November 19, 2025
Ethiopia has issued its first gas retail investment license to a foreign company following the enactment of a directive that opens selected trading activities—previously restricted to domestic investors—to foreign participation.
According to sources at the Ethiopian Investment Commission (EIC), the license was granted on November 9, 2017 E.C. (November 18, 2025 G.C.) under Investment Participation Implementation Guideline Directive 1082/2025 which permits foreign investors to engage in export, import, wholesale, and retail trade activities under specific conditions.
The new firm, Ethio Natural Gas Marketing and Distribution PLC, is a joint venture between foreign and Ethiopian shareholders, making it the first foreign-owned entity authorized to participate in gas retailing. While the identities of the investors have not yet been disclosed, EIC officials confirmed that the company has completed all licensing procedures.
The license will allow the joint venture to distribute locally produced liquefied natural gas (LNG), including output from the Ogaden basin. Prime Minister Abiy Ahmed (PhD) inaugurated the first phase of the Ogaden LNG Project in Kalub, Somali Region, which has a production capacity of 111 million liters per year. The second phase was launched on September 22, 2018 E.C.
Capital and Compliance Requirements
Under Directive 1082/2025 foreign investors entering Ethiopia’s retail trade sector must meet stringent requirements:
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Minimum capital of USD 2.5 million, paid in cash and/or in kind.
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Capital verification by an expert appointed by the EIC.
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Submission of a detailed “personality and capacity statement” prepared by a recognized national or international verification institution.
The guideline further tasks the Ministry of Trade and Regional Integration (MoTRI) with monitoring market conduct, preventing anti-competitive practices, and protecting consumer rights within wholesale and retail operations involving foreign investors.
Institutional Roles Going Forward
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Ethiopian Investment Commission
Will receive applications, verify eligibility, conduct business registration, and issue investment licenses. -
Ministry of Trade and Regional Integration
Will grant operational business licenses to foreign investors and oversee their commercial activities.
The approval of Ethio Natural Gas Marketing and Distribution PLC marks a significant milestone in Ethiopia’s gradual liberalization of its trade sector, signaling increased openness to foreign participation in strategic downstream energy markets