Ethiopia Lets Foreign Missions and Investors Import Own Fuel, While State Monopoly Remains for Domestic Market

Regulators at the National Bank of Ethiopia are allowing diplomatic missions, foreign investors, and international organizations to bypass the Ethiopian Petroleum Supply Enterprise and import fuel for their own consumption. The change appears in the newly amended Franco Valuta Directive.

The directive frees these organizations from reliance on state-controlled fuel supply through the Ethiopian Petroleum Supply Enterprise by permitting them to import their own fuel using their own foreign exchange and without the need for letters of credit from banks.

The volume and value of the fuel to be imported under the franco valuta scheme will be determined as per the approval given by the recommending government office, the directive states. It marks the first time in recent memory that entities other than the government can import and use fuel independently.

The state-owned Ethiopian Petroleum Supply Enterprise will still control the import and supply of fuel to most of the market.

The directive also permits a range of other commodities and capital goods to be imported through the franco valuta scheme. These include goods imported by international organizations, NGOs and charities, manufacturers, and exporters. Officials say the changes are meant to facilitate the import of key commodities without creating pressure on national forex reserves.