Ethiopia opens logistics sector to foreign ownership

Ethiopia has opened its logistics sector to full foreign ownership, removing the long-standing 49% cap on foreign participation in a move aimed at attracting investment and improving the country's trade and supply chain capabilities.

The policy change is expected to encourage greater inflows of capital, technical expertise, and more efficient operating models in one of East Africa's key trade markets. However, the success of the reform will depend on how quickly it leads to lower trade costs, improved logistics services, and more reliable supply chains.

The announcement comes amid growing investor interest, highlighted during the UK-Ethiopia Trade and Investment Forum in London. Trade between the UK and Ethiopia is currently valued at around $900 million and continues to expand. Major infrastructure projects, including the $13 billion Bishoftu International Airport, are also expected to support the country's logistics and trade ambitions.

The focus now shifts to ensuring the reforms are effectively implemented and deliver tangible benefits for traders, businesses, and the wider economy.

TradeMark Africa, working in partnership with the UK, is supporting the implementation of the reforms by strengthening logistics capacity, helping local businesses, and improving cross-border trade. It is working with industry partners to help ensure Ethiopia's logistics reforms deliver lasting benefits. A proposed three-year partnership with the British International Freight Association and the Ethiopian Freight Forwarders and Shipping Agents Association aims to improve skills and knowledge among Ethiopian freight forwarders, strengthen logistics training, and provide technical support to local companies.

The collaboration is also expected to promote stronger business ties between the United Kingdom and Ethiopia, creating new opportunities for trade, investment, and the exchange of industry expertise.