By Eyasu Zekarias
Illegal trading of khat deprives the country of much needed foreign currency.
As reports show, in the 2020/21 fiscal year, khat exports reeled in USD 402.6 million, but in 2021/22, the figure dropped to USD 392.2 million. As the Minister of Trade and Regional Integration (MoTRI) revealed to Capital, in the FY2022/23, $248.2m was earned from the khat business, which was down 144 million dollars in revenue from the previous fiscal year.
The ministry is now taking aggressive steps to crack the whip on the illegal trade as it seeks to stabilize the market through the lifting of gate and overlapping taxes with regards to khat export trade.
As Belayenesh Regasa, Communications Executive at MoTRI informs Capital, “Ethiopia is not getting the income it deserves from exports because of illegal businesses.”
Out of the 4991 licensed khat businesses across the country, only 486 have exported at least once in the fiscal year 2022/23. Out of the 645 exporters who sent in 2021/22, 162 of them sent only once in this FY, according to the information obtained from Capital.
To gain full clarity on who conducts such trades in a legal manner, the ministry recently issued requirements to remove illegal traders from the trading system through issuing licenses for khat businesses and new exporters.
The new move which has been enacted from November 7 and lasting up to November 25 will see new license applicants being obligated to provide a vehicle equipped with GPS with a covering net capable of transporting khat products. The go ahead is said to be given through a pre-license confirmation to send at least 100 metric tons in the fiscal year.
