Addis Ababa, March 15, 2024(Addis Walta) Ethiopia and the United States Agency for International Development (USAID) have partnered to launch an integrated fleet management system (iFMS) aimed at boosting trade between Ethiopia and Djibouti.
The project, which is led by SmartWatch Solutions Ltd and overseen by the Ethiopian Ministry of Transport and Logistics, seeks to streamline fleet operations along the Ethio-Djibouti corridor. The integrated fleet management system was developed for $550,000.
In 2023, USAID awarded TradeMark Africa (TMA) $2 million to improve food security through agricultural trade along the Ethio-Djibouti corridor. The iFMS ensures that each truck shares its location data with the Ministry of Transport and Logistics so they can have a better understanding of the transport corridor and identify bottlenecks accordingly. This will help the government to improve transportation efficiency and reduce delays, leading to faster delivery of goods.
At the launching ceremony, Ethiopia’s State Minister of Transport and Logistics, Bareo Hassen, emphasized the importance of fleet management for the efficient operation of the logistics sector. “The project represents a significant investment in our future and will bring numerous benefits to our organization, the transport and logistics community, and the country’s trade logistics,” he said.
Amber Lily Kenny, Director of the Office of Economic Growth and Resilience at USAID Ethiopia, noted that the integrated fleet management system would enable real-time visibility of 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.
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.
The iFMS will help to increase the availability of food, fertilizer, and other related goods across key markets in Ethiopia, improving the lives of Ethiopian citizens.