Commission Announces 40 Foreign Investment Permits In Retail, Wholesale Trade

By Yared Nigussie

Officials at the Ethiopian Investment Commission say they are handing out 40 export, import, retail, and wholesale trade investment permits to foreign companies as part of the government’s efforts to liberalize the economy.

Zeleke Temesgen, head of the Commission, said the permits follow five months of work crafting directives and guidelines. He did not specify the names of the firms that will be receiving the permits, but called the pending liberalization a significant step forward.

“Since the directive was approved, 40 foreign businesses in export, import, retail, and wholesale have been licensed to operate in what were previously prohibited sectors,” Zeleke stated during a press briefing at the Invest in Ethiopia 2025: High-Level Business Forum.

The directive allows foreign investors to engage in the export trade of raw coffee, khat, oilseeds, pulses, hides and skins, forest products, poultry, and livestock sourced from the local market.

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In terms of imports, the directive opens the door to foreign investors in all sectors except for fertilizer and petroleum, which remain restricted.

“Among the newly licensed companies are those engaged in electric vehicle trade, edible oil, livestock production, khat, and paraffin oil,” the Commissioner revealed.

However, he failed to disclose the size of the investments or the details of companies entering the market.

“We have lost significant opportunities due to the prohibition on foreign wholesale and retail businesses. But with this liberalization, we’re now realizing substantial benefits,” Zeleke said.

For foreign investors with no prior procurement history in Ethiopia, the directive mandates the submission of a market and purchase order contract valued at a minimum of USD 500,000 for eligible export products.

Moreover, foreign manufacturing enterprises that use raw materials either imported from or procured within Ethiopia must declare their supply chains and provide verifiable proof of their production processes to qualify under the directive.

Addressing a question from The Reporter about the impact of security concerns on investment, Zeleke acknowledged that peace is of paramount importance for investment.

“The issue of peace should be viewed in two ways,” he said. “The first is that there are real security challenges in parts of the country, and the government is actively working to restore peace. The second is a matter of perception. While promoting Ethiopia abroad, we sometimes encounter Ethiopians who believe there’s no safety in Addis Ababa. This perception is far from the truth and needs to be corrected.”

On the topic of investment predictability, Zeleke explained that it is largely linked to the revising laws and regulations.

“We have been revising more than 85 laws, including legislation from the 1970s and 80s that had remained untouched for decades, in order to improve Ethiopia’s ease of doing business,” he said.

Highlighting investment trends, the Commissioner noted that China leads in foreign direct investment in Ethiopia, with 4,510 projects—making it the top investor both in terms of capital and the number of projects.

In the 2023/24 fiscal year, Ethiopia attracted USD 3.92 billion in foreign direct investment (FDI), according to the Commissioner.