Overview

Directive No. 1082/2025 marks a significant regulatory shift in Ethiopia’s investment landscape. Issued by the Ethiopian Investment Board, the Directive reforms the conditions under which foreign investors may engage in export, import, wholesale, and retail trade—sectors that were previously restricted under Investment Regulation No. 474/2020.

The Directive replaces the performance-based entry requirements imposed by its predecessor (Directive No. 1001/2024) with a streamlined due diligence-based assessment framework. The overarching objective is to improve the ease of doing business while safeguarding national interests through integrity screening.

Key Sectoral Reforms

Export Trade

  • Removed Requirements: Procurement history, purchase orders, and multi-year performance commitments.
  • New Entry Condition: Submission of a comprehensive due diligence report.
  • Eligible Items: Raw coffee, oilseeds, khat, pulses, hides/skins, forest products, poultry, and livestock.

Import Trade

  • Liberalization: Foreign investors may now import all goods except fertilizer and petroleum.
  • Removed Restrictions: No longer required to act as manufacturers or agents.
  • Permit Condition: Due diligence report confirming integrity and operational capacity.

Wholesale Trade

  • Removed Mandate: No obligation to build “modern marketing and logistics infrastructure.”
  • Scope: All sectors permitted except fertilizer wholesale.
  • Flexibility: Investors can sell both imported and domestically sourced goods.
  • Permit Condition: Due diligence report.

Retail Trade

  • New Capital Threshold: Minimum USD 2.5 million in paid-up capital (cash or professionally valued assets).
  • Removed Requirements: Outlet size and format obligations (e.g., supermarkets, hypermarkets).
  • Exemption Clause: The Board may grant entry to reputable single-brand retail operations below the capital threshold, on a case-by-case basis.
  • Permit Condition: Due diligence report with embedded AML/CFT screening.

Due Diligence Report – Core Requirement Across All Sectors

All investment permits now require a due diligence report that verifies:

  • Absence of sanctions (based on Ethiopia-accepted databases).
  • No involvement in illicit activities (money laundering, drug trafficking, terrorism financing).
  • Proven business integrity and financial standing.

The report may be prepared by the investor or a recognized national/international verification agency.

Implications for Foreign Investors

  • Simplified Entry: The shift to a unified due diligence model significantly reduces administrative burden and setup costs.
  • Strategic Flexibility: Investors gain access to sectors that were historically restricted, without infrastructure or performance constraints.
  • Risk Management: The regulatory focus on integrity ensures alignment with international compliance standards. 

Final Note

Directive No. 1082/2025 represents a pragmatic evolution in Ethiopia’s investment regulatory framework. By replacing rigid operational mandates with integrity-based screening, the Directive opens the door to broader foreign participation in Ethiopia’s trade sectors while reinforcing responsible investment standards.