Ethiopia: Authorities finally admits foreign investment in logistics industry
Addis Ababa, September 4, 2018,(AltAfrica) – Ethiopia’s investment body has announced a decision to admit foreign investment into the country’s logistics sector, local media portals have reported.
The move by the Ethiopian Investment Board means the sector is no longer reserved for nationals. Foreigners are also able to own 49% or less in joint venture arrangements.
A document clarifying the news and widely cited by the media read in part that the areas being looked at include: the provision of bonded warehouse, consolidation and de-consolidation services, and allow joint venture participation of international logistics service providers holding up to 49% or less stakes.”
Article 3.1(b) of Ethiopia’s investment regulation previously said: “packaging, forwarding and shipping agency services” are “exclusively reserved for Ethiopian nationals.”
The development forms part of the government’s economic reform efforts. Prime Minister Abiy Ahmed since taking office in April 2018 has undertaken a series of reforms with a key plank being the opening of Ethiopia’s economy to a certain amount of private investment.