Marathon Motor Engineering PLC (MME), a leading electric car manufacturer in Ethiopia, is encountering significant obstacles in its efforts to expand the electric vehicle (EV) market. The company has reported difficulties in navigating legal frameworks, particularly regarding the acquisition of license plates for its electric models.

Melkamu Assefa, Managing Director and CEO of Marathon Motors, revealed that authorities have shown resistance when the company sought to obtain license plates for its electric vehicles, instead requesting information related to conventional internal combustion engine vehicles. This situation highlights the regulatory hurdles that continue to impede the growth of the electric vehicle sector in Ethiopia.

In addition to licensing challenges, MME is grappling with high insurance premiums that complicate the process of obtaining coverage for electric cars. To address this issue, the company has initiated training programs for insurance providers to demonstrate the benefits of insuring electric vehicles. While there has been some success, Melkamu acknowledged that insurance remains a major obstacle.

Funding also poses a challenge for electric vehicle adoption. While banks typically offer loans for petrol cars with terms extending beyond ten years, loans for electric vehicles are often limited to less than five years due to concerns about battery life. Marathon Motors is advocating for longer loan terms, citing its own eight-year warranty on vehicles, but banks have yet to respond favorably.

The company emphasizes the need for a comprehensive legal framework that addresses battery quality, licensing, and insurance for electric vehicles. Such a framework is deemed essential for building consumer confidence and increasing acceptance of electric cars in the Ethiopian market.

This pressing need was underscored at the recent forum where Marathon Motors unveiled its electric vehicle offerings four years ago. The event showcased new models, including the second-generation Hyundai KONA SUV and the award-winning IONIQ 5 SUV from Hyundai.

In conjunction with these developments, Marathon Motors has opened a new electric vehicle service center as part of its commitment to the growing EV sector. This launch coincides with the company’s 15th anniversary and highlights its dedication to providing specialized maintenance and repair services for electric vehicles.

Melkamu expressed confidence in the necessity of dedicated workshops for electric vehicles, stating that the new service center will enhance the company’s ability to support this emerging industry. The center aims to promote the use of electric vehicles across Ethiopia by ensuring reliable maintenance services.

State Minister of Transport and Logistics, Breho Hassan, addressed attendees at the event, emphasizing that Ethiopia’s policies and strategies are designed to modernize the transport sector in alignment with global trends in electrification and sustainability. He outlined a strong policy framework aimed at reducing carbon emissions while improving transport quality and infrastructure.

Breho highlighted a 30-year transport roadmap that envisions a fully modern transportation sector by 2050, prioritizing clean energy solutions and structured standards for integrating electric vehicles into the national system. As part of this plan, Ethiopia aims to expand EV infrastructure, including charging stations and maintenance workshops, while providing incentives for manufacturers and users of electric vehicles.

The minister noted that this initiative will play a crucial role in realizing the vision of the newly established electric vehicle workshop, which is intended to serve as a training center for mechanics, engineers, and students specializing in EV technology.

“This event isn’t just about launching vehicles and workshops; it’s about advancing sustainable and cost-effective transportation solutions,” Breho stated. He called on private sector customers, investors, researchers, and the public to collaborate in accelerating this transition toward a greener future.

Founded in 2008 and partnering with Hyundai since 2009, Marathon Motor Engineering has established itself as a key player in Ethiopia’s automotive market. The company has adopted a “bigger, better, and stronger” strategy that has resulted in superior performance in sales and service. Since 2016, it has been the exclusive agent for SAME tractors and has built a factory capable of assembling up to 10,000 vehicles annually following a technical assistance agreement with Hyundai.

Ethiopia’s long-standing ambition to join the World Trade Organization (WTO) is nearing a pivotal moment, with the next round of negotiations scheduled for late February or early March. This development marks a significant step in the country’s efforts to integrate into the international trading system after years of extensive preparation and reform.

Ethiopia first applied for WTO membership in 2003 and has since undertaken substantial economic and trade policy reforms to meet the organization’s stringent requirements. The upcoming talks, expected to take place in Geneva, will focus on finalizing key competition contracts, including market access commitments and necessary domestic regulatory adjustments.

Trade experts and government officials have expressed optimism about the negotiations. “This is a historic opportunity for Ethiopia to strengthen its economy and attract foreign investment,” said Kassahun Gofe, Minister of Trade and Regional Integration. “Joining the WTO opens new doors for exporters and creates a platform for sustainable growth.”

A high-level Ethiopian delegation, led by Kassahun, recently met with the WTO Secretariat in Geneva. The delegation, which included representatives from various institutions, successfully completed all necessary documentation for distribution to member states, paving the way for the fifth round of negotiations.

Yasmin Wohabrebbi, State Minister for Trade and Regional Integration, who was present during the meeting, stated, “We have made it clear where we stand with this amendment in 2020 and how we want to proceed with our entry process.”

Although the fourth round of WTO Working Party meetings took place in 2020, progress was hindered by the COVID-19 pandemic and other unexpected challenges. However, Minister Yasmin assured that preparations for the upcoming round have now been completed.

The Ethiopian government’s commitment to WTO membership is evident in the broad macroeconomic reforms implemented over the past five years. These reforms have addressed many unresolved issues raised by member states at both multilateral and bilateral levels.

While a few additional rounds of working party meetings are anticipated, government officials plan to complete the entry process at the next Council of Ministers meeting in Cameroon in 2026.

In addition to multilateral negotiations, Ethiopia is actively engaging in bilateral talks with several countries. Yasmin emphasized that successful completion of these agreements will be crucial for ensuring favorable market access for Ethiopia’s goods and services—one of the key benefits of WTO membership.

The push for WTO accession aligns with Ethiopia’s broader strategy to expand its presence in global markets and strengthen regional trade integration. A central theme of this strategy is a focus on quality. The government is actively developing institutions and processes to ensure standardized products, recognizing their importance in competing effectively on the global stage.

Significant investments have also been made in infrastructure to facilitate trade and enhance Ethiopia’s competitiveness. These improvements are deemed essential for maximizing the benefits of WTO membership and fostering sustainable economic growth.

In a recent interview with Prime Minister Abiy Ahmed’s press secretary, Minister Yasmin reiterated that the upcoming round of negotiations represents a crucial step toward Ethiopia’s WTO membership. This move has been attributed to Ethiopia’s economic reforms under Prime Minister Ahmed’s administration, which prioritize liberalization and private sector development.

A new report from the International Air Transport Association (IATA) highlights Ethiopia’s growing prominence in the global air-transported flower trade. The report, released on February 14, 2025, reveals a significant shift in the dynamics of the industry over the past two decades, with Ethiopia emerging as a key exporter alongside traditional powerhouses like Colombia and Ecuador.

According to IATA’s analysis of data from Global Trade Tracker, the value of the global air-transported flower trade has surged from USD 852 million in 2003 to USD 3.7 billion in 2024—a remarkable four-fold increase. This growth has been accompanied by a notable concentration of market share among a select group of exporting nations.

While Colombia remains a dominant exporter with a 42.3% market share in 2024, Ethiopia has made significant strides in the industry, becoming a notable newcomer that has pushed the Netherlands off the list of top exporters. This expansion is attributed to two primary factors: the reduction of tariffs and trade barriers through trade agreements, and advancements in air cargo capabilities.

“Trade agreements have reduced tariffs and barriers, increasing exports and opening markets for developing nations,” the IATA report stated. “Developments in air cargo, including improved refrigeration and logistics, ensured that flowers remained fresh and enabled seamless global distribution of large volumes on time.”

These advancements in air transportation have greatly facilitated the trade in perishable goods, including flowers, creating opportunities for emerging economies like Ethiopia to capitalize on their comparative advantages. The improved refrigeration and logistics networks are vital. It ensures that delicate flowers reach global markets in peak condition, preserving their quality and extending their shelf life.

On the import side, the United States continues to dominate, accounting for 53.6% of total imports in 2024. However, the Netherlands has risen to become the second-largest importer at 31.2%, serving as a main distribution center for flower re-exports.

As Ethiopia solidifies its position in the global flower trade, it is crucial for the country to continue investing in infrastructure, technology, and sustainable practices to ensure long-term competitiveness and growth. As the IATA report suggests, the increasing concentration of market share among a few key players underscores the importance of specialization and efficiency in this rapidly evolving industry.

The report concludes by playfully pondering which countries might have a comparative advantage in romance. While this question remains open for debate, there’s no doubt that Ethiopia has blossomed into a significant force in the global air-transported flower trade, showcasing its potential as a key player in the international market.

The third edition of the Ethiopia Tamrit Expo, a national movement aimed at revitalizing the country’s manufacturing sector, is projected to generate over five billion birr in trade transactions, according to Industry Minister Melaku Alebel. The expo’s launch event, held recently in Addis Ababa, highlighted the initiative’s significant potential impact on Ethiopia’s economy.

Melaku emphasized that while Ethiopia boasts a rich history of ancient civilization, its manufacturing productivity has been slower to develop. Recognizing the crucial role of a strong manufacturing industry in Ethiopia’s journey towards prosperity, the Ethiopian Tamer initiative was launched in 2022.

The minister noted that the initiative has already achieved considerable success in addressing challenges within the sector over the past two years. Notably, the increased availability of domestically produced goods through reduced foreign exchange costs and import substitution has been a key achievement. In the first six months of fiscal year 2025 alone, Ethiopia successfully produced two billion birr worth of such products.

“Prioritizing the manufacturing industry is critical for building a sustainable and inclusive economy,” Melaku stated. He noted that the world is moving towards the fifth industrial revolution, characterized by production processes in which people and machines work closely together. Advances in robotics, artificial intelligence, and global internet connectivity are transforming industries, leading to more efficient, faster, and cost-effective production methods.

While acknowledging Ethiopia’s historic contributions to civilization in areas such as agriculture, architecture, science, and social systems, the minister stressed the need to modernize production systems to keep pace with global advancements. He reiterated the government’s commitment to making Ethiopia a model of prosperity in Africa by adopting modern technology and increasing domestic production.

The Ethiopian Tamer initiative aims to address key challenges facing the manufacturing sector, including market access, raw materials, reliable energy sources, and skilled labor. The initiative is working to improve the overall business environment through economic reforms, support for the manufacturing sector, streamlining government services, and efforts to enhance competitiveness.

The 2025 Ethiopian Tamer Expo, scheduled to run for seven days starting on May 7, 2025, is expected to attract a diverse array of businesses and generate substantial commercial activity. Minister Melaku called on all stakeholders to contribute to the success of the Expo, highlighting its potential to drive growth and innovation within Ethiopia’s manufacturing sector.