Sectors - Transportation

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The overall state of the transportation industry in Ethiopia is dismal. Whether it is the movement of people or cargo, it is highly inefficient. It could use investment. In fact, it is an excellent opportunity for investment, but - as usual - government intervention in terms of transportation monopolies impairs investment. The government should allow private institutions to build roads and grant them the authority to exact tolls. Although it is easier said than done, the Ethiopian government must come up with an adequate plan to privatize this sector and tax the businesses that will rise to replace its activities. In the long term (and short term possibly), the government may collect higher amounts of taxes from such an endeavor than it currently collects income from its transportation businesses.

Air

By far and away, the highlight of Ethiopia's transportation sector is the national airline - Ethiopian Airlines. The airline is one of the better carriers by developing country standards. Its international flights link the country with 42 cities in four continents: 26 in Africa, 11 in Asia, 4 in Europe and the United States of America. There are three international airports in Ethiopia. There are several domestic airports and landing strips, but domestic flights are infrequent.

Rail

A 784 Km (487 miles) rail service between Djibouti and Addis Ababa is run jointly by the government of Ethiopia and Djibouti. The service is currently closed to visitors as it serves as the primary shipping route for the import of goods in and out of Ethiopia. Since the outbreak of war between Ethiopia and Eritrea (May 1998), Ethiopia has diverted all trade to Djibouti.

Road

The road transport system is the most important means of transport in Ethiopia, providing for over 90 percent of passenger and freight transport in the country. Both asphalt and gravel roads radiate from Addis Ababa to important cities, towns and centers of commercial, industrial and agricultural activity.  Source: The Ethiopian Embassy in Washington, DC

Maritime

There were regular sailings between European and Middle Eastern ports and the ports in Massawa and Assab which served Ethiopia. However, with the independence of Eritrea in 1993 and the subsequent Ethio-Eritrean war (May 1998 - Present), access to Ethiopia through these ports is not available. Goods are shipped through Djibouti's ports for entry to Ethiopia.