Saturday, October 24, 2026
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Study examines possible price cap return

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The Trade Practices and Consumer Protection Authority (TPCPA) has initiated a new draft study and taken it to the Ministry of Trade and Industry to set a profit margin on basic manufacturing products like cement, steel, and food items which are often asked for by consumers and other products prone to destabilizing Ethiopia’s economy.
The draft study which has yet to be sent to the Council of Ministers and Parliament for ratification may set up a 20 to 30 percent profit margin if it is ratified.
The Ministry of Trade which is deeply reviewing the study is expected to forward comments on it in a short period of time and then bring a report to the Council of Ministers.
Sources form TPCP told Capital that the aim of the profit margin is not to interfere with the balance sheet of companies. Rather, it is meant to stabilize the market that has faced recurrent inflation.
“For a couple of years products like cement and steel have been selling at high prices and have been erratic, without any economic reason. The Government does not want to impose price controls but at the same time it can’t stand by and watch people suffer, so the issue needs to be discussed. We have to formulate something when consumers are affected.’’
“The study is also looking at ways to protect the market from unwanted trade practices and competition.’’
The then Prime Minister Meles Zenawi was trying to set price caps to stabilize the market but due to wide opposition from traders, the government lifted them. Eventually, prices of manufacturing and consumer foods and products rose.
Teke Redai, an economist, told Capital that the government should increase the production of products rather than limit the profit margins.
“The basic thing we have to do is increase products. When products increase price will not go up frequently as some business group wish. So to increase products we must encourage our citizens to start more businesses.’’
“When we come to profit margin, the government should exactly know the cost of the production of the factories otherwise it will be difficult to determine the correct cost or set a profit margin,” he added. Currently, only fuel is subject to price caps.

Ministry asked for sales machine upgrade

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Sales register machine manufacturers are calling on the government to utilize the latest technology in order to maintain the accuracy of the machines and increase tax revenue.
Cash register machines were introduced at the beginning of 2008 in Addis and currently are in use throughout Ethiopia with many businesses now operating them. Experts say using the machines properly allows the government to trace business sales and obtain accurate direct and indirect taxes. Even though the number of sales register machine users is increasing, machines are using outdated technology and can be subject to fraud.

Recently the Ministry of Revenue (MoR) disclosed that some machines disappeared and there are increasing requests for vat refunds. Some businesses ask for vat refunds by coming up with unknown and illegal receipts that come from missing machines. This cheats the government out of revenue.
If the government can improve the sales register machines’ security and technology it will go a long way to increasing revenue, a source who works in tax collection said. “Improving the system and usage of the machine by itself expands tax collection and tackles fraud,” they insisted. They want MoR to improve the technology to make a stronger controlling mechanism.
For instance, by using latest programs and technology MoR can trace the activity of any sales register machine besides identifying the location of the machine.
Some machine and software suppliers that asked not to be named support the idea of improving technology and using current products to enhance tax collection and reduce the tax evasion.
“The sales register machines the country uses is a ten-year-old technology,” they said.
“Improving this is very simple and can be managed by local workers and programmers with no or limited expenses by using modern technologies, it is easy to find the location of the missing machines. Even modern technologies allow machines to be installed by locking when moving from area to area,” the expert added.
Another experts points out that other countries change their sales register machines at least every five years, “but in our case the technology that is supposed to be improved has not changed for 11 years.”
Currently MoR and the association of sales register machine and software suppliers have formed a joint committee to improve the machines. “Even though the committee has been formed and some activities have started both sides have to work aggressively to modernize the machines and solve problems like importing equipment and technological modernization,” one person working in the sector added.
They have also claimed that a consultant at the at the ministry, hired by donors, is not giving adequate support to MoR regarding the machines. “The ministry should look into this,” they underlined.
Revenue collection insiders say they are pleased with the changes at MoR since the coming of Adanech Abebee to the ministerial post. The last nine months of the fiscal year have seen record tax collection. Several changes and improvements have also occurred with the tax collection office in the past few months.
Sources at MoR told Capital that a study on the machines indicates that modernization is crucial to realize the expected performance.
“We have proposed a solution but I think the higher body is not ready to change the system in the near future,” a source who is close to the case told Capital, “They have resisted modernization maybe they are not comfortable about the possible costs required for change.”
Experts at MoR, who requested anonymity, suggested that the cost of changing and modernizing the sales register machines would not be a major issue. “Modernizing the machines means more revenue for the government so the cost will be covered by more revenue collection from a more modern system that maximizes the government’s revenue,” they argued.
Technology suppliers have also placed their finger on a foreign consultant who supports the ministry. “The tax body should evaluate the performance and results that it has obtained since an individual consultant was hired to the post,” they argued.
Zemede Tefera, State Minister of Revenue, told Capital “We are working on short, medium and long term plan to see changes.”
The existing technology drawback has to be evaluated in detail, while the diagnostics have been conducted. There are several stakeholders like technology and machine suppliers, Ethio Telecom, the tax office itself and the machine users in the area and we have seen gaps on all sides, according to the state minister.
“We have to see if we can manage the gaps and correct them more than the current capacity before any further decision,” he added.
After applying the correction to the existing technology and evaluating the performance, we shall use it as an exit strategy for further technological shifts.
“The technological change may have a significant cost since it may recommend we change the existing machines,” Zemede said.
I cannot give the exact period when the technology will be modernized, but according to our plan we have the goal of solving the problem in stages.
In the short term we will solve some challenges by the end of the current budget year and then again by September. Adopting new technology requires a preparation period. We can make a decision about that in the future based on our short term activities.
Some experts indicate that the issue needs a decision from the higher level even from the Prime Minister since the issue is crucial for the country’s tax collection improvement.

NBE hands out USD 300M, but forex thirst continues

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The National Bank of Ethiopia (NBE), has announced that it provided USD 300 million via the state owned Commercial Bank of Ethiopia (CBE) and private banks for the manufacturing sector this week. However, local industries still claim that the hard currency disbursement is unfair.
Early this week the Central Bank official who met with members of the chemical industry stated that the government is making a valiant effort to provide foreign currency but the hard currency shortage is still challenging the manufacturing industry.
“This week we have provided USD 300 million to the manufacturing industry so they can import materials they need to make their products.”
However the manufacturing industry, particularly local manufacturers argue that the allocation is almost nothing. They say the disbursement excludes local investors. For instance, a single foreign investor has secured up to USD 200 million in one year. This amount is two thirds of what the government stated it allocated for industries just this week.
They told Capital that industrialists and bankers know the suppliers’ credit scheme affects local investors, who are carrying a huge debt burden; but the government has not addressed the issue.
During its latest meeting with bankers, NBE announced that it would start providing foreign currency for private banks to provide to their customers. On Monday it stated that the central bank would provide USD 100 million for all 16 private banks.
Sources in the sector told Capital that from the total USD 300 million two thirds is provided via CBE, the state owned bank.
The local investors have expressed their disappointment with the suppliers’ credit scheme, which is a means to provide foreign currency on a future payment system, only targeting the foreign investors. It gives them a priority when obtaining hard currency and the private sector is managed on a traditional first come first serve scheme.
They claimed that the scheme is ‘apartheid law’ because it excludes the local investors from being part of the game.
During his last meeting with the media Yinager Dessie (PhD), said the government will continue with the suppliers’ credit scheme. He said that the foreign investors came to the country though the trust that the government gave.
The central bank announced that it has started providing foreign currency to private banks. The new system was targeted to address the hard currency demand not only by the state firm but private actors and encourage them to generate hard currency.
Even though the hard currency shortage is not new for the country the challenge in the past two years has become serious and industries have been forced to drop their production rate significantly and some of them have already closed their industry.
According to industry actors, even though the government stated that it allocates millions of USD, in the actual terms industries receive a few thousand dollars. “If you see my industry it received only USD 1, 800,” one of the industry actors who wanted his name and business not to be mentioned told Capital.

MANAGING WHAT?

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The modern world system has become quite adept at adapting rational management in all spheres of human existence. Nonetheless and quite often, just managing rationally, without clarity about what is being managed, has created undesirable consequences. Well-managed outfit in the realm of ‘organized crime’ is not something society eagerly welcomes. In fact and in this and other similar cases, the more efficient and rational the management, the more disparaging the outcome, at least to a society that still espouses decency! In late modernity, preoccupation with the means without critically examining the end has become the norm and is leading the world astray!
In this regard, the so-called global institutions of learning (or more appropriately, institutions of indoctrination) as well as those concerned about the daily routines of overall governance (of all kinds; economic, political, etc.) do no seem to be genuinely concerned about critical reflections. Trying to understand lived experiences and projecting their import towards the future should have triggered processes leading to enlightenment. Instead, the obsession of the status quo is to make sure the global sheeple will remain doggedly fixated on its grazing, willingly supplied (the forage that is) by globally operating dominant interests. Just like the old bread & circus gimmick (Roman empire, et al.) The very idea of thinking ‘outside the box’ has become subversive to the top dogs of the world order and their institutions, including the mills, i.e., the universities. To make sure nothing changes, rot learning and ‘copy-catting’ are encouraged across the board. Moreover, to deepen this idiotic venture, which pervades modern existence, the global status quo selectively but generously rewards the most obedient of the human drones. Those deemed gullible/pliable are celebrated, while critics are visibly penalized, to send the message home, so to speak!
Why the global obsession with management efficiency? Here is how we see it. The crux of the matter is; one cannot manage in a vacuum. There must be something to be managed, like a Mafiosi operation or something like a state. In a world system bent on commodifying all and sundry, the efficient management of unsustainability became the raison d’etre of the modern nation state itself! For instance, ‘Mafiosi States’, which are states behind the formally established states, have become quite plentiful in our interstate system. Why? Because these entities can effectively diffuse the independent agendas of invigorated states, i.e., states that have been recaptured by their sheeple (human mass). The ‘deep state’ of the powerful nations plays a significant role in the fabrication of such ‘Mafiosi States’ in the peripheries and semi-peripheries. Think Venezuela! In addition, to these, other entities are being considered, again by the ‘deep state’, to take over the management of certain critical missions. For example, initiating and conducting wars on behalf of formal nation-states, without the states themselves being directly involved, is one new way of handling the delicate business of war! Mercenary Corporations are being established as proxy initiators and active managers of wars! These well-managed outfits, private contractors, as they are called by MSM (Main Stream Media, whish is part & parcel of the deep state) are now in bidding wars for the privileges of waging actual wars across the planet!
At the same time, the state, under the leadership of transnational capital, officially and we might even say proudly, is fully occupied in the advancement of the killing industry, via what is euphemistically called, the ‘defense industry’. See Klikauer’s article next column.
Just because the killing industry unfailingly produces more efficient killing arsenals/weaponry doesn’t mean the world is better off. As expected, modern management is significantly contributing to this powerful life-destroying component of the modern state. Naturally, the psychos will not agree to such an opinion. By effectively managing the industry, the psychopaths claim, they can produce new and more potent WMDs that can kill a lot more people or cause much more destructions than previously employed WMD. In other words and ironically, the lousier the management in the production/management of weaponry, the better off humanity becomes. In this regard, one can say the legendary mismanagement of the Pentagon and its operations, are contributing rather smartly, and of course in a rather round about way, to the retardation of global wars. Long-live inefficiency! See page 41.
The mortal sin of the existing system is its unrelenting drive to commodify everything under the sun. Outer space is now game to the Facebooks and Amazons of this world, to say nothing about other major state players. This commodification does not even spare the naturally secluded sphere of human intimacy. A lot of our modern relationships, marriages, etc. are based, rather superficially, on the efficient business model of giving and taking (Gandhi). Also and not surprisingly, the efficient management of unethical paradigms is being celebrated the world over. Preachers are famous not because they give solace to the emotionally distressed, but because they have become very rich. In fact their mission has increasingly distanced itself from the poor and working stiff. A doctor is considered a ‘god’, not because of saving thousands of lives, but because of his ungodly ways of incessant accumulation, etc., etc. Note that lawyers, accountants, consultants, etc., all reside in the universe of the professions. As a result of their unparalleled management proficiency they form a class of their own. This is why we have the ‘ambulance chasers’ (crooked lawyers) or the ‘book cookers’ (crooked accountants) or the banksters (crooked bankers).
Herein lies one of the major structural deficits of the modern world system. It is operational proficiency and not the underlying objectives (high moral/ethical standards, good governance, equitable economies, peaceful collective existence, etc.) that are getting real attention. Hoodwinked by their own stupid learning, our bureaucratic states are not pursuing sustainable or resilient futures. To the contrary, they are actively engaged in managing destruction or unsustainability. And of course this behavior gets them rewarded, as they are nothing more than mere appendages/tools of transnational capital. Don’t forget, everything is there to support the veiled criminality of the global order. Criminality against nature, criminality against the sheeple, criminality against intellect, criminality against social harmony, etc., etc.! So long as everybody is converted to a money worshipping daft, everything else will fall into place, as meticulously planned by the power that be! ‘We have now sunk to a depth at which restatement of the obvious is the duty of intelligent people. If liberty means anything at all, it is the right to tell people what they do not want to hear.’ George Orwell. “Perfection of means and confusion of ends characterizes our times.” Albert Einstein. Good Day!