Ethiopia possesses huge yet unexploited potential for export mainly ascribable to global market uncertainty, shortage of finance and credit, poor production package and other , Commercial Bank of Ethiopia disclosed yesterday .
“Our foreign trade is less competent compared to the immense natural resources and productive manpower the country has,” CBE President, Bacha Gina told participants at a discussion held with exports. According to Bacha there are wide ranges of internal and external factors affecting the export and trade sector which he said will not be redressed over night. It proves more difficult to address export constraints due to volatility of international market.
It requires long term solution than temporary ones, he added. The Bank is having discussion with exporters that do business with the Bank regarding challenges in the export and trade sectors as well as poor aspects of CBE’s services. Such mutual discussion will help identify problems and gather recommendations to improve the Bank’s services which consequently help customer trust and satisfaction.
CBE Marketing Department Director Legese Tiko for his part signaled potentials for export including products and commodities with large global market, improvement in productivity, export incentives , potential for manufactured products and others. However he says the export sector is faced with high domestic demand, depressed global coffee prices, uncertainty of production, lack of quality; and long supply chain and inadequate financing of the value chain. Executive Director of National Cement, Chanyalew Yilma told The Ethiopian Herald that almost all banks prioritize export by supplying finance.
They facilitates loan with low interest. “But this does not mean that there is no problem pointing generating foreign currency as mandatory for the overall economy. So, the government should give special attention for this sector to generate more and more foreign currency,”. There are areas that need special attention and intervention especially policy measures – from farmers to port facilities. So, the government should devise good and enabling police, according to him.
The Ethiopian Herald, December 21/2018
BY ABDUREZAK MOHAMMED
