The background
With a history dating back to ancient times, Ethiopia has long been a key player in regional and international trade due to its strategic location at the crossroads of Africa, the Middle East, and the Indian Ocean. Today, Ethiopia's trade landscape is characterised by its diverse exports, including coffee, flowers, oilseeds, and textiles, as well as its growing manufacturing sector. The country has positioned itself as a gateway to Africa, with ambitious infrastructure projects such as the Addis Ababa-Djibouti railway and the expansion of its ports enhancing its connectivity and trade potential.
Under an EU-funded initiative, Ethiopia embarked on a major modernisation of its customs processes with Webb Fontaine with a state-of-the-art Customs Management System (eCMS) across all operational customs stations within the country. This ambitious project was focused on bringing Ethiopia's customs operations up to international standards, automating 27 customs offices, and enhancing interconnectivity with neighbouring countries.
Ethiopia's rich trade history, coupled with its strategic location and ongoing efforts to modernise its customs processes, underscores its importance as a key player in regional and international trade.
The action
To meet Ethiopia's complex customs requirements, Webb Fontaine implemented several cutting-edge solutions tailored to the country's diverse trade landscape. This included manifest processing at airports, ensuring swift and accurate handling of cargo arrivals and departures. Declaration processing was streamlined through advanced digital systems, simplifying the process for importers and exporters while ensuring compliance with regulations. A sophisticated transit monitoring system was established, integrating guarantee management to enhance oversight of goods in transit along key corridors. This not only facilitated smoother cross-border trade but also minimised the risk of revenue leakage and improved security. Electronic payment facilities were introduced, enabling seamless and efficient transactions, while also reducing the reliance on manual paperwork.
Furthermore, Webb Fontaine facilitated seamless interconnections with the Djibouti Customs administration, enhancing collaboration and coordination between the two countries. The introduction of inward processing and support for industrial exports played a crucial role in fostering foreign investment and stimulating economic growth, particularly in logistical and industrial parks. These measures not only simplified customs procedures but also provided incentives for businesses to invest and operate in Ethiopia, further bolstering the country's position as a regional trade hub.
Webb Fontaine's initiatives included:
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Trade portal for taxation simulation, rules and regulations, declarations, and T1 transit forms
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Self-assessment of customs declarations on the portal by declarants
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Automation of all import and export multimodal and unimodal transit operations of the main transit corridors of the country, connecting Galafi Customs office (Djibouti border) to Kalitti and Mojo Customs offices near Addis Ababa; through-transit as well as imports and exports from/to Kenya, Somaliland, and Sudan
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Real-time access by transit customs officers and checkpoint officers using barcode readers
T1s (Transit forms) generated from transit declarations (IM8 declarations) sent by Djibouti AsycudaWorld system
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The eCMS controls transit bonds accounts for unimodal transit and covers 100% of the transaction flow of the country
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Airport Electronic manifest automatically lodged using IATA XML and Cargo IMP standards
Comprehensive dynamic risk management system
Monitoring of manufacturer's raw materials processing through complex formulae
