www.2merkato.com

Ethiopia to Reform Trade System

Written by Meron Tekleberhan Thursday, 05 January 2012 09:16

Ethiopian Business News - Latest Business Alerts

The Ethiopian Ministry of Trade is to exert effort to reform the trade system in Ethiopia according to Siraj Ali State Minister speaking at a forum organized by the ministry.

The conference was organized by the Ministry of Trade to discuss draft proclamations known as ‘Technical Regulations’ and ‘Mandatory Standards.’

The Ethiopian trade system has failed to modernized and operate within the legal framework in opposition to the growing business community, increases in the quality and sophistication of goods and services and swift changes globally said Siraj.

The reforms that the trade ministry is undertaking will enforce existing proclamations and eliminating various loopholes he said.

Loopholes identified by the ministry of trade include the adverse effect on the trade system of rapid licensing procedures, the ministry’s inability to trace products, the lack of unique identification systems, the absence of healthy competition and weak administrative and legal measures according to Nuredin Mohammed, Director of Ministry Regulatory Directorate.

The reform initiative launched by the Ministry of Trade has therefore instituted a new system of which sets up basic requirements for any business registering to engage in the trade system explained Nuredin.

According to the new system all businesses are required to obtain licensing although in the past businesses with a capital of less than 5000 birr were not required to register.

The trade proclamations are designed to enhance the existence of a free and practical market system, assure the integrity of the trade system and to protect the safety, benefits and needs of the consumer said Nuredin.

Source: Ethiopia Press Agency