The Customs Commission has issued an urgent directive for the importation of goods purchased by Franco Valuta, emphasizing that these items must be imported within one month. This announcement follows a recent decision by the Ministry of Finance (MoF) to halt the importation of basic consumer goods by Franco Valuta, which was previously allowed to facilitate access to essential products in the market.
In a letter dated November 27, 2024, the Customs Commission instructed all branch offices to expedite the importation process for goods purchased by Franco Valuta. This decision comes in light of the government’s efforts to ensure a steady supply of basic consumer goods amidst ongoing economic challenges.
Franco Valuta was initially permitted to engage in the importation of basic consumer goods without the burden of foreign currency fees, a move intended to alleviate product shortages in Ethiopia. Ahmed Shide, Minister of Finance, had previously acknowledged that Franco Valuta played a role in importing essential commodities to help avoid shortages. However, concerns arose regarding its exposure to the black market, which reportedly increased pressure on foreign exchange resources and undermined its intended purpose.
“The decision to import basic consumer goods by Franco Valuta has been completely halted,” Minister Shide stated. He emphasized that any ongoing imports should be completed within two weeks, reflecting a shift in government strategy aimed at stabilizing the economy.
The Customs Commission has outlined specific guidelines for importers who registered their purchase documents with Franco Valuta before November 7, 2024. These importers are required to complete their transactions by December 27, 2024. The government’s comprehensive macroeconomic reform policy has been identified as a key factor in the rise of Franco Valuta, which aimed to narrow the gap between standard and parallel foreign exchange rates.
According to the Ministry of Finance, all basic consumer goods imported from abroad must now go through commercial banks using trust documents. This new requirement is part of an effort to streamline imports and ensure that banks can adequately manage foreign exchange reserves for commodities.
Franco Valuta’s license allows it to import goods without incurring foreign currency fees; however, this arrangement has raised concerns about transparency and compliance with government regulations. The government’s decision reflects a broader commitment to reforming Ethiopia’s economic landscape and enhancing the efficiency of its import processes.
