Since the government launched economic reforms, the implementation of the African Continental Free Trade Area (AfCFTA) and Ethiopia's accession to the World Trade Organization (WTO) have been key agenda items in strengthening the country's trade relations at both regional and global levels. While AfCFTA implementation is underway, Ethiopia's WTO accession process is in its final stages.
The country is also achieving record-breaking export earnings, Prime Minister Abiy Ahmed (PhD) stated while addressing MPs recently.
WTO accession, which supports the effective implementation of the AfCFTA and underscores Ethiopia's commitment to fostering economic growth by integrating its markets with regional and global partners.
Trade and Regional Integration Minister KassahunGofe (PhD), who led last week's negotiating team to secure WTO membership, emphasized that Ethiopia has received support from multiple countries for its efforts to align trade policies with international standards. He noted that reaching agreements on market access and finalizing necessary domestic policy adjustments are critical steps in the process.
According to him, WTO membership is expected to bring multiple benefits to Ethiopia's trade landscape. If Ethiopia successfully joins the WTO, the country will gain greater access to international markets, improve investor confidence, and enhance the predictability of its trade policies. By securing support from global financial institutions such as the World Bank and the European Investment Fund, Ethiopia is laying the groundwork for a more stable and competitive trade environment, he highlighted.
Furthermore, Ethiopia's trade reforms over the past years reflect its ambition to integrate more effectively into global supply chains. While the COVID-19 pandemic and other challenges delayed earlier negotiations, the renewed push for WTO membership demonstrates the country's determination to create a more open and rules-based trade system, he added.
If successful, Ethiopia's accession will send a strong signal to international investors and trading partners that it is committed to modernizing its economy and expanding its trade potential.
On the other hand, Ethiopia's push for global trade integration is complemented by its strong export performance. Prime Minister Abiy Ahmed recently told MPs that the country's export revenue over the past eight months has exceeded all previous annual records. This achievement underscores Ethiopia's ability to leverage its economic potential through diversified trade strategies.
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It was stated that Ethiopia generated 4.5 billion USD in export earnings within just eight months. With additional revenue from services, remittances, and foreign direct investment, the country is demonstrating resilience despite global economic uncertainties. The government's emphasis on industrial capital goods and raw material imports further highlights Ethiopia's strategy to build a robust production sector that supports both domestic and export-oriented industries, according to the Ministry of Trade and Regional Integration.
Ethiopia's active engagement in Africa's trade integration agenda through the AfCFTA is also expected to enhance intra-African trade and reduce dependence on external markets. The recent Economic Commission for Africa (ECA) conference in Addis Ababa reinforced the importance of coordinated strategies for effective AfCFTA implementation. Discussions emphasized the need for regional value chains, digital trade, and investment in youth empowerment to accelerate Africa's economic transformation.
While Ethiopia is making progress in its trade ambitions, challenges remain. WTO accession, though promising, requires continued reforms in trade policy, legal frameworks, and institutional capacity. Similarly, while the AfCFTA holds great potential, its full implementation will require sustained efforts to address logistical, infrastructural, and policy-related barriers, as reports from Ministry of Trade and Regional Integration show.
Despite these challenges, Ethiopia's proactive trade policies, growing export capacity, and commitment to economic integration indicate that the country is on the right path toward becoming a major player in both regional and global trade networks.
