AliExpress, a major online retail service by Alibaba Group, will soon enter the Ethiopian market, marking a significant development in the country’s digital commerce landscape. Abiyot Bayu, PhD, Senior Advisor to the Minister of Innovation and Technology, confirmed to Shega (Integrated media and research company) that an agreement has been finalized, with an official announcement imminent.
A virtual meeting on August 7, 2024, between Ethiopian officials and an Alibaba team led by Chandee Zhuang, Senior Advisor at Alibaba Global Initiatives, laid the groundwork for this expansion.
Alibaba and AliExpress have driven the success of many e-commerce businesses. Alibaba targets businesses sourcing bulk products, while AliExpress caters to individual buyers seeking smaller quantities.
AliExpress’s entry aligns with Ethiopia’s recent economic reforms aimed at attracting foreign direct investment. The Ethiopian Investment Board’s April directive permits foreign participation in wholesale, retail trade, imports, and exports—sectors previously reserved for domestic investors.
The Ethiopian Ministry of Trade and Regional Integration introduced a new licensing regime for electronic platforms, creating a distinct e-commerce license category. This streamlines the registration process, fostering a more favorable environment for digital commerce.
As of December 2023, the Ethiopian Ministry of Trade & Regional Integration had issued around 45 e-commerce licenses. Shega reached out to Chandee Zhuang but did not receive a response before publication.
Alibaba’s entry into Ethiopia has been anticipated for years. A 2019 memorandum of understanding (MoU) between Alibaba Group and the Ethiopian government aimed to establish an Electronic World Trade Platform (eWTP). Jack Ma, Alibaba’s founder, proposed the eWTP in 2016 to create an open platform for collaboration among private enterprises, international organizations, governments, and social groups, focusing on SME development and trade.
Despite delays, the initiative has had a lasting impact. Training for numerous Ethiopian entrepreneurs contributed to the formation of the Digital Transformation Ethiopia Association. Baheru Zeynu, founder and CEO of Africom Technologies, noted that this association played a pivotal role in rekindling efforts to bring Alibaba to Ethiopia.
Baheru highlighted that AliExpress’s arrival will generate jobs, encourage startups, boost entrepreneurs’ confidence, and provide a platform to promote local products and services internationally, enhancing Ethiopia’s export potential.
Notably, a media controversy arose two years ago when Ethiopian entrepreneur Ermias Amelga claimed he was developing an e-commerce platform in partnership with Alibaba Group, promising a launch within six months. Alibaba Group refuted the claim, stating no such partnership existed.
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