The Ethiopian government has fully liberalized the freight forwarding sector, allowing foreign investors to operate without local partners for the first time. The decision, approved by the Ethiopian Investment Board, takes immediate effect and reverses a 2020 regulation. Industry experts have expressed mixed views on its potential impact.
The move overturns Investment Regulation No. 474/2020, which had limited foreign shareholding to 49 percent in joint ventures. According to the Ethiopian Investment Commission, the prior rules had not drawn sufficient new investment.
Worku Lemma, Director of the National Logistics Transformation Office, said the change will bring knowledge, technology and resources to reduce costs and delays. He noted that logistics weaknesses have fueled inflation and hurt export competitiveness.
Dawit Woubeshet, CEO of Cosmos and president of the Ethiopian Freight Forwarders and Shipping Agents Association, said the market can accommodate only a limited number of large operators. An anonymous veteran expert added that foreign interest may stay low and that some local firms had already formed informal partnerships with international players.