The Ministry of Trade and Regional Integration (MoTRI) has expressed its frustration over the obstacles hindering the export of khat, a stimulant leaf, and has called for parliamentary involvement in addressing the issue.
In response to questions regarding the government’s market regulation strategy amid current macroeconomic reforms, Kassahun Gofe, Minister of MoTRI, stated during his recent parliamentary appearance that there are 283 checkpoints nationwide, the majority of which are illegal.
He noted that, despite a previous commitment to eliminate these checkpoints, regional administrations continue to encounter challenges.
“Regions have reported the removal of levy collection points; however, our latest assessment indicates that there are still 283 checkpoints across the country,” he asserted.
“These illegal checkpoints hinder the free movement of goods, which negatively impacts the market,” he added.
Kassahun informed the assembly, “We have reported the issue to the relevant government body and expect a resolution, but it is crucial for parliament to play its role in addressing this problem.”
Reports indicate that the movement of khat—a key export that is consumed in eastern African countries such as Djibouti, Somaliland, and Somalia, as well as domestically—has been disrupted by the establishment of checkpoints in the eastern regions and Dire Dawa City Administration for revenue collection.
The central government has been attempting to resolve the issue for several years, but Kassahun claims it persists for various reasons.
He emphasized the need for regional authorities to eliminate their barriers to ensure smooth commodity movement, which would enhance foreign currency earnings for the industry.
Recently appointed as head of the trade sector, Kassahun stated that MoTRI has been collaborating with relevant government agencies to ensure a stable supply of essential consumer goods, both from the private sector and the government, to stabilize the market following the government’s bold macroeconomic reforms, including the introduction of currency floating at the start of the budget year.
“We can take regular action against illegal market actors and increase supply to contain market fluctuations,” he stated.
Kassahun also mentioned that the government has revised its approach to regulating the gasoline distribution industry. He revealed that MoTRI will now oversee 59 oil companies instead of the 1,800 retail stations nationwide.
“The majority of foreign currency earned from exports is allocated to oil imports. We are firmly committed to reducing illicit activities in the oil market,” the Minister concluded.
