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Ethiopian Shipping and Logistics Secures Capital Increase, Strengthens its Position in Africa's Logistics Sector

Strategic Insights

— 1 min read

The board of the Ethiopian Shipping and Logistics (ESL) has approved a long-awaited capital increase, bolstering the state-owned logistics company's operational capabilities and supporting its ambitious growth in regional and international logistics markets. The strategic investment, which will raise ESL's funding tenfold from 20 billion birr to 200 billion birr, will enable the company to expand its operations, pursue new business opportunities, and solidify its position as Africa's leading commercial vessel operator.

Key Takeaways:

  • ESL's capital increase will raise its funding from 20 billion birr to 200 billion birr, strengthening its capacity and facilitating expansion across key logistics segments.
  • The company aims to increase its revenue by one-third in the current budget year through various initiatives, including expanding its inland water ferry services, port infrastructure, and logistics hubs.
  • ESL plans to diversify its operations beyond traditional shipping by investing in port machinery and infrastructure, including the development of the Kality Green Port City.
  • The company will finance the purchase of five new vessels with three local banks, with ESL contributing 30% and the banks covering 70%, while one vessel will be entirely self-financed.
  • In 2024/25, ESL reported a revenue of 109 billion birr, a 184% increase over the past two years and a 91% rise compared to the previous year.
  • The company generated USD 500 million in foreign currency from its international operations in 2024/25.
  • ESL's profit for the year surged to 32 billion birr, reflecting a 264% increase from the previous year.
  • Dividend payments to the government also rose significantly, from 4.7 billion birr in the 2022/23 budget year to 17 billion birr in 2024/25.
  • The company foresaw 160% of the export cargo target handling, with 41,000 metric tons transported.

Statistics:

  • ESL's revenue growth in 2024/25: 184% increase over the past two years and a 91% rise compared to the previous year.
  • Revenue in 2024/25: 109 billion birr.
  • Foreign currency earnings in 2024/25: USD 500 million.
  • ESL's profit for the year in 2024/25: 32 billion birr.
  • Dividend payments to the government in 2024/25: 17 billion birr.
  • Export cargo handling in 2024/25: 160% of the target with 41,000 metric tons transported.

Sources:

  • The board of Ethiopian Shipping and Logistics (ESL)
  • Finance Minister Ahmed Shide
  • ESL CEO Beriso Amelo
  • Capital (publication)

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