Major Trade policy of Ethiopian
The main trade policy of Ethiopia is focused on promoting export-oriented industrialization, diversifying the country's export base, and attracting foreign direct investment (FDI) to boost economic growth and reduce poverty.
The key strategies and programs under this policy include:
1. The Growth and Transformation Plan (GTP): The government's long-term development strategy aims to increase exports, create jobs, and boost economic growth through targeted investments in infrastructure, education, and other sectors.
2. Export Promotion Strategy: This strategy aims to increase the country's competitiveness in the global market by focusing on value addition and promoting key export sectors such as agriculture, manufacturing, and services.
3. Investment Promotion and Protection: The government has implemented various policies and measures to attract more FDI, including tax incentives, streamlined procedures for business registration and licensing, and the establishment of special economic zones.
4. Trade Facilitation: The government is working to improve trade-related infrastructure, including transport and logistics, as well as enhancing trade-related policies and regulations to reduce trade barriers, increase the predictability of trade flows and enhance the country's trade competitiveness.
Overall, Ethiopia's trade policy aims to achieve sustainable economic growth and reduce poverty through increased trade and investment in key sectors, while also promoting regional integration and cooperation to enhance market access and deepen economic relations with neighboring countries and beyond.
The major trade policy of Ethiopia is based on promoting exports and attracting foreign direct investment (FDI). Here are the steps involved in Ethiopia's trade policy:
1. Establishing a conducive business environment: Ethiopia has been working towards creating a favorable business environment to attract foreign investment. This includes simplifying bureaucratic processes, streamlining regulations, and improving infrastructure.
2. Export-focused strategy: Ethiopia has adopted an export-led strategy to boost its trade and economy. The government has identified key sectors for export promotion such as textile and garments, leather and leather products, coffee, and horticulture.
3. Trade incentives and initiatives: The Ethiopian government provides various incentives to attract investment and promote exports. These include tax holidays, duty-free import of capital goods, access to industrial parks, and export credit facilities. Additionally, the government has established specialized institutions such as the Ethiopian Export Promotion Agency (EPA) to assist exporters and promote their products in international markets.
4. Regional and international trade agreements: Ethiopia is a member of several regional trade agreements such as the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA). These agreements provide access to larger markets, tariff reductions, and trade facilitation measures.
5. Development of industrial parks: Ethiopia has developed industrial parks across the country to attract foreign investors. These parks provide infrastructural facilities, including utilities, transportation, and logistics, to encourage export-oriented industries.
6. Foreign direct investment promotion: Ethiopia actively seeks foreign direct investment to enhance its trade capabilities. The government has established the Ethiopian Investment Commission (EIC) to facilitate and promote investment in the country. They provide information on investment opportunities, assist with company registration, and support investor inquiries.
7. Infrastructure development: Ethiopia recognizes the importance of infrastructure for trade facilitation. The government has made significant investments in improving transportation networks, including expanding road, railway, and air transport systems. This infrastructure development aims to reduce trade costs and enhance connectivity.
It is important to note that trade policies are subject to change, and it is recommended to refer to the official government sources and trade publications for the latest updates on Ethiopian trade policy.