The entry of global retail giant Carrefour represents a significant milestone in the implementation of Ethiopia’s investment directive, which opened the trading sector to foreign companies. This development aligns with the Ethiopian Investment Commission’s (EIC) new proactive strategy to attract foreign capital.
About two years ago, the government issued a historic directive allowing foreign participation in import/export, wholesale, and retail trade.
However, the execution of the directive, titled ‘Regulate Foreign Investors’ Participation in Restricted Export, Import, Wholesale and Retail Trade Investments,’ has been weak, despite some international players exploring opportunities in the country.
Experts note that the preconditions outlined in Directive No. 1001/2024 contributed to investors’ reluctance to enter Ethiopia, the second most populous nation in Africa after Nigeria.
Analysts point out that while the Ethiopian market, which has reopened after five decades, offers significant opportunities for international traders, engagement has not met expectations.
In response, amendments were made in June 2025 to facilitate international investment in Ethiopia’s trading sector, which had previously been restricted to Ethiopian nationals and Ethiopian-born foreign citizens.
Unlike the 2024 version, the revised directive fully opens the market to foreigners, yet it still has not attracted major global traders with substantial market influence.
Experts view Carrefour’s entry as a potential catalyst that could encourage other investors. Large corporations typically aim to be first movers when closed markets open, but in Ethiopia’s case, many have only conducted due diligence. “They have met with government officials but preferred informal assessments of the country’s situation,” said one expert working with international wholesalers supplying consumer goods to Ethiopia.
Carrefour’s decision may prompt others to reconsider their previous positions. “Major international traders from the U.S., U.K., and other European countries have evaluated the Ethiopian market but deemed it unsuitable-Carrefour may now serve as an important lesson,” the expert added.
Regarding wholesale trade, experts believe progress will take more time. “There is interest in wholesale, import, and export, but it will develop gradually.” Companies, including large firms from Switzerland, are seeking assurance that the entire logistics and market infrastructure-from upstream supply to final distribution-operates smoothly.
Although the government has opened the market and eased profit repatriation rules, foreign exchange repatriation remains a primary concern for trading businesses.
“Trading companies need certainty that they can repatriate funds at will, despite the government’s laws facilitating forex movement and trade,” international trade experts emphasized.
While international firms acknowledge Ethiopia’s market potential, various concerns have deterred them, making Carrefour’s entry significant news. “Companies are closely examining tax policies, logistics, the business environment, and other conditions through due diligence. As early entrants arrive, they will serve as a test case for others.”
The government has indicated that it previously protected the trading sector to develop local capacity. However, experts suggest that opening the market could enhance consumer access to products at competitive prices. While they agree that liberalization benefits consumers, some experts are cautious about whether it will lead to immediate price reductions.
International trade analysts also point out that global traders are hesitant due to the requirement to source locally produced goods, particularly agricultural items. Experts noted, “Large retail corporations are expected to stock up to 30 percent locally produced items.”
In a statement released on Monday, following a franchise and supply partnership agreement with Queens Supermarket PLC-a subsidiary of Midroc Investment Group-Carrefour emphasized Midroc’s role as a strategic partner. Midroc will utilize its production of premium coffee, tea, spices, flowers, and fresh fruits to incorporate Ethiopian products into Carrefour’s global network.
The first Carrefour-branded stores are set to open in Ethiopia by the first quarter of 2026. The French retailer described this agreement as a significant entry into a rapidly growing market of nearly 140 million people.
Initially, Queens Supermarket’s existing 13 stores will be rebranded and transformed under Carrefour’s management, expertise, and product portfolio by mid-2026.
Alexandre Bompard, Chairman and CEO of Carrefour, expressed on social media, “Delighted to build a long-term relationship together, at the service of Ethiopian consumers.”
He noted that this alliance supports a key goal of Carrefour’s 2026 strategic plan: to expand into 10 new countries through franchising. In addition to rebranding, Midroc and Carrefour are co-developing an ambitious growth strategy, aiming to open 17 additional stores by 2028.
Patrick Lasfargues, CEO of Carrefour International Partnerships, described the launch in Ethiopia as “another milestone” for the company, which surpassed 3,000 franchised stores in October 2025.
For Midroc, the partnership integrates its retail operations into Carrefour’s global network. Jemal Ahmed, CEO of Midroc Investment Group, stated, “By leveraging our deep knowledge of the Ethiopian market and Carrefour’s excellence, we will deliver high-quality, affordable products to local consumers.”
Strategically, Midroc will also supply its locally produced premium agricultural goods to Carrefour’s global network, creating a “farm-to-shelf” synergy that promotes Ethiopian products internationally.
Officials at the Ethiopian Investment Commission (EIC) report that they have shifted their approach to attracting investment.
“We have changed our strategy for reaching potential investors. We are now directly approaching companies to invest in Ethiopia,” they told Capital.
They added, “We have identified specific companies to bring to Ethiopia-Carrefour is one of them.”
Regarding Carrefour, the EIC has engaged with the company both at its regional base in the UAE and in France, encouraging it to invest in Ethiopia’s highly attractive market.
