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Ethiopia Opens Trade Sectors to Foreign Investors: New Directive Unlocks Export, Import, Wholesale, and Retail Markets

Ethiopia Opens Trade Sectors to Foreign Investors: New Directive Unlocks Export, Import, Wholesale, and Retail Markets

ADDIS ABABA, Ethiopia — June 13, 2025 — In a sweeping policy reform aimed at attracting foreign capital and invigorating the country’s trade sector, the Ethiopian Investment Board has issued a landmark directive—Directive No. 1082/2025—lifting long-standing restrictions on foreign participation in export, import, wholesale, and retail trade. The move marks a significant departure from Ethiopia’s traditionally protectionist stance, signaling a bold shift toward liberalizing its domestic markets.

Background: A Policy Rethink

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 now acknowledges that Directive No. 1001/2024, which allowed limited foreign entry into select sectors under specific conditions, failed to achieve the anticipated scale of transformation. Despite preferential policies, complaints about poor service delivery, inefficiency, and limited product access persisted across sectors protected from foreign competition.
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