An employee works at the e-commerce logistics hub in Addis Ababa, Ethiopia, built with assistance from CAIEC (COURTESY)

As African economies continue to expand their trade networks, digital transformation and e-commerce have emerged as key drivers of economic development. Ethiopia has embraced this trend, aiming to modernise its logistics and aviation infrastructure to meet the growing demand. 

E-commerce is increasingly viewed as a critical driver for industrial upgrading, economic diversification, and regional development, and a foundation for a sustainable, technology-driven economy. 

In recent years, the Ethiopian government has rolled out policies and strategic initiatives to foster the growth of the country’s e-commerce sector. These measures aim to encourage cross-border online trade, strengthen logistics capabilities, and further integrate the nation into global supply chains. 

Seizing the opportunities 

As Africa’s leading carrier, Ethiopian Airlines has actively leveraged the e-commerce boom by expanding its air cargo and logistics services with strong support from Chinese engineering expertise.  

Under the framework of the Belt and Road Initiative, China National Aero-Technology International Engineering Corp. (CAIEC) has partnered with Ethiopian Airlines to construct a state-of-the-art e-commerce logistics hub, sharing decades of experience in e-commerce and logistics management to support Africa’s modernisation efforts. 

The modern e-commerce logistics hub in Addis Ababa dedicated to e-commerce, mail, and courier logistics services allows the airline to efficiently process higher volumes of goods, incorporating advanced sorting, storage, and customs clearance systems. 

At the inaugural ceremony for the project held in February last year, Ethiopian Minister of Transport and Logistics Alemu Sime praised the new logistics facility for its ability to streamline operations and inventory management before goods are dispatched to customers. 

Ethiopian Airlines Group CEO Mesfin Tasew underscored the strategic significance of the facility for Ethiopian Airlines Group and the entire African economy, stating, “We have implemented high-end technologies in the infrastructure that revolutionise the way goods are transported and delivered in the e-commerce industry in Africa. Through this facility, Ethiopian Airlines paves the way for the development of e-commerce services in Ethiopia and the African continent.” 

Infrastructure upgrades 

The logistics hub represents a collaboration between Ethiopian Airlines and Chinese engineering firms. Built on 15,000 square metres of area, the facility boasts a capacity to handle 150,000 tonnes of cargo annually. 

The facility is equipped with advanced equipment, including small-parcel sorting machines capable of processing packages up to 15 kg each, customs-grade security scanners, and an ETV automated storage system with a capacity of 500 aircraft cargo containers.  

Complementing the hardware, China also supplied digital operating platforms, including an ICS warehouse management system and a cargo management system. These ensure seamless integration with Ethiopian Airlines’ aviation network and are designed to accommodate future e-commerce platform connections. 

The project, launched in late 2021 and operational in February 2024, overcame multiple hurdles - especially the COVID-19 pandemic-related supply chain disruptions - and was completed on time to a high standard. “As the first facility of its kind on the continent, the absence of a prior model also presented unique challenges for the team,” Mi Weiwei, the project’s director, told ChinAfrica. 

The successful completion of the project was made possible through the joint efforts of both Chinese and local employees. To ensure smooth collaboration, comprehensive training programmes were provided to Ethiopian staff, supported by tailored incentive mechanisms.  

The project benefitted from China’s extensive experience in express delivery and e-commerce logistics, adapting these solutions to the African context. Chinese engineering expertise, combined with advanced and reliable equipment, ensured the project met Ethiopian Airlines’ specific operational requirements. 

Stronger bonds 

Beyond the logistics hub itself, CAIEC has supported Ethiopian Airlines by building complementary infrastructure, including aircraft component storage facilities, maintenance hangars, painting workshops, and airport-adjacent hotels. These facilities have also boosted Ethiopian Airlines’ overall operational capacity. Through the cooperation in multiple projects, local employees witnessed and recognised the management and operational proficiency of the Chinese teams. Such collaboration has also facilitated skill development and technical knowledge transfer. 

The strategic impact of the logistics hub has been further amplified by Ethiopian Airlines’ expansion of dedicated cargo routes to China. On 3 April, Ethiopian Airlines inaugurated a new cargo route to Macao, marking its 10th dedicated cargo destination in China.  

Furthermore, the first direct air cargo route connecting northwest China’s Xinjiang Uygur Autonomous Region to Addis Ababa was launched on 27 June, offering two to three weekly flights. This route enables Xinjiang exporters to efficiently reach African and global markets, and premium African products - such as specialty coffee, beef, lamb, and horticultural goods - to reach Chinese consumers more effectively. 

Combined with modernised logistics infrastructure, these new air links are expected to improve trade flows, support cross-border e-commerce, and create a more robust China-Africa supply chain network. 

The project provides a model for other African nations seeking to harness digital commerce, aviation, and logistics as engines of modernisation. With China’s technical know-how, mature logistics solutions, and operational expertise, Ethiopia has been able to leapfrog traditional logistical bottlenecks, fostering a more connected, efficient, and technology-driven trade ecosystem. 、