DHL Global Forwarding and Ethiopian Airlines have signed an agreement to form a joint venture company to provide much needed freight capacity and logistics infrastructure in Africa.

The new Ethiopian-based company will be called DHL-Ethiopian Airlines Logistics Services, with majority stakeholder Ethiopian Airlines providing regulatory and operational support, and DHL will establish air, ocean and road freight connections between Ethiopia’s main trade hubs and the rest of the world.

DHL veteran Pramod Bagalwadi will lead the new organisation, adding to his portfolio, which consists of leading industrial projects team for DHL in Sub-Saharan Africa and a strategic business partner in the region.

DHL Global Forwarding Middle East and Africa chief executive officer (CEO), Amadou Diallo says: “With its GDP growth, Africa is stepping into the spotlight as production hub. Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa, and under Pramod’s leadership, the company will be able to provide a scalable and durable logistics infrastructure to safely handle the sensitive needs of its core industries.”

Ethiopian Airlines Group CEO, Tewolde GebreMariam says: “Logistics is key to support Africa’s fast economic growth and industrialisation drive. Ethiopian has, therefore, partnered with DHL who has a proven expertise and experience in the logistics sector, with a view to avail the right logistics solutions in terms of cost, time and quality.

“We have had a longstanding and mutually rewarding partnership with DHL, and with this JV we aim to make the country a logistics hub for Africa.”