Ethiopia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in ethiopia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Entry Strategy
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Accessing the Ethiopian market often requires the following: undertaking a judicious assessment of the market opportunities, conducting extensive due diligence, and developing personal relationships.  U.S. firms should consider appointing experienced and reliable local agents or distributors to represent their products and services in Ethiopia.  Ethiopian Americans, living in the United States or in Ethiopia, often serve as good resources in establishing U.S.-Ethiopian partnerships.  Hiring a local lawyer to review documents and contracts is essential for any investor.

The GOE requires that all commodity imports be channeled through Ethiopian nationals registered as official import or distribution agents with Ethiopian Ministry of Trade and Regional Integration (MOTRI).  There is no substitute for conducting meetings in person and spending time on the ground to build relationships and form business partnerships. Email communication should not be substituted for face-to-face meetings.

A significant portion of Ethiopia’s imports are solicited through government tenders, primarily issued by the Public Procurement & Property Disposal Service (PPPDS). The Ministry of Health coordinates purchases through the Ethiopian Pharmaceutical Supply Agency (EPSA) and the Ministry of Agriculture uses the Ethiopian Agricultural Businesses Corporation (EABC).  Tender announcements are made accessible to all interested potential bidders, regardless of the nationality of the supplier or origin of the products/services. 

Some U.S. companies have raised concerns regarding a lack of transparency in the PPPDS and EPSA tender evaluation processes.  The administration of PM Abiy Ahmed has undertaken actions against corruption, including detaining eight senior executives at PPPDS and its regulatory body, the Public Procurement Authority (PPA), including the Director General for PPPDS and the Deputy Director General for PPA.  The GOE has launched the Electronic Government Procurement platform (EGP) as part of its transparency measurements.  U.S. companies interested in participating in government tenders are encouraged to register and explore the system.  Once registered, companies can access procurement opportunities and submit bids online.  Also, a subscription to an online private tender service provider can assist in regularly accessing a number of tenders.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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