The Ethiopian government has introduced a major policy shift to open previously protected commercial sectors to foreign investment, aiming to enhance productivity, competition, and global market integration. This decision follows challenges faced in these restricted sectors, including service inefficiencies, lack of fair competition, and an increasing trend of illegal practices. The new directive, No. 1001/2024, seeks to gradually liberalize export, import, wholesale, and retail trade while maintaining oversight on its implementation. Under the new directive, foreign investors are now allowed to participate in retail trade, which was previously restricted to local businesses. To qualify, investors must commit to establishing supermarkets or hypermarkets within three years, with minimum floor space requirements ranging from 2,000 to 10,000 square meters, depending on the size of the facility. The directive also extends foreign participation in the export sector, specifically for raw coffee, khat, oilseeds, pulses, hides and skins, forest products, poultry, and livestock. Investors must meet stringent export volume commitments, such as exporting at least $10 million worth of raw coffee annually. Additionally, new entrants with no prior trade history in Ethiopia must provide proof of an established market and present a purchase order contract meeting the required financial thresholds for different commodities. Regarding imports, the directive allows foreign investors to engage in import and wholesale trade, except for fertilizer and petroleum. To participate, an investor must either be a manufacturer, an agent of a manufacturer, an existing company exporting at least 50% of its production, or an investor committed to importing at least $10 million worth of goods annually. This shift is expected to bring new investment into Ethiopia’s trade sector while ensuring that foreign businesses contribute significantly to the economy. (ICE ADDIS ABEBA)

Fonte notizia: CAPITAL