
A few years ago, a week did not go by without a new plant for bottled water kicking off production. Those roaring times have come to a screeching halt. Consumers are noticing. A two-litre bottle of mineral water, with a 13 Br price tag at kiosks a few months ago, jumped to 20 Br. The volatility in the consumer market only exposes the dilemma the industry faces. Like most other manufactured goods, the sector suffers from an agonising shortage of foreign currency. While the water in the bottles is sourced locally, the materials used to blow up the plastic packaging need to be imported.
Polyethylene terephthalate (PET), a derivative of oil and natural gas, is a vital ingredient for bottled water and food, beverage, or consumer product that uses plastic as packaging. The entire plastic manufacturing sector, which has produced 400,000tn in five years and employs around 11,000 workers, is battered and operates at below two-thirds of its capacity. While a foreign currency shortage is a regular headache for these manufacturers, the storm is harsher these days. The most recent disaster to strike the supply chain they depend upon is skyrocketing fuel prices in the international market.
The Ethiopian Plastic & Rubber Manufacturers Association urges federal authorities for a solution. It insists the National Bank of Ethiopia (NBE) allocates sufficient foreign currency to save the industry from the risk of total collapse. Some others see a golden opportunity to rid consumers of their addiction to highly environmentally polluting materials like plastic bags and discourage it further, as countries like Kenya and Rwanda have done. Stuck in the middle are millions of consumers in a seemingly endless struggle with inflation and the thousands of workers employed by the plastic manufacturing industry (and beyond) whose livelihoods are hanging by a thread.
You can read the full story here
PUBLISHED ON
Apr 02,2022 [ VOL
23 , NO
1144]
Viewpoints | Oct 19,2019
Featured | Sep 28,2019
Viewpoints | Jan 07,2023
Editorial | Apr 24,2021
Commentaries | Jun 27,2020
Radar | Nov 27,2018
Commentaries | Apr 06,2019
Fortune News | Feb 27,2021
My Opinion | Sep 10,2022
In-Picture | Jun 08,2019
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Jul 12 , 2025
Political leaders and their policy advisors often promise great leaps forward, yet th...
Jul 5 , 2025
Six years ago, Ethiopia was the darling of international liberal commentators. A year...
Jun 28 , 2025
Meseret Damtie, the assertive auditor general, has never been shy about naming names...
Jun 21 , 2025
A well-worn adage says, “Budget is not destiny, but it is direction.” Examining t...