1- TAX| The Ethiopian Customs Commission introduced a price valuation system on duties and taxes of steel and its manufacturing inputs, in response to persistent complaints from importers. The price is set to revision every 15 days to address discrepancies and conflicts over the accurate valuation of steel imports. The amendment particularly affects imports arriving through partial letters of credit at different times with varying prices. Such shipments will now be taxed based on the latest pricing module compiled by the Commission at the time of assessment. Imports from countries that do not have a compiled data set on prices will be evaluated by reference to available prices from economic peers of the originating countries, as part of the bid to decrease mispriced items circulation. Ethiopia annually imports approximately 600 million dollars worth of steel, with nearly 240 manufacturers struggling to meet local demand as pressures of foreign currency and imports through contraband trade crowd the market. A pervasive foreign currency shortage has led to most steel manufacturers operating at much lower than their capacity while they continue to face challenges from contraband and constant back and forth at the customs commission.

2- TRANSPORT| The Ethiopian Transport Employers Federation members are facing serious difficulties adhering to bookkeeping standards, introduced by the Revenues Bureau. Transporters face difficulties in obtaining receipts for various expenses incurred on the road, including tyre repairs, refreshments, and entrance and exit fees at Djibouti ports. The issue lies in documenting these expenses properly, leaving them struggling to provide detailed expense reports as required. Organised under 13 share companies, the pressure from tax authorities has prompted the 1,475 Federation members to chart a course on how to navigate hurdles such as acquiring receipts for expenses during road trips. Legal advocates faced a similar problem in managing multiple miscellaneous expenses but secured an exemption this year after presenting a detailed study to the tax authority. With Djibouti serving as a crucial logistics corridor for nearly 95pc of Ethiopia's inflow of goods, any disruption to freight truck operations poses significant dangers to the country's supply chains. In response to the three-year-old ordinance by the Bureau, the Federation had filed letters to the ministries of Transport & Logistics, Revenues and Finance, citing difficulties in providing proper expense reports as a significant portion of their costs is conducted without receipts.

3- MANUFACTURING| Local edible oil manufacturers have been contending with shrinking market shares for the past six months, as imported edible oil products flood the market offering lower prices and garnering higher consumer preference. Ethiopian Edible Oil Manufacturing Industries Association, representing 232 members, has raised concerns about the factory gate prices of their products, which are notably higher than the imported alternatives. Board Chairman Mohammed Yusuf has disclosed plans to lobby for an increase in duties and taxes on imported alternatives as part of a strategy to boost the market share of local producers. Members plan to present their case to the Ministry of Finance in the coming weeks. They claim half of the members are operating at less than 50pc of their capacity in the face of political instability, raw material shortages, and foreign currency constraints. Industry insiders attribute the surge in imported oil to the Franco Valuta scheme, where importers source foreign currency from international accounts. Fully permitted in the past two years to combat inflation, the scheme allows importers with a minimum of 250,000 dollars in offshore accounts to import basic consumption goods by using their currency resources outside Ethiopia

4- AGRICULTURE| An ongoing wheat shortage prompting factory closures is sending shockwaves through the animal feed sector, making dairy farmers cautious about maintaining livestock health and productivity. The bi-product of wheat which is essential for feed production, has become scarce due to low production and led to soaring prices. In a recent plea to the ministries of Trade & Regional Integration and Industry, the Ethiopian Millers Association highlighted the impending risk of around 3,000 employees being laid off from the flour industry. The collateral impact on the animal feed industry is now surfacing as wheat scarcity disrupts the production of essential feed byproducts with prices shooting up from 1,400 Br to 2,500 Br this year. Meanwhile, imports through the Franco Valuta scheme proliferate in the market. The current harvest seasons' poor yield due to problems of excess moisture compounded by the pervasive rise in plant pathogens, which has wreaked havoc on potential supply to the millers, is also indicated as an additional problem. As the animal feed crisis unfolds, the challenges faced by dairy farmers underscore the urgent need to safeguard both the agricultural and livestock sectors.

5- MARKET| The holiday market in Addis Abeba saw shoppers navigate the vibrant holiday market withstanding galloping inflation rates and disrupted supply chains, showcasing indomitable spirit in the face of a complex economy. While the area appears less congested than the previous holiday – bovines from Wellega town, Oromia Regional State were a no-show due to the closure of transportation routes. They were fetching between 55,000 Br to 200,000 Br across the 13 Weredas in the Nifas Silk District, with the majority originating from Harar and Jimma towns. Prices have witnessed a considerable uptick from the previous holiday from cottage cheese and cardamom to honey. A kilogram of cardamom was vending for 400 Br, while honey fetched 800 Br, and cottage cheese was priced at 300 Br. Under the supervision of the City Administration, 11 cooperative unions were also part of the plan to stabilise the market distribution through the 152 consumer association shops under their wing. However, the efforts of city and federal agencies had done little to abate the price of the most essential commodity for the holiday – an onion. A kilo has reached a staggering 140 Br, casting a grim shadow on consumers who have already been facing pinching economic challenges.