Ethiopia’s Leap in Trade Efficiency: The Single Window System Success
In a transformative stride, Ethiopia has embraced technological innovation to overhaul its trade and revenue systems. The Ethiopian Single Window System Development Project, a collaborative effort between the FDRE Ministry of Revenue and the Korea International Cooperation Agency (KOICA), has been a game-changer.
Project Overview
Launched in 2019 with a generous $7.49 million grant from KOICA, the project aimed to enhance tax revenue and fairness through transparent processes. Over four years, it focused on developing the Ethiopia Electronic Single Window System, which included system development, data warehouse establishment, equipment delivery, and technical capacity-building programs.
Impactful Outcomes
The project’s success is evident in its impressive numbers:
- Over 850,000 online applications processed: The streamlined system allowed businesses and individuals to submit applications seamlessly, reducing paperwork and bureaucracy.
- Engagement with 29 banks, 18 insurance companies, and numerous Custom Brokerage and Regulatory Authorities: The collaboration fostered trust and efficiency across the trade ecosystem.
- Savings of over $100 million USD or 3.29 billion birrs: By simplifying processes, reducing delays, and minimizing corruption, the system directly contributed to cost savings.
- Facilitation of 129,254 import and 10,146 export transactions: The Single Window System expedited trade, benefiting both importers and exporters.
- Reduction of permit processing time from 15-30 days to just 2.5 days: This remarkable improvement enhanced business agility and competitiveness.
Beneficiary Insights
Elsabeth Getaneh, a logistics industry leader who is founder and President of Panafric Global PLC, praised the system’s efficiency during the COVID-19 pandemic, stating, “the Electronic Single Window System has undeniably made a profound impact on the logistics sector, successfully achieving the objectives set forth by the project”.
Mr. Million Hailemichael from the Ethiopian Communication Authority highlighted the system’s role in enhancing transparency and efficiency, remarking, “its user-friendly interface facilitates efficient communication equipment importation and approval processes”.
Going Forward
With the project’s success, KOICA is committed to advancing the next phase, aiming to further enhance trade facilitation and regulatory efficiency. This initiative stands as a testament to the power of international cooperation in driving sustainable development and prosperity.
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Source: This article is authored by Korea International Cooperation Agency (KOICA).