Addis Ababa, August 29, 2026 (FMC) — Modernizing logistics infrastructure and reducing trade frictions are critical to Africa’s economic transformation, with Ethiopia’s Mojo Dry Port offering a practical model for advancing regional integration, according to the World Bank.
World Bank Vice President for Eastern and Southern Africa Ndiamé Diop made the remarks at the launch of the World Bank report, “Integrating Africa: From Threads to Hubs.”
Diop emphasized that reducing non-tariff barriers, including border delays, inefficient payment systems and high transportation costs, is essential to expanding regional trade and strengthening cross-border supply chains.
He noted that 85 percent of Africa’s current trade is conducted with countries outside the continent, with more than half consisting of primary commodities. By contrast, more than 60 percent of intra-African trade comprises manufactured and other higher-value products.
“To the world we sell raw materials; to each other, we sell higher value products,” Diop said, stressing that deeper regional market integration would enable African enterprises to achieve economies of scale, specialize, build larger industries and compete more effectively in global markets.
“Integrating regional markets will give African firms the scale they lack in national markets, an ability to specialize, an ability to link production across borders, and an ability to build larger industries that create more jobs,” he added.
As a practical example of efforts to reduce trade frictions, Diop highlighted the World Bank’s joint project with the Ethiopian government at Mojo Dry Port, which handles nearly 95 percent of Ethiopia’s land-based trade.
He said the World Bank, together with the Ethiopian government, invested more than 200 million USD to modernize the dry port, digitize its operations, improve regulatory frameworks and strengthen coordination among agencies.
Following the investment, Mojo Dry Port’s handling capacity doubled, while average container dwelling time declined sharply from 60 days to 15 days, he said.
Diop said the most ambitious aspect of the project extended beyond physical infrastructure to reforms aimed at improving regulations for private-sector participation, digitizing port operations and connecting ports and government agencies along the corridor to facilitate information sharing, as reported by ENA.
Such measures demonstrate how reducing logistical and regulatory barriers can improve the efficiency of trade corridors and strengthen regional economic integration, according to the World Bank vice president.