@InvestEthiopia – Ethiopian Business Review

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Unilever has become the first foreign company licensed to directly import finished goods into the country. The landmark development was marked by the official launch of Vaseline, Unilever’s world-renowned skincare brand, making high-quality skin health products more accessible than ever to Ethiopian consumers. This follows the Ethiopian Investment Commission’s amendment of Directive No. 1001/2024, which formally opens Ethiopia’s wholesale, retail, import, and export sectors to foreign investors.

This moment reflects the broader impact of Ethiopia’s recent economic reforms, which have begun to reshape trade dynamics and attract global investment by easing import restrictions on finished goods. For the first time, multinational companies like Unilever can bypass traditional import bottlenecks and bring globally trusted brands directly to Ethiopian shelves.

Held in Addis Ababa, the event was more than a typical product launch. It served as a platform to build trust and deepen brand engagement with Ethiopian consumers. Through interactive displays and insightful discussions, attendees were introduced to the full Vaseline product range, with particular emphasis on formulations suited to Ethiopia’s dry air, high altitudes, and varying climates. The experience was thoughtfully designed to establish a strong and enduring connection between the brand and its new market.

“Today is not just a product launch; it’s a celebration of partnership, progress, and our unwavering commitment to the well-being of the Ethiopian people,” stated Nesibu Temesgen, General Manager of Unilever Ethiopia. “The opportunity to directly import Vaseline is a game-changer for us and, more importantly, for Ethiopian consumers. It underscores our dedication to this dynamic market and our promise to provide products that truly make a difference in people’s lives.”

For over a century, Vaseline has stood as a beacon of skin health, from its iconic Vaseline Petroleum Jelly to its comprehensive Intensive Care lotions. These products, known globally for their ability to heal, restore, and protect, will now be readily available across Ethiopia’s diverse communities.

The launch introduces Vaseline’s advanced lotion formulations directly to consumers. Vaseline lotions eliminate the need for extra oils, simplifying and improving skincare routines. They save time and reduce costs, offering a premium solution widely available across Ethiopia starting at ETB 80 for Petroleum Jelly and ETB 300 for Lotions.

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Ethiopia’s Special Economic Zones (SEZs) have secured nearly USD 900 million in new investments in the current fiscal year alone, a leap that signals the zones are active engines of industrial growth.

As reported by the Ethiopian Press Agency, 89% of all developed land and factory shades in the country’s 13 SEZs have been taken up. Bole Lemi and Adama Industrial Parks have reached full occupancy, while Jimma SEZ stands at 90%.

“This level of uptake shows that previously stagnant areas are now attracting serious investment,” said Zemen Junedi, Deputy CEO of Promotion and Marketing at the Industrial Parks Development Corporation (IPDC), in an interview with The Ethiopian Herald. “Most of the newly registered projects are already operational.”

Zemen attributes the turnaround to a set of government-led legal and regulatory reforms—nearly 80 policy frameworks have been revised. The goal: eliminate red tape and boost investor confidence. The results are visible. Just a few years ago, local investor participation in SEZs stood below 5%. That figure now stands at 60%, with Ethiopian firms operating alongside foreign players in zones across the country.

SEZs have also shifted from being purely export-driven to supporting import substitution, especially in textiles, pharmaceuticals, automotive assembly, logistics, and agro-processing. Parks once seen as underutilized are now actively contributing to employment, technology transfer, and foreign exchange generation.

“Zones that were struggling are now alive with factories, warehouses, and local value chains,” Zemen said.

However, recent reports highlight persistent challenges for workers within these zones. Laborers face wages as low as USD26 per month, among the lowest globally. Poor working conditions, including long hours, inadequate occupational safety, and substandard housing, contribute to high turnover rates—sometimes exceeding 10% monthly. Inflation continues to erode workers’ purchasing power, while weak enforcement of labor laws and limited union influence leave many with little protection or recourse.

The Institute of Foreign Affairs (IFA), in collaboration with the Ministry of Foreign Affairs, held a high-level conference on Tuesday at the Sheraton Hotel under the theme “Exploring New Avenues: Economic Diplomacy as a Mainstay of Ethiopian Foreign Policy.”

The forum brought together leading government institutions — including the Ministry of Finance, Ethiopian Securities Exchange, Ethiopian Investment Holdings, Ethiopian Investment Commission, and the Ministry of Foreign Affairs — to discuss how to align foreign policy with Ethiopia’s economic ambitions.

Central to the discussions was the Homegrown Economic Reform Agenda, launched in September 2019, which aims to liberalize and modernize Ethiopia’s economy. Panelists explored how the reform program is positioning the country to better integrate with the global economy and attract quality investments.

In his opening remarks, IFA Executive Director Jafar Bedru stressed the need to shift diplomatic efforts beyond traditional political frameworks. “Our diplomatic engagements must transcend conventional paradigms and adopt a proactive, business-oriented approach — one that prioritizes investment and trade facilitation,” he said.

Ambassador Workalemahu Desta, Political and Economic Diplomacy Advisor, MoFA, acknowledged that while Ethiopia’s economic and business diplomacy is making progress, it still falls short of matching the opportunities created by recent reforms. He noted the growing global demand for competitive investment destinations, emphasizing Ethiopia’s strategic potential.

“Globally, production and labor costs are soaring. Multinational companies are actively seeking low-cost, stable, and business-friendly environments — and Ethiopia is emerging as a top destination,” he said.

Ambassador Workalemahu also underscored Africa’s growing strategic importance, pointing to the African Continental Free Trade Area (AfCFTA) as a transformative platform. “AfCFTA is unlocking a vast market for investors across Ethiopia. Additionally, our membership in BRICS and the New Development Bank enhances our positioning within the evolving global economic order,” he added.

Dr. Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), highlighted the need to diversify Ethiopia’s financial landscape to sustain economic growth. He emphasized that beyond traditional financing mechanisms, both local and foreign private investors require access to alternative financial instruments such as portfolio investments. He mentioned that amid the launch of the capital market in Ethiopia, the Ministry of Foreign Affairs must attract investments from abroad as the old technical way of investment has changed to easy and Central Securities Depository. “Beyond simply counting how many remittance accounts are opened, a new key performance indicator (KPI) should be how many CSD accounts are created,” he added.

He also revealed that the capital market is expected to integrate with the interbank lending system in the first week of July. Just six months after its launch, the interbank market has already facilitated over ETB 800 billion in transactions, with daily volumes reaching several ETB billion, he reported.

This comes on the heels of the launch of a Diplomatic Guide for the Homegrown Economic Reform Agenda, unveiled on Monday by the Ministry of Foreign Affairs in collaboration with the Ministry of Finance, the Ethiopian Securities Exchange, and Ethiopian Investment Holdings.

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President Donald Trump has openly dismissed the idea of reviving America’s textile industry, despite the recent tariff policies that shook global trade.

“I’m not looking to make T-shirts, to be honest. I’m not looking to make socks… We are looking to do chips and computers and lots of other things, and tanks and ships,” Trump told reporters on May 25 before boarding Air Force One, as quoted by USA Today.

The remarks, paired with his agreement that the U.S. doesn’t need a “booming textile industry,” were met with sharp criticism from domestic producers. But they have also caught the attention of international observers who see a strategic opening for emerging manufacturing hubs.

Ethiopian-American economist Zemedeneh Nigatu framed Trump’s comments as a potential advantage for Ethiopia, where textile and apparel manufacturing remains a core part of the country’s industrial growth strategy.

“Emerging economies like Ethiopia, which have competitive and comparative advantages, can produce labor-intensive products like clothing at very competitive prices and still deliver high quality to American consumers,” he shared on social media.

With Ethiopia’s industrial growth accelerating from 4.8% in 2022 to 8.4% in 2024, and projections pointing to 12% by the end of the fiscal year, the country is positioning itself as a low-cost, high-capacity producer. Programs like Made in Ethiopia are aligning policy and investment to replace imports and boost exports.

Zemedeneh also called on U.S. entities—including private equity firms and development institutions like USDFC—to co-invest in African manufacturing, a move that could build resilient supply chains and offer American consumers alternatives to Asian production.

Local economists are also calling for structural reforms in Ethiopia’s textile value chain, especially in the use of abundant domestic raw materials like cotton. However, they stress that peace and political stability remain non-negotiable, forming the heartbeat of investment, industrial productivity, and uninterrupted supply chains.

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Ethiopia is set to receive USD 260 million in fresh funding from the International Monetary Fund (IMF), as part of a broader USD 3.4 billion loan program aimed at supporting economic recovery and ongoing reforms.

This latest installment brings the total IMF support disbursed under the Extended Credit Facility (ECF) to nearly USD 1.85 billion. The fund’s staff and Ethiopian authorities have now reached a staff-level agreement to complete the third review of the program.

The news comes as Ethiopia shows strong signs of macroeconomic improvement. According to the IMF, inflation is cooling down, exports are rising, and international reserves are growing faster than expected.

“Ethiopia’s economic performance has gone beyond expectations,” said Alvaro Piris, head of the IMF team that visited Addis Ababa in April. “The shift to a more flexible exchange rate has gone smoothly, and government efforts to modernize monetary policy, improve tax collection, and reform state-owned enterprises are starting to bear fruit.”

Despite the progress, challenges remain. The gap between official and black market exchange rates has widened again in early 2025. The IMF notes that fees and commissions in the foreign exchange market are still high, making currency access difficult for many businesses.

To fix this, new measures are being rolled out to make the FX market more transparent and efficient. These include easing restrictions, reducing costs, and improving regulation.

The IMF also emphasized the importance of keeping up the reform momentum. Continued discipline in monetary policy, better tax systems, and a stronger private sector are all seen as key to building long-term growth.

The ECF program, approved in July 2024, is designed to help Ethiopia stabilize its economy, support vulnerable communities, and unlock growth by encouraging private investment and reforming outdated financial systems.

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AJN Resources Inc. has entered into a conditional Heads of Agreement (HOA) with Ethiopia-based Godu General Trading S.C. to acquire up to a 70% interest in the Okote Gold Project, according to Newsfile. The 42.8 km² exploration site lies within Ethiopia’s prolific gold belt, approximately 100 kilometers south of the 4.5 million-ounce Lega Dembi mine — the country’s largest gold producer.

The deal marks AJN’s strategic expansion into Ethiopia’s emerging gold sector and reflects growing international interest in the Horn of Africa’s mineral potential. The agreement remains subject to formal engagement with Oromia regional authorities, who have reportedly expressed verbal support for the project.

The Okote licence was previously held by MIDROC, which explored the site until 2019. During its tenure, MIDROC completed 88 drill holes — a combination of reverse circulation and diamond drilling — totaling 13,761 meters across a 2.4-kilometer strike length, with the densest activity concentrated in a 1,000m x 400m zone in the northern area of the concession.

“We are extremely excited by the opportunity to participate in a project with such an extensive exploration history,” said Klaus Eckhof, President and CEO of AJN Resources. “Our immediate focus will be on the northern section of Okote, where artisanal miners are believed to have uncovered new zones of mineralisation. This will complement the existing 2 km of known gold-bearing structures.”

Eckhof added that AJN’s technical teams are on standby, ready to begin mapping, sampling, and a fast-tracked due diligence drilling program once the company formally presents its development plan to regional authorities. He also noted that prior third-party assessments suggest the Okote Project may hold multi-million-ounce potential, adding further allure to the site.

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In its ongoing commitment to price and external stability, the National Bank of Ethiopia (NBE) has announced that it will conduct its sixth foreign exchange auction on Thursday, May 22, 2025, offering USD 50 million to participating banks.

This move is part of NBE’s bi-weekly foreign exchange auction framework aimed at supporting a more transparent and market-responsive forex system. Banks are invited to submit bids in line with NBE’s established guidelines, with the settlement set for the end of the auction day.

The announcement follows the previous auction held on May 7, 2025, where the weighted average rate of all successful bids stood at ETB 132.9643 per USD. In that round, 16 banks successfully secured foreign exchange allocations, underscoring robust participation and demand.

By maintaining a consistent auction schedule, the central bank aims to reduce volatility, improve forex access for priority sectors, and enhance monetary policy effectiveness.

The results of the May 22 auction will be disclosed shortly after the bid submission period concludes.

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Ethiopia and Hungary have resumed negotiations to finalize an agreement on the avoidance of double taxation—an important fiscal policy tool that could unlock new opportunities for cross-border investment and trade.

Held in Addis Ababa, the second round of talks builds on earlier discussions that took place in Budapest, Hungary, where both sides reached preliminary understandings on most of the core issues.

Representing Ethiopia, Tewedaj Mehammed, Head of the Legal Affairs Department at the Ministry of Finance, emphasized that the agreement would not only eliminate the burden of double taxation but also foster a more predictable and investor-friendly environment. “This agreement will pave the way for enhanced business development and deepen economic cooperation between our two nations,” he noted during the opening session.

From the Hungarian side, Ms. Gyongyi Antal, Head of the Division of International Taxation at Hungary’s Ministry for National Economy, expressed optimism about the ongoing dialogue. “The removal of double taxation barriers creates a conducive environment for companies to thrive and connect. Most technical issues were addressed in the first round, and we are hopeful this session will bring consensus on the remaining points,” she said.

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Ethiopian Engineering Corporation (EEC) reported a 60% year-over-year revenue growth, reaching 5.5 billion ETB in the first nine months of the 2024/25 fiscal year. The state-owned enterprise delivered 96 design projects, 251 contract supervision assignments, and 36 construction projects—achieving 88% physical and 101% financial performance.

The figures were presented during a high-level performance dialogue and site visit led by Ethiopian Investment Holdings (EIH) at EEC headquarters. The review focused on operational performance, strategic investment planning, and market diversification.

Among the 54 completed design and supervision projects and 22 completed construction projects are critical national developments, including the Sendafa Forensic DNA Laboratory, Bole Arabsa Wastewater Treatment Plant, National Bank Cash Center, Phase I Corridor Development, and initiatives under the “Dine for Generation” program.

EEC’s international expansion into Tanzania and Nigeria with road and water engineering consultancy services signals growing regional ambition. The company’s performance reflects its operating ethos—“Collaboration, Innovation & Deliver”—and underscores its role in Ethiopia’s infrastructure modernization.

EIH commended the results while urging EEC to deepen its focus on long-term investments, diversify its financing sources, and strengthen its foothold in foreign markets to broaden its client base and reduce overreliance on public contracts.

Ethiopia is actively courting global investors with bold economic reforms and sectoral liberalization, as it hosts the Invest in Ethiopia – High-Level Business Forum 2025 in Addis Ababa from May 12–13. The event brings together international investors, senior government officials, and development partners to explore opportunities in priority sectors such as renewable energy, agribusiness, ICT, and manufacturing.

Organized by the Ethiopian Investment Commission (EIC), the Ministry of Finance, and the Development Partners Group, the two-day forum signals Ethiopia’s firm commitment to private sector-led growth. The country’s 8.1% GDP growth in 2024 and recent policy reforms have positioned it as one of Africa’s top destinations for investment.

The Forum features high-level ministerial roundtables, sector panels, networking sessions, and the official launch of a new Investment Deal Book, aimed at enhancing transparency and deal-making for foreign investors.

In his opening remarks, President Taye Atske Selassie emphasized the government’s efforts to improve the investment climate by addressing long-standing challenges in foreign direct investment (FDI). “Reforms have been designed to attract FDI, sustain growth, and drive structural transformation,” he noted, adding that infrastructure development and investor-friendly policies are being prioritized to meet Ethiopia’s goal of becoming Africa’s leading economy by 2030.

“We believe we are on the right track to ensure macro-financial stability,” he added. “Our reforms are fundamentally reimagining Ethiopia’s economic future.”

Foreign Minister Gedion Timothewos (PhD) echoed the president’s message, stating that Ethiopia’s young, energetic population, improved logistics, and rapid development of industrial parks make it a natural hub for international investment. He encouraged investors to explore opportunities not just in traditional sectors, but also in mining, energy, and tourism.

Finance Minister Ahmed Shide underlined the importance of macroeconomic stability and structural reforms. “Opening up sectors like telecom, finance, and logistics is already yielding results,” he said. He also highlighted the launch of the Ethiopian capital market as a game-changer in deepening private-sector participation.

EIC Commissioner Zeleke Temesgen Boru (PhD) reported that new investors from 59 countries are participating in the forum—a sign of growing international confidence. He stressed the government’s readiness to provide full support to investors and ensure predictability in policy implementation.

A presentation by Planning and Development Minister Dr. Fitsum Assefa showcased Ethiopia’s natural resources, strategic location, and investment-ready infrastructure, reinforcing the country’s competitive edge in attracting quality investments.

With AfCFTA integration on the horizon, Ethiopia is positioning itself as a regional gateway for investors seeking access to Africa’s fast-growing markets.

Older Posts

Unilever Becomes First Foreign Firm to Directly Import Finished Goods into Ethiopia

Ethiopia’s Special Economic Zones Attract USD900M in a Single Year as Occupancy Hits 89%

Key Government Institutions Convene to Reinforce Economic Diplomacy as Pillar of Ethiopian Foreign Policy

Trump Shrugs Off U.S.Textile Industry: Opening a Lane for Ethiopia?

IMF Staff Back USD260M Disbursement as ‘Ethiopia Exceeds Reform Targets’

Canadian Miner Eyes Ethiopia’s Gold Belt with Okote Project Deal

NBE to Conduct USD50 Million Forex Auction as Part of Bi-Weekly Market Stabilization

Ethiopia, Hungary Move Closer to Double Taxation Accord

Ethiopian Engineering Corporation Posts 60% Revenue Surge, Expands into Regional Markets

Ethiopia Opens Doors to Global Investors in Energy, ICT, Manufacturing, and Agribusiness