Fed Suspends Khat Export Contracts

July 8 , 2022

The Ministry of Trade & Regional Integration, under Gebremeskel Challa, has put a temporary embargo on all khat export contracts while his experts "redress problems in the registration of contracts."

The move comes barely two months after the Ministry revoked the licenses of 830 khat exporters following investigations. Last month, the Minister decreed that exporters must present contracts with overseas buyers before being permitted to send their goods abroad.

Trade authorities claim an alarming growth in ‘illicit trade’, including over-invoicing practices, pushed them to enforce the restrictions.

Khat has been among the top-five revenue-generating export commodities since the early 2000s. It accounted for 11pc of the 3.6 billion dollars generated in 2020/21, with over 710,000tn shipped to Djibouti and Somalia – the biggest buyers.

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