Addis Ababa, Ethiopia – Merkato, the largest commercial hub in Addis Ababa, has seen a significant disruption in its trading activities as a majority of shops remain closed for over a week. Traders have shut down their businesses in protest against the mandatory implementation of a receipt-based transaction system, sparking debates between merchants and government officials.
The Core of the Dispute
The Addis Ababa Revenue Bureau initiated a campaign to enforce the use of official receipts for all commercial transactions as part of its efforts to improve compliance with tax regulations. However, many traders argue that the system has been implemented in an unfair and burdensome manner.
A significant number of traders claim that the penalties imposed for non-compliance are excessive and beyond their financial capacity. “Approximately more than 90 percent of the shops are closed today,” one trader stated, adding that the enforcement disproportionately targets small businesses while contraband goods allegedly continue to flood the market unchecked. “It is unfair to penalize us for invoices while contraband products, often linked to government insiders, are freely distributed,” the trader lamented.
Government’s Response
In response to the closures, the Addis Ababa City Administration clarified that rumors of property seizures and shop closures were unfounded. Officials stated that the disruptions stem from misinterpretations of the new receipt-based trading system. The administration emphasized that the goal is to ensure transparency and compliance with legal trade practices.
Despite these reassurances, traders argue that the government has failed to address their concerns adequately. Another trader, speaking anonymously, suggested that the current shutdown could extend until the end of the month if no resolution is reached.
Broader Implications
The market closures have had a cascading effect on businesses and consumers alike. Merkato, a vital hub for the city’s economy, has been described as “partly inactive,” leaving regular trading activities severely disrupted. Consumers have faced challenges accessing goods, while businesses dependent on the market’s supply chains are feeling the pinch.
Traders argue that the government’s approach to enforcement is one-sided, focusing heavily on penalties for local merchants without addressing systemic issues like the infiltration of contraband goods. According to reports, some shop owners have even gone as far as relocating their goods to avoid penalties, reflecting deep distrust in the system.
The Way Forward
As tensions escalate, stakeholders are calling for open dialogue between traders and the government. Many are urging authorities to revisit the implementation of the receipt-based system, with suggestions for phased enforcement and capacity-building initiatives to help small businesses adapt.
The ongoing strike and closures in Merkato highlight the complex dynamics of balancing economic regulation with grassroots realities. While the government emphasizes legal compliance, the traders’ strike underscores the need for equitable enforcement and trust-building measures.
Whether this standoff will lead to meaningful policy revisions or further deepen the economic disruption in Addis Ababa remains to be seen. For now, the heart of Ethiopia’s commercial activity continues to beat faintly, with both merchants and consumers bearing the brunt of the deadlock.
