As the world celebrates today’s international women’s day, March 8, New Business Ethiopia has conducted exclusive interview with the youngest female country representative of DHL Ethiopia, Kidist Teklu Kemeshi.
In this interview, she reflected on the major activities of DHL, the opportunities for the growth of logistics in Ethiopia and the challenges as well as DHL’s business partnerships with Ethiopian Airlines as well as the rules and regulations and the deployment technology, among others.
Below is the full excerpt:
Q- How does DHL view the current logistics and freight forwarding market in Ethiopia, and what factors contributed to the decision to operate in this region?
DHL views the current logistics and freight forwarding market in Ethiopia as a promising opportunity for growth and expansion. Ethiopia’s rapid economic development, strategic location, and government initiatives to promote trade and investment have positioned it as a key market in the region. Factors such as emerging markets, expansion trends, and increasing demand for modern logistics solutions further contribute to its attractiveness.
Our decision to operate in Ethiopia comes from our commitment to providing innovative logistics solutions to meet the evolving needs of our customers in the region. By leveraging our global expertise and network, we aim to support Ethiopia’s economic growth and contribute to the development of its logistics infrastructure.
Q- What are the specific challenges and opportunities faced by you in providing logistics services in Ethiopia?
In providing logistics services in Ethiopia, we encounter both challenges and opportunities unique to the region. One of the main challenges is navigating the country’s diverse and sometimes complex regulatory environment, which can impact customs clearance processes and transportation logistics.
Additionally, infrastructure limitations, such as road conditions and Ethiopia being landlocked country and using neighboring ports, pose logistical challenges that require innovative solutions to overcome. However, these challenges also present opportunities for us to leverage our expertise in supply chain management and develop tailored solutions to optimize operations and enhance efficiency.
Moreover, Ethiopia’s growing economy and expanding market offer significant opportunities for us to expand our presence and capture market share. By investing in technology, developing our strategic partnership, and adapting our services to meet local demand, we can capitalize on these opportunities and contribute to Ethiopia’s continued economic growth.
Q- How does leveraging technology and innovation enhance logistics and supply chain solutions here?
In Ethiopia, as well as in many other parts of the Middle East and Africa, we offer a range of technological and digital solutions to enhance service quality and improve transport efficiency for our customers. One of these solutions is our digital road freight platform, Saloodo! Traditionally, the road freight market is characterized by fragmentation and inefficiency in terms of capacity utilization.
Through Saloodo!, we bring together shippers and transport providers on a single platform. All transport providers undergo a thorough vetting process prior to registration, ensuring a reliable and compliant transport service. Simultaneously, we optimize truck utilization, making road freight transport more efficient, cost-effective, and environmentally sustainable for all parties involved.
Q- How does DHL navigate customs and regulatory requirements in Ethiopia, and what strategies are in place to ensure compliance?
DHL navigates customs and regulatory requirements in Ethiopia by leveraging our extensive experience and expertise in international logistics. We maintain a strong understanding of local regulations. To ensure compliance and efficiency, we employ advanced technology solutions and implement robust processes that streamline documentation, track shipments, and facilitate communication with customs authorities.
Additionally, our team undergoes regular training to stay updated on regulatory changes and best practices. Furthermore, we proactively engage with customers to provide guidance on import/export requirements and help them prepare necessary documentation to expedite clearance. By adopting a proactive and collaborative approach, we ensure that shipments move seamlessly through customs while adhering to all regulatory requirements, ultimately delivering excellent customer experience.
Q- How does DHL collaborate with local businesses in Ethiopia?
We understand the importance of local expertise and relationships, which is why we prioritize building strong partnerships with Ethiopian businesses. Our collaboration efforts extend across various sectors, such Pharma, manufacturing, Humanitarian Cargo. We work hand in hand with local businesses to understand their unique requirements and tailor our logistics solutions to meet their specific needs.
Through our extensive network and global expertise, we offer Ethiopian businesses access to international markets, enabling them to expand their reach and compete on a global scale. Whether it’s providing reliable freight forwarding services, optimizing supply chain operations, or facilitating cross-border trade, we are committed to empowering local businesses and driving economic growth in Ethiopia.
Q- How do you anticipate and adapt to emerging trends in the global logistics industry and specifically in Ethiopia, in regards to the recent Red Sea situation?
The situation on the Red Sea leads to longer transit times and increased costs for the shipping companies. This is reflected in higher freight rates. There could be container shortages in the future. The dynamic depends heavily on the development of other trade bottlenecks like the Panama Canal.
If multiple restrictions or crises collide, this can have a tangible impact on global trade. Overall, the volatility of the freight markets is increasing and this volatility will continue to accompany us in 2024. The global economy must find a new balance between resilience and efficiency. We advise our customers on an ongoing basis and offer them alternative solutions.
Q- In terms of talent development, how do you invest in training and developing its workforce in Ethiopia to meet the evolving demands of the logistics sector?
Investing in talent development is a top priority for DHL in Ethiopia as we recognize the critical role our employees play in delivering exceptional logistics services. To meet the evolving demands of the logistics sector, we prioritize ongoing training and development initiatives tailored to the needs of our employees.
We offer a range of training programs covering various aspects of logistics, including supply chain management, customs regulations, and technology solutions. These programs are designed to enhance our employees’ skills and knowledge, enabling them to stay updated on industry trends and best practices. Furthermore, we encourage continuous learning and professional growth through mentorship programs, leadership development initiatives, and opportunities for career advancement.
By empowering our employees with the necessary tools and resources, we ensure they are equipped to adapt to changing market dynamics and deliver value to our customers. We are committed to building a highly skilled and motivated employees capable of driving innovation and excellence in the logistics sector in Ethiopia.
Q- Are there any strategic partnerships or collaborations that DHL has forged with local entities to enhance its service offerings in Ethiopia?
In 2018, we established a joint venture with Ethiopian Airlines, one of Africa’s largest aviation groups. Through DHL-Ethiopian Airlines Logistics Services Ltd., we offer transport and logistics services not only in Ethiopia but throughout the entire continent. Our goal is to become the leading cargo logistics provider JV company in Africa. In 2022, we inaugurated a new container freight station at the Modjo Dry Port and obtained a Container Freight Station (CFS) Consolidation License from the Ethiopian government.
This license has expanded our service offerings within the country, including less-than-container load (LCL) exports. This allows multiple shippers to share container space, resulting in faster freight times and reduced shipment costs. Additionally, we provide a similar service for road freight with less-than-truckload (LTL) shipments at the Modjo Port facility.
These offerings, along with others, enable us to provide our customers, particularly SMEs, with a comprehensive range of transport solutions and logistics services. We anticipate further growth potential in the future.
Q- What is your long-term vision and strategy for its presence in Ethiopia, and how does the company envision contributing to the country’s economic growth?
Our long-term vision for DHL’s presence in Ethiopia is centered around becoming the leading provider of logistics solutions in the country, contributing to its economic growth and development. We aim to achieve this by leveraging our global expertise, innovative technologies, and local insights to deliver unmatched value to our customers and stakeholders.
As part of our strategy, we are committed to expanding our service offerings, enhancing our operational capabilities, and investing in infrastructure to support Ethiopia’s growing economy. This includes optimizing supply chain networks, improving last-mile delivery capabilities, and implementing sustainable practices to minimize environmental impact. Additionally, we envision playing a proactive role in Ethiopia’s economic growth agenda by fostering partnerships with local businesses, government agencies, and industry stakeholders.
Through collaboration and knowledge-sharing, we seek to drive innovation, create employment opportunities, and empower local communities. We are the logistics company of the world, and we thrive to deliver excellence in a digital world.