Fortune News | Nov 02,2019
November 23 , 2019
By SEBLE WONDEMAGEGN ( FORTUNE STAFF WRITER )
The government has identified 23 private and state-owned companies to import refined palm oil. Each company is expected to import two million litres of the oil each month, which are then supplied to the local market under government-mandated tariffs.
The identification process of the oil importers has been taking place since September, and the companies were selected based on their performance and experience in the market and their capacity to transport the oil from dry ports.
The importers passed the technical evaluation stage established by the Ethiopian Conformity Assessment Enterprise and can buy the cooking oil from any country that fulfills the expected standard and requirement.
‘‘Bidders from different regions participated in the tender, ensuring diversification and representation of the regional states,” said Eshete Asfawu, state minister for Trade & Industry.
Nineteen of the importers are privately owned and have minimum capital of 100 million Br as a requirement to fulfill the criteria to supply cooking oil.
The government increased the number of oil importers in the country, because the supply does not meet the demand, especially in the regional states, according to Eshete.
Four years ago, five private, one governmental, and four endowments were authorized to import palm oil by the Ministry mainly from Indonesia, India, China, Dubai and the Netherlands. The companies imported 40 million litres of palm oil every month, which was then distributed to unions across the country for sale to consumers under government mandated tariffs.
The government in return supports the companies by giving them duty-free privileges and foreign currency exchange. Last September, their contracts expired, and the Ministry began the process of identifying exclusive importers.
In the meantime, the Ethiopian Industrial Inputs Development Enterprise and Alle Bejimla were temporarily authorized to import and distribute palm oil.
The Enterprise is currently importing 30 million litres of palm oil and, in an effort to diversify cooking oil imports, three million litres of sunflower oil for 713 million Br. The Indonesian company Pacific Interlink is the international supplier.
The government has currently allocated 2.2 billion Br to cover three months of oil demand for a country that has around 1,000 local companies registered to process cooking oil other than palm oil and sell it at market prices.
The subsidy for cooking oil and its distribution through unions was initiated almost a decade ago after a shortage occurred. All private companies were banned from importing palm oil after being accused of hoarding in an attempt to inflate the price, a decision that was partially reversed four years later by the Ministry in allowing a few selected importers to supply the item.
While Ethiopia has an annual production capacity of more than 784,809tn of oilseeds, the average per capita consumption of cooking oil is 8.9lt of oil a year.
For Atlaw Alemu, economist and lecturer at Addis Abeba University, there is no other way of meeting demand but to import it in the short term, given that it is a basic necessity.
‘‘The government’s focus should be to improve the nation’s production capacity of cooking oil,” he said.
PUBLISHED ON Nov 23,2019 [ VOL 20 , NO 1021]
Fortune News | Nov 02,2019
Fortune News | Nov 16,2019
Radar | Aug 29,2020
Viewpoints | Oct 10,2020
Viewpoints | May 23,2021
Fortune News | Jun 05,2021
Fortune News | Aug 28,2021
Viewpoints | Apr 04,2020
Fortune News | Oct 02,2021
Fortune News | May 31,2020
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
August 7 , 2021
There are a few without an opinion on Ethiopia’s federal structure, which is arranged along lingo-cultu...
July 24 , 2021
There was an alarming increase in the price of Teffin August 2017. It suddenly skyrocketed from 2,000 Br...
Ethiopia is at a pivotal moment in its history. Its future path is not only vital for...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
October 23 , 2021
Ethiopia`s civil war continues to rage, with no sign of respite or a prospect for a n...
October 16 , 2021
For many, the past rainy season was a critical moment in the life of the nation. One...
October 9 , 2021
Public offices have been having a field day in the past few years. From the Prime Min...
October 2 , 2021
Ethiopia`s Parliament will pick up a Prime Minister on Monday, October 4, 2021. The i...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Friends help us make the most out of life, providing social and emotional support as...
Human societies have come a long way. Just think about it. It was only in 1888 that electricity in our ho...
Or see contact page