In March 2017, the expansion of the Modjo Dry Port became a crucial step for Ethiopia to strengthen its trade infrastructure. Supported by a loan of $230 million through the World Bank’s Ethiopia Trade Logistics Project (ETLP), the expansion aimed to increase the capacity of the nation’s busiest inland port, which carries more than 90% of Ethiopia’s imports and exports.
While the project was widely seen as necessary and promising for Ethiopia’s trade infrastructure, the news that 110 farmers would be relocated initially sparked concern and resistance among the farmers themselves, including 35-year-old Shalo Shura. However, the project placed strong emphasis on a fair and respectful relocation process, ensuring that the needs and rights of the local community remained at the center of every step.
A Relocation Plan Shaped by Consultation
Recognizing the sensitivities and risks associated with displacement, the Ethiopian Maritime Authority (EMA) led a comprehensive consultation process. Over a period of six months, twenty-one meetings were held to listen to concerns, answer questions, and shape a relocation plan that reflected the voices of those involved. Independent consultants, supported by the local district’s Compensation Valuation Committee, visited every household, recording their assets to ensure transparency. “I registered my farmland, my house, my cattle and even the dried cow dung that was piled in my backyard that I planned to sell for firewood,” recalls Shalo.
Fair and Timely Compensations
A cornerstone of the relocation was the commitment to fair compensation. Every displaced household received a 500-sqm residential plot in Modjo town and compensation pegged to their farmland’s projected 10-year income. The city administration also provided a 140-sqm plot to the children of farmers who were over 18, helping the next generations have financial security. In a rare break from the norm, compensation was provided before relocation, allowing families to plan and build their new homes with confidence. “I received a year’s rent to cover my expenses until I finished building my new home,” says Mrs. Gadise Megra, another relocated farmer. The Ethiopian Shipping and Logistic Service Enterprise also provided compensations for the intangible impacts of relocation, such as the loss of equb and edir (traditional savings groups and community funeral associations).
Restoring Livelihoods and Creating New Opportunities
Understanding that relocation means more than a change of address, the project introduced a Livelihood Restoration and Rehabilitation Plan. Under the Ethiopia Trade Logistics Project, displaced families received dairy cows, poultry, or honeybees to support income generation, in line with World Bank safeguards. Young people were trained in new trades, while the elderly and unwell received a year of direct cash support.
For Shalo, the dairy cows enabled him to start a milk delivery business, providing daily income and new opportunities for growth. He purchased a Bajaj three-wheeler to run the deliveries and used the vehicle to haul fertilizer and cattle feed. “There was no room for me to grow as a farmer. I barely made profit once a year. I now have a daily income. I’ve made enough to spend about 7 million Birr (roughly about $46,000 ) on building my new house,” he says. Others, like Demissie Regassa, invested in real estate and diversified their agricultural activities, showing their resilience and adaptability.
Access to Essential Services
Relocation to Modjo town brought tangible improvements in quality of life. Families that were relocated to Modjo town under the Ethiopia Trade Logistics Project can now enjoy reliable electricity and clean tap water for the first time, along with paved roads and nearby schools. “We were afraid to leave our land, but our lives are much better now,” says Eshetu Wedajo, whose children now attend school just minutes away. “We have tap water in the house and my children read at night without smoke from kerosene lamps in their eyes.” Health services also became more accessible, with families receiving a year of medical insurance through a partnership between the Ethiopian Shipping and Logistic Service Enterprise and local authorities.
Balancing Development with Environmental Care
The project’s commitment to environmental protection was evident in the preservation of green spaces and the creative reuse of excavated soil. A share of 10% of the new logistics hub was set aside for fruit trees and greenery, while a 12-hectare gorge was transformed into farmland for 53 unemployed youths, many from relocated families. The young farmers produced 140 quintals of wheat last year and are now looking forward to an even greater harvest of teff this year.
A New Chapter
The transition wasn’t always smooth. Some families struggled to adapt, and there were bumps along the way. But from the start, the relocation was shaped by respect, open conversations, and a genuine focus on everyone’s long-term wellbeing.
For the farmers who moved, this season’s harvest was unlike any before. Instead of just crops, it brought homes with electricity, clean water flowing from taps, schools close enough for children to walk to, and bright light fixtures where kerosene lamps once flickered. Not every yield was good, as some families stumbled, and others spent their earnings too quickly. Yet for many, what took root was richer than the fields they had left behind: a new foundation for life, filled with hope and opportunity.
