In a surprise move, the Ethiopian Investment Board over the weekend issued a landmark directive that government allows foreign companies to engage in export, import, wholesale, and retail trade inside the country.
The move marks a significant departure from Ethiopia’s traditionally protectionist stance, signaling a bold shift toward liberalising its domestic markets.
For years, Ethiopia maintained a cautious approach to foreign investment in its trade sectors, reserving large swaths of commercial activity—particularly in import and retail—for domestic investors.
The aim was to shield local businesses from foreign competition and to incubate a homegrown entrepreneurial base.
However, the government of Ethiopia introduces a directive No. 1001/2024, which allows foreign businesses to enter the Ethiopian market.
According to the Investment Board, the new directive is designed to support Ethiopia’s macroeconomic, structural, and sectoral reforms by creating a competitive business environment that fosters both domestic and foreign enterprise.
The directive sets out clear and transparent conditions under which foreign investors can participate in previously restricted trade sectors.
MG/as/APA