@UNCTAD – Page 2 – Ethiopian Business Review

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Ethiopia’s ambition to join the World Trade Organization (WTO) by March 2026 received renewed momentum as the U.S. voiced firm support during high-level talks at the 2025 IMF-World Bank Spring Meetings. In a strategic meeting, Ethiopia’s Minister of Finance, Dr. Eyob Tekalign, updated Neil J. Beck, Assistant U.S. Trade Representative for WTO and Multilateral Affairs, on Ethiopia’s reform-driven progress toward accession.

Beck praised the ongoing efforts and reaffirmed America’s commitment to supporting Ethiopia’s integration into the global trading system. The two officials pledged to deepen cooperation, marking a key step toward Ethiopia’s long-sought WTO membership—one expected to enhance the nation’s investment climate, trade capacity, and economic diplomacy on the world stage.

Ethiopia’s Maritime Transit Service has reached a major milestone in its national fertilizer import initiative, with over 1.07 million metric tons of soil fertilizer successfully delivered to Djibouti Port as of April 6, 2025. This achievement represents nearly half of the country’s total planned imports for the 2017/18 agricultural production cycle, which targets 2.4 million metric tons by the April 2025 deadline.

The Ethiopian Customs Commission has announced sweeping changes to the regulation of goods imported without foreign currency payments (Franco-Valuta), as part of a broader financial sector overhaul.

The National Bank of Ethiopia (NBE) confirmed the repeal of the decades-old Establishment Proclamation No. 691/2000, replacing it with the more robust NBE Proclamation No. 1359/2017. The move grants the central bank stronger oversight powers while scrapping the previous Council of Ministers Regulation No. 88/1995, which governed Franco-Valuta imports.

In a transitional measure, the Customs Commission will continue processing foreign exchange license requests under existing procedures—but with stricter scrutiny. Non-commercial Franco-Valuta requests from government agencies, NGOs, and international organizations must now be vetted by Customs Operations Managers and approved only by senior Customs Office Managers.

The NBE has ordered meticulous record-keeping, requiring monthly reports on Franco-Valuta transactions to prevent misuse. The changes signal Ethiopia’s push to modernize trade finance controls while managing forex shortages—a critical issue for import-dependent industries.

Businesses and institutions must adapt quickly, as further directives are expected. The reforms aim to curb abuse of forex exemptions, ensuring hard currency is prioritized for essential imports.

Ethiopia’s trade sector has shown remarkable growth, with foreign trade volumes reaching USD 4.5 billion in just the first eight months of the current fiscal year. This represents a significant leap from the USD 2.6 billion recorded for the entire year in 2010, highlighting the country’s expanding economic footprint.

Trade and Regional Integration Minister Kassahun Gofe (PhD) shared these figures during a stakeholder forum discussing Ethiopia’s draft trade policy. The government has set an ambitious target to surpass USD 6 billion in total trade by the end of the fiscal year, building on current momentum.

A key development in Ethiopia’s trade landscape is the creation of its first comprehensive trade policy framework. For years, the country operated without a formal trade policy, but after extensive efforts, officials have now prepared a draft document to guide future commerce.

The ministry has also been busy implementing structural reforms, including issuing 2.5 million new business licenses to stimulate entrepreneurship. To boost consumer access and commercial activity, authorities have established over 1,300 weekend shopping malls across the country.

In a major push for quality control, Ethiopia has invested ETB 8.2 billion to build a state-of-the-art Quality Assurance Center. This facility will monitor more than 4.5 million tons of imported and exported goods annually, ensuring standards compliance.

Minister Kassahun connected these developments to Ethiopia’s broader macroeconomic reforms and its bid to join the World Trade Organization. He expressed confidence that the new trade policy demonstrates the country’s readiness for WTO membership while aiming to create a more competitive and sustainable trade environment.

The draft trade policy specifically focuses on facilitating regional economic integration, reflecting Ethiopia’s growing role as a commercial hub in East Africa. These collective efforts represent a comprehensive approach to modernizing Ethiopia’s trade ecosystem and positioning the country for greater global economic engagement.

The Commercial Bank of Ethiopia (CBE), in collaboration with global payment leader MasterCard, has introduced both plastic and virtual international prepaid cards, a move set to enhance digital payment accessibility in Ethiopia.

The launch, officiated by CBE President Abe Sano and MasterCard Africa President Mark Elliott, marks a major step toward modernizing Ethiopia’s financial ecosystem. These prepaid cards will enable users to conduct international transactions with greater convenience, supporting online purchases, travel expenses, and cross-border payments.

CBE officials emphasized that the initiative aligns with the bank’s ongoing efforts to expand digital financial services and provide customers with secure, flexible, and globally accepted payment solutions. The virtual card, in particular, is expected to cater to the rising demand for secure online transactions, while the plastic version offers a physical alternative for international spending.

Ethiopia’s negotiating team has returned from the 5th Working Group Meeting for WTO Membership in Geneva, Switzerland, after securing significant progress in the country’s long-awaited bid to join the global trade body. Minister of Trade and Regional Integration, Dr. Kassahun Gofe, addressed the media in a press conference today, highlighting the fruitful outcomes of the meeting.

Dr. Gofe emphasized that Ethiopia’s successful participation was the result of thorough preparation, recognizing the hard work required for WTO negotiations. At the meeting, Ethiopia received support from 19 countries, signaling increasing global confidence in the country’s reform efforts. “We have not only created a platform to achieve WTO membership in a short time, but we’ve also earned the trust of the organization’s members,” Dr. Gofe stated.

The Minister also explained that Ethiopia’s lengthy application process, which has taken over two decades, was due to the country’s previous “very protectionist” economic policies. “You can’t access WTO membership by closing the economy to foreign players,” he said. Dr. Gofe highlighted that the ongoing economic reforms in Ethiopia, which have opened the country up to foreign investment and trade, are pivotal to securing membership.

Looking ahead, Dr. Gofe emphasized the national benefits that WTO membership will bring. While there may be some initial impact on government revenue, he assured that it would not harm the economy. “Beyond this, it will expand the market for Ethiopia’s products,” he said, reinforcing the long-term advantages of global trade integration. He confirmed that the country is working toward full membership at the WTO Ministerial Conference in Cameroon in 2026, with the 6th Working Group Meeting set for July.

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