Tech-Driven Home Delivery of Essentials Scaled Up by Ethiopian City Municipality

The Addis Abeba Trade Bureau has announced a significant development in the distribution of essential commodities, reporting that 294,000 customers have registered for a new technology-driven system designed to deliver subsidized items like sugar, cooking oil, and wheat flour directly to their homes. This initiative is part of a broader strategy to enhance accessibility for low-income residents in the capital.

The Bureau has appointed Makeba PLC to manage this door-to-door delivery service, which incorporates digital payment options to streamline transactions. Awash Mohammed, the manager of Makeba, highlighted that the company is currently enrolling customers from the Addis Ketema, Lideta, Kolfe Keranio, and Nifas Silk Lafto sub-cities as part of this innovative service. A pilot program has already begun in these areas to test the efficacy of the home delivery system, with plans for future expansion to cover all remaining sub-cities.

To facilitate this distribution, Makeba is utilizing Agelgel, a subsidiary delivery company that specializes in logistics, ensuring that essential goods reach customers efficiently and promptly.

This new distribution model marks a pivotal shift in how essential commodities are delivered in Addis Abeba. It comes a year after the Bureau's decision to expand its technology-assisted delivery services, initially launched in Kolfe Keranio. In November 2023, the Bureau's Strategic Council approved the expansion of these services to additional areas, including Lideta and Nifas Silk Lafto, starting in December 2023. This decision reflects the administration's commitment to modernizing its service delivery through technological innovations.

The initiative is part of a larger plan by the municipality to outsource six of its 11 major services to third-party providers, aiming to enhance efficiency and service quality. Among the services slated for outsourcing are the distribution of basic food items, market center management, business registration and licensing, market price research, and postal messaging services.

Despite these advancements, the municipality continues to rely heavily on 140 cooperatives operating within the capital for the distribution of subsidized food items. These cooperatives play a crucial role in ensuring that residents have access to essential goods, particularly as the new technology-driven system is rolled out.

The implementation of this distribution system is anticipated to significantly enhance access to essential commodities while also empowering low-income residents by offering a more convenient and efficient method for acquiring vital supplies. By utilizing technology to facilitate door-to-door delivery and digital payments, the initiative aims to streamline the purchasing process and reduce barriers to access for marginalized communities.

This progressive approach not only addresses immediate needs for subsidized goods but also reflects a broader commitment to leveraging technological advancements in tackling socio-economic challenges within the city. The integration of a technology-driven model into the distribution of essential commodities underscores the potential for innovative solutions to improve the quality of life for residents, particularly those who are economically disadvantaged.

Furthermore, by outsourcing this service to companies like Makeba PLC, the administration is positioning itself to optimize resource allocation and service delivery. This could lead to improved efficiency and effectiveness in meeting the needs of the community, fostering an environment where all residents can thrive. Ultimately, the success of this initiative could serve as a model for other regions facing similar challenges, illustrating the importance of technology in driving social and economic progress.