With the aim of stabilizing prices of major consumer goods, the Government of Ethiopia has purchased from abroad 12.5 million liters of cooking oil and 4 million quintals of wheat.
This is indicated by the Ministry of Finance of Ethiopia which is evaluating its 100 days performance. It is reported that the commodities were purchased and imported during the month of October and November.
Out of the 4 million quintals of wheat some 1.05 million has already arrived Ethiopia, while the remaining is expected to be imported soon.
The purchased 12.5 liters of cooking oil is yet to arrive, according to the report of the Ministry, which indicated that allowing traders to import major consumer goods through Franco-Valuta privilege has also helped the country to stabilize price of the commodities.
Franco-Valuta is a permission to import goods on which foreign exchange is not payable following the strict payment procedures. The report stated that as a result of these commodity price stabilization measures by the Ministry, general inflation in Ethiopia which was 34.2 percent in October 2021 has declined to 33 percent the following month.
Cooking oil and wheat are among the major food items Ethiopia has been importing investing hundreds of millions of dollars every year. Currently the country spends about $200 million on average to purchase wheat from abroad.
A few months ago it was reported that the country planned to invest some $1.9 billion hard currency for importing cooking oil mainly palm oil in two years period.