Ethiopia's Council of Ministers Greenlights Major Economic & Policy Reforms

Addis Ababa, January 20, 2026 (ENA)— The Council of Ministers, chaired by Prime Minister Abiy Ahmed, today deliberated on and approved a series of important decisions, addressing customs reform, investment incentives, and entrepreneurship development. During its 52nd regular session, the Council first discussed a draft amendment to the existing Customs Proclamation. Given that the current proclamation has been in force for many years, the proposed amendment aims to align customs regulations with the evolving landscape of international trade. In a social media post, Office of the Prime Minister noted that the revision is intended to support Ethiopia’s expanding manufacturing sector, promote legal trade, and encourage investment. Following deliberations, the Council unanimously agreed to submit the draft amendment to the House of Peoples’ Representatives for further consideration. Next, the Council examined a draft regulation on tax and customs duty incentives for investment. The regulation seeks to introduce a performance-based investment incentive framework that takes into account capital utilization. It particularly targets priority sectors that significantly contribute to national economic growth or require substantial capital investment. After incorporating additional inputs, the Council unanimously decided that the regulation will take effect upon its publication in the Federal Negarit Gazeta. Finally, the Council reviewed the draft entrepreneurship development policy. The policy is designed to ensure the sustainability of entrepreneurship activities in line with national development objectives. It aims to establish a supportive entrepreneurship ecosystem that promotes innovation, value addition, and a strong entrepreneurial culture.