AliExpress, a major online retail service owned by Alibaba Group, is set to enter the Ethiopian market, according to Abiyot Bayu (PhD), a Senior Advisor to the Minister of Innovation and Technology. In an interview with Shega, Dr. Abiyot confirmed that an agreement has been reached, and an official announcement will be made soon.
This development follows a virtual meeting on August 7, 2024, between Ethiopian officials and an Alibaba team led by Chandee Zhuang, Senior Advisor at Alibaba Global Initiatives. The entry of AliExpress into Ethiopia aligns with the country’s recent reforms aimed at attracting foreign direct investment, which could have a significant impact on the nation’s economic landscape.
Ethiopia has been working to encourage foreign investment through various initiatives. In April, the Ethiopian Investment Board introduced a directive allowing foreign participation in sectors such as wholesale, retail trade, imports, and exports—areas previously reserved for domestic investors. Additionally, the Ethiopian Ministry of Trade and Regional Integration has implemented a new licensing regime specifically tailored for electronic platforms, streamlining the registration process for e-commerce businesses.
Alibaba’s entry into the Ethiopian market has been anticipated for some time. In 2019, the Alibaba Group and the Ethiopian government signed a memorandum of understanding (MoU) to establish an Electronic World Trade Platform (eWTP), a potentially transformative initiative for the country’s digital economy. Although the entry of this e-commerce giant has been delayed for several years, the agreement has already resulted in the training of numerous Ethiopian entrepreneurs, which played a key role in reigniting efforts to bring Alibaba to Ethiopia.
Source: Shega
