Inside AliExpress’ Expansion in Ethiopia: Unlocking New Opportunities for Local Businesses

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Ethiopia’s rapidly growing demand for digital services and e-commerce solutions is surfacing the way for global tech giants to make a mark on the country’s economy, with Alibaba leading the charge. As a nation of over 120 million people, Ethiopia’s expanding consumer base and increasing internet penetration highlight an immense potential for online marketplaces and digital innovation. In response, Alibaba’s recent entry signals not only an opportunity to meet this demand but also a strategic move that could redefine local business operations and digital access. With promises of enhanced infrastructure, streamlined logistics, and new growth opportunities for Ethiopian businesses, Alibaba’s presence may prove transformative in Ethiopia’s journey toward a modernized economy and Digital Ethiopia.

August 25 marked a historic day as MKTY Ethiopia (a seasoned information technology service company with 30 years of experience based in Addis Ababa), launched its partnership in Ethiopia, establishing the first AliExpress showroom on the African continent in Addis Ababa. This pioneering initiative allows Ethiopians to shop on the AliExpress online platform while providing exporters an avenue to expand into the global market. Wholesalers can now view product samples in Addis and distribute to parts of the country, eliminating the need to travel to China 

“We have partnered with Gebeya Express to collaborate with AliExpress as a digital marketplace, enabling direct transactions for selected goods in local currency and offering a platform for exporters,” shared Markos Tilahun, CEO of MKTY, in an interview with Arts TV. He added that the website, gebeyaexpress.com, is currently in the trial phase and is set to launch in a month.

“Exporters shouldn’t worry about the volume of their products, as we sell directly to end customers worldwide,” he added.

Through its B2B and B2B2C models, AliExpress aims to benefit both end consumers and business owners, particularly importers and wholesalers. However, businesses looking to sell their products on AliExpress must meet certain criteria. “Businesses should have a technology solution. For instance, they need an SRS capability,” said Jeffrey Jiang, AliExpress’s Business Director for the African market, in an interview with Arts TV.

Following Prime Minister Abiy Ahmed’s meeting with Jack Ma at the World Economic Forum in Davos, Switzerland, Ethiopia signed a Memorandum of Understanding (MoU) to establish an eWTP (electronic World Trade Platform) Hub in the country. “Through the eWTP agreement, our team had the opportunity to participate in training programs initiated by Alibaba. Our collaboration and inspiration have deep roots,” said Markos.

Beyond the marketplace, Alibaba Global Initiatives (AGI), in partnership with the Digital Transformation Ethiopia Association (DTEA), has announced plans to open a training center in Addis Ababa in the first half of 2025. This center, AGI’s first in Africa, will offer programs aimed at cultivating local digital talent equipped to deliver specialized training within their communities. Additionally, AliExpress will provide an alternative marketplace with affordable, quality goods, benefiting the public and supporting SMEs with both direct and indirect impacts from the platform’s presence.

International trade presents several logistical challenges for businesses, including high costs and bureaucratic hurdles. “Since most Ethiopian exporters deal in limited products, our plan is to partner with small and medium-sized businesses to help them scale on the global stage through Gebeya,” said Markos Tilahun. “To achieve this, Ethiopian Airlines’ role is significant in offering affordable freight services, which will help us provide goods at reasonable prices for the community.”

Markos highlighted a major challenge: the prevalence of informal e-commerce platforms that often supply inappropriate or counterfeit goods to customers. He suggested that these platforms should be brought into the formal sector to ensure the provision of authentic, reliable products. With Ethiopia’s online marketplace culture still in its early stages, Markos emphasized the need for regulation to prevent these informal platforms from having a significant negative impact on the economy. He also expressed concern that high tariff costs and lengthy processing times could discourage AliExpress from maintaining operations in Ethiopia, recommending that the process be streamlined to support sustainable growth.

Addis Insight
Addis Insighthttps://addisinsight.net/
Addis Insight is Ethiopia’s fastest growing digital news platform, providing consumers with the latest news from Ethiopia and its diaspora. We provide marketers with innovative opportunities to leverage our stories and overall brand with a fiercely curious and highly engaged audience.

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