Illegal transnational dealings drain government revenue and force Ethiopians to pay huge sums for fraudulent and dangerous cars.
incentive for car manufacturers to set up auto parts factories or assembly plants in the country.
The first is from the countries of manufacture, such as Japan, via Dubai in the United Arab Emirates , which has become an import/export hub for Middle Eastern and African countries. A source who requested anonymity and who previously imported cars to Ethiopia from Dubai, told the Enact project that importers used fraudulent and dangerous methods to maximise profits.on cars over eight years old in Ethiopia, and the government levies taxes based on the car’s year of manufacture.
Vehicles with falsified documents usually pass through Ethiopian customs quite easily because officials don’t have the skills or equipment for rigorous inspections, says Birhanu. The high quality of the forged paperwork also gives customs authorities and car buyers little reason to suspect their authenticity. Corruption is another factor enabling documents to be processed without questions, says Muluken Megersa, an Intelligence Officer with the revenue and customs authority.
No tax or customs duty is paid, and illegal traders bribe Transport Ministry employees in Addis Ababa or regional towns to get registration plates without presenting the cars, says Birhanu. This allows the vehicles to be driven to Addis Ababa. Once there, auto shops remove the number plates and use fake documents to sell the cars as newly imported.