Ministry of Trade and Regional Integration (MoTRI) lifts restrictions imposed on the supply of the stimulant leaf, khat, from eastern Ethiopian producers to the local market.
The ministry which undertook a detailed study to implement its restrictions on the way to tackling the illicit khat trade imposed a system to limit the locally sold product supply which came to effect on January 2023.
In the new system, the product sourced from eastern Ethiopia, which is a long established hub for production of the stimulant and market for the export commodity faced limited supply which led to a lot of contraband activities to ensue.
In a bid to settle the issue, MoTRI has now issued a letter which has been sent to the Customs Commission, to relinquish the applied restrictions as from April 21.
As per the system that was applied on January 27, 2023, it emplaced a quota for the supply of local market on the aim to boost the legal export market and to make farmers beneficiaries of the trade.
However, the latest announcement stated that the system has created a repercussion on farmers’ market.
“Due to that the government has decided that the scheme that was applied in January must be lifted starting from April 21,” the letter that was signed by Kassahun Gofe, State Minister of MoTRI, reads.
It added that as per the decision the khat export trade system and a quota of daily consumption at border areas are now to be carried out as per the prior ways of doing business in contrast to the system imposed in January.
Khat products from eastern Ethiopia that is popularly known as Hararge khat, which is mainly supplied to Somalia and Djibouti consumers.This product is arguably one of the major hard currency resources for the country, while in the past few years the market and revenue was disrupted due to illegal activities.
Those who abuse the trade are smuggling khat to bordering countries, while the commodity was predestined to be originally sold for local consumption.
To curb the recently emerging challenges, MoTRI has now introduced several controlling mechanisms and taken legal actions including revoking export license for some of the traders who are alleged on the involvement of illegal activity.
However the case is still said to pose a challenge and has had its toll on the hard currency generation from the sector.

Local beauty product producer and supplier, Etcare Beauty Products Sales Pvt. Ltd, defends its line of business and states that it is by no means a pyramid scheme. The skin and health care provider has further taken inquiry steps for the legal clarification of the difference between direct sell and a pyramid scheme as pertained in the country’s trade proclamation.
The proclamation in question is the Trade Competition and Consumers Protection Proclamation No. 813/2013 which at the time of ratification banned pyramid scheme sales in Ethiopia owing to the number of companies which were applying pyramid schemes surging.
“It is prohibited applying or attempting to apply a pyramid scheme of sale, based on the numbers of consumers, by announcing the granting of a reward, in cash or in kind, to a consumer who purchases goods or service or makes financial contribution and where other consumers through his/her salesmanship purchase the goods or the service or make financial contribution or enter into the sales scheme,” the proclamation clearly highlights.

Etcare on its end argues that the proclamation has identifiable gaps in defining a pyramid scheme and direct sells, and the clear difference between the two.
“Direct sales refer to the process of selling products directly to consumers through a network of independent sales representatives, while pyramid schemes involve recruiting participants who are promised payments or rewards for enrolling others into the scheme, rather than for selling products or services,” said Matios Meba founder and managing director of the company.
“Organizations that follow the direct sales system have a known and legally registered address and business license; they pay the appropriate taxes to the government. Those who follow the pyramid scheme, however, do not pay taxes to the government and operate in the air because their address is unknown and they do not have a legal license,” Matios further elaborated indicating that his company cannot be labeled as such since his company engages in producing and distributing locally manufactured beauty and health care products using local raw materials.
Moreover, as the managing director signaled, Etcare only pays commission for only those who sale lots of products not for those who brings members.
“Lack of clarification in the law is affecting our operation as people are taking our business as pyramid,” stated officials of the company.
As Solomon Abay, assistant professor at Addis Ababa university school of law explains, pyramid schemes are illegal but marketers are aware of this hence the business is often disguised as direct sell or multi-level marketing programs (MLM), “The difference between a pyramid scheme and MLM is that there is no real product that is sold in a pyramid scheme, and commissions are based only on the number of new individuals one introduces into the scheme. The main idea behind the MLM strategy is to promote maximum number of distributors for the product and exponentially increase the sales force. In the case of pyramid schemes, money is charged simply for enrolling other people into the scheme and no real product is actually sold. The difference between MLM and pyramid schemes is that MLM offers products whereas Pyramid schemes do not, commissions are paid on sale of products and not on enrollments, and company buys back inventory from participants at the time of termination.”
Solomon said that policy makers should set guidelines that help consumers discern legitimate plans from illegal ones.
“It is important for consumers to understand the difference between the two and be cautious of any opportunities that seem too good to be true.” Solomon added.
As the managing director indicated, Etcare which was established 10 months ago has so far created job opportunities for about 100 people and paid 10 million birr in taxes to the government in the last 10 months. It was also learned that the company has paid 50 million birr in commissions to the sales staff in the same period and has made the sales staff to issue licenses and pay taxes to the government.

UN Economic Commission for Africa (ECA) and the International Telecommunication Union (ITU) Regional Office in Addis Ababa celebrate the annual International Girls in ICT day under the theme “Digital Skills for Life”.
The event which is held every year on the fourth Thursday of April, this year’s took place on April 27, 2023.
The event which aims to inspire and encourage girls to pursue careers in science, engineering, technology, mathematics (STEAM), and other fields and engage effectively in the digital sector brought together different stakeholders including mentors, young women and girls to exchange their experiences and share knowledge around digital skills for life and address different topics related to digital skills such as mentorship, education, youth engagement to inspire girls to engage and participate in the ICT field, pursue careers related to digital technologies, develop and strengthen their digital skills, and actively engage in the local digital ecosystem.
“The information and communications technology sector plays a pivotal role in promoting gender equality and women’s empowerment as stipulated in the United Nations sustained development goal. At ECA we are committed to the goal of equal access for young women and girls to opportunities in science, technology, engineering and mathematics. Here, I’d like to applaud the government of Ethiopia for its efforts in centre stage in education in stems as part of the structural transformation agenda by sending very clear policy signals, by providing incentives for students to pursue education in science and technology, engineering and mathematics that’s critical for Africans to go up the value chain and which is critical for Africa to claim agenda 2030 and agenda 2063,” said Antonio Pedro, Executive Secretary of ECA.

As digital technologies are an essential pathway to gender equality and empowerment, it has become increasingly important to engage girls and young women more closely in the digital transformation process. According to ITU, globally, the percentage of females and males using the internet is 63 percent and 69 percent respectively, and in Africa, the percentage of females and males using the internet is 34 percent and 45 percent respectively.
Around 90 per cent of adolescent girls and young women do not use the internet in low-income countries, while their male peers are twice as likely to be online, according to a new UNICEF analysis issued on International Day of Girls in ICT.
“The theme for the Girls in ICT Day celebrations this year “Digital Skills for Life”, digital skills remain a key component for girls and young women to engage in the digital ecosystem. The ITU is committed to building and strengthening multi-stakeholder partnerships to equip young girls, women and youth with digital skills to bridge the digital gender divide,” said Anne-Rachel Inné , ITU Regional Director for Africa whilst speaking on the event, adding, “I encourage all the girls and young women to develop and strengthen their digital skills, within their schools and beyond, through the local communities and actively engage in the digital ecosystems as we strive to bridge the digital gender divide.”
Alternative educational and training options to acquire digital skills such as boot camps and incubators have been emerging globally, and in 2020, the ECA in collaboration with ITU and UN Women launched the ‘Connected African Girls’ coding camp initiative in Addis Ababa, Ethiopia to bridge the gap and advance ICT skills across the continent.