The news:
- AliExpress, an international online retail subsidiary of the China-based Alibaba Group, is reportedly set to enter the Ethiopian market.
- The agreement has been finalised per Dr Abiyot Bayu, Senior Advisor to the East African nation’s Minister of Innovation and Technology. An official announcement is expected to be released soon.
- Five years ago, the Ethiopian Ministry of Innovation and Technology announced a partnership with the eCommerce giant Alibaba Group to build the country’s digital economy sector.
Alibaba Group signed a memorandum of understanding (MoU) with the Ethiopian government to develop an Electronic World Trade Platform (eWTP), proposed by Jack Ma in 2016.
The eWTP facilitated collaboration among private enterprises, international organisations, governments, and social groups, focusing on developing small and medium-sized enterprises (SMEs) and trade.
The new development follows a virtual meeting on August 7, 2024, between some Ethiopian government officials and the Alibaba team, led by Chandee Zhuang, Senior Advisor at Alibaba Global Initiatives.
The arrival of AliExpress in the Ethiopian market is expected to create job opportunities, drive startup innovation, and provide a platform to showcase local products globally, enhancing the nation’s export potential.
Co-founded by Ma in 1999, Alibaba started as an online wholesale marketplace specifically designed for small businesses looking to source products on a large scale.
In 2010, Alibaba Group launched Aliexpress, a business-to-consumer (B2C) eCommerce platform optimised for individuals to get items in smaller quantities.
AliExpress’ expansion to Ethiopia is in line with the country’s recent reforms targeted at attracting foreign direct investment, with the potential to boost the digital economy sector.
To encourage foreign investment in the country, on April 18, 2024, the Ethiopian Investment Board (EIB) introduced a new directive — Directive No. 1001/2024 — to permit and regulate foreign participation in export, import, wholesale, and retail trade, all of which were previously reserved for domestic investors.
Also, the Ethiopian Ministry of Trade and Regional Integration has launched a new licensing regime for electronic platforms, establishing a separate eCommerce license category. Effectively, it abolishes the multi-licence approach.
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The Ethiopian government expects the streamlining registration process for e-commerce businesses to create a more enabling environment for digital commerce. As of December 2023, the Ethiopian Ministry of Trade & Regional Integration has issued around 45 licences.