucks.