In the face of rising inflation and a scarcity of basic commodities in Ethiopia, the Ministry of Finance has issued a directive allowing importers of essential foodstuffs such as oil, wheat, sugar, baby milk, and rice to use franco-Valuta privileges and import their items directly through the Customs Commission without the need for foreign exchange permits.
It should be noted that the Ethiopian government has been granted the right to import basic food items such as sugar, edible oil, wheat, rice, cereal flour, and milk through the franco-valuta license started in April 2021. The companies need to have 250,000 US Dollars authenticated by the National Bank of Ethiopia.
According to the NBE report for the fourth quarter of 2021, Franco-valuta imports for all commodity groups increased by 125.3 percent and reached USD 1.8 billion, accounting for 44.9 percent of total import value in the period. The value of food imports increased by more than 400 percent in the fourth quarter of 2020/21, from 96 million in the previous fiscal year to 480 million.
The Ethiopian government has decided to grant Franco-Valuta privileges to Ethiopians with foreign residency permits in order to help combat rising inflation.
Concerning duties and taxes, the Ministry of Finance reminded all relevant entities in a written letter dated 22/3/2013 E.C to apply the necessary follow-up and control on the decision.
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