ZimTrade urges locals to invade Ethiopia’s market

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By Alois Vinga

TRADE promotion agency, ZimTrade has implored local companies to tap into the abundant opportunities lying idle in the East African country of Ethiopia.

In 2022, Ethiopia exported $494 000 to Zimbabwe. The main products that Ethiopia exported to Zimbabwe are broadcasting equipment US$200 000, vegetable and mineral carvings, and other cloth articles.

During the last 27 years, the exports of Ethiopia to Zimbabwe have increased at an annualised rate of 21, 8%, from in 2022. During the last 27 years the exports of Zimbabwe to Ethiopia have increased at an annualised rate of 1, 89%.

Following ZimTrade’s recent market survey on Ethiopia, the agency revealed lucrative opportunities to take advantage of.

“There are several issues to consider when targeting the market, such as population, and logistics.

Ethiopia has a population of more than 120 million, which means a strong marketing strategy must be developed for products targeted at a wide range of consumers.

“There is also a need for companies to consider activation sales and monthly promotions and tastings to push their brand visibility,” said ZimTrade.

Outlining entry requirements into the retail sector, ZimTrade said the FMCG requires that companies enter into distributorship agreements with established retail distributors in the country.

The trade agency said since Zimbabwe products are known to be non-GMO this serves as a comparative advantage to enter the market and taking into consideration the different consumer tastes.

“Local presence also helps in dealing with associated consumer issues. In the short run, the dealership entry model can be used with the longer-term view of setting up operations through joint ventures in Ethiopia.

“For companies to break-through and reap meaningful benefits they must have a presence in the market.

“From the survey it was noted that registration of foreign companies in Ethiopia takes a shorter period.There is also a need to leverage on a huge diplomatic presence in Addis,” added ZimTrade.