Ethiopia licenses to 21 foreign companies to engage in export, retail, wholesale businesses --[Reported by Umva mag]

The Ethiopian Investment Commission in a relevant meeting on Sunday said 21 companies have been licensed: 13 are to engage in retail business and eight for export activities.

The move came after the government had announced a new directive allowing foreign investors to engage in wholesale and retail business in Ethiopia. The commission said 71 international companies have expressed interest after the announcement in July.

It is worth recalling that two months ago, the Ethiopian Investment Board, chaired by the Prime Minister, decided to open up sectors previously reserved for Ethiopians to foreign businesses.

For many years, the import-export, retail and wholesale commercial sectors have been barred from participation of foreign investors as the government had developed a policy to protect specific areas from competition from foreign investment.

“The purpose of the previous policy was to support the growth of domestic investors, to protect them from competitive pressure from foreign investors, and build a sustainable economy based on homegrown capacity,” it was stated.

However, the institutions pointed out that the policy that entailed the closure of the commercial sectors faced setbacks in terms of achieving the desired objectives as expected.

The opening of the business sector to foreign investors is said to play a significant role in modernizing the business system, reducing the price of goods for consumers, and boosting the economy as a nation.

 It was noted that most businesses registered for export are focused on coffee and sesame. Additionally, companies planning to import into Ethiopia have shown interest in sectors like electric vehicles and construction materials.

MG/abj/APA

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