Sunday, May 19, 2024
BusinessMinistry extends deadline to import 1700 trucks

Ministry extends deadline to import 1700 trucks

The Ministry of Transport and Logistics (MoTL) gives a one-month deadline for 108 companies that have been given a loan guarantee from the African Export-Import Bank (Afrexim) to import 1,700 trucks.

Authorities’ approved the importation of 2445 trucks by 168 businesses with two year supply credit arrangement. With a two-year supply credit arrangement, authorities have authorized 168 companies to import 2445 trucks. In all, 745 trucks were able to get the import guarantee from Afrexim and get a letter of credit opened (LC).

The remaining 1700 trucks are being held up by the 108 transporters.

Denge Boru, the state minister for transportation and logistics, discussed the issue with 47 transport firms at the Ministry’s premise. The state minister informed the companies that if the import of the vehicles is not completed in a month, the government will award the contracts to other businesses.

The deadline is extended to January 14, 2022.

- Advertisement -

After the extended period expires, it is anticipated that other companies will import at least 50 vehicles, according to Denge. The businesses explained throughout the negotiations why they had not yet imported the trucks.

The lack of Ethiopian banks that run credit line facilities with Afrexim Bank was mentioned as one of the reasons, along with supply credit being new, a delayed process by the supplier company, Jampur International FZE, Sinotrak’s agent and supplier accessing the credit line facility only with Afrexim Bank, and supply credit being new.

The four banks only deal with a small number of clients, and they are refusing to restore the 30 percent down payment from canceled transporters.

“Among the issues raised, we pledged to resolve the one that was delayed due to Jampur. We have issued them a verbal warning to expedite the purchasing procedure,” a ministry official said. “Following that, if we are forced to issue a written warning, we will take appropriate action.”

Officials who are members of the National Logistics Council believe the imports of the truck will solve the logistics hurdle in the country.

- Advertisement -spot_img


- Advertisement -


More like this

TPLF denies internal division rumors, commits to collaboration with Prosperity Party

 PP delegation led by Adem Farah visits Mekelle Heads of...

Lawmakers mull VAT on electricity, water, telecoms and transport as tax revenues slump

Finance Ministry to determine new tax thresholds and requirements A...

Court lifts injunctions as BGI, Purpose Black end legal battle

Judges at the Federal High Court have ordered that...