Regulators at the National Bank of Ethiopia (NBE) are allowing diplomatic missions, foreign investors, and international organizations to bypass the Ethiopian Petroleum Supply Enterprise (EPSE) and import fuel for their own consumption.
The change was introduced in the newly amended Franco Valuta Directive, which frees these organizations from reliance on state-controlled fuel supply through EPSE by permitting them to import their own using their own forex, and without the need for letters of credit (LCs) from banks.
The volume and value of the fuel to be imported by entities under the franco valuta scheme will be determined “As per the approval given by the recommending government office” reads the directive.
It marks the first time in recent memory that entities other than the government can import and use fuel independently. The state-owned EPSE will, however, 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, among others.
Officials say the changes are meant to facilitate the import of key commodities without creating pressure on national forex reserves.