Bag Ban Backfires as Factories Stall, Markets Flail

Feb 14 , 2026. By YITBAREK GETACHEW ( FORTUNE STAFF WRITER )

In Addis Abeba, the familiar sight of plastic bags has vanished almost overnight. After the citywide ban went into effect, bakeries faced a dilemma. Customers arrived for bread, some with plates or lace bags, others empty-handed. The struggle to find affordable and safe alternatives for packaging loaves has been evident. With non-woven bags now banned and costs for alternatives like cloth and sacking-based bags soaring to as high as 350 Br, the bakeries began producing their own bags, without any clear regulatory standard, reports YITBAREK GETACHEW, Fortune Staff Writer

At Patina Bakery & Cake on Gabon Street, Muluken Hailu faced uncertainty because of their dependence on plastic bags. General Manager of the Bakery, he is well aware that not every type of bag is suitable for food. The Bakery began producing its own packaging, but no standard existed to guide its use.

“For some customers, they come with their own bags,” he said. “But others come with nothing.”

The absence of clear regulations has made the situation more difficult. Even when appropriate bags are found, the cost would be prohibitive. He would not want to sell a 40-Br bag to someone buying only 10 loaves of bread.

“It’s not fair,” he told Fortune.

In the past, packaging was simple, but it is becoming more complicated. The quality and suitability of available bags worry him, now that new regulations remain accompanied by unclear standards, especially concerning food safety.

“The food sector must be included when the law is being implemented or even considered,” Muluken said. “It is hard to use cloth bags for food.”

Customers, he noted, worry that inappropriate bags may introduce health risks, particularly for products like bread.

In the early days of the ban, some customers arrived with their own plates to carry bread. Initially, Patina Bakery waited for official guidance, expecting a solution tailored to the food industry. None arrived. The market remains dominated by cloth and sack-based bags, and non-woven bags are banned, which Muluken finds unsuitable for products sensitive to humidity and hygiene.

“How can we sell products that have humidity like doughnuts?” he asked.

The ban on plastic bags carries steep penalties. Individuals caught carrying them face fines ranging from 5,000 Br to 10,000 Br. Manufacturers and retailers can be fined between 50,000 Br and 200,000 Br and risk up to five years’ imprisonment.

On the first morning after Mayor Adanech Abiebie’s Administration enforced the ban, daily life in the city underwent an immediate transformation.

Residents setting out to buy bread were seen clutching metal plates, handmade lace bags, and sometimes nothing at all. Others, with no alternative, tucked loaves of bread under their arms. At times, bare hands replaced the ubiquitous plastic carriers that had for years been a fixture of urban life.

Some charcoal buyers took to carrying their own stoves. Small traders and shopkeepers, facing a sudden void, responded with improvisation. Vendors of fried dough began threading their products onto wooden sticks. Paper and even outdated newspapers reemerged as packaging, pressed into service to wrap items such as sugar and bread.

The resourcefulness extended to bank deposit and withdrawal slips, repurposed in the absence of alternatives. Among khat chewers, makeshift containers fashioned from sliced plastic bottles offered some protection against the wind, while egg sellers used stapled paper instead of cartons.

Law enforcement became part of the morning landscape as well, with traffic police inspecting vehicles for plastic bags and reminding drivers of the new regime.

In the city’s sprawling Mercato, especially around Gesho Tera, the shift was unmistakable. Retailers set out alternative bags made from paper, cloth, sacking, and non-woven fabrics in prominent displays. These new essentials commanded premium prices.

Only a fortnight earlier, a non-woven bag sold for roughly 20 Br. In the days after the ban, that figure jumped to more than 80 Br. Sacking-based bags climbed from a minimum of 50 Br to between 100 Br and 250 Br, varying by size, while cloth bags fetched as much as 350 Br.

Quality, however, was not consistent. Some shops continued to sell non-woven bags for 20 Br, though their durability was questionable.

For the cost-conscious, the cheapest option quickly became the repurposed Ethiopian Airlines-branded bag, retailing for about 15 Br. Often bearing signs of prior use, these bags appeared to come from discarded airline packaging.

But even as alternatives multiplied, confusion persisted. The line between what was permitted and what was prohibited proved unclear. Many traders and shopkeepers continued to use non-woven bags, apparently unaware that the material was also banned.

Officials at the Environment Protection Authority (EPA) acknowledged these gaps and promised action, vowing to remove such products from circulation. For manufacturers, the clampdown brought operations to a halt and, for many, left workers without jobs.

With the law now in full force, plastic bag production has ceased. Environmental authorities are urging manufacturers to shift to environmentally friendly alternatives such as paper, cloth, and sack-based bags.

Wasihun Alemu, head of the Urban Waste Management & Disposal Monitoring Desk at the EPA said “At first, we advised manufacturers to participate in alternative production,” He He added, “Ethiopia is not alone in banning plastic bags. Many countries have already adopted similar measures.”

Although consumers and suppliers have adapted reasonably well, Wasihun conceded that confusion remains over the scope of the ban. Many believe single-use plastic refers only to carrier bags for bread or fruit. The regulation, however, distinguishes between different plastic products. Packaging plastics for food, coffee, and beverages, commonly known as “use-and-throw” items, are regulated through standards and exceptions, while the ban focuses on bags used in everyday trade.

Different products face different sanctions. While plastic bags incur criminal penalties under the finalised law, single-use plastics will be managed under administrative law, with further details to follow in future regulations.

Packaging plastics will be subject to new standards. Recycling, Wasihun noted, remains technically possible but is undermined by current usage patterns. The proliferation of takeaway packaging and other single-use plastics “requires urgent standards” to mitigate environmental harm.

“Everyone must obey the law and understand the proclamation, or they will face the consequences,” Wasihun said. “For single-use plastics, we have drafted the regulation. The life of plastic bags has ended.”

For those seeking a broader perspective, Terefe Jima, CEO of TOKA Consultancy Services, sees the ban’s impact from multiple angles. He cautioned that the policy could precipitate business closures, job losses throughout the supply chain, and increased unemployment.

“Even if manufacturers get a chance to shift to other businesses, they’ll face new competition. The government should think about how businesses can transition to other products,” he said. “But little has been done.”

However, Terefe acknowledged the ban is a positive step, aligning Ethiopia with the global push for a circular economy. He warned, nonetheless, that public awareness remains low. The machines used by most manufacturers are general-purpose and cannot easily be modified.

“If they were multipurpose, manufacturers would have already shifted to other products,” he said. “When it comes to environmental sustainability, one side benefits while the other bears the burden.”

Many firms acquired their machines through leases or loans and now find themselves idle, unable to adapt. And industry leaders saw the ban as a threat to disrupt an entire sector.

Bereket Gebrehiwot, CEO of ABSS Trading Plc and a board member of the Ethiopian Plastic & Rubber Manufacturers Association (EPARMA), which represents 500 companies, warned that the policy could put hundreds of thousands out of work.

ABSS Trading, founded nine years ago, has already ceased operations. According to Bereket, who also chairs a committee responding to the ban, most plastic bag materials are recyclable and could be reused with the proper systems. He maintained that an outright ban with insufficient transition time risks harming both manufacturers and workers.

“The ban follows global trends, but the grace period is unmanageable,” he said. “Plastic bag machinery cannot simply be modified for other production lines.”

For government officials, the case is straightforward. According to Wasihun, the grace period is sufficient and machines “can produce compliant packaging materials using imported inputs.” He warned that plastic pollution does not simply disappear. It lingers in the environment, endangering human life and the natural world, and aggravating problems such as flooding.

Before enforcement, the EPA sent notices to supermarkets, bakeries, shops, fruit vendors, and manufacturers, and conducted readiness assessments. Yet the authorities acknowledged gaps in institutional preparedness and among business owners.

For Wasihun, enforcement of the ban is crucial for reducing hazardous waste. The goal was to replace single-use plastics with reusable alternatives and to instil what he called a “Clean Ethiopia Culture.”

Following the ban, non-woven bags have quickly become common in shops and markets, with sack and cloth bags also filling the void. But non-woven bags are also prohibited due to concerns about their environmental risks. Made from polypropylene, a plastic bonded in fibre form, they remain a common sight.

“If one polluter is closed and another is opened, it defeats the purpose,” Wasihun said. “Non-woven bags are also prohibited.”

The Authority has sent stop orders to four non-woven bag manufacturers and is blocking new imports of similar products. Unlike plastic bag makers, Wasihun argued, nonwoven producers can shift to producing cloth.

“We strongly warned them both in person and by letter,” Wasihun said. “We’re observing increased market activity, and it appears to be expanding, to hit the market.”

Repurposed Ethiopian Airlines packaging has also entered the market, prompting the EPA to raise concerns with the Airline. Requests to resume manufacturing have been denied.

Many manufacturers were attempting to adapt and shift production, but they found the process neither financially nor technically feasible on short notice. Bereket argued that a transition period of at least three years was necessary to enable adaptation and recovery.

The immediate effect of the implementation has already led some factories to close and left workers idle.

Yonas Alemayehu, a significant shareholder of a plastic and rubber factory near Ayertena, the authorities’ move has had a severe human cost. He has already stopped production, unable to afford severance payment for the 115 workers who have lost their jobs. Some employees have waited months to leave formally. He also sits on stock worth three million Birr that cannot be sold.

Despite his employees threatening to complain to the officials of the Labour & Social Affairs, he cannot see how they pay them.

“I can’t pay them, even though I want to,” Yonas told Fortune.

A promised grace period has failed to deliver relief. Manufacturers like him were told Chinese technicians would help modify their machines, but to no avail.

“They said it is like training a sheep to eat meat,” he said. “If something is to come from this, we’ll have to wait for it.”

Yonas recalled government officials discussing lessons from Kenya, but he argued such experiences should be tailored to local realities.

His factory comprises more than 20 recycling, washing, cutting, and production units, minimum each worth over 10,000 dollars. The sector, by his estimate, contributes over 60 billion Br annually to the national economy and delivers about 20 billion Br in government revenue, making it a mainstay of manufacturing and trade.

Yonas’s company is one of about 200 manufacturers at risk of immediate closure.

“If the government takes a more gradual approach, there’re alternative solutions,” Bereket told Fortune, disputing the official claim that plastic bag machines can be retooled. “They’re now being sold to steel factories as scrap.”

Bereket also criticised the communication between regulators and manufacturers, arguing that early discussions could have reduced the disruption. He noted that disagreements between manufacturers and officials over machine modifications continue. He stated the need for clarity about which plastic products are banned and the development of enforceable standards.

Despite the prohibition, Bereket is aware that some companies have resumed production out of necessity.

“Many institutions have already laid off workers,” he said. “Others are waiting until the end of the month.”

Banks are pressing for loan repayments, leaving few options beyond selling machinery as scrap.

“There is no option without loss,” he said. “Almost everyone in the industry is at risk.”

The domestic plastic bag and flexible packaging sector is neither marginal nor monolithic. It is a crucial, if underappreciated, node linking domestic manufacturing and global supply chains, with real stakes for import dependence, industrial policy, and sustainable growth. While trade data cast this segment as a minor entry, a mere 0.34pc of total imports, the sector’s influence stretches across the supply chains of agriculture, cement, fertiliser, and the fast-moving consumer goods (FMCG) industry.

Ethiopia imported nearly 57 million dollars in plastic packaging in 2023, compared with exports of 450,000 dollars, making the country a clear net importer. Imports are dominated by India, China, and the United Arab Emirates, with India leading in value terms.

Industry insiders agree that homegrown producers fill a large part of the demand for “staple” packaging. Medium- to large bag factories can each produce 10 million to 15 million units a year, although industry-wide figures remain a critical data blind spot. Addis Abeba, Bishoftu, Kombolcha, and a handful of industrial parks are home to most of these plants.

Industry directories list over a dozen players, ranging from TAYS Plc, Dashen Plastic Plc, Mebruk Plastic Product Factory Plc, and Summit Partners Plc to a raft of smaller and specialised producers, but their market shares are unknown. However, leading the pack is Blue Nile PP & Craft Paper Bags Manufacturing Plc, an affiliate of MIDROC Group, which operates two plants in the town of Bishoftu (Debre Zeit) with a combined annual capacity of 2,581tns (polypropylene) and 1,000tns (polyethene). Ammarr PP Bags & Plastic Factory Plc in Kombolcha, Amhara Regional State, claims to exceed 11 million bags annually, and new entrants like Kelil Kedir PP Bag are targeting similar volumes.

With Ethiopia’s packaging demand topping 350 million dollars and plastics accounting for over half of this figure, growth in agriculture, cement, and FMCG is driving sustained demand. Policymakers lack clear visibility into market structure, capacity, and utilisation, a barrier to effective support, standard-setting, or environmental regulation.

Leaders of the Ethiopian Chamber of Commerce & Sectoral Associations (ECCSA) pledge to work with officials of the Ministry of Planning & Development to provide support. According to its Secretary General, Kenenisa Lemie, businesses should remain mindful of the environment while sustaining their operations.

“We’re open to helping them by any means,” Kenenisa said. “When entering a business, financial, economic, competitive, and environmental feasibility should be properly studied. With corporate social responsibility in place, businesses can begin their operations responsibly.”

The Authority’s officials maintain that manufacturing equipment can be adapted to produce compliant packaging plastics.

For consumers, the ban has proved disruptive but not insurmountable, though confusion lingers about precisely what is forbidden.

Amare Tesfu, an employee of the Bank of Abyssinia, has had a nightly routine of buying bread or fruit from neighbourhood shops around the Saris neighbourhood. Sharing an apartment with his cousin and paying 8,000 Br in rent, he makes frequent purchases of tomatoes, eggs, and bread.

Around Christmas, Amare bought a sack-based bag for 50 Br for use during the holiday rush. That same bag now sells for 150 Br.

He observed that new bag types are quickly becoming part of daily life. He recalled joking with a friend on the first day of the ban as they left church, carrying bread wrapped in a traditional veil.

“I knew the situation was serious because the bakery refused to give us a plastic bag, even though they had many,” he said.

He expects the uncertainty to continue until more solutions and broader public awareness are in place.

“Nothing has changed except the material prices,” he said. “But I don’t want to use this bag for bread. It is better for fruit.”

Amare agreed that the ban on plastic packaging is necessary for environmental protection, but also argued that alternatives should be found for shoppers and merchants.

For some, like Semaw Asmare, an environmental consultant and PhD candidate at Addis Abeba University, the ban’s timing is overdue.

Ethiopia lagged behind other countries in implementing a plastic bag ban, even as plastic waste accumulated and threatened public health. Discarded bags that enter water bodies present direct health risks. Those that land on soil block sunlight, diminishing fertility and agricultural yields.

Plastic waste, he noted, has clogged urban drainage systems and contributed to flooding in cities.

“There is a harmful use of plastic that is dangerous to health,” he said. “But the transition could be handled carefully.”

Semaw argued that the transition period remains insufficient, as society is still dependent on plastic bags.

“The cost is high, but alternatives should be created,” he said.

Some countries have established environmental courts, and Semaw urged Ethiopian officials to consider a similar system, such as the polluter-pays principle, to safeguard the environment and nurture entrepreneurial opportunities, even as it displaces some manufacturers. He insisted that the government offer loans to those who have lost jobs, helping them to transition.

PUBLISHED ON Feb 14,2026 [ VOL 26 , NO 1346]