Ethiopia has approved its first national trade policy, a long-awaited reform aimed at ending more than a century of fragmented trade administration and creating a more predictable framework for exporters, importers and investors.
The policy, approved on 26 May 2026, is intended to replace a patchwork of laws, directives and procedures that officials say has weakened the country’s trade sector and limited its competitiveness. For decades, trade in Ethiopia has been managed through separate institutions and shifting rules, a situation critics say has encouraged inefficiency, illegality and corruption while discouraging new entrants into the market.
Trade and Regional Integration Minister Kasahun Gofe said the new framework would bring stability and consistency to trade regulation. He said laws, directives and procedures would move away from frequent changes and become more transparent, accountable and predictable for businesses.
According to the ministry, the policy is also designed to shift Ethiopia’s economy away from its historic dependence on primary agricultural exports and toward manufacturing, value-added products, services and tourism. Officials say that diversification is essential if the country is to build a more resilient export base and compete more effectively in regional and global markets.
The new policy introduces temporary tariff protections and incentive mechanisms meant to shield domestic industries from intense foreign competition while local firms build capacity and productivity. The government says the measures are intended to create space for emerging sectors to grow before competing fully on the international market.
For years, trade was treated as a non-productive sector in policy discussions, leaving it without a clear strategic direction, according to stakeholders. That approach, they say, benefited established firms already in the market while blocking new exporters from entering the field. The result was a weak trading environment that lagged behind many other Sub-Saharan African economies.
Kasahun Mamo, Deputy Secretary General for Business Development Services and Policy Advocacy at the Addis Ababa Chamber of Commerce and Sectoral Associations, said the chamber had long pushed for a comprehensive national trade policy. He said the absence of a clear policy had left Ethiopia behind its peers and made it harder for the private sector to plan and invest.
He said a strong trade policy must involve all relevant actors, especially the private sector, and must help move the country’s export profile beyond primary agricultural commodities. That, he said, means expanding manufacturing, value-added goods, service exports and tourism, while also diversifying export destinations.
Kasahun also called for the creation of a National Trade Facilitation Agency. He said a dedicated and independent institution should be established to coordinate public and private actors involved in trade facilitation and to strengthen capacity across the sector.
Such an institution, he said, would help improve the movement of capital, people and data while reducing non-tariff barriers in both foreign and domestic markets. He expressed hope that the new policy would also lead to reforms in existing trade incentives and mechanisms, creating a more dynamic business environment.
The approval of the policy marks a significant step in Ethiopia’s efforts to modernize its trade system and align it more closely with its industrial and export ambitions. It now remains to be seen how quickly the government can turn the policy into practical reforms that improve competitiveness, support new exporters and expand the country’s trade footprint.
