For decades, Ethiopia has relied on Djibouti for more than 95% of its maritime trade. While the corridor has provided dependable access to global markets, this near monopoly has created economic, political, and security vulnerabilities that increasingly constrain Ethiopia’s growth and strategic autonomy.

The Economic Cost of Dependence

Heavy reliance on a single port raises logistics costs and reduces competitiveness. Ethiopia faces high port charges, transit fees, and handling costs, with logistics accounting for an estimated 20–30% of final goods costs—far above the global average of 8–12%. Freight rates along the Djibouti corridor are also significantly higher than those in neighboring coastal states. These costs erode the profitability of key exports such as coffee, textiles, and oilseeds.

The financial burden extends beyond trade competitiveness. Ethiopia spends roughly $1.5–2 billion annually on port services, transit tariffs, and logistics payments to Djibouti. This represents a substantial outflow of foreign currency at a time when the country faces persistent forex shortages. Resources spent on external logistics could otherwise support infrastructure, industrial imports, healthcare, or other domestic priorities.

Dependence on a single corridor also creates operational risks. Delays at Djibouti or along the transport........

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