Ethiopia Modernizes Customs Law for Global Trade Standards

The Ethiopian Council of Ministers approved a series of economic reforms during its 52nd regular meeting, centred on modernising customs regulations, enhancing investment incentives, and fostering entrepreneurship. The cabinet endorsed revisions to the decades-old Customs Proclamation, aiming to align Ethiopia’s trade framework with international standards. The updated law is expected to streamline customs procedures, support manufacturing sector growth, and provide a more predictable environment for legal trade and investment. The draft amendment will be submitted to parliament following cabinet approval. Alongside the customs update, ministers approved a new legal framework for investment incentives and tax exemptions. The regulation is designed to attract high-impact investments and mobilise capital into priority sectors, offering performance-based benefits to investors. It will take effect immediately upon publication in the Federal Negarit Gazette. The session also saw approval of a comprehensive entrepreneurship development policy. The policy establishes standards and practices to strengthen innovation, ensure continuity in entrepreneurial activities, and support national development goals. Officials highlighted that the framework aims to foster a culture of entrepreneurship, increase the value of locally generated ideas, and enhance sustainable business growth.