The Ethiopian Investment Board has passed a decision to open the freight forwarding sector to foreign investors, marking a policy shift in the country’s logistics and investment landscape.

The decision was made during the Board’s meeting held on May 25, 2026, according to the Ethiopian Investment Commission.

Previously, foreign investors were allowed to participate in the freight forwarding sector only through joint ventures with domestic investors under Investment Regulation No. 474/2020. Their shareholding was also limited to a maximum of 49 percent. This restriction had limited the sector’s ability to attract the desired level of foreign investment.

The new decision is expected to address these constraints by allowing broader foreign participation in the sector. It is also anticipated to boost investor confidence among both existing logistics operators and new entrants seeking to participate in Ethiopia’s freight forwarding market.

According to the decision, opening the sector to foreign investors is expected to support the development of faster, more efficient, and modern logistics services. It is also aimed at reducing national logistics costs, promoting knowledge and technology transfer, and strengthening the capacity and competitiveness of domestic operators.

The Ethiopian Investment Commission stated that the decision forms part of wider reform measures being undertaken to create a more conducive investment environment in the country.

Source: Ethiopian Investment Commission