Ethiopia will open its logistics sector to foreign investors but cap their participation, the state investment body said on Tuesday in the latest reform to loosen the government's control of the economy. But while Ethiopia has introduced incentives such as tax holidays and subsidized loans to boost investment, bureaucracy and logistics constraints leave it at a low ranking in World Bank global trade logistics indexes. The latest move by the Ethiopian Investment Board - a body headed by Abiy and comprised of several ministers and the central bank governor - lifted restrictions on foreign investment in packaging, forwarding and shipping agency services. Foreign firms will now be allowed to take stakes of up to 49 percent in logistics businesses. The Ethiopian Investment Commission, a government body that handles investment issues such as licensing and promotion, said opening up this sector to foreign investors had become necessary.

Source: Ethiopian News September 04, 2018 18:33 UTC