Digital transformation in Ethiopian trade and the agricultural sector to boost international competitiveness.
Ethiopia is undertaking a significant transformation in its agricultural sector with the launch of the Integrated Export and Import Certification System (IEICS), also known as the e-Phyto system. This digital initiative, developed in collaboration with the Ethiopian Agricultural Authority (EAA) and TradeMark Africa (TMA), aims to modernize the trade process for agricultural exports and imports. Funded by the European Union through the Agence Française de Développement (AFD) with ETB 9.1 million (€149k), the e-Phyto system is set to replace traditional paper-based certification processes, drastically reducing transaction costs and carbon emissions.
Streamlining agricultural trade with e-Phyto
The e-Phyto system represents a substantial leap forward for Ethiopian trade and the country’s agricultural sector. By embracing digital solutions, the system aims to streamline processes, enhance efficiency, and foster transparency across the entire agricultural value chain. Through seamless integration with international phytosanitary certificate systems, the e-Phyto system will offer end-to-end paperless services for both import and export certification, from application submission to certificate issuance.
Aligning with global trends
Ato Wondale Habtamu, Deputy Director and Head of the Ethiopian NPPO, emphasized that the transition to an e-Phyto system aligns with global trends towards sustainable and inclusive economic practices. “By integrating digital solutions into agricultural trade, Ethiopia not only boosts its export competitiveness but also supports the United Nations Sustainable Development Goals (SDGs), particularly those related to industry, innovation, and infrastructure (SDG 9) and responsible consumption and production (SDG 12). This partnership marks a significant milestone in Ethiopia’s agricultural development,” said Mr. Habtamu.
International support and collaboration
The European Union, represented by Mr. Abiy Tesfaye, highlighted the significance of this digital certification tool. “The introduction of the e-Phyto system, funded by the European Union, marks the readiness of Ethiopia to use state-of-the-art systems to fully participate in global trade. This initiative not only enhances Ethiopia’s trade competitiveness but also establishes a foundation for enduring economic empowerment and environmental stewardship,” noted Mr. Tesfaye.
Ewnetu Taye, TMA Ethiopia Country Director, expressed excitement about the collaboration with the Ethiopian Agricultural Authority. “Our partnership aims to build a sustainable and inclusive trade environment that benefits the entire region. By adopting advanced technologies, we are setting a new standard for agricultural trade across Africa, giving the continent a global competitive advantage,” said Mr. Taye.
Implementation and future prospects
The e-Phyto system is designed to connect with the e-Phyto hub, facilitating the sharing of issued certificates with international counterparts, thereby streamlining the export process. Three implementation options are currently under consideration: adopting the GENS platform, customizing solutions used in Kenya, or developing a bespoke system tailored to Ethiopia’s specific needs. Consultations with agricultural ministries in Kenya and Uganda are ongoing to refine these options.
As Ethiopia embarks on this transformative journey, the collaboration between government stakeholders, industry players, and international partners will be crucial in ensuring the success and sustainability of the e-Phyto system. Empowering Ethiopian farmers and exporters will catalyze economic growth, paving the way for a more resilient and prosperous agricultural sector in Ethiopia and across the Eastern African region. The e-Phyto project is part of the EU’s broader program aimed at promoting regional economic integration in the Horn of Africa through the development of the Djibouti corridor.
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