The Institute of Ethiopian Standards has introduced revised fees and new product marking systems targeting quality, accountability, and revenue collection. Its authorities say digital transformation is critical to improving product quality and traceability and addressing ongoing issues that persist despite existing manual watermark protections.

"We're currently building a system to introduce that," said Oliyad Lencho, the lead executive responsible for scheme and standard mark administration.

According to Oliyad, manual marking systems previously used were insufficient to distinguish quality goods from counterfeit and substandard products, enabling illicit trade networks to flourish.

"Digitising these marks with scannable technology will enable consumers to verify authenticity and make informed purchasing decisions," he said.

Under the new regulatory framework, data-encoded digital marks will soon become mandatory for all essential products. The Institute is partnering with the Ethiopian Artificial Intelligence Institute (EAII) to launch the digital system in the coming fiscal year.

The authorities disclosed that new certification categories such as Diamond, Import, Halal, Green Product, and Organic are being introduced alongside digital marking. The Diamond mark will display the highest product standards, while the Import mark will be introduced by the end of the current fiscal year. Other categories will gradually follow.

However, financial constraints presented limitations to the ambitious implementation plans.

"All our plans require financing, which we currently lack," said Oliyad.

The Institute, operating on an annual budget of 70 million Br, plans to generate over 100 million Br annually through fees collected from businesses.

The Institute oversees a comprehensive database comprising over 11,000 standards and 395 mandatory products, including edible oils, flour, salt, and beverages. Its authorities argue that the regulatory overhaul addresses long-standing inefficiencies. The new regulation revises legislation from two decades ago, when fees based on annual sales were first collected. After the Ethiopian Quality and Standard Authority split into four entities, including the Institute and the Ethiopian Conformity Assessment Enterprise, fee collection became inconsistent and disorganised, prompting the authorities to reinstate and expand fee coverage.

Companies will be required to remit up to 0.5pc of their annual gross revenue. The fee structure categorises industries into 10 groups covering manufacturing, agriculture, and services. Sectors such as leather, textiles, medical supplies, engineering, steel, construction, and chemicals will pay rates ranging between 0.1pc and 0.5pc. Alcoholic beverages will face fees of 0.5pc, non-alcoholic beverages of 0.4pc, and edible oil products of 0.1pc.

The industries' responses have been mixed, with the Ethiopian Beverages Association voicing its concerns. Ashenafi Mered, the Association’s general manager, argued that the industry was caught off guard, with many companies already struggling financially unable to handle additional fees. Representing 134 companies, the Association is negotiating for lower remittance rates, hoping to reduce bottled water fees by half from 0.4pc and non-alcoholic beverages down to 0.1pc.

Leaders of the Ethiopian Edible Oil Producers & Manufacturers Association (EOPMA) warned that additional financial burdens from regulations could devastate the already struggling edible oil industry. The number of fully operational edible oil factories has sharply declined by half from 60 three years ago, and many operate irregularly due to financial pressures.

"Manufacturers cannot afford any additional payments," said Mohammed Yusuf, chairman of EOPMA.

Mohammed blamed tax burdens and unfair competition from duty-free imports as problems his industry faces. Price hikes and input shortages have compounded the industry's difficulties.

"It's fuel to fire," Mohammed said, noting companies already face severe material shortages.

An example of the dire situation is Abay Edible Oil, a bottler based in Bahir Dar, in Amhara Regional State. Employing more than 450 workers and capable of producing 200,000Ltrs of oil daily, the company faces security problems, regular power outages, and rising costs. Deputy Manager Yeshambel Mengesha cautioned that escalating payment requirements from multiple regulatory bodies are draining the company's capital and forcing layoffs.

"We're a few steps away from shutting down," Yeshambel said.