Steel companies conduct study to determine duty free effect
The Ethiopian Association of Basic Metals and Engineering Industries (EABMEI), which is mostly made up of local steel manufactures, has begun a detailed study to provide insight into the government’s new policy on steel.
Samuel Mulugeta, Board Member of the association told Capital that EABMEI decided to do this after a member of the association met Alemayehu Tegenu, Minister of Cabinet Affairs of the Office of the Prime Minister a couple weeks ago.
They met with the Minister to discuss the Office of the Prime Minister’s decision to eliminate duty free incentives for steel imports. This was a reversal of a decision previously made by the Ethiopian Investment Commission.
“Our discussion was focused on the basic metal producers which largely manufacture steel, work in engineering or materials and spare parts,” he explained.
“When it comes to making steel in Ethiopia we are concerned because even though there are ample local steel producers, the product continues to be imported. This takes up a lot of hard currency,” Samuel said.
In October the National Export Coordination Committee (NECC) chaired by Prime Minister Hailemariam Desalegn determined that local manufacturers were capable of meeting local demand and found that steel traders had organized to pressure local steel manufacturers.