Foreign investors-Export, Import, Wholesale, and Retail trade

Overview

The Ethiopian Investment Board Directive to Regulate Foreign Investors’ Participation in Restricted Export, Import, Wholesale and Retail Trade Investments No. 1001/2024 (March 2024, Addis Ababa) sets out how foreign investors may engage in certain trade sectors in Ethiopia that were previously reserved for domestic investors. 

The Directive begins by acknowledging that Ethiopia’s earlier policy of reserving selected trade sectors for domestic investors (under Investment Regulation No. 474/2020) had not achieved the expected outcomes in terms of scale, efficiency or competition.  It states that additional regulatory gaps (uneven competition, weak oversight) call for a new approach that opens up the export, import, wholesale and retail trade sectors gradually to capable foreign investors under defined conditions. 

The Directive applies to:

• Foreign investor participation in export trade, import trade, wholesale trade and retail trade in sectors that were previously reserved for domestic investors. 

• The application for investment permits and business licences by foreign investors in such restricted sectors. 

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Key Requirements by Sector

Export Trade

• Foreign investors may engage in export trade of raw coffee, khat, oilseeds, pulses, hides and skins, forest products, poultry and livestock bought on the market. 

• Conditions:

  • For raw coffee: must have procured from Ethiopia an average of at least USD 10 million annually for the last three years and contractually commit to export at least USD 10 million in the permit year. 

  • For oilseeds: average USD 5 million over three years + commit to USD 5 million export. 

  • For khat and pulses: average USD 1 million + commit to USD 1 million. 

  • For hides/skins, forest products and poultry: average USD 500,000 + commit to USD 500,000. 

  • For livestock exports: no prior procurement history or commitment conditions apply. 

  • If a foreign investor has no prior procurement history from Ethiopia, the Directive sets alternative purchase-order contract thresholds: e.g., USD 12,500,000 for raw coffee, USD 7,500,000 for oilseeds, USD 1,500,000 for khat/pulses, USD 750,000 for hides/skins etc. 

• Renewal and revocation: permits will only be renewed once compliance with the contractual export commitments is verified; non-compliance can trigger suspension or cancellation of rights and benefits. 

Import Trade

• Except for fertilizer and petroleum imports, foreign investors are allowed to engage in import trade investments reserved for domestic investors. 

• Conditions: the applicant must be one of the following:

  1. A manufacturer of the imported product (evidence required)

  2. An agent of a manufacturer (evidence required)

  3. An existing Ethiopian manufacturer exporting 50% or more of its output abroad. 

• If the applicant is neither manufacturer nor agent, they must commit (by agreement) to import commodities worth at least USD 10 million annually. 

• Renewal & revocation: same principle of verifying compliance applies. 

Wholesale Trade

• Foreign investors may engage in wholesale trade of all sectors reserved for domestic investors under the Regulation (except fertilisers). 

• Conditions: the investor may wholesale products imported under an import trade permit or products domestically purchased from Ethiopian manufacturers. 

• Before receiving the permit, an investor must sign an agreement (with the appropriate body) committing to build modern marketing infrastructure and to provide streamlined logistics services. The Ministry of Trade and Regional Integration will issue a manual detailing minimum marketing infrastructure standards. 

Retail Trade

• Foreign investors may engage in retail trade investments reserved under the Regulation. 

• Conditions: to obtain a permit, the foreign investor must either:

  • Establish retail trade on land/building of at least 2,000 sqm under unified ownership, commit to establish five such supermarkets within 3 years, and open at least two to receive a business permit. OR

  • Land/building at least 5,000 sqm, commit to establish two hypermarkets within 3 years, open at least one to receive business permit. OR

  • Land/building at least 10,000 sqm under one ownership, commit to construction and agreement to receive business licence. 

• There is a case-by-case decision by the Board for foreign investors in “reputable single brand retail trades” operating on smaller capital and floor area. 

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How We Can Help You

At Multilink Consulting, we specialise in assisting foreign investors and their local partners navigate the Ethiopian investment landscape. Our services include:

• Reviewing your eligibility under Directive No 1001/2024 and assessing whether your planned investment (export, import, wholesale, retail) meets the relevant conditions.

• Guidance on preparing applications for investment permits and business licences, including drafting the required agreements with appropriate bodies.

• Support in liaising with the Ethiopian Investment Commission, the Ministry of Trade and Regional Integration, Customs and relevant government bodies.

• Compliance monitoring services to ensure you meet your contractual commitments (e.g., export volumes, infrastructure build-out) and avoid renewal or revocation risks.

• Strategic advice on whether a different investment vehicle or sector might offer greater flexibility or opportunities given your business plan.

Interested in learning more or ready to request our service?
Please contact us or email samson@multilinkconsult.com to book a consultation. We look forward to supporting your successful entry into Ethiopia’s trade sectors.

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Download the Directive

You can download the full text of the Directive here:  Board Directive No 1001/2024 (PDF)