The Ethiopian government has relaxed rules that previously limited the sale of products manufactured in industrial parks within the domestic market.
The new policy announced by the Ethiopian Investment Commission in April allows companies operating in industrial zones to sell up to half of their annual production locally. Previously, exports were the only permitted destination for industrial park output under the directives.
Speaking to Fana Broadcasting Corporation, Deputy Commissioner at the Commission Zeleke Temesgen (PhD) said the current measures aim to both build on and provide broader economic benefits than an earlier directive liberalizing trade.Â
"In addition to incentivizing investors as part of our continuing reforms, this policy adjustment addresses stabilization of supply and demand, increased production and more job opportunities across Ethiopia," Zeleke stated.
The liberalization is anticipated to ease supply constraints and inflationary pressures through amplified participation of industrial parks in fulfilling national market needs, according to him.
This latest move deepens recent opening of the trade sector to foreign capital under a directive approving privatization and liberalization of key business lines.