Over 15 new products enter global markets annually
ADDIS ABABA- Government initiatives in the manufacturing sector have significantly boosted the annual introduction of new export items , according to the Ministry of Industry (MoI).
Industry Minister Melaku Alebel told local media that the ministry has undertaken various efforts to enhance the economic contribution of manufacturing industries and bolster their competitiveness in both local and global markets.
“In the past two to three years, industries have introduced more than 15 new items to the export market annually,” the minister noted. Despite challenges, the government is working to further enhance production capacity and maintain growth momentum.
Ethiopia’s exports now reach diverse destinations, including South Korea-once a source of imported textile and apparel. The minister also highlighted that several companies have entered Western and European markets, with one leather company earning recognition from the United States.
However, Melaku emphasized that investments in infrastructure, logistics, skilled labor, and financing are essential to make the country’s manufacturing sector internationally competitive. “Our focus is on facilitating land access, improving infrastructure, and attracting reputable companies to invest in Ethiopia,” he said.
Ethiopian Investment Holdings CEO Biruk Taye (PhD) echoed this sentiment, emphasizing the importance of enabling public enterprises to compete globally. “We encourage public enterprises to diversify services, expand geographically, and increase product offerings,” he said, stressing the need to create an enabling environment for such expansions.
Ethiopia currently hosts around 22 public and private industrial parks with ready-to-use facilities and adequate infrastructure. The “Let Ethiopia Produce” initiative and the implementation of economic zones have made the country a more attractive investment destination.
Minister Melaku pointed to a study showing that the economic contribution of manufacturing companies could be doubled by utilizing 80-85% of existing production capacity without launching new firms. “Our goal is to help industries reach 85% of their production capacity within the next ten years,” he said.
Currently, only seven companies account for over 60% of Ethiopia’s leather exports. The Ministry aims to increase industries’ production to 60% to fill gaps in the export market, Melaku added.
The Ministry is actively supporting companies by identifying their potential-from high-impact game changers to smaller firms-and enhancing their capacity to meet market demands.
Ethiopia’s manufacturing industry sector enjoys huge government attention and it is projected to take the lead on exports.
BY BETELHEM BEDLU
THE ETHIOPIAN HERALD THURSDAY 31 OCTOBER 2024
