ADDIS ABABA – The Ethiopian government, through the Ministry of Industry (MoI), is preparing incentives for new small and medium enterprises (SMEs) to enter the manufacturing sector.
This announcement coincided with the inauguration of HK Plastic Formwork yesterday , a factory representing a 10 million USD investment, by MoI Minister Melaku Alebel.
Minister Melaku stated that the government prioritizes the development of manufacturing, mining, agriculture, tourism, and ICT sectors. Policy amendments and support frameworks have been implemented to boost manufacturing production capacity, import substitution, job creation, and export growth.
Recognizing the manufacturing sector’s importance to other sectors, the country is preparing to incentivize businesses from various industries, including hospitality, construction, and agriculture, to transition into manufacturing. Structural and other reforms are underway to facilitate this shift.
Since the launch of the “Let Ethiopia Produce” movement, the manufacturing sector has seen notable progress. The initiative has contributed to increased production capacity, import substitution, and other positive outcomes. Minister Melaku emphasized that the newly inaugurated plant will significantly contribute to reducing deforestation and promoting an environmentally friendly ecology.
He stressed that developing the manufacturing sector is crucial for building a strong nation and is essential for achieving the country’s overall development goals. Building a strong and competitive Ethiopia requires expanding, improving, and ensuring access to manufacturing industries at every level.
HK Business Group Owner and Executive Manager Kassanesh Ayalew highlighted the plant’s importance to the construction sector. It will provide recyclable, durable, and cost-effective formwork, addressing the limitations of traditional formwork, minimizing construction costs, and reducing project delays, she said. She also noted the potential for generating foreign exchange earnings.
Kassanesh added that the company is prepared to export its products, contributing to alleviating the foreign exchange shortage. She emphasized the plant’s unique, waste-free, and recyclable production process.
The factory plans to produce one million square meters of plastic formwork annually.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD SUNDAY EDITION 9 FEBRUARY 2025
