Foreign participation in Ethiopia’s wholesale, retail, import, and export trade sectors has come under renewed focus as the Ethiopian Investment Board(EIB) approved a significant amendment to Directive No. 1001/2016 in its meeting on May 23, 2025. The amendment, proposed by the Ethiopian Investment Commission(EIC), focuses on refining the legal framework governing foreign investment in these sectors. The decision is part of a broader strategy to enhance the country's appeal as an investment destination while ensuring a fair and competitive business environment. According to the revised directive, except for the wholesale of fertilizers, any foreign investor may now engage in wholesale trade across all sectors previously reserved for domestic investors under the Regulation. Also, a foreign investor granted an investment permit under this provision may participate in the wholesale trade of goods they have imported using an import trade permit, or goods acquired from domestic manufacturers. Yet, prior to obtaining an investment permit, and without prejudice to existing legal requirements regarding minimum capital, competence, or other standards, as well as laws already allowing foreign involvement in wholesale trade, prospective investors must provide written consent to enter into an agreement with the appropriate government body; and they must also contractually commit to developing modern marketing infrastructure and delivering streamlined logistics services that support their wholesale operations. By recalibrating the rules on foreign involvement in trade, the directive seeks to strike a balance between opening market opportunities and safeguarding the interests of domestic stakeholders. The Board emphasised that the amendment will help create a level playing field, fostering healthy competition and sustainable economic growth.
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