Recently, according to local Ethiopian media outlet Reporter Network, under the leadership of Ethiopian Prime Minister Abiy, the Ethiopian Investment Commission (EIC) has issued a new law allowing foreign enterprises to engage in import-export, wholesale, and retail trade businesses.

However, the new policy also states that foreign investors or enterprises need to meet the restricted goods requirements under the new policy and fulfill corresponding conditions to obtain a license. For example, foreign companies seeking a coffee export license must provide documentation proving that they have purchased coffee worth at least $10 million annually for at least three consecutive years prior to applying for the license. Other products have the same value requirement, though the amounts differ.

On this matter, the Deputy Director General of the Ethiopian Investment Commission stated that making this decision was not easy, but foreign investors have shown great interest, and the new policy will bring significant changes to the trading system.

A legal expert who provides commercial legal services to multiple industries predicts that foreign companies, especially those in the coffee sector, will line up to apply for export licenses. Additionally, he believes the policy will benefit Ethiopia’s economy, as foreign investors are more interested in participating in the international trading system than locals.

However, there are still many issues in Ethiopia currently. The armed group “Fano” remains active in the Amhara region of Ethiopia, frequently clashing with government forces. In addition, in mid-April, the Tigray People’s Liberation Front launched military operations, taking control of areas near the town of Alamata.

Therefore, regarding the current conflict situation, some investors have analyzed that factors such as political instability, social unrest, and security risks brought about by conflicts and wars can lead to concerns among investors about the investment environment, reducing their willingness to invest. Secondly, war may damage the country’s infrastructure, production capacity, and supply chains, thereby restricting production and business activities. Therefore, risk assessment is essential before making investments.