Carrefour Enters Ethiopia: A Sign of Retail Sector Liberalization
According to African Business, multinational French retail giant Carrefour has announced its groundbreaking entry into the Ethiopian market. Partnering with Queens Supermarket, a subsidiary of Sheikh Mohammed Hussein Al Amoudi’s Midroc Investment Group, Carrefour aims to establish itself as a key player in Ethiopia’s retail revolution. This marks Carrefour’s first foray into the previously closed Ethiopian retail arena, with rebranded stores set to launch by June 2026 and a total of 17 more planned by 2028.
Why Carrefour’s Announcement Matters
The collaboration with Queens Supermarket signifies a substantial leap forward for Ethiopia’s retail industry, which has been historically shielded from foreign competition. Patrick Lasfargues, CEO of Carrefour International Partnership, highlighted the company’s strategy to transform 13 existing stores in 2026, while targeting a major rollout aligned with Addis Ababa’s broader liberalization initiatives. By October 2025, Carrefour had already reached the milestone of over 3,000 franchise stores globally, placing the Ethiopian launch within a wider international expansion framework.
The development aligns with Prime Minister Abiy Ahmed’s reformist approach since taking office in 2018, which has lifted restrictions on key economic sectors, such as telecommunications and banking. Ethiopia’s retail sector, a critical component of its $128 billion economy, is now poised to modernize.
Economic and Industry Context
With a population of over 130 million and rapid urbanization, Ethiopia provides a burgeoning consumer base ripe for retail innovation. Historically dependent on fragmented and unorganized retailers, the entry of Carrefour promises to transform shopping experiences by introducing international standards like efficient supply chains and a farm-to-shelf model that ensures fresher produce availability. Carrefour’s entry is expected to directly impact Ethiopia’s domestic retail leaders, forcing them to adapt to increased competition or risk losing market share.
Further, this move could stimulate significant economic benefits, including: the creation of new jobs, enhanced export opportunities for Ethiopian agricultural products, and skills transfer to local professionals. Consultant Bernard Laurendeau predicts that Carrefour’s partnership could modernize Ethiopia’s workforce and integrate local agricultural producers into global supply chains, enhancing both quality standards and efficiency.
Potential Challenges and Future Outlook
Despite its promising opportunities, Carrefour’s expansion comes with significant risks, including navigating Ethiopia’s regulatory environment and ensuring sufficient infrastructure to support a high-scale retail operation. Past liberalization efforts in sectors like telecom and banking faced hurdles such as resource shortages and policy delays, which could pose similar risks for retail.
Nonetheless, Ethiopia’s retail sector offers immense upside potential. If Carrefour successfully implements its strategy, it could pave the way for competitors and broader retail investments. Additionally, frameworks that incorporate Ethiopian entrepreneurs in Carrefour’s value chains could further amplify the reform’s economic impact.
Conclusion: A Step Toward Retail Transformation?
Carrefour’s entry heralds a pivotal moment in Ethiopia’s economic transformation. By bringing modern retail practices to African consumers and challenging local players to innovate, Carrefour is setting a precedent for how global businesses can engage with emerging markets. Will other international retailers follow Carrefour’s lead and enter Ethiopia’s growing market?
