The Ministry of Trade and Regional Integration has extended the registration deadline for exporters of khat to renew their export licenses.
In early November, the Ministry had announced new pre-licensing qualification criteria for both current khat exporters and new businesses seeking licenses.
Exporters were originally given until November 25th to renew their licenses by fulfilling the new requirements set by the Minister's office.
However, in a statement, the Ministry said it strongly urges an extension of the registration period in order to allow all exporters sufficient time to meet the revised standards.
The new deadline has been pushed back to December 10, 2023.
Under the new registration rule, exporters will need to demonstrate annual earnings of over $500,000 or risk losing their operating licenses. They will also be required to sign contracts agreeing not to sell khat in the local market and maintain at least 100 square meters of dedicated warehousing space for sorting and packaging export shipments.
The qualification criteria are aimed at ensuring khat export businesses meet appropriate regulations and procedures for the legal trade of the crop abroad.
In the past, khat was one of Ethiopia's most lucrative cash crops, earning over $400 million per year from exports about a decade ago. But khat exports have fallen sharply since then, totaling just $248 million last fiscal year.
The Ministry hopes that by establishing stricter qualifying standards for exporters, it can help restore the khat trade to its former levels of profitability.
