Mekelle፡Telaviv, Nairobi, Pretoria, London, (Tigray Herald)
Fuel Subsidy Cut and Cement Licensing Create Market Stability
Ethiopia has successfully taken key steps toward creating a stable and competitive market by reducing bulk fuel imports and issuing permits for investment in cement production, according to Dr. Kassahun Gofe, Minister of Trade and Regional Integration.
In a recent multi-ministerial forum held under the theme “The Role of the Business Community in National Prosperity”, the Ministry of Trade and Regional Integration, Ministry of Industry, and Ministry of Revenues held discussions with key private sector stakeholders.
Dr. Kassahun emphasized that the government’s ongoing efforts to transition toward a diversified economic development model are bearing fruit across multiple sectors. He noted that this progress is essential to securing long-term national prosperity.
He also stated that the active participation of the business community is central to Ethiopia’s dual-track development agenda. Entrepreneurs and business leaders are not only recognized for their contributions but are now more widely acknowledged for their role in shaping market dynamics and production capabilities.
The minister stressed the significance of enhancing the value of the commerce sector by ensuring the efficient delivery of goods and services to consumers, which contributes significantly to national growth.
Highlighting the importance of public-private partnerships, Dr. Kassahun underlined that strong cooperation between government and private industry is vital for building a robust and resilient economy. He described ongoing dialogue platforms like this one as crucial to reinforcing mutual trust and collaboration.
Addressing Ethiopia’s international trade competitiveness, the Minister announced the development of a new trade policy designed to resolve longstanding sectoral challenges. He noted that the country’s over 63-year-old trade law has been revised to meet modern demands and enable competitiveness in global markets.
Furthermore, investment directives have been updated to open sectors previously closed to foreign investors including retail, wholesale, and import-export businesses fostering a more welcoming and competitive investment climate.
One of the major announcements was Ethiopia’s move to reduce high foreign exchange outflows by ending its reliance on bulk fuel imports. Instead, a structured system for the distribution and marketing of fuel has been established, which helps stabilize the domestic energy market.
The government has also responded to growing demands in the construction sector by issuing investment permits for cement production. This measure, the Minister noted, will increase supply and reduce prices, benefiting both businesses and consumers. For instance, the market price of cement, once as high as 2,400 birr per quintal, has now dropped by more than half due to increased availability and distribution improvements.
In conclusion, Dr. Kassahun Gofe reiterated the government’s commitment to creating an enabling environment where local products can become globally competitive and where the private sector plays a fundamental role in Ethiopia’s economic transformation.
