Plastic manufacturers are pushing back against a bill banning single-use plastic bags, warning it could upend their industry, eliminate billions of Birr in revenues, and force more than a million workers out of jobs.
The bill, currently under review in Parliament, follows the Council of Ministers’ recent approval of a draft proclamation to manage solid waste, setting the stage for consequential changes in an industry that has long relied on the affordability and convenience of plastic bags. If the law is enforced within the proposed six-month window, no less than 180 manufacturers, importers, distributors, and even individual users will face severe penalties, from steep fines to imprisonment.
If the bill passes, individuals found using banned plastic bags may be fined between 5,000 Br and 10,000 Br, while manufacturers and retailers could be hit with fines from 50,000 Br to 200,000 Br and face imprisonment of up to five years. Federal authorities have also placed a spotlight on producers and retailers of bottled water, requiring them to establish collection and recycling systems. Regional environmental protection offices would be mandated to oversee enforcement, a responsibility officials say is essential to curb widespread pollution and address the negative ecological impact of plastic waste.
The draft law’s restrictive timelines further compound industry fears.
Tilahun Abay, head of strategic affairs at the Ministry of Industry, has expressed scepticism about the six-month grace period, which he describes as too short. According to Tilahun, industry players need more time and resources to develop acceptable alternatives. He cited countries that have replaced plastic with paper or biodegradable materials. However, he acknowledged that such transitions do not occur overnight and require capital investment, workforce training, and standardised regulations.
Many in the plastics manufacturing industry say they were blindsided by the speed of developments, citing inadequate consultation and a lack of nuanced consideration for the diverse ways single-use plastics are employed.
The Ethiopian Plastics & Rubber Manufacturers Association (EPRMA), representing more than 500 producers, has struggled to secure compromises within the current version of the draft proclamation. Its leaders argue that a sudden and sweeping ban risks driving the industry underground, prompting illicit production and smuggling rather than curbing plastic waste. The Association claims the plastic sector contributes over 60 billion Br to the national economy annually, bringing in around 20 billion Br in government revenue, making it a pillar of manufacturing and trade.
Manufacturers and Association officials warn of a domino effect if the ban is enacted without changes, including mass layoffs that could aggravate unemployment and poverty.
Mintesinot Lemma, president of EPRMA, who criticised the authorities for moving ahead with the legislation without adequate consultations, disclosed that 200 manufacturers would be at immediate risk of closure.
"We're shocked to hear the proclamation had been sent to the standing committees," he said.
He had submitted a letter to several federal agencies, including the ministries of Industry and Irrigation & Lowlands, echoing these concerns. Mintesinot recalled sending a letter to the Ethiopian Environmental Protection Authority (EPA) when the initial bill was introduced two years ago, only to discover that the draft had advanced to Parliament’s standing committees without incorporating the Association’s concerns.
"The scope of the proposed ban is particularly problematic because single-use plastics encompass not just shopping bags but also forks, spoons, and other packaging materials vital for preserving and distributing grains, sugar, and other basic goods," he told Fortune.
Industry leaders argue that the lack of viable replacements could increase consumer prices and encourage rampant smuggling of cheaper, unregulated plastic products. EPRMA leaders have petitioned the authorities that if they proceed without changes, manufacturers be permitted to lay off employees without compensation, exit their businesses without penalties, and be allowed to have the write-off of any outstanding debts. They argue that such measures could cushion businesses forced to close because of the ban.
Several manufacturers, however, are attempting to get a head start on compliance.
Seelemaye, a plastic bag producer led by CEO Yared Tewabe, is planning to manufacture degradable polypropylene bags. Yared believes that while the intention behind the bill is laudable, not all plastics are created identically. A total ban fails to differentiate between single-use shopping bags and more specialised plastics, such as certain types of packaging. He advocated for standardising bags and incentivising recycling efforts to maintain a market for raw materials and the labour force.
“There is no paper bag sold under 20 Br in the market currently,” Yared said.
Critics of the bill say a more nuanced approach would restrict particularly thin plastic bags, viewed as the most difficult to recycle, rather than eliminating all single-use items. Others urge legislators to recognise the robust recycling network that has grown around plastic manufacturing.
Industry leaders estimate recycling saves roughly 10 billion Br in foreign exchange annually by transforming plastic waste into new products. Those who collect, sort, and supply recyclable materials form a vast informal workforce that some believe could disappear if single-use plastics are banned outright. The Association estimates around one million people benefit from plastic recycling, from small-scale collectors to large processing facilities. Industry leaders caution that dismantling this ecosystem might eliminate livelihoods and cause unintended economic harm.
Despite these protests, supporters of the ban within the government stress that unchecked plastic usage poses long-term dangers to agriculture, water sources, and public health. During a Parliamentary hearing, Tesfaye Bango (MP) argued that plastic pollution already undermines agricultural productivity and contaminates water resources. According to Tsefaye Beljige, chief whip of the ruling Prosperity Party (PP), Ethiopia’s rapid population growth, urbanisation, and economic development have accelerated the consumption of plastic bags, aggravating an already serious problem.
The EPA has developed a 10-year strategy identifying the need for a full-scale ban on single-use plastics and strict recycling mandates for other plastic types.
For Wasihun Alemu, head of urban waste management at the EPA, plastic waste has reached “almost unmanageable” levels. He recalled the historical reliance on fabric—and plant-based bags locally known as “Zenbil,” urging that returning to such practices could reduce plastic pollution.
“The environmental and health impacts of plastics outweigh business benefits,” he said.
However, some experts question whether plastic alternatives are truly more environmentally friendly. Sisay Kifle, a plastic chemistry specialist, argues that certain biodegradable or paper-based substitutes could have worse environmental effects, given their production processes and limited recyclability. He is particularly sceptical about degradable polypropylene bags, which he says break down too quickly, restricting extended reuse and recycling.
Sisay urged policy initiatives that make plastic bags recyclable and require stricter waste management rather than a sweeping prohibition.
"Ethiopia’s overall plastic consumption is relatively small on a global scale," he said. "The evidence of plastic’s damage to agriculture has not been comprehensively studied."
Those concerns resonate with manufacturers who have made substantial capital investments they fear will be rendered useless.
According to Bereket Geberehiwot, CEO of ABSS Trading PLC, his company sank 40 million Br into specialised machinery that only produces plastic bags.
"If the ban goes through without changes," said Bereket. "I would have to sell the equipment by weight, as scrap, with little chance of recouping my investment."
ABSS Trading, incorporated eight years ago, posts an annual net profit of about one million Br. The bulk of its production relies on recycled plastic. It employs 100 workers and partners with five recycling companies, each with up to 30 employees, demonstrating the broader value chain and the job opportunities tied to the plastic industry. Collectors are paid up to 100 Br for a kilogram of plastic, demonstrating the demand for used materials.
Other longtime industry players share similar worries.
Gazel Trading PLC, run by CEO Tewodros Sileshe for 13 years, uses machinery valued at 150 million Br, which cannot be adapted for other manufacturing processes. Tewodros acknowledged the merits of environmental protection but argued that a blanket ban is not the solution.
"Several imported products, including edible oil, are packaged in plastics and later recycled into bags or other items," he told Fortune.
Tewodros believes that adjusting the required thickness of plastic bags to facilitate recycling could preserve the circular economy and mitigate job losses. The plastics industry employs the second-largest workforce in the country, a statistic he holds up as evidence that the government should avoid policies that undermine a vital contributor to economic development
PUBLISHED ON
Jan 12,2025 [ VOL
25 , NO
1289]
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