A new digital vehicle fleet management system for trucks was inaugurated today on the Addis Ababa-Djibouti corridor, marking a major advancement in trade between Ethiopia and Djibouti.

This initiative is a collaborative effort involving the Djiboutian government, the European Union, and regional organizations. It represents the first project under a €32 million European Union-funded program aimed at enhancing the corridor's efficiency and fostering regional economic integration, managed by the French Development Agency and TradeMark Africa.

The system employs RFID technology to track trucks in real-time, streamline logistics, and cut wait times at ports. Expected outcomes include a 10% reduction in overall trade costs, a 15% decrease in goods exchange times, and a 30% reduction in customs clearance times at key border crossings.

Beyond efficiency, the program aims to increase exports in targeted sectors by 15% and boost incomes for vulnerable groups, especially women, involved in trade by the same margin.

Djibouti's Minister of Infrastructure and Equipment, Hassan Houmed, highlighted the system’s alignment with Djibouti's Vision 2035 to digitize the logistics sector. Djibouti’s Minister of Trade and Tourism, Mohamed Warsama Dirieh, emphasized its importance for regional economic integration. Aboubaker Omar Hadi, President of the Ports & Free Zones Authority, noted its role in enhancing port infrastructure and improving goods transport efficiency.

Source: Ethiopian News Agency