AliExpress, the global e-commerce platform owned by the Alibaba Group from China, is poised to expand its operations into Ethiopia, as indicated by Dr. Abiyot Bayu, the Senior Advisor to Ethiopia’s Minister of Innovation and Technology. An official statement regarding this development is anticipated to be released shortly.
This move comes half a decade after the Ethiopian Ministry of Innovation and Technology initiated a collaborative effort with Alibaba Group to bolster the digital economy sector within the country.
In line with this initiative, the Alibaba Group had previously signed a memorandum of understanding (MoU) with the Ethiopian government. This agreement was aimed at establishing an Electronic World Trade Platform (eWTP), an idea put forward by Alibaba’s founder Jack Ma in 2016.
The eWTP was designed to foster cooperation between various stakeholders, including private companies, international organizations, governments, and social groups, with a special focus on the growth of small and medium-sized enterprises (SMEs) and the facilitation of trade.
This latest development is a continuation of the dialogue between the Ethiopian government and Alibaba Group, which was highlighted by a virtual meeting held on August 7, 2024. The meeting featured Ethiopian government officials and the Alibaba team, led by Chandee Zhuang, a Senior Advisor at Alibaba Global Initiatives.
The anticipated entry of AliExpress into the Ethiopian market is expected to be a boon for the local economy, offering job opportunities, spurring innovation among startups, and providing a global platform for local products. This, in turn, is set to enhance Ethiopia’s export capabilities and contribute to the country’s economic growth.
Alibaba, co-founded by Jack Ma in 1999, initially emerged as an online B2B marketplace tailored to meet the needs of small businesses seeking to purchase products in bulk. A decade later, in 2010, the Alibaba Group expanded its reach by introducing AliExpress, a B2C e-commerce platform designed for individual consumers to buy items in smaller quantities.
The planned expansion of AliExpress into Ethiopia aligns with the nation’s recent economic reforms aimed at drawing in foreign direct investment to strengthen the digital economy. These reforms are part of a broader strategy to open up the Ethiopian market to international businesses and investors.
In a significant move to facilitate foreign investment, the Ethiopian Investment Board (EIB) unveiled a new directive on April 18, 2024 — Directive No. 1001/2024. This directive marks a pivotal change in policy, allowing foreign entities to engage in export, import, wholesale, and retail trade sectors that were previously exclusive to local investors.
Furthermore, the Ethiopian Ministry of Trade and Regional Integration has implemented a new licensing framework for digital platforms. This framework introduces a dedicated e-commerce license category, streamlining the process by eliminating the need for multiple licenses. This regulatory shift is expected to create a more conducive environment for e-commerce platforms like AliExpress to operate in Ethiopia, potentially catalyzing growth in the digital sector and the broader economy.
The Ethiopian government is anticipating that the simplified registration process for e-commerce businesses will significantly enhance the environment for digital commerce within the country. By December 2023, the Ethiopian Ministry of Trade & Regional Integration had already issued approximately 45 licenses, demonstrating a commitment to fostering a thriving digital marketplace.
This streamlined approach is part of a broader strategy to encourage the growth of the digital economy and make Ethiopia an attractive destination for technology investments and innovations. With the issuance of these licenses, the government is actively supporting the establishment and expansion of e-commerce platforms, which are expected to contribute to the nation’s economic development and modernization.
