The distribution network in Ethiopia

Evolution of the Sector: Ethiopia’s retail grocery sector, which is exclusively concentrated in Addis Ababa,the capital city, has experienced a rapid growth in recent years spurred by the country’s strong economic growth, rising urbanization, and growing population. Over the last decade, Ethiopia has seen a surge in the number of grocery stores opening in the capital. This growing trend, which is expected to continue into the future, is primarily attributed to the country’s double-digit growth over the last decade, urbanization, and the expanding population of Addis Ababa. Increased economic prosperity has translated into more disposable income that can be used for local and imported foods, including those outside the traditional Ethiopian diet. In addition, the presence of a sizeable expat and diaspora community is contributing to increased demand for certain imported foods, especially Western and Asian products. As a consequence, more and more urban, middle-class consumers are turning to grocery stores, mini-marts, and neighborhood kiosks to satisfy some of the food and beverage demands. In response to this growing and anticipated demand, the number of grocery stores has expanded in recent years.
Market share: As of 2018, eight major supermarket chains, with a total of 21 stores, are open across Addis Ababa. The major food retail stores – Shoa, Fantu, Safeway, Friendship, Bambis, All-Mart, Novis, and Loyal – supply a wide range of products, most of which are imported foods and beverages. In addition to these major players, there are mid and smaller-sized stores.
Retail Sector Organisations: Ministry of Trade - Ethiopia

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