The first notable business in Ethiopia emerged during Emperor Menelik II's reign: the Franco-Ethiopian Railway Company. Founded through an imperial concession granted to Alfred Ilg in 1894, the company aimed to build a railway from Djibouti to Ethiopia. Though the company operated in Ethiopia, it was incorporated in France under French law, with its head office in Paris. The concession allowed the Emperor a share in the company, set for 99 years, after which ownership would revert to the Ethiopian government.

Next was the Bank of Abyssinia, established in 1905 as a branch of Egypt's National Bank, also via an imperial concession. With a subscribed capital of $500,000, the Ethiopian government held a 20% share in the profits, while other shareholders took 70%. The bank was set to operate for 50 years, but in 1931, the Ethiopian government purchased it and renamed it the “Bank of Ethiopia.”

The first Ethiopian-incorporated company was the Agricultural and Commercial Development Company of Ethiopia. This company differed from previous ones, as it was established directly in Ethiopia under an imperial decree rather than foreign law.

The establishment of these companies led to the introduction of Ethiopia’s first commercial laws, including the Law of Loans in 1924, the Decree of Concessions in 1928, the Law of Bankruptcy in 1931, and the Company Law in 1933. The Company Law of 1933 introduced the frameworks for different types of business organizations, such as share companies, joint stock companies, private limited companies, and partnerships, detailing their formation, operation, and dissolution.

In 1960, a more comprehensive Commercial Code was established. Its development began with Professor Jean Escarra, invited by the Ethiopian government to draft both a Commercial and Maritime Code. Escarra consulted with the Codification Commission and presented substantial drafts, which formed the basis of the Commercial Code. After Escarra’s death in 1955, Professor Alfred Jauffret was invited to complete and refine the code. Jauffret presented the final draft in 1958, and after further revisions, Ethiopia’s Commercial Code was officially enacted on May 5, 1960, and took effect on September 11, 1960.