DHL GF, Ethiopian Airlines launch JV to build logistics infrastructure in Africa

DHL Global Forwarding and Ethiopian Airlines have entered a joint venture (JV), “DHL-Ethiopian Airlines Logistics Services Ltd.,” that will serve the entire continent of Africa based from Ethiopia – with Ethiopian Airlines holding a majority stake in the venture.

“With its GDP growth, Africa is stepping into the spotlight as production hub,” CEO of DHL Global Forwarding for the Middle East and African regions, Amadou Diallo said. “Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa.”

The forwarding giant aims to establish air, ocean, and road freight services to connect trade hubs in the Horn of Africa to the rest of the world. The nation is an exporter of perishable goods like flowers and livestock, as well as leather products and coffee. While the region has a solid portfolio of exports, there is a “much-needed [improvement in] freight capacity and logistics infrastructure,” a statement from the companies said.

DHL Global Forwarding has been supporting the maintenance, repair, and overhaul (MRO) operations for the carrier since 2010, offering its “end-to-end logistics services for aircraft parts, engines and mechanical modules to textile, utensils, food and beverages via air and ocean freight between Europe and Asia,” the statement said.

The cargo logistics partnership comes at an optimistic time for the region; this month, the Ethiopian government sealed an agreement that finalized a 20-year-long war with neighboring Eritrea, in which both countries spent hundreds of millions of dollars and saw thousands of casualties due to a border dispute. On July 18, the first flight since reconciliation between the two countries was operated by Ethiopian Airlines.

“Logistics is key to support Africa’s fast economic growth and industrialization drive,” said Tewolde GebreMariam, CEO of Ethiopian Airlines Group, and continued that “with this JV we aim to make the country a logistics hub for Africa.”