BY TAMERU REGASA
ADDIS ABABA– The government comes with smart intervention to open up the market domain for foreign actors and set up a new legal framework that envisions to enhance competitiveness and stabilize the market thereby arresting the soaring inflation, the Ministry of Finance disclosed.
Capitalizing on the experience in the telecommunication industry, the government will allow foreign companies’ involvement in Ethiopia’s marketing system that is believed to enhance competition and stabilize the cost of living, Finance State Minister Eyob Tekalign (PhD) told local media. Though the government has been executing viable economic policies that have greatly boosted economic progress, the society has been suffering immensely from an uncontrolled spike in the price of goods and services.
Noting the rise in commodity prices in the global market is the main cause of inflation in Ethiopia, the state minister highlighted that the price of metals, oil and wheat, for instance, have increased at a double-digit rate for the past years. This double-digit price increment of commodities in the international market will undoubtedly lead to unparalleled levels of inflation in Ethiopia. Also, internal factors including the northern conflict and market monopolization by few traders have been causing inflation and market destabilization.
“The northern conflict has an adverse impact in hindering the flow of goods and services from place to place thereby exacerbating the situation.”
“The monopolization of Ethiopia’s market by few domestic firms is also significantly contributing to the alarming rate of inflation in Ethiopia,” Eyob claimed, adding that those business entities that have been operating without competition have been selling products at hefty profits. “Accordingly, the government is working to change the monopoly of the market by nurturing competition and attracting global companies with the desired capital expertise.”
About the Gross Domestic Product of the country (GDP), he indicated some progress, though it is not significant, has been witnessed in the performance.
The March 9/2022