You are currently viewing Business: Ethiopia procures cooking oil worth $70 m from Golden Africa Company in Djibouti to stabilize market

Business: Ethiopia procures cooking oil worth $70 m from Golden Africa Company in Djibouti to stabilize market

A stockpile of cooking oil allegedly seized by local authorities from a suspected hoarder in Sululta town on 08 March 2022. Picture: Addis Abeba City Government Press Office

Addis Abeba – Ethiopia’s Ministry of Finance announced that it has purchased more than 43,37,412 liters of palm cooking oil from the Golden Africa Company in Djibouti in order to provide the public edible oil at affordable prices.

According to the Ministry of Finance, Ethiopian Trading Businesses Corporation and Ethiopian Industrial Inputs Development Enterprise signed the procurement contract, with the Ministry of Finance providing the guarantee for a total amount of US$69,894, 440 for the purchase to the Commercial Bank of Ethiopia.

The payment for purchase will be done within one year. In a letter the Ministry of Finance sent to the Ethiopian Trading Businesses Corporation and Ethiopian Industrial Inputs Development Enterprise it has set the selling prices cap for consumers in the capital Addis Abeba and outside the capital.

Accordingly, the selling price in Addis Abeba ETB314 per three liters; ETB510 for five liters; and ETB2003 for 20 liters of cooking oil.

Regarding places outside of Addis Abeba, considering the distance, the transport service fee will be 60 cents per quintal/per one km, the Ministry said, adding that a direction has been put in place for the Ministry of Trade and Regional Integration to allocate distribution quotas to the regional and city administrations and notify the Ethiopian Trading Businesses Corporation and Ethiopian Industrial Inputs Development Enterprise accordingly.

In 2019, Golden Africa Company, headed by the Yemeni Fouad Hayel Saeed, was planning to set up edible oil processing plant in Ethiopia, which never came to pass.

Inputs for edible oil production was among the prioritized lists included on 01 December 2021 directive issued by the Central Bank of Ethiopia for banks to provide foreign currency in order to stabilize the local market.

However, the prices for edible oil continued to experience sharp increase with a pack of five liters edible oil reaching as high as ETB1000 at retail stores in March last year, up from ETB600 in a span of one week. Addis Abeba city Mayor Adanech Abiebie issued a statement on 07 March 2022 warning traders to refrain from hoarding and unreasonable increases in prices. AS

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