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News: Authorities crack down on illegal businesses following lagging compliance in license renewals

The Addis Abeba City Administration has taken action against 274 out of 409 businesses found to be engaged in illegal activities (Photo: Addis Standard)

Addis Abeba – In a recent sweep of door-to-door inspections, the Addis Abeba City Administration has taken action against illicit business activities, sealing 274 out of 409 non-compliant establishments.

Additionally, 135 businesses received written warnings as part of the crackdown.

According to the Addis Abeba Trade Bureau, the targeted businesses faced closure for various infractions. Among the violations, 206 were operating without renewed trade licenses, 99 lacked any trade license whatsoever, four were found selling bread below the regulated weight of 70 grams, and 99 were engaged in other illicit business practices.

On the other hand, 49 of the sanctioned businesses were able to rectify their legal standing following administrative intervention.

Last week, the Bureau issued a stern warning, indicating its intention to take decisive legal and administrative actions against businesses failing to renew their licenses.

This warning followed the revelation that, in the current fiscal year, only 72% of the over 384,000 businesses slated to renew their licenses in the capital had complied with regulatory requirements.

Despite extending the customary deadline for annual license renewal from 09 January by an additional 10 days to facilitate compliance, a significant portion of businesses failed to meet regulatory obligations.

This trend of non-compliance extends beyond Addis Abeba, as national statistics reveal a similar pattern.

Over the past six months, 1.5 million businesses underwent registration and licensing processes nationwide, representing a compliance rate of 73.6% against set targets, according to the Ministry of Trade and Regional Integration.

The Ministry aims to extend registration and licensing services to 2.8 million businesses throughout the current fiscal year. AS

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