Djibouti Launches RFID-based Fleet System to Streamline Trade with Ethiopia

By : Samira Njoya

Date : lundi, 17 juin 2024 10:13

Intra-African trade is confronted with numerous challenges, particularly regarding the management of goods transportation. To promote the emergence of a common market, it is urgent to identify and overcome existing barriers.

On Thursday, June 13, the Djiboutian Ministry of Infrastructure and Equipment, in collaboration with Djibouti Ports Corridor Road (DPCR) and the European Union, inaugurated a digital fleet management system named "Fleet Management System." This initiative aims to enhance the efficiency of goods transportation between Djibouti and Ethiopia, marking a crucial step for regional trade.

This modern system will allow us to better plan, manage, and the efficient flow of goods, contributing to our vision of making Djibouti a leading logistics and economic hub in Africa,” stated Aboubaker Omar Hadi, President of the Djibouti Ports and Free Zones Authority (DPFZA).

The launch of this new system is part of a strategic partnership between the European Union and the Republic of Djibouti, supporting the implementation of the Ethiopia-Djibouti Transport Corridor Project. The European Union has invested €32 million in one of the programs aimed at promoting regional economic integration in the Horn of Africa. The objective is to reduce trade costs by 10%, transit times by 15%, and customs clearance times by 30% at certain border crossing points.

The new system, which utilizes radio-frequency identification (RFID) technology, is expected to provide complete and instantaneous control of vehicle routes and transit times along the Djibouti-Ethiopia corridor. This system will also enable all logistics stakeholders to have visibility over truck movements, optimizing logistics operations and reducing waiting times at ports.

Samira Njoya


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