Ethiopia Pivots to Regional and Middle East Markets Amid Global Trade Shifts.

Ethiopia is recalibrating its external trade strategy toward regional African markets and key Middle Eastern partners as global trade flows face disruption from rising protectionism and geopolitical tensions, National Bank of Ethiopia (NBE) Governor Eyob Tekalign Tolina (PhD) said this week.

Speaking at the AlUla Conference for Emerging Market Economies, co-hosted by Saudi Arabia’s Ministry of Finance and the International Monetary Fund (IMF), the governor said emerging economies must adapt to a shifting global trade architecture marked by supply chain realignments and increased tariff barriers.

Eyob noted that traditional export markets are becoming less predictable, prompting Ethiopia to intensify engagement within Africa and expand commercial ties with Gulf economies. He described Saudi Arabia as part of Ethiopia’s “extended neighbourhood,” citing more than 30 percent growth in bilateral trade over the past five years.

While export volumes to African countries such as Kenya, Rwanda, and Zimbabwe have shown notable increases, the governor cautioned that much of the expansion remains uneven and from a relatively low base. Sustaining growth, he said, will require stronger logistics networks, improved border procedures, and more consistent regional trade arrangements.

Intra-African trade currently represents roughly 15 percent of the continent’s total trade volume, limiting Africa’s capacity to cushion external shocks. Eyob argued that the African Continental Free Trade Area (AfCFTA) should be viewed not merely as a tariff-reduction framework, but as a platform for industrial development and regional value chain integration.

“Regional trade cannot immediately substitute traditional export markets,” he said, “but in an increasingly uncertain global environment, diversification becomes strategically essential.”

Ethiopia, an early signatory to AfCFTA, is positioning regional integration as a medium- to long-term stabiliser for export growth. However, the governor emphasized that durable gains will depend on coordinated policy reforms, infrastructure investment, and institutional strengthening across participating economies.

The remarks come as Ethiopia continues broader macroeconomic reforms aimed at boosting export-led growth, improving foreign exchange availability, and strengthening external resilience under its ongoing reform agenda.