Ethiopia: Livestock Exporters Optimistic As Ethiopia Launches Railway Cargo

The launch of Ethiopia’s first livestock export cargo transportation service by railway has sparked optimism among the country’s legal livestock exporters, according to the Livestock Exporters Association.

The Association Deputy Chairperson Dina Gezahegn highlighted that the government’s recent macroeconomic reforms have weakened illegal traders, allowing legal exporters to resume normal operations. The new railway cargo service, Dina said, presents a “double opportunity” for the sector.

In recent years, illegal trading had severely undermined the livestock export industry, with many exporters losing hope. However, Dina noted that the ongoing policy reforms, especially in the currency regime, are gradually helping to revive the sector. The narrowing gap between parallel market and official foreign exchange rates is making it harder for contraband traders to dominate, while legal exporters are beginning to see improvements in their performance.

Although progress is slow, Dina remains hopeful that further reforms will boost legal livestock trading. He also pointed out that livestock exports have not traditionally been a significant part of Ethiopia’s export portfolio, largely due to a lack of coordination between exporters and the government. However, the government’s efforts to diversify export income sources suggest that the livestock sector will receive more attention moving forward.

The association is actively supporting its members, advocating for financial support from government institutions and banks. Dina emphasized the need for banks to prioritize livestock exporters as they do for coffee exporters, arguing that the livestock sector can be equally profitable and reliable.

The combination of macroeconomic reforms and the new cargo service marks a turning point for the livestock export sector, providing hope after a decade of dominance by illegal traders.

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