In a bold move to liberalize its economy, Ethiopia has officially cleared the way for foreign investors to participate in wholesale trade, ending years of restrictions that limited the sector to domestic firms.
The announcement marks a significant turning point in the country’s trade and investment policy, with authorities aiming to modernize the nation’s commercial landscape, attract foreign capital, and stimulate economic growth.
Under the new directive issued by the Ethiopian Investment Board, foreign companies will now be allowed to engage in wholesale operations across a wide range of sectors excluding fertilizer, which remains protected. This shift comes alongside expanded access for foreign players in import, export, and select areas of retail trade, provided they meet certain investment thresholds and infrastructure commitments.
Government officials say the move is designed to enhance competition, improve logistics and supply chains, and position Ethiopia as a competitive trading hub in the region. Foreign investors entering the wholesale market are expected to contribute to the development of modern distribution systems and Warehousing infrastructure key components the government says are essential for transforming the sector.
In addition to wholesale, the directive opens up export opportunities for commodities such as coffee, oilseeds, livestock, and pulses. Foreign companies interested in exporting certain products, like raw coffee, must meet specified procurement and export volume requirements annually. On the import side, international firms will now be able to bring in a wide range of goods, excluding petroleum and fertilizer, subject to licensing and capital requirements.
Retail trade has also seen partial liberalisation, particularly for large-scale investors willing to establish supermarket chains and hypermarkets with a minimum number of outlets.
The policy change has already begun to attract interest from international firms, with early reports indicating several foreign businesses are preparing to enter Ethiopia’s trade sector.
This move is part of a broader economic reform agenda aimed at unlocking private sector potential, increasing foreign direct investment, and accelerating Ethiopia’s integration into global markets.
