AliExpress, a major online retail service owned by Alibaba group, is finally setting up shop in Ethiopia. This development follows years of collaboration between the Ethiopian government and Alibaba, marked by the signing of a Memorandum of Understanding (MoU) in 2019 to establish an Electronic World Trade Platform (eWTP).
Alibabaโs entry is a step in the right direction towards Ethiopia’s push for a digital economy. By providing a platform for both businesses and consumers, AliExpress can potentially boost the countryโs export potential, create jobs and drive startup innovation. The Ethiopian government has been actively building a conducive environment for e-commerce by streamlining regulations and licensing processes.
This move aligns with Ethiopia’s broader strategy to attract foreign investment and modernise its economy.
Context: Alibaba has previously trained numerous Ethiopian entrepreneurs, and this training was instrumental in forming the association that spearheaded the initiative to bring the e-commerce giant to Ethiopia.
In 2022, the Alibaba group refuted claims of a partnership with Ethiopian entrepreneur Ermias Amelga to launch an e-commerce business in the country.
While the potential benefits of this move are substantial, the success of Alibaba’s venture will depend on factors such as internet infrastructure, logistics, and consumer trust.
E-commerce in Ethiopia is still expanding, with the market expected to reach $121.9 million by 2028. AliExpress will compete with established platforms like Jumia, Qefira.com, Sheger.net, and Mekina. Additionally, services like DHL Africa enable Ethiopians to shop from international stores and have their purchases delivered locally.
