Transport and logistics systems are critical trade-supporting structures and there is a need to make these efficient. Specifically, border procedures (including customs clearance) and transport (local as well as international freights and shipments) are crucial to facilitate imports and exports, making businesses competitive, and hence boosting the country’s overall economic performance. Studies identify Ethiopia’s logistics sector as one of the constraints that drags the performance of the trade sector and a potential challenge in attracting quality FDI. Efficient and reliable transport and logistics services are  hence important to make Ethiopia a preferred location for foreign direct investors and to ensure that the country benefits from the growing Global Value Chains (GVC). Similarly, an efficient trade financing system can improve productivity, competitiveness, and job creation – all of which stimulate sustainable development (Gonzalez, 2014). Alongside transportation and logistics, lack of access to trade finance is one of the key challenges to exploiting Ethiopia’s trading potential (World Economic Forum, 2016). Furthermore, there is a considerable and enduring gap between the demand and supply of trade financing in Ethiopia. According to the Global Enabling Trade Report 2016[1], lack of access to trade finance is one of the most problematic factors for international trade in Ethiopia. International trade financing provides the  necessary  funding  advances  so  that  the  exchanging  of  goods  across  borders  is facilitated and the payment and supply risk that exporters and importers face is reduced significantly. Due to Importers’ limited access to trade finance and the long waiting time to obtain foreign currency permits from banks, importers face high port dwell time and long lead-time for imported cargo. On the other hand, exporters face financial constraints to arrange cargo as per contract until shipment and submission of shipping documents for negotiation.

Although the government is doing its best in terms of improving the services given and building the necessary infrastructures, identifying existing problems in the areas of trade financing and suggesting ways for further improvements in the system is still crucial. For example, in its homegrown economic reform agenda, the GoE recognizes the challenges and importance of addressing structural problems facing businesses. As part of this, a comprehensive National Logistics Strategy (NLS) has been developed in order to address the shortcomings and transform the country’s international trade logistics. Among the 98 interventions identified in the NLS, establishing control procedures for bank transaction payments, improving foreign currency supply, and establishing a financial support system for importers and exporters are closely related to trade financing and are the main focus of this study. This is important as there is limited evidence around the issue of trade finance in

Ethiopia that can be used to develop appropriate policy interventions.

Objectives of the study

In view of the above, the main aim of this study is to explore the problems in Ethiopia’s trade finance system and come up with policy recommendations that can improve the system  and  lead  to  reduced  logistics  costs  and  time  for  importers  and  exporters. Specifically, the study aims to:

•  Explore the problems that contribute to the high bank transaction fees, high logistics costs and delays;

• Identifying the specific challenges and determinants of access to trade finance for businesses engaged in export and import trade in Ethiopia

• Providing inputs for the establishment of a financial support system for importers and exporters

• Explore problems in the allocation of foreign currency and suggest ways of increasing transparency in the allocation of foreign exchange

•  Come up with new and improved trade finance instruments based on the experiences of other LDCs and DCs.

• Explore  policy  options  for  improving  access  to  international  trade  finance  and propose remedial solutions that can reduce logistics cost and time.

• Suggest  a  control  mechanism for  bank  transaction  payments  so  as  to  ensure

• competitive services.

Methodology

To meet the objectives of the study, both quantitative and qualitative approaches will be employed. Primary data will be collected through survey, focus group discussions and key informant interview while  secondary data will  be collected through  detailed document analysis, benchmark analysis and desk review. Descriptive and econometric analysis methods will be employed in data analysis as required in meeting the objectives of the study.

Job Requirement

Specialization and expertise of Senior Experts:

• Knowledge and understanding of theories, concepts and approaches relevant to the logistics systems as well as inter-disciplinary development issues such as trade finance and customs.

•  Knowledge or working relationships with international organization such as IMO, World bank, and others will be a plus;

Key Qualifications and requirements

• At least 12/10 years (Bachelor and Master’s Degree respectively) of relevant work/practical experience at managerial/leadership level as Deputy Director, General Director or CEO in Maritime and Logistics Sector.

• Proven experience in planning, developing, consulting/advising and leading diagnosis studies projects, strategies, programs and interventions with regard to logistics, import and export trade, transport, trade facilitation and operation in Ethiopia and East Africa such as Djibouti and Ethiopia.

• Demonstrated experience in transport, freight forwarding, shipping, port/dry port and terminal projects.

• Sound knowledge and understanding of import and export logistics-related issues in the country

• Experience in similar assignments, study, strategy, and policy development

NB:  Prior  consultancy experiences  in  Policy  Study  Institute  (PSI)  and  national  policy development and analysis is valuable.

Professional fee: will be as per the rate of Policy Studies Institute

Duration:  The duration of the consultancy service is 60 days (2 months) after the signing of the agreement between the consultant and PSI. However, the following condition needs to be met during the life time of the agreement.

The consultant should accomplish every deliverable within two months as of the date of agreement.

How to Apply

Submit your updated CV along with your cover letter in person to Policy Study Institute, to Human Resource Development and Management Directorate, in front of the national stadium, next to Betezata Hospital