Ethiopia opens logistics sector to foreign firms with one-million-dollar entry requirement

The Ministry of Transport and Logistics has issued a revised directive allowing foreign companies to operate in Ethiopia's multimodal transport sector without the previous 49 percent ownership limit.

Under the new rules foreign operators must meet a one million dollar capital threshold and set up local offices warehouses and vehicle fleets. They are also required to appoint qualified boards of directors. The changes aim to boost efficiency and lower transport costs according to policymakers.

The directive replaces earlier restrictions that capped foreign ownership at 49 percent. It applies specifically to multimodal transport operators.

The Ministry introduced the requirements on May 31 2026.

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