The agreement provides a framework for advisory
support to be implemented in a three-year program in partnership with ECC
as well as other public and private sector stakeholders.
The time and costs related to import-export
are one of the major impediments to Ethiopia’s economic growth, where
bureaucratic hurdles, inefficient regulatory framework, and poor coordination
between government agencies have been affecting the efficiency of cross-border
IFC, through its Investment Climate facility,
has been working with the Ethiopian Revenue and Customs Authority (ERCA),
ECC’s predecessor, since 2013 to improve the country’s investment climate.
The cooperation resulted in improved trade facilitation environment, particularly
by reforming the legal and regulatory frameworks, initiating customs risk
management, launching the national Electronic Single Window (eSW) system,
and streamlining of documents and procedures.
Today’s agreement is a continuation of the
previous initiative and has the following major expected outcomes:
ECC’s Customs Risk Management: ECC applies risk management and classifies
import and export shipments in to different risk channels (red, yellow,
green, and blue) to control consignments that present a risk and to facilitate
With the aim of facilitating trade, thus cutting
down time and costs of trading, the program targets reducing red-channel
rates for import from the current 30 percent, increasing the green channel
up from 15 percent, and significantly boosting risk management implementation
for export cargo that is in its infancy.
Streamlined Transit and Border Crossing Procedures: About 95 percent
of Ethiopia’s import-export trade passes through the Djibouti transit
corridor, so improving trade logistics of this corridor is vital. The bilateral
agreement between Ethiopia and Djibouti provides a related legal framework,
which is not fully implemented. Therefore, the program will identify opportunities
to implement common or harmonized procedures, and supporting the operation
of a joint border committee within the framework agreement.
of the National eSW: The Government of Ethiopia (GoE) had partnered
with IFC and launched the eSW in 2013 as one of the tools to improve the
country’s investment climate. The eSW serves as a common electronic platform
integrating all regulatory agencies and stakeholders involved in international
trade, and enables electronic submission and processing of trade documents
and data required for customs clearance.
IFC will continue to support the rollout and
development of eSW through streamlining the various laws and regulations
and their alignment with the newly designed Business Process Reengineering
(BPR) at government agencies; provide capacity building of participating
agencies; and designate proper procedures to integrate risk management.
The cooperation agreement was signed today
at ECC’s office between Dahlia Khalifa, Senior Manager at IFC; and Debele
Kabeta, Commissioner of ECC.
During the signing ceremony, Commissioner
Debele said, “IFC’s advisory support will tackle significant drawbacks
in the trade logistics sector. This partnership aligns with the Government
of Ethiopia’s priorities for improving the trade logistics landscape and
coincides with the National Doing Business Reform Initiative spearheaded
by the Prime Minister Dr Abiy Ahmed.”
Dahlia Khalifa said “Supporting an improved
environment for business to trade helps expand opportunities for private
investors to play a bigger role in Ethiopia’s development. Today’s agreement
continues and expands our longstanding partnership with the Commission
through a renewed deal to improve the trade logistics sector. The Commission
has again demonstrated its commitment to realize concrete reforms that
will positively impact the economy at large.”
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,
About the Ethiopian Customs Commission
ECC is an autonomous federal government organ
responsible for laying modern customs administration systems that ensures
fair, speedy, and efficient customs services; timely and efficient collection
of customs duties on imports and exports; implement the customs proclamation
as well as other laws, regulations, and international agreements relevant
to its mandate; and control the import and export or transit of prohibited
or restricted goods, the flow of which is governed by relevant laws and