Title: Ethiopian's Engagement with COMESA's Free Trade : Policy Alignment, Trade Opportunities, and Development Challenges.
Authors: Ayele Asres Biru and Workenh Eshatuu Sime (PhD)
Volume: 10
Issue: 7
Pages: 58-70
Publication Date: 2026/07/28
Abstract:
Ethiopia has long maintained a cautious approach toward full participation in the Common Market for Eastern and Southern Africa (COMESA) Free Trade Area (FTA), primarily due to concerns regarding industrial competitiveness and dependence on tariff revenues. This study examines the extent of policy alignment between Ethiopia's national trade strategies and COMESA frameworks, identifies sectoral trade opportunities, and analyzes the structural and institutional barriers impeding effective integration. Adopting a pragmatist research paradigm and a mixed-methods approach, the study utilized primary data from 98 purposively selected participants-including government officials, private sector representatives, and academic researchers-alongside secondary document analysis. Data were analyzed using descriptive statistics and multiple linear regression. The findings reveal that while respondents perceive significant trade opportunities in COMESA, particularly for the agricultural and manufacturing sectors, Ethiopia's actual level of engagement remains moderate. Descriptive results show that infrastructure gaps, institutional inefficiency, and limited business awareness are major constraints. Regression analysis further indicates that development challenges are the strongest positive predictor of Ethiopia's engagement, suggesting the country utilizes regional integration primarily as a mechanism to address domestic development needs. Conversely, while policy alignment shows a small positive effect, implementation and regulatory support remain relatively weak. The study concludes that to maximize the benefits of regional integration, Ethiopia must strengthen institutional coordination, invest in trade-facilitating infrastructure, and enhance private sector awareness of regional market opportunities.