Others stressed the policy’s aim to nurture a tech-savvy commercial environment capable of adapting to global competition.

“Frequent updates are essential,” said Ethiopian Oil & Grain Producers Association member Getachew Melese, referring to fast-changing trade patterns worldwide.

Another debate swirled around informal commerce, which employs a large segment of the population.

Shisema Gebresilassie, deputy commissioner of Addis Abeba’s Cooperative Commission, warned that compelling informal traders to formalise might undermine their livelihoods. The draft policy proposes forming new cooperative societies, though critics argue it could be more effective in strengthening existing ones. It also suggests imposing controls on select goods and services, including profit margins, prompting State Minister for Agriculture, Sofia Kassa (PhD), to question whether such measures align with free-market principles.

The Trade Minister insisted that adopting WTO standards should not compromise consumer protection. Officials say Ethiopia’s lack of a formal trade policy has hindered global market access and restricted foreign investment. According to Zafar Investment & Business Consultancy CEO, Mustefa Zafar, the policy gap has stifled technology transfer and prevented Ethiopia from moving beyond agriculture into manufacturing and services, leaving it with limited clout in global value chains.

Policymakers hope to attract foreign capital, expand export opportunities, and drive competition that could improve productivity. Proponents see potential for job creation in emerging sectors, though they concede domestic industries may struggle if multinational rivals enter too quickly. Greater exposure to external market swings could fuel volatility, and they fear inequalities might widen if gains from liberalisation are unevenly distributed.

Officials say they aim to mitigate these challenges by upgrading roads, railways, and energy infrastructure, enabling businesses to handle increased trade flows efficiently. They pledge to invest in workforce training, develop financial tools for cross-border transactions, and enact stronger intellectual property safeguards to encourage local innovation. While WTO membership could yield more predictable market access and dispute-resolution mechanisms, some worry it might open the door to large foreign players at a pace smaller domestic firms cannot match.

Consumer welfare was another point of contention, as policymakers want to prevent predatory pricing, ensure product safety, and maintain quality standards. However, advocates of faster liberalisation warn that an overly cautious approach could deter investment and hamper competitiveness.

The Minister has opened a 10-day window for interested groups to submit feedback on the draft, through email. The Council of Ministers is set to review the input and likely finalise the policy in a few months. Advocates say clear legal guidelines will boost Ethiopia’s reputation among global investors and encourage local entrepreneurs to scale up.

Critics caution that a poorly managed shift toward open markets could exacerbate inequalities or undermine nascent industries.

PUBLISHED ON Apr 06,2025 [ VOL 26 , NO 1301]

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