Landlocked countries confront particular obstacles when it comes to maritime access and international trade. These problems can have a considerable impact on their economic development, trade efficiency, and overall connection to global markets.
Landlocked countries have the most limited access to ports. They are reliant on neighboring countries, which can make trade routes vulnerable. Furthermore, the restricted number of available ports might cause congestion, delays, and higher shipping prices.
Additionally, if they use the ports of their neighboring countries, their transportation costs increase. Specifically, one of their biggest challenges is rising freight prices. Overland transportation can be more costly than maritime transportation for getting commodities to ports, which drives up the cost of trade overall. Furthermore, inadequate rail and road systems can lower efficiency and increase transportation costs.
Another issue that landlocked countries face is customs and border delays. When exporting goods through neighboring nations, they frequently encounter lengthy customs processes and border checks that cause major delays. This, in turn, exposes corruption and inefficiency because corruption at border crossings can disrupt trade operations and raise costs. Landlocked countries may have little bargaining leverage in trade deals with coastal countries, influencing their trading conditions.
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Landlockedness also limits trading prospects and restricts market access. Landlocked countries may have fewer options to conduct international trade, restricting their economic growth potential. They were also obliged to rely on a few partners. Because they rely on a small number of surrounding countries for commerce, they are sensitive to those countries' economic swings.
This, in turn, creates obstacles for economic diversification. Many landlocked countries' economies are strongly reliant on specialized businesses (such as agriculture or mining), rendering them vulnerable to external shocks. Furthermore, it is difficult for them to attract investment because they are unwilling to engage in landlocked countries due to perceived logistical obstacles. Many landlocked countries lack the essential trade facilitation tools, such as single-window systems, to expedite customs processes and increase trade efficiency.
Some noteworthy African landlocked countries include Mali, which relies on ports in Senegal and the Ivory Coast. Uganda is another country that relies on Kenyan ports. Zambia is another country that relies on Tanzanian and South African ports. For these countries that invested in infrastructure, transportation costs remain expensive.
Ethiopia is also a landlocked country, having lost access to the sea with Eritrea's independence in 1993. Ethiopia's landlocked situation has a number of economic repercussions. Currently, the country relies on Djibouti for access to the sea. According to the Ethiopian Maritime Authority 2023 report, Ethiopia pays Djibouti almost $2 billion per year for port services, which accounts for one-quarter of Djibouti's GDP. Ethiopia relies significantly on Djibouti ports for export shipping and import services, with around 95% of its external trade traveling through Djibouti's port.
Prime Minister Abiy Ahmed (PhD) mentioned a UN report in a recent speech to the House of People's Representatives, highlighting how access to the sea might potentially boost a country's economic growth by 25-30%.
Aware of these realities, landlocked list developing nations held their conference to find a solution for sea access. This year, the Third United Nations Conference on Landlocked Developing Countries (LLDC3) convened in Awaza, Turkmenistan, with the theme "Driving Progress through Partnerships," bringing together stakeholders, policymakers, and world leaders.
This landmark event aims to address the unique challenges faced by the world's 32 landlocked developing countries, home to over 600 million people, and accelerate sustainable development through enhanced cooperation, trade facilitation, and infrastructure investment.
During the conference, Ethiopia stressed the need to advocate for a renewed commitment to an inclusive, transparent, and effective global partnership to enable Landlocked Developing Countries to overcome their unique challenges and achieve their full potential for sustainable development.
In his address to the meeting, Ethiopia's Minister of Transport and Logistics, Alemu Sime, underscored that landlocked developing countries continue to face heightening challenges, including a lack of direct access to the sea, high transportation costs, and inadequate infrastructure. Geopolitical tensions, climate change, and high debt burden further compound these challenges.
Ethiopia believes that the resources on the high seas, which represent roughly 50% of the planet's surface and 60% of the global ocean areas, can drive prosperity for all countries, he remarked.
"It is critical that we uphold the right of all states to guaranteed and secure access to the sea. This is a holistic right that goes beyond transit. It includes participation in maritime economic opportunities, environmental protection, and maritime security," the minister underscored.
The full implementation of this fundamental principle is necessary for ensuring sustainable and shared development and lasting peace, Alemu said, adding that "From this conference, Ethiopia expects to see a transformative focus and renewed global commitment."
Commending the Awaza Programme of Action for proposing the establishment of a high-level panel of experts to explore the means of implementing the equal right of all states to access the sea, Ethiopia also urges the introduction of a paradigm-shifting approach ensuring equal maritime rights for all states.
The Minister also emphasized the need to strengthen regional integration and facilitate trade by investing in infrastructure, creating connectivity among states of the same region.
Alemu also urged partners to finance project initiatives, especially in Africa, that aim at streamlining customs procedures, liberalizing access to transport and logistics markets and easing trade barriers, promoting technology and innovation, and enhancing sustainable financing.
Ethiopia further calls for a significant increase in international financing for infrastructure development, the minister underlined.
"We should advocate for a renewed commitment to an inclusive, transparent, and effective global partnership, to enable LLDCs to overcome their unique challenges and achieve their full potential for sustainable development."
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He urged development partners to support digitalization, coordinated border management, and harmonized transit regions to unlock our full potential on maritime governance.
The commitments in the Awaza Program of Action should be applied in line with the rights of all states, including equal participation in maritime economic opportunities, protection of environmental rights in shared marine spaces, and contribution to regional peace and security through collaborative maritime governance, Ethiopia's Minister stressed.
Ethiopia reaffirmed its commitment to the full implementation of the SDGs and the Awaza Programme of Action.
The Awaza Programme of Action (APoA) for Landlocked Developing Countries (LLDCs) for the Decade 2024-2034 was adopted by the United Nations General Assembly on 24 December 2024 under resolution A/RES/79/233.
It represents a renewed and strengthened global commitment to support the development aspirations of the 32 LLDCs located in Africa, Asia, Europe, and South America.
In order for LLDCs to overcome their particular obstacles and realize their full potential for sustainable development, an effective international partnership is undoubtedly necessary.
However, international assistance, such as development aid and investments in transportation infrastructure, is also essential for enhancing their access to international markets and promoting economic growth. In order to fully realize the economic potential of Landlocked Developing Countries (LLDCs), international assistance is necessary, with the adage geography should never define destiny.
