Carrefour Expands to Ethiopia with Local Billionaire Partnership: Retail Market Transformation Ahead
According to African Business, French retail giant Carrefour is set to expand into Ethiopia through a strategic partnership with Queens Supermarket, a subsidiary of the Midroc Investment Group, owned by Ethiopian-Saudi billionaire Sheikh Mohammed Hussein Al Amoudi. The company’s franchise expansion is expected to bring international retail standards to Ethiopia, beginning with the rebranding of 13 existing stores by mid-2026.
Carrefour’s Expansion: Inside the Move
Carrefour announced its entry into Ethiopia with plans to establish itself in existing Queens Supermarket stores, with 17 additional stores targeted by 2028. Patrick Lasfargues, CEO of Carrefour International Partnership, emphasized the milestone as part of the retailer’s broader strategy to surpass 3,000 franchised stores globally by October 2025. Carrefour plans to adopt a ‘farm-to-shelf’ model, improving supply chain efficiency and providing fresher products to Ethiopian consumers.
The move comes at a time when Ethiopia’s retail market is undergoing a transformation. Ethiopia’s government, under Prime Minister Abiy Ahmed, has steadily deregulated critical sectors like banking, telecommunications, and now retail, paving the way for foreign investment. Historically, foreign enterprises were restricted, leaving the market largely dominated by local players. This regulatory liberalization represents a significant shift in the nation’s economic strategy.
The Retail Market: Context and Implications
Ethiopia’s retail market is ripe for disruption, with a population of 130 million and a youthful demographic driving consumer demand. Carrefour’s presence could modernize Ethiopia’s retail industry through the introduction of international standards, affordable pricing, and diverse product assortments, covering both imported goods and local produce.
Increased foreign participation in the market is likely to escalate competition, challenging local retailers to innovate and improve quality. Bernard Laurendeau, managing partner at Laurendeau & Associates, notes, “Carrefour’s entry will not only enhance the shopping experience for Ethiopian consumers but will also connect local agricultural producers to international supply chains, creating export opportunities.”
Additionally, the expansion will generate substantial economic benefits. Laurendeau highlights that job creation, skill transfer, and entrepreneurial empowerment will result in broader economic activity. Local enterprises could tap into Carrefour’s vast distribution network, further integrating Ethiopia into the global retail ecosystem.
Future Outlook: Opportunities and Challenges
Carrefour’s success in Ethiopia hinges on its ability to navigate logistical challenges, such as infrastructure gaps and supply chain inefficiencies. However, its international expertise in markets like North Africa and the Middle East positions it to overcome these hurdles. By enhancing Ethiopia’s retail supply chains and establishing consistent product availability, Carrefour could create a benchmark for high-quality retail experiences in the country.
Competitors in Ethiopia’s budding retail sector should brace for increased pressure to meet international standards. Additionally, policy continuity under the Ethiopian government will play a crucial role in maintaining an investor-friendly climate to encourage further entries by global retailers.
For Ethiopian consumers, this move signals a new era of retail diversity and affordability. However, the entry of Carrefour underscores the need for local businesses to step up their game to remain competitive in a progressively liberalized market.
Conclusion
Carrefour’s foray into Ethiopia could redefine the local retail landscape and serve as a pivotal moment in the country’s ongoing economic liberalization. Beyond the immediate benefits of job creation and market modernization, long-term outcomes could include greater global integration of Ethiopian producers and enhanced competition.
What do you think—will Carrefour’s entry into Ethiopia set a precedent for future foreign investments in the region? Share your views below!
