ADDIS ABABA – Ministry of Trade and Industry (MoTI) said that it has collected revenue worth 1.8 USD billion from export commodities in this fiscal year over the past eight month, below the target of 2.3 USD billion.
The ministry planned to collect 2.3$USD billion and only 1.8$USD billion revenue was collected during the 2019/20, Ministry of Trade reported yesterday. Presenting the eight month performance report, Ministry’s Public Relation Director Wondimu Filate said that the ministry is planned to collect 2.3 USD billion this year and collected 1.8 billion USD revenue is collected so far over the past eight month which is about 79 percent of the plan for the fiscal year. Compared to last year this month the revenue shows growth by 171.2 million USD or 10 percent, he indicated.
The Ministry further reiterated that it will revamp efforts to improve the sector and increase the benefits of the country. He stated that coffee is among the leading export commodity following horticulture, khat, garment, vegetable, and livestock. On the other side export performance of other sector like oilseeds, pulses, leather and leather products, meat, and mining sector has reportedly been declining compared to the past years.
Increment of supply price from its source, problem related to Ethiopia’s market system, logistics, market slowdown due to coronavirus, and decline in productivity has contributed more to the decline of revenue from oilseeds, pulses, leather and leather products, meat, and mining.
According to him, the country’s income
status has improved following the recent reform and much effort is needed, he noted. Among the challenges the sector faced to hit the desired goals are forex shortage, supply and quality of products, illegal storage of the products, fluctuation of world market price, shortage of power supply. By removing those hurdles the ministry has planned to earn 3.73 billion USD in this fiscal year, Wondimu says.
The export performance of the country is declining year by year, according to Wondimu. For this end the Ministry in collaboration with national export coordination committee has conducted study and is preparing guidelines to boost export with the government and relevant stakeholders such as Ministry of Agriculture, Customs Commission, National Bank of Ethiopia and other bodies to support producers and exporters to boost and modernize agricultural sector, he added.
On the other hand the recent outbreak of coronavirus has been challenging the overall activity both locally and globally. The spread has left businesses around the world counting costs. The virus is challenging the economic sector of the country and the ministry established national task force which is mandated by the ministry to respond and cope up with the problems and also stabilize market.
To control and cope up with the shortage of the products the ministry is providing consumer goods on affordable prices like wheat, teff, maize, sugar, vegetables and other. In connection with this so far the ministry has taken punitive actions against 15,058 enterprises out of which 424 are sent to jail. The task force will continue to take actions until the spread of the virus is halted, he said.
The Ethiopian Herald April 4/2020
BY HAILE DEMEKE
