ETHIOPIA – The Ethiopian government has announced the importation of 50,000 tons of essential commodities to tame surging prices and improve the accessibility of cooking oil for its citizens.
Kassahun Gofe, the State Minister for Trade and Regional Integration, revealed this in a statement on August 26, 2024.
The statement specified that the goods would be transported via the Ethio-Djibouti Railway and trucks.
The move follows rising food prices in the country, particularly in the capital Addis Ababa, following the Central Bank’s decision on July 29 to introduce a floating exchange rate regime for the birr, the local currency.
Surveys conducted by local media among traders in Addis Ababa showed that cooking oil prices had increased by more than 25% due to this decision.
Ethiopia relies on imports for 90% of its cooking oil needs. It mainly imports palm oil, accounting for about 80% of its supply on the international market.
According to data from the U.S. Department of Agriculture (USDA), the country’s annual cooking oil consumption amounted to more than 630,000 tons in 2021.
According to the Ethiopian Statistical Service (ESS), food inflation in Ethiopia reached 20.6% in July 2024, up from 22.7% in June.
The government’s decision to import 50,000 tons of cooking oil aims to stabilize prices and improve accessibility for the population.
The move is part of a broader effort by the Ethiopian government to address the rising cost of living in the country.
In addition to the cooking oil imports, the government has also announced the procurement of 200,000 quintals of sugar, which will be transported to the country within a week.
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