• Mohan Plc completed Ethiopia’s first merchant trade transaction through the Dire Dawa Free Trade Zone on March 22, 2026. 

• The transaction shipped kitchenware from Spain directly to India, while documentation and banking were processed in Ethiopia. 

• The Dire Dawa Free Trade Zone launched in August 2022 and operates outside Ethiopian customs jurisdiction. 

• Under the zone’s framework, goods entering the facility are not treated as imports into Ethiopia. 

• The model allows Ethiopian firms to earn foreign exchange from third-country trade without using domestic resources or importing into Ethiopia. 

• An exporter cited missed deals about five years ago because Ethiopia lacked transferable letter of credit rules. 

• The missed transactions included paradise seeds with a $3 per kg margin and purple tea with a $4 per kg margin. 

Why it matters?
This opens a new foreign-exchange earning channel for Ethiopian firms through service-based trade rather than only domestic production exports. For traders, banks, logistics operators, and free-zone investors, it signals a broader role for Ethiopia in regional and global trade intermediation.

• All licensed banks authorized to operate in SEZs; prior access limited to selected lenders
• SEZ firms gain access to full banking services: FX, trade finance, loans, and payments
• Policy targets increased export volumes from industrial parks and SEZ-based manufacturers
• Expanded FX access supports import of raw materials and intermediate goods
• Increased lender participation expected to reduce borrowing costs for exporters and traders
• Broader credit access enables financing for logistics assets, including trucks and equipment
• Reform aligns with FX liberalization and rising export growth trends

Why it matters?

Opening SEZ banking expands access to FX and credit, directly supporting import flows and export production. Increased competition among banks improves financing conditions for trade and logistics, enabling truck acquisition and supply chain expansion linked to industrial zones.

• All licensed banks authorized to operate in SEZs; prior access limited to selected lenders
• SEZ firms gain access to full banking services: FX, trade finance, loans, and payments
• Policy targets increased export volumes from industrial parks and SEZ-based manufacturers
• Expanded FX access supports import of raw materials and intermediate goods
• Increased lender participation expected to reduce borrowing costs for exporters and traders
• Broader credit access enables financing for logistics assets, including trucks and equipment
• Reform aligns with FX liberalization and rising export growth trends

Why it matters?

Opening SEZ banking expands access to FX and credit, directly supporting import flows and export production. Increased competition among banks improves financing conditions for trade and logistics, enabling truck acquisition and supply chain expansion linked to industrial zones.