In a bold move designed to boost economic growth, Ethiopia took a major shift in its trade policy. The Ethiopian Investment Commission (EIC) and the Ministry of Trade and Regional Integration jointly revealed that export, import, wholesale, and retail trade sectors would now be open to foreign companies.

Hanna Arayaselassie, Commissioner of the EIC explained that the goal was to create a more competitive business environment while attracting much-needed foreign investment.

Previously, these sectors were tightly regulated and largely reserved for domestic businesses. However, recognizing the limitations of this approach, the government stated that it was embracing international best practices and drawing inspiration from successful models in countries like China, India, Kenya, Uganda, and Vietnam.

Foreign investors can now participate in most import, export, wholesale, and retail trade activities. Exceptions include the strategic sectors of fertilizer and petroleum, which will remain under government control. Manufacturers and existing exporters will still require permits for specific products.

This liberalization process is gradual and subject to strict criteria. Nevertheless, foreign investors have already expressed strong interest. The Commissioner assured that efforts wouldl be made to maintain a balanced business landscape with effective implementation strategies.

Source: The Ethiopian Herald