World Bank VP: Modjo Logistics Hub Key to Ethiopia’s Competitiveness and Jobs
Addis Ababa, October 2, 2025 (FMC) — The World Bank has underscored the strategic role of Ethiopia’s logistics sector, highlighting the Modjo Green Logistics Centre expansion as a cornerstone for national competitiveness, regional integration, and job creation.
Dr. Ndiamé Diop, World Bank Vice President for Eastern and Southern Africa, spoke exclusively to FMC following a visit to the project site in Modjo town.
“Logistics is a critical factor for competitiveness in any economy. This project will reduce logistics costs for Ethiopian businesses, allowing containers to be shipped and transported more efficiently,” he said. “Greater efficiency in container shipping will enhance Ethiopia’s overall economic competitiveness.”
He emphasized that the hub is designed to serve multiple ports, not just Djibouti, and will contribute significantly to Ethiopia’s regional integration strategy.
“Improved logistics and competitiveness will strengthen companies, which in turn creates more jobs — a vital element for Ethiopia’s development,” Diop noted.
Diop praised the Ethiopian government for the initiative and reaffirmed the World Bank’s support. “We are very pleased to modestly support this project. Similar facilities exist elsewhere, including the Transnet dry port in South Africa, and this project is equally significant in the Ethiopian context,” he said.
He also highlighted that the Modjo Green Logistics Centre is part of a larger national logistics reform program. “A logistics council has been established to address all dimensions of the sector. This holistic approach will help reduce logistics costs across the country,” he said.
On the role of competition, Diop added, “Promoting competition in the logistics sector is vital. It drives innovation, reduces prices for users, and forces existing players to improve. This will accelerate modernization of the sector.”
Reflecting on Ethiopia’s strategic importance, he said: “This is my first visit to Ethiopia. The country is central to the World Bank’s regional objectives in Eastern and Southern Africa. Many of our regional targets cannot be achieved without Ethiopia. Our partnership with Ethiopia is therefore extremely important.”
Concluding his visit, Diop congratulated the Ethiopian government on the project, describing it as an excellent and promising initiative. He expressed personal satisfaction with the progress and his eagerness to engage further with stakeholders.
By Mesafint Brlie