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Free Trade Zones Essential for Modernizing Logistics, Says Prime Minister Abiy Ahmed

Apr 16, 2026 17

Prime Minister Abiy Ahmed (PhD) has highlighted that the transition of Ethiopia's industrial parks into Free Trade Zones is a critical step in modernizing the country’s trade and logistics systems. While these parks were originally focused solely on manufacturing, their evolution into Free Trade Zones significantly expands their capacity to facilitate broader commercial activities. The Prime Minister explained that the primary benefit of these zones is to overcome the logistical challenges Ethiopia faces as a landlocked nation, effectively reducing high transportation and handling costs. He referenced international models like Dubai, where Free Trade Zones serve as global hubs for re-exporting goods, but clarified that Ethiopia’s immediate priority is to streamline the import process so that essential products reach the domestic market at more affordable prices.

Using the Dire Dawa Free Trade Zone as a prime example, the Prime Minister revealed that it has already facilitated over $27 million in trade transactions within just a few months of its establishment. He noted that this success was achieved through trade activities alone, suggesting that the economic impact will grow even further once the zone is fully integrated with the nation's dry port infrastructure. Ultimately, these Free Trade Zones are seen as vital tools not only for boosting exports but also for supporting import substitution efforts to strengthen Ethiopia's overall economic resilience.