Ethiopia to reconsider fuel-powered vehicle import ban for WTO accession
via The Reporter Ethiopia7 min read
Ethiopia's federal government is set to reconsider its restriction on fuel-powered automobile imports as part of its ongoing efforts to join the World Trade Organization WTO. Trade Minister Kassahun Gofe PhD, who leads Ethiopia’s WTO negotiations, indicated this during the seventh Working Party Meeting on Ethiopia’s accession. He stated that a similar approach to lifting the import ban on used clothing, which was replaced with customs duties, would be applied to fuel-powered automobiles and three-wheelers before accession. The import restriction on fuel-powered vehicles was implemented in early 2024 to promote an energy shift towards electric vehicles. However, international trade negotiator Tages Mulugeta clarified that while WTO requirements necessitate lifting import restrictions, Ethiopia plans to introduce other measures, such as taxation and environmental concerns, to discourage the import of fuel cars, rather than a full return to pre-2024 import levels. Ethiopia's 23-year bid to join the WTO is at a critical juncture, with intensified efforts to address concerns from member countries and less than 10 bilateral agreements remaining outstanding. Other reforms include consolidating state-owned enterprises under Ethiopian Investment Holdings, liberalizing import, export, wholesale, and retail trades for foreign participation, expanding foreign currency accounts, and re-evaluating customs valuation.
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Ethiopia's Ministry of Finance announced the restoration of daily diesel supply to nine million liters, following a two-month period of reduced volume due to supply disruptions caused by the US-Israeli war in Iran. Fuel trucks have begun transporting diesel from Djibouti to Addis Ababa, with more expected to reach regional towns and cities. This development is anticipated to alleviate the challenges faced by truck and public transport drivers who have experienced long queues at pumping stations. The diesel crisis had previously impacted food and commodity prices, particularly fresh produce, and led to a nearly 17 percent increase in diesel retail prices to 163.09 Bir per liter. Reports also indicated a rise in illicit fuel trade during the disruption. Talks between the US and Iran have stalled after eight weeks of fighting, raising concerns about shipping through the Strait of Hormuz.
Dashen Breweries SC has announced the appointment of Matiyas Getachew as its new Chief Executive Officer. This appointment marks a significant transition as Matiyas becomes the first Ethiopian executive to lead a major brewery in a sector traditionally headed by expatriates. Matiyas joined Dashen in 2020 as Chief Financial Officer and was named acting CEO last year after the departure of Mario Van Geldern. The company elevated him to permanent CEO due to his strong leadership and achievements as CFO during challenging macroeconomic conditions. Matiyas holds a bachelor’s degree from Addis Ababa University’s Commercial College, is a chartered certified accountant, and has a master’s degree from Heriot-Watt University. His international background includes leadership roles at SABMiller, Coca-Cola Beverages Africa, and Diageo. Industry observers note this appointment reflects a broader trend toward local leadership in multinational corporations, with other major players like Coca-Cola and Unilever also recently appointing local CEOs. An industry analyst stated that Matiyas’s appointment shows growing confidence in Ethiopia’s ability to empower homegrown executives to lead large consumer businesses. Dashen Breweries was founded in 2000 by Tiret Corporate, with Duet Group, a UK investment firm, holding a majority stake since 2012.
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