The ECOTRADE Project is a four-year initiative (2025–2029) funded by the European Union and implemented by Expertise France. It supports Ethiopia's implementation of the African Continental Free Trade Area (AfCFTA), with a focus on strengthening institutional capacity, promoting private-sector-led regional value chains, and supporting knowledge systems.

The rationale behind the Project and its focus on supporting the implementation of the AfCFTA in Ethiopia with a focus on the private-led value chain development (VCD) approach is based on the following elements:

·   Ethiopia, with the fastest-growing youth population, stands to benefit the most if the country implements trade facilitation measures that cuts red tape and simplifies customs procedures for the private sector. Nevertheless, it requires expertise in various areas to guide policymakers and chain actors in the implementation of the AfCFTA.

·    In countries such as Ethiopia, which are affected by fragility and conflict, the private sector plays a critical role in providing jobs, income, and stability. Hence, providing technical support to private sector players to build their internal capacity to start trading across borders, or increase their trade volumes, or/and geographical coverage is paramount and must take centre stage.

·   The Private Sector will need to be capacitated to increase their readiness across various strategic sectors to take advantage of new opportunities unfolding under the new single market that the AfCFTA creates.

·  The promotion of value chains is a complex challenge within the realm of private sector development and beyond; therefore, the potential of such interventions for local economic development and poverty reduction through trade in value added and RVCs is significant.

·      Promoting value chain development is increasingly being recognized as a promising approach to address not only economic development, decent job creation, equitable and inclusive growth, but a wider range of social and environmental development issues, thus able to legitimise stronger efforts to support private sector development.

·     Increasing openness to AfCFTA will lead to higher competitive pressure on regional but also on Ethiopian domestic markets. This regional integration, where production and trade relationships are nowadays much more coordinated, leaves less space for individual firms and small enterprises to design, produce, and market on their own. Thus, it is important to understand how to integrate in value chains in a way that allows for incorporation of a growing number of the workforce and increasing levels of productivity and incomes for SMEs and women-led businesses.

 The Project currently has five (5) Strategic Objectives (SOs).

·       Specific Objective 1: The private sector is actively engaged alongside the government to support the AfCFTA’s successful implementation

·    Specific Objective 2:  Regional value chains are integrated, and trade/transport connectivity is facilitated with a focus on increasing women's participation in commercial and logistics processes

   ·       Specific Objective 3: Relevant authorities in the implementation of the AfCFTA are supported

   ·       Specific Objective 4: Academic institutions and research institutions are supported

·       Specific Objective 5: Enhance Ethiopia’s readiness to implement the AfCFTA Digital Trade Protocol

The Ministry of Trade and Regional Integration (MoTRI), in collaboration with Expertise France’s ECOTRADE Project, is strengthening Ethiopia's e-commerce ecosystem, trade competitiveness, and digital trade infrastructure.