Ethiopian exporters are struggling with documentation requirements, high trade costs and limited market information as the country seeks to expand its participation in the African Continental Free Trade Area (AfCFTA).
The challenges persist despite opportunities to reach new buyers and government-reported exports worth US$14.5 million under the continental trading framework.
An exporter who requested anonymity told Capital that she began supplying agricultural products, including coffee, to African markets six months ago. However, administrative procedures and difficulties obtaining export certificates have complicated efforts to expand her business.
She said prospective buyers had expressed interest in Ethiopian products but encountered documentation requirements and high charges for export-related paperwork.
The exporter also reported concerns about duties in some destination markets. According to her account, prospective buyers said Ethiopian products could face high tariffs because of the duties Ethiopia applies to imports from their countries. That explanation has not been independently verified.
Her experience highlights the gap between the opportunities presented by preferential trade arrangements and the practical requirements businesses must meet to use them.
Wubshet Kassa, an economist working on AfCFTA-related issues, said insufficient knowledge of tariff arrangements, trade regulations and market requirements remains a major obstacle for Ethiopian businesses.
He said exporters need continuing technical assistance and reliable information about potential buyers, applicable duties and product standards.
Businesses should first identify markets with demand for their products and understand the conditions for entry, he added.
Wubshet said export activity remains concentrated in Addis Ababa, while businesses outside the capital have limited access to information about the AfCFTA and alternative markets.
He called for training that extends beyond government officials to professionals involved in production, quality assurance and export operations.
Although research has identified products Ethiopia could supply to African markets, he said exports remain concentrated in Europe, the Middle East and Asia.
He recommended strengthening Ethiopia’s presence in East Africa before gradually expanding into Southern and Western Africa.
Competitive pricing would be essential, he said, because many African countries produce similar agricultural and manufactured goods.
Wubshet also highlighted the importance of rules of origin, which determine whether goods qualify for preferential treatment under the agreement.
He said Ethiopia had issued certificates of origin covering 350 products as of September 30.
Transport costs present another challenge. Wubshet said air freight plays a major role in shipments to African destinations, while rail and maritime options remain limited.
Tesfaye Abate, public relations and communications executive at the Ministry of Trade and Regional Integration, said exporters use both air transport and maritime routes through the Port of Djibouti.
The differing assessments point to the importance of route availability and cost for businesses seeking to compete beyond neighbouring markets.
Tesfaye said Ethiopia had been exporting under the AfCFTA framework for more than a year.
According to ministry figures, exports under the arrangement reached US$14.5 million, compared with imports of US$8 million.
Thirty-seven Ethiopian traders had participated in exports, while 76 companies had imported goods.
The ministry listed Kenya, Egypt, Nigeria, Uganda, South Africa, Tanzania, Algeria and Ghana among export destinations. Imports originated from countries including Egypt, Kenya and Tanzania.
Tesfaye acknowledged that businesses continue to face tariff and non-tariff barriers in some markets. He said the government is addressing those difficulties through bilateral engagements and discussions with trading partners.
Ethiopia initially focused on agricultural exports but intends to expand the range of value-added products supplied to African buyers, he added.
Although more businesses currently import than export under the arrangement, Tesfaye said the reported value of exports exceeds that of imports.
He described participation as being at an early stage and said the number of exporters should increase as businesses become more familiar with the framework.
Dawit Haile, business development service team leader at the Ethiopian Chamber of Commerce, said the chamber is helping businesses understand the agreement’s opportunities, requirements, rights and obligations.
Its work includes awareness programmes and cooperation with other institutions to strengthen traders’ capacity.
Dawit said the continental market offers Ethiopian businesses opportunities to expand their customer base, increase earnings and generate foreign currency.
Asked about competition from countries with stronger manufacturing capacity, including South Africa, he said Ethiopia should concentrate on improving domestic competitiveness rather than regard greater market access solely as a threat.
The ministry separately reported that Ethiopia earned US$3.4 billion from exports during the past three months, up US$642 million from the corresponding period a year earlier.
That broader figure includes exports under the AfCFTA framework but is not a measure of continental preferential trade alone.
For businesses seeking new African buyers, the immediate challenge remains turning market interest into completed shipments. Exporters and industry representatives say clearer information, more efficient documentation and competitive transport services will be essential to expanding participation.
