Addis Ababa, December 27 (IANS): The Ethiopian government announced significant strides in addressing challenges within its manufacturing sector, resulting in enhanced production capacity and job creation, according to Industry Minister Melaku Alebel.
Recovery in Production Capacity
Efforts to revitalize the sector have boosted production capacity from 46% to 60% of the country’s total potential in recent years, marking a significant recovery. These improvements are attributed to targeted initiatives aimed at overcoming operational and structural challenges.
Boost in Employment Opportunities
The manufacturing industry has also seen substantial progress in employment generation. Minister Melaku noted that the sector now provides over 156,000 jobs annually, reflecting notable growth compared to previous years.
Rising Share of Domestic Goods
Ethiopia has historically relied heavily on imported goods, but advancements in the manufacturing sector have increased the proportion of domestically produced items. The share of locally manufactured goods has risen from 30% to 40% over the past few years, reducing dependence on imports and fostering self-reliance.
Industrial Parks and Foreign Investment
The Ethiopian government has invested heavily in developing industrial parks nationwide over the past decade, aiming to position the country as Africa’s manufacturing hub. These parks have attracted significant interest from foreign investors, with China leading the way:
- Chinese Investments: According to the Ethiopian Industrial Parks Development Corporation, Chinese investors represent the largest group in Ethiopia’s industrial parks. Over 3,309 Chinese projects have injected more than $8.5 billion into the Ethiopian economy, supporting the country’s industrialization efforts.
- Job Creation: These investments have created over 325,400 permanent and temporary jobs, significantly contributing to Ethiopia’s socioeconomic development.
Broader Economic Impact
The Ethiopian Investment Commission emphasized in October the vital role of foreign investors, particularly from China, in boosting Ethiopia’s economic growth. These contributions align with the government’s vision of transforming the country into a manufacturing powerhouse.