ADDIS ABABA – The Government of Ethiopia is importing over 400,000 tons of wheat to curb the rapidly increasing inflation, said Senior economic Advisor at the Prime Minister office.
Macroeconomics Senior Advisor Mamo Esmelealem said the home-grown economic reform that has been implemented over the past three years has brought change into the country’s economy.
He cited the 3.6 billion USD the country secured from export and the 64 percent increase in Foreign Direct Investment in the concluded Ethiopian budget year.
Yet, “inflation remains the major challenge we have not solved,” he said, attributing the cause to the gap between demand and supply as well as the rise of price of commodities abroad.
He explained that the prices of iron bar at the global market increased by 32 percent, petroleum by 41 percent, and food commodities by 13 percent.
In this regard, he said the government has purchased 400,000 tons of wheat to abate the burden of inflation.
Out of the purchased wheat, 40,000 tons has arrived at port and about 18,000 tons in warehouses inside the country, according to the Ethiopian news agency.
The senior advisor elaborated that the government has been taking corrective measures, especially in the financial transaction and the financial systems to solve the problem permanently.
The ministry of trade and industry said the procured wheat will start to arrive beginning from September.
In addition, 53.9 million liters of edible oil has also been readied for distribution while 2 million quintals of Sugar are transported into the country as part of an effort to ease the rising inflation.
Meanwhile, officials at the ministry said the government will continue taking actions on traders engaged in illegal marketing practices that are exacerbating the inflation and related socio-economic problems.
Featured Image: Macroeconomics Senior Advisor Mamo speaking at the monthly ‘Addis Weg’ forum at the PM Office of Ethiopia [Photo PMoE]