The Ethiopian Investment Commission (EIC) has announced the approval of 40 foreign investment permits in the retail, wholesale, import, and export sectors—sectors that were previously closed to foreign investors.
Mr. Zeleke Temesgen, Head of the Commission, made the announcement during a press briefing at the Invest in Ethiopia 2025: High-Level Business Forum. He described the move as a major step in the government’s effort to open up the economy and attract more investment.
According to Zeleke, the permits were issued following five months of planning and the introduction of new directives that allow foreign companies to operate in new areas of the economy. While the names of the licensed companies were not disclosed, Zeleke said the approved firms cover a variety of sectors, including electric vehicles, edible oil, livestock production, khat, and paraffin oil.
“The directive allows foreign investors to now trade in products like raw coffee, oilseeds, pulses, poultry, livestock, and forest goods,” he said. Imports are also open to foreign players, except for fertilizer and petroleum which remain restricted.
For foreign firms that have never done business in Ethiopia before, the new guideline requires them to present a market and purchase order contract worth at least $500,000 to qualify. In addition, manufacturers who want to operate under the directive must submit documents showing where their raw materials come from and prove that they are involved in actual production activities.
Zeleke said the country had lost several investment opportunities in the past because of restrictions on foreign retail and wholesale businesses. However, he believes the ongoing reforms are now yielding results.
“We are already seeing benefits from this liberalization,” he noted, though he did not give figures on investment value or job creation.
When asked about the impact of security challenges on foreign investment, Zeleke admitted that peace is crucial. He said while there are real security concerns in some regions, the capital city, Addis Ababa, is safe. He added that both real insecurity and wrong public perception need to be addressed.
“Some Ethiopians abroad believe Addis Ababa is unsafe. That perception is not correct, and we need to change that narrative,” he said.
Speaking on legal reforms, the Commissioner explained that the government is working hard to make Ethiopia more attractive to investors. Over 85 outdated laws, some dating back to the 1970s and 1980s, have been reviewed to improve the ease of doing business.
Zeleke also noted that China remains Ethiopia’s top foreign investor, with 4,510 projects. In the 2023/2024 fiscal year, Ethiopia attracted a total of $3.92 billion in foreign direct investment.
