ADDIS ABABA – Bolstered by strategic support and targeted initiatives, Ethiopia’s efforts to substitute imported goods with locally produced items are gaining significant traction, resulting in substantial foreign currency savings and the expansion of the domestic manufacturing sector.
The Ethiopian Enterprise Development (EED) highlighted these advancements yesterday, emphasizing the critical role of small and medium enterprises (SMEs) in driving this transformation.
According to the EED Deputy Director General Abdulfeta Yesuf, dedicated programs aimed at reducing reliance on foreign imports have yielded impressive results. Over the past nine months, the EED supported 1,451 import-substituting enterprises, enabling them to produce 902,191 tons of substitute products and saving the nation an impressive 1.6 billion USD in foreign currency.
Beyond import substitution, the EED is actively working to enhance the global competitiveness of Ethiopian industries. These efforts have already generated 57 million USD in foreign currency earnings, demonstrating the growing potential of local manufacturers in the international market.
The focus on empowering SMEs is central to this success. The EED reported the establishment of 2,752 new small and medium manufacturing enterprises in the first nine months of the current fiscal year. Furthermore, 1,012 manufacturing enterprises successfully scaled up from small to medium and large-scale operations, indicating a strengthening and maturing industrial base. To further support these vital businesses, the EED facilitated a 10 billion Birr market linkage over the past nine months.
Recognizing the diverse needs of the manufacturing sector, the EED provided tailored industrial extension services to 14,183 enterprises. Access to finance, a key challenge identified by Abdulfeta, is being actively addressed. The EED facilitated over 6 billion Birr in working capital loans for 1,209 SMEs and enabled 889 enterprises to acquire machinery worth over 4.3 billion Birr through lease financing.
The rural industrialization initiative is also gaining momentum, with the establishment of 205 industries in rural areas in the past nine months. This effort is not only boosting production but also creating significant employment opportunities, with approximately 151,000 jobs generated within the enterprise development sector.
While acknowledging persistent challenges such as limited access to credit and finance, workspace shortages, skill gaps, market linkage problems, and the need for enhanced coordination, Abdulfeta expressed optimism about the future. He noted that a supportive policy framework is in place, and ongoing work is focused on resolving financial supply issues. The successful revival of 518 previously non-operational industries further underscores the potential for growth and resilience within the Ethiopian manufacturing landscape.
This revised angle emphasizes the positive outcomes and future potential, while still acknowledging the existing challenges. The text is reorganized for better flow and clarity, using stronger topic sentences and more active voice.
BY FIKADU BELAY
THE ETHIOPIAN HERALD WEDNESDAY 30 APRIL 2025
