Prime Minister Haile Mariam Desalegn has inaugurated Ethiopia’s cash and carry wholesale enterprise, ALLE Wholesale, on Monday. The inaugural ceremony took place in Addis Ababa by opening a store around Megenagna.
ALLE is a state enterprise managed by a private entity. The enterprise will supply food and other consumer goods for the public at a national level with a competitive price.
The stores will have both locally as well as internationally sourced items with wide spectrum of customers including kiosks, supermarkets, hotels, restaurants and cafes.
During the inauguration, Haile Mariam said his government is seeking a trade system reform and the introduction of ALLE is part of that program. He added the trade system reform is based on seeking to create competitive and market oriented business environment in the nation.
“In the past, consumers were left without options and were forced to accept price inflation due to the unfair business ties between these few suppliers”, the Premier said.
“We hope the private sector will draw lessons from [ALLE’s] unique business model”, he added.
The government plans to open more stores. Two stores are already under construction around Kality and Merkato.
The Enterprise plans to open 36 more stores in 25 major urban areas in the coming the three years, according to Nuredin Mohammed, General Manager and Advisor to the MoT. He further noted, this move will enable his enterprise to have a 25 to 30 percent market share of the whole country.
The government initially considered to let in international giants such as Wal-Mart into the Ethiopian economy, said the Minister of Trade Kebede Chane. But in order to protect the fragile domestic private sector the government decided to set up a ALLE, a “Wall Mart like” enterprise, he added.
Kebede further noted, “Instead of being a threat to the private sector, ALLE will work closely with the private sector in a competitive market”.
“The enterprise buys the products directly from manufacturers at home and abroad and thereby avoid the unnecessary market chain which has been driving prices of consumer goods high”, he added.
The Ethiopian government has in February 2013 concluded a management contract for two and a half years with the American consultancy firm, A.T. Kearney. And the board of directors is going to be chaired by Neway Gebreab, Chief Economic Adviser to the Prime Minister.
Source: Walta Information Center
