Ethiopia logistics is now open to foreign investors,a state agency overseeing investments in the country has confirmed.
The Ethiopia Investment Board said that foreign firms will now be allowed to take stakes of up to 49 percent in logistics businesses.
The board has lifted the restrictions imposed under Article 3.1(b) of the Investment Regulation No. 270/2012, “including 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,” read the statement in part.
Article 3.1(b) of the Investment Regulation states that “packaging, forwarding and shipping agency services” are “exclusively reserved for Ethiopian nationals.”
In lifting restrictions to the logistics sector, Ethiopia Investment Board observed that logistics is key to boosting international trade, supporting industry growth and a major catalyst to investment attraction.
Betachew Mekuria, Commissioner of the Ethiopian Investment Commission told local media that the logistics sector is “now open for joint venture arrangements. A great, move towards improving competitiveness of Ethiopia in manufacturing for export.”
Prime Minister Abiy Ahmed has presided over a shake-up of one of the most heavily-regulated economies in Africa since his appointment in April. Mr Abiy heads the Ethiopian Investment Board.
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