Ethiopia plans to improve domestic production

The national flag of Ethiopia. /Xinhua

The national flag of Ethiopia. /Xinhua

The Ethiopian government on Saturday stressed the urgent need to boost the country’s domestic production as the ongoing crisis in Ukraine disrupted the supply chain, further exacerbating the already rising cost of living.

The statement was made by Ethiopian Trade and Regional Integration Minister Gebremeskel Chala as he stressed the need to increase domestic production of basic consumer goods as a viable solution to contain the rising cost of life and inflation in the East African country, state-affiliate Fana Broadcasting Corporate (FBC) quoted Chala on Saturday.

Chala, acknowledging the sharp increase in the price of consumer goods across the country, said the current crisis in Ukraine is further exacerbating the situation as it is disrupting the overall supply chain, resulting in a shortage of basic consumer goods. .

The minister pointed out that this phenomenon, in particular, has led to the shortage of supply of edible oil, a commodity that has become relatively scarce in the Ethiopian market in recent months.

A liter of edible oil, which used to sell for less than 100 birr (US$1.95), has recently been selling for more than 200 birr.

Amid the scarcity of edible oil supply in the market and the possible increase in demand, the Ethiopian government had previously lowered taxes and tariffs on imports of all edible oil products, a move meant to raise cost of living challenges. The situation nevertheless persists.

According to Chala, despite strong monitoring and control measures by the Ethiopian government to prevent rising inflation, supply-side shortages are contributing negatively to the crisis.

Chala also blamed illegal traders for further contributing to the situation, as he called on the public to work with authorities to tighten control measures.

Noting the success of wheat import substitution using domestic production, he stressed the need to urgently replicate the success achieved by promoting domestic production of edible oil.

Source(s): Xinhua News Agency

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