Addis Ababa, Ethiopia (18 April 2023)

In an exciting development for online trading businesses in Ethiopia, e-commerce has been officially classified as a trading category. Brought to fruition by the joint efforts of the Ministry of Innovation and Technology and the Ministry of Trade and Regional Integration, this categorization allows e-commerce companies to register as an “Electronic Platform Operator” (Code 85125) or an “Electronics Intra Platform Operator” (Code 85126) and operate more efficiently in the country.

To obtain a license, these entities are only required to register and meet the following conditions without the need for a new commercial activity category:

  • Tax Identification Number (TIN)
  • A registered .et or another domain
  • Proof of establishing a system that complies with the electronic transaction and electronic message communication provisions
  • Proof of compliance with the rules and regulations provided by the business entity
  • An agreement with express logistics service providers, except those providing drop shipping services
  • A recognized electronic payment system by the appropriate controlling office
  • A document showing their platform is connected to the tax law or their sales are readable by the Revenue Bureau’s technology.

The ministry aims to regulate and control the activities of e-commerce platforms to ensure the quality and pricing of the goods and services they provide.

Source: MInT

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Hanna is an aspiring economist in her final year at Addis Ababa University. She has written hundreds of insightful daily stories, analyses, and features about the Ethiopian economy and beyond.

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