Ethiopia allowed foreigners to join in retail, wholesale, import, and export businesses. The Ethiopian Investment Board recently approved a law to permit foreign involvement in these sectors, marking a notable shift in the country’s trade policy.
The liberalization is said to be a part of the second Homegrown Economic Reform Agenda (HGER).
Under the new regulations, foreign investors can now engage in retail trade, which was previously restricted to locals. Additionally, they have been granted authority over the management of various export products such as coffee, khat, oilseeds, and livestock.
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Foreign companies interested in exporting specific goods will face varying requirements. For instance, to obtain a coffee export permit, foreign businesses must demonstrate a history of purchasing at least USD 10 million worth of coffee annually for three consecutive years.
The threshold goes down to USD five million a year for oilseed export permits, and USD one million a year for khat. The directive does not currently outline requirements for livestock exports.
While most imports are now open, fertilizers and petroleum products remain under state control. Additionally, the directive outlines minimum space requirements for foreign-owned supermarkets.
