- Enacts directive for implementation
ADDIS ABABA – The government has opened up export, import, wholesale and retail trade businesses to foreign companies to boost competitiveness, revenues, said Ethiopian Investment Commission (EIC).
The EIC and the Ministry of Trade and Regional Integration jointly gave a press briefing yesterday on the adopted directive to liberalize export, import, wholesale and retail trade sectors, which were the most restricted businesses to foreign investors.
EIC Commissioner Hanna Arayaselassie stated that the government has taken privatization measures to realize the homegrown economic reform in a bid to ensure competitiveness of businesses.
Accordingly, the country has opened this previously restricted sector for foreign investors to boost businesses competitiveness.
Earlier, the Commissioner said, these sectors were reserved only for indigenous businesses to protect local investors and for other reasons but it had registered limited successes and restricted competition.
Recently, the Ethiopian Investment Board has enacted a directive that permits foreign investors’ participation in the import, export, wholesale, and retail trade businesses, she said.
According to the Commissioner, foreign investors can now engage in all import, export, wholesale and retail trade investments with an exception on fertilizer and petroleum.
The cost benefit analysis is made to highlight the importance of the policy amendment. In the process, the country took the best practices from China, India, Kenya, Uganda, Vietnam and others, Hanna noted.
The opening of these sectors for foreign investors would bring advantages for customers, suppliers and others, boost competitiveness, improve government revenue and others, she stated.
The process is a gradual opening according to a minimum criterion and foreignin vestors are showing keenness to engage in these sectors,she indicated.
The directive will bring a great shift in the trading system, she said, adding that the efforts would exerted to balance the business landscape for local investors with set strategy to govern the implementation process,.
Moreover, the import trade and wholesale investment of fertilizers and petroleum products will remain strictly under government domain. Manufacturers and official agents will attain import permits for their products, while firms that already have an export manufacturing business in the country can also apply for import permits, she noted.
BY TSEGAYE TILAHU
THE ETHIOPIAN HERALD FRIDAY 19 APRIL 2024
