Ethiopia’s Minister of Trade and Regional Integration, Dr. Kassahun Gofe, presented a detailed report to the Prosperity Party forum regarding the major activities carried out to stabilize the market, improve the supply of products, and reduce the cost of living.
In the report presented by the Minister, he stated that multifaceted activities have been carried out in coordination in the areas of the Lemat Trufat initiative, market linkage, market infrastructure, and the control of illegal trade to address the high cost of living and improve supply.
By following the direction of supporting importers engaged in the sector while leaving the supply of basic commodities to the free market, more than USD 568.8 million in foreign currency was approved by banks for the purchase of commodities. Accordingly, 7.35 million quintals of sugar and more than 704 million liters of edible oil were supplied to the market.
Regarding fuel supply, 5.23 million cubic meters of fuel were supplied, representing 91% implementation of the plan. As the Minister explained in his report, the opening of 804 new weekend (Saturday and Sunday) markets increased their total number to 2,369. This enabled products to be supplied to the public at a 10–20% discount, the Minister stated in his report.
In addition, 32 modern market centers have become operational, while 750 million birr has been allocated for the expansion of livestock trading, and the work is being carried out. During the fiscal year, charitable activities worth 190.56 billion birr were carried out in all regional states and city administrations, the Minister indicated. Among these were the renovation and construction of 209,262 houses for vulnerable households at a cost of 66.4 billion birr, food sharing for 4.33 million households at a cost of 12.2 billion birr, educational material support for 12 million students worth 14.4 billion birr, and school feeding programs costing 28.3 billion birr.
Although the regions reported that 316 illegal checkpoints restricting the free movement of goods had been removed, it was noted that the problem of checkpoints has still not been completely resolved in various areas.
Action was taken against 347,679 traders who violated the law, and 781.3 million birr in financial penalties was imposed. Similarly, 14,221 individuals were punished with imprisonment, while 6,885 business licenses were revoked. Legal action was also taken against 115 fuel stations involved in illegal fuel distribution, 84 members of the trade and security structure, and 604 illegal actors.
Food inflation reached 15.0%, while non-food inflation declined to 11.1% due to the tight monetary policy. Overall inflation was recorded at 13.4%. The 49% increase in diesel prices and the 26% increase in the foreign exchange rate were cited as the main reasons for the rise in prices.
The Ministry stated that in the next fiscal year it will work to increase the supply of products by 10%, upgrade 500 local markets, increase the number of weekend markets to 3,369, eliminate trade bottlenecks and illegal checkpoints, and provide training to 20 million market actors in order to continue the regulatory work at a higher level, Honorable Minister Dr. Kassahun Gofe announced.
