Addis Ababa, December 31, 2024 (FMC) — The Ministry of Trade and Regional Integration has expressed that macroeconomic reform has yielded significant results in combating illicit trade.
Trade and Regional Integration Minister, Kasahun Gofe highlighted that the comprehensive macroeconomic reforms implemented by the Ethiopian government since July have produced notable results in the fight against illegal trade and contraband, according to him.
The third National Anti-Illicit Trade Summit, organized by the Ethiopian Chamber of Commerce and Sectoral Associations, is currently underway in Addis Ababa.
Minister Kasahun emphasized the detrimental impact of illicit trade and contraband on the Ethiopian economy. The government has been actively addressing these challenges within the trade sector.
He noted that Ethiopia’s trade system has been undermined by illegal activities such as tax evasion, failure to issue receipts, hoarding, price inflation, and other forms of malpractice.
Furthermore, contraband trade in both imports and exports has been draining both public and government resources.
While acknowledging the presence of many honest traders who adhere to Ethiopia’s legal trade system, Kasahun also highlighted the actions of unscrupulous individuals seeking to profit through shortcuts.
However, the minister stressed that the government’s policies and actions over the past six months have led to significant progress in controlling illegal trade and contraband.
Specifically, following the implementation of the macroeconomic reforms, actions ranging from warnings to legal measures have been taken against 108,000 traders involved in illicit activities.
As a result, the food inflation rate, which stood at 29.2 percent before the reforms, has dropped to below 20 percent. Additionally, Ethiopia’s revenue from livestock exports increased from 18 million USD in the 2016 Ethiopian fiscal year to 20 million USD in just five months after the reforms.
The minister also noted that contraband goods valued at 15.5 billion birr were seized during the 2016 Ethiopian fiscal year, as reported by ENA.
Kenenisa Lemi, Secretary General of the Ethiopian Chamber of Commerce and Sectoral Associations, expressed concern about the impact of illicit trade in livestock, coffee, and pharmaceuticals on the country’s economy.
He emphasized that illicit trade is a national scourge that reduces government revenue, hinders job creation, and pushes legitimate traders out of the market.
Kenenisa called for a collective effort to combat illicit trade, which he sees as crucial for enabling the government to generate revenue and pursue national development goals.
The government’s decisive steps to combat illicit trade, coupled with the macroeconomic reforms, have led to a decline in illegal trade activities and a rise in government revenue.