AliExpress, soon be available in Ethiopia

AliExpress, the international online retail subsidiary of Alibaba Group, is set to enter the Ethiopian market following a finalized agreement between the company and the Ethiopian government. This development comes after a virtual meeting on August 7, 2024, between Ethiopian officials and an Alibaba team led by Chandee Zhuang, Senior Advisor at Alibaba Global Initiatives. Dr. Abiyot Bayu, Senior Advisor to the Minister of Innovation and Technology, confirmed that the official announcement of this agreement is expected soon.

This move marks a significant step in the ongoing collaboration between Ethiopia and Alibaba, which began with a partnership announced five years ago to build the country's digital economy. In 2019, the Ethiopian Ministry of Innovation and Technology signed a Memorandum of Understanding (MoU) with Alibaba Group to establish an Electronic World Trade Platform (eWTP). The entry of AliExpress into Ethiopia is seen as a continuation of this collaboration, signaling Alibaba’s growing commitment to the East African nation's digital transformation.

Alibaba and AliExpress have been instrumental in the success of many eCommerce businesses, with Alibaba focusing on bulk product sourcing for businesses, while AliExpress caters to individuals buying in smaller quantities. In 1999, Jack Ma co-founded - Alibaba, he began it as an online wholesale marketplace for small businesses to source products in large quantities. In 2010, Alibaba Group expanded its offerings by launching AliExpress, a business-to-consumer (B2C) eCommerce platform designed for individuals to purchase items in smaller quantities.

Since 2019, Alibaba has played a key role in training Ethiopian entrepreneurs, which led to the formation of the association that initiated the effort to bring the e-commerce giant to Ethiopia. In 2022, however, Alibaba denied claims of partnering with Ethiopian entrepreneur Ermias Amelga to launch an e-commerce business in the country.

The entry of AliExpress into the Ethiopian market is expected to create job opportunities, drive startup innovation, and boost the country's export potential by providing a global platform to showcase local products. This move aligns with Ethiopia's efforts to build a digital economy, supported by the government's initiatives to streamline regulations and licensing for e-commerce.

Ethiopia's recent reforms are focused on attracting foreign direct investment and fostering a more conducive environment for digital commerce. The Ethiopian Investment Board (EIB) introduced a directive in April 2024, allowing foreign participation in sectors like wholesale, retail trade, imports, and exports, which were previously reserved for domestic investors. This move is expected to significantly impact the nation's economic landscape by encouraging more foreign investment.

In parallel, the Ethiopian Ministry of Trade and Regional Integration has implemented a new licensing regime tailored for electronic platforms, establishing a distinct e-commerce license category and eliminating the need for multiple licenses. This streamlined process aims to promote the growth of digital commerce in the country. As of December 2023, around 45 e-commerce licenses have been issued, reflecting the government's commitment to supporting the sector's development.

In conclusion, E-commerce in Ethiopia is growing rapidly, with the market projected to reach $121.9 million by 2028. AliExpress will enter a competitive landscape alongside established platforms like Jumia, Qefira.com, Sheger.net, and Mekina, as well as services like DHL Africa that facilitate international shopping for Ethiopians.

Although, the arrival of AliExpress is anticipated to create job opportunities, drive startup innovation, and offer a global platform for Ethiopian products. However, the success of Alibaba's venture in Ethiopia will depend on the development of internet infrastructure, logistics, and consumer trust.

What is eWTP in Ethiopia?

The Electronic World Trade Platform (eWTP) in Ethiopia is a collaborative initiative led by Alibaba Group, aimed at enhancing global trade through the use of technology and public-private partnerships. The platform, established through multiple Memoranda of Understanding (MoUs) between the Ethiopian government and Alibaba, focuses on creating a comprehensive digital ecosystem that includes a digital hub, smart logistics, and fulfillment services. It is designed to support Ethiopian small and medium-sized enterprises (SMEs) by facilitating cross-border trade with China and other markets. Additionally, the eWTP in Ethiopia includes capacity building and training programs, implemented by Alibaba Business School, to develop local entrepreneurs, business leaders, and academic professionals.

This initiative is part of a broader effort to strengthen trade relations between Ethiopia and China, with the Ethiopian government taking various steps to boost collaboration. The eWTP will feature advanced technology, infrastructure, and a customized regulatory framework intended to foster innovation in trade and the digital economy. The platform is expected to play a significant role in integrating Ethiopian businesses into global markets, thereby promoting economic growth and development in the country.

Is Alibaba available in Ethiopia?

Yes, Alibaba is actively establishing its presence in Ethiopia. The company has been involved in initiatives such as training Ethiopian entrepreneurs and partnering with the Ethiopian government to establish an Electronic World Trade Platform (eWTP). While AliExpress, a subsidiary of Alibaba, is set to enter the Ethiopian market, Alibaba's broader involvement is already underway, focusing on enhancing the digital economy and supporting e-commerce in the country.

Does Aliexpress ship to Ethiopia?

Yes, AliExpress ships products to Ethiopia through several channels. Ethiopian customers can purchase items directly from AliExpress, which offers shipping options to the country. Additionally, platforms like Ubuy facilitate access to a wide range of AliExpress products with shipping available to major Ethiopian cities such as Addis Ababa, Dire Dawa, and Mekelle. AliExpress also features a dedicated page for wholesale products that can be filtered for free shipping options to Ethiopia.

How to Buy from Alibaba in Ethiopia?

To buy from Alibaba in Ethiopia, start by creating an account on Alibaba's website or app. This involves providing basic information and setting up a secure profile. Next, use the search function to browse through various product categories or enter specific keywords to find the items you're interested in. Evaluate potential suppliers by checking their ratings, reviews, and product offerings to ensure they are reliable and meet your quality standards. Communicate directly with suppliers to discuss product details, pricing, and shipping options, using Alibaba’s messaging tools.

Once you've selected a supplier and finalized the details, place your order and arrange for shipping to Ethiopia. Suppliers may offer different shipping methods, such as air or sea freight, based on the size and urgency of your order. Complete your purchase using Alibaba’s secure payment methods, making sure to factor in any additional costs like shipping fees and customs duties. After payment, track your shipment through Alibaba’s tracking system to monitor its progress.

Alternatively, you can use Ubuy to purchase Alibaba products. Ubuy provides access to a wide range of products with shipping options to major Ethiopian cities such as Addis Ababa and Dire Dawa. This platform sources products from international warehouses and often offers discounts, providing a user-friendly alternative for Ethiopian customers seeking Alibaba products. Whether through Alibaba directly or Ubuy, you can effectively access and import a diverse array of products to Ethiopia.

How to Buy from AliExpress in Ethiopia?

To buy from AliExpress in Ethiopia, start by creating an account on the AliExpress website or app. Register by providing your email address and setting up a secure password. Once your account is active, you can search for products using the search bar, filtering results based on categories, price, and shipping options to find what you need.

Before placing an order, review product details, descriptions, and customer reviews to ensure the items meet your expectations. Check that the seller offers shipping to Ethiopia and choose the shipping method that suits you. Add the items to your cart, proceed to checkout, and complete your purchase using AliExpress’s secure payment options.

AliExpress is currently working on establishing physical stores in major Ethiopian cities to enhance its presence and accessibility. This initiative aims to provide a more convenient shopping experience for Ethiopian customers and strengthen the platform’s local footprint. Meanwhile, you can still track your online orders and inspect your purchases upon delivery, keeping in mind potential customs duties and import regulations that may affect the total cost and delivery time.