Ethiopia Opens 32 Sectors to Foreign participation.

Ethiopia recently took an important step toward liberalizing its investment policies. Previously, Ethiopian Investment Regulation No. 474/2020 restricted foreign entities from trading in 32 sectors, including banking, insurance, legal services, hospitality, wholesale, retail, transport, and the import and export of specific agricultural commodities.  However, with the issuance of Directive No. 1001/2024, Ethiopia has now opened up the export, import, retail, and wholesale sectors to foreign businesses. This development creates new opportunities for U.S. companies seeking to enter the Ethiopian market.

New opportunities exist in several industries, including the export of commodities like raw coffee beans, oilseeds, pulses, hides and skins, forest products, poultry, and livestock. U.S. companies can also actively participate in the retail industry, particularly in segments such as supermarkets, hypermarkets, malls, retail chains, and wholesale operations. Import activities across multiple sectors are also now accessible. 

Ethiopia’s retail market is valued at around $23 billion, with continued growth being driven by population increases, rising incomes, infrastructure development, and the rise of e-commerce.  While traditional markets remain dominant, e-commerce and modern retail space are expanding.

The Ethiopian Investment Commission, as the key regulatory authority, will handle the registration and licensing of foreign investments and oversee the necessary contractual arrangements. U.S. companies interested in exploring these opportunities should carefully review the conditions and threshold requirements outlined in the Ethiopian-Investment-Board-Directive before initiating the business registration process.

U.S. companies have a strong reputation for quality goods and services, and are well-positioned to compete in the Ethiopian market. U.S. businesses should consider newly created opportunities in Ethiopia’s growing market for professional services, consumer goods, retail, and agribusiness.

For inquiries or assistance regarding market entry in Ethiopia, please contact Siraj Mustefa at Siraj.Mustefa@trade.gov