ADDIS ABABA- The soaring inflation makes a revision of the national macro-economic policy critical, a renowned economist said, calling for the ban on the importation of luxury goods that drain Ethiopia’s limited forex reserves.
Speaking to the Ethiopian Press Agency (EPA), the economist Zemedeneh Nigatu stated that, Ethiopia is affected by the hiking of the prices of goods and services that is largely attributed to global factors.
Noting the price of essential commodities is growing alarmingly, Zemedeneh highlighted that the government should adopt preventive measures to arrest the soaring inflation. Widening and consolidating forex earnings is also something worth equal consideration to stabilize the market.
As to him, the current inflation is anticipated to increase in the upcoming months. For this reason, the government needs to subsidize basic commodities thereby helping the society especially those in the fixed income bracket. Also, manufacturers working in agricultural and industrial sectors should exert efforts to produce in ultimate capacity. “The dry season wheat production which is being carried out with support of the government should be also extended.”
Zemedeneh, who is also a Global Chairperson of Fairfax Africa Fund further indicated Ethiopia’s enormous potential to the production of essential commodities including edible oil and support the operation of large-scale factories.
It is evident that Ethiopia is dangerously reliant on agricultural imports owing to the limited import substitution capacity. “Unfortunately, our country is importing oil, gas, iron and wheat in bulk and the price of these commodities is now skyrocketing compared to the past year. Hence, we need to adopt new policies aiming to stabilize the market and cost of living.”
BY YESUF ENDRIS
THE ETHIOPIAN HERALD THURSDAY 7 APRIL 2022
