The China-based Alibaba Group‘s international online retail affiliate, AliExpress, is allegedly planning to enter the Ethiopian market.
According to Dr. Abiyot Bayu, Senior Advisor to the Minister of Innovation and Technology of the East African nation, the agreement has been concluded. An official announcement is expected soon.
The Ethiopian Ministry of Innovation and Technology announced a partnership with the eCommerce giant Alibaba Group to build the country’s digital economy sector five years ago.
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Alibaba’s eWTP initiative boosts SME growth in Ethiopia
Jack Ma’s 2016 proposal, the Electronic World Trade Platform (eWTP), was developed after a memorandum of understanding (MoU) between Alibaba Group and the Ethiopian government was signed.
The Electronic World Trade Platform facilitated collaboration among private enterprises, international organisations, governments, and social groups, focusing on developing small and medium-sized enterprises (SMEs) and trade.
On August 7, 2024, the new development followed a virtual meeting between some Ethiopian government officials and the Alibaba team led by Chandee Zhuang, Senior Advisor at Alibaba Global Initiatives.
This new initiative 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
Exploring AliExpress’s Role in Ethiopia’s Digital Growth
Alibaba started as an online wholesale marketplace specifically designed for small businesses looking to source products on a large scale. It was co-founded by Ma in 1999.
Also, in 2010, Alibaba Group launched Aliexpress, a business-to-consumer (B2C) eCommerce platform optimised for individuals to get items in smaller quantities.
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The launch of AliExpress in Ethiopia is consistent with the nation’s recent changes aimed at attracting foreign direct investment and has the potential to strengthen the digital economy.
On April 18, 2024, the Ethiopian Investment Board (EIB) introduced a new directive, Directive No. 1001/2024, to allow and regulate foreign participation in export, import, wholesale, and retail trade, all of which were previously reserved for domestic investors, to promote foreign investment in the nation.
Additionally, the Ethiopian Ministry of Trade and Regional Integration has introduced a new licensing system for electronic platforms, which has created a distinct eCommerce license category.
Furthermore, 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.