Ethiopia’s landlocked status and reliance on foreign ports are costing the country up to 23 percent of its gross domestic product annually, according to a new study by the Ethiopian Policy Studies Institute, Ethiopian Business View (EBV) reported. The losses are estimated to range between 19 billion US dollars and 31 billion US dollars per year.

Titled “Restoring Maritime Sovereignty: Ethiopia’s Legal Claim for Sovereign Port Access and Its Historical, Geopolitical and Economic Imperatives,” the report notes that as Ethiopia’s economy grows, the operational constraints and expenses linked to lacking direct sea access are rising in parallel.

For 2024, the study estimates that the economic burden associated with being landlocked accounted for between 13 percent and 23 percent of the country’s total GDP. Researchers highlighted that these costs stem from port rental fees, elevated transport expenses, and missed trade opportunities caused by logistical delays.

During a presentation of the findings to senior officials, the institute stressed that securing sovereign port access is not only a matter of national sovereignty but also a critical economic priority for sustaining long-term growth.

The study concludes that achieving reliable port access could strengthen Ethiopia’s regional trade competitiveness and help alleviate structural economic pressures that currently impede the country’s commercial expansion.