Manufacturing industry: Supporting corridor development through import substitution

Manufacturing industry is one of the sectors that have received attention in the Homegrown Economic Reform Program. Much has been done to enable citizens and foreign investors to engage in the sector widely, and to solve the problems of space, infrastructure, market, etc. of the sector.

Industrial parks (now called Special Economic Zones) have been built for foreign investors and industries producing for the foreign market; local investors have also been allowed to enter and work.

Efforts have been made to provide workspace for small and medium-sized industries, to create an environment where they can grow by establishing infrastructure and organizing exhibitions and the like where they can create market linkages, and to meet their machinery needs through a lease financing system.

Following all this, effective industries are moving from small to medium; from medium to high. Although such changes have begun to be seen in the industrial sector, they have not been as effective as they should have been until recently due to various challenges.

To address these issues, the government launched the Ethiopian Manufacturing Initiative in 2022. This has increased the manufacturing capacity of industries; more than two billion Dollars’ worth of secondary products have been produced. Overall, the sector is showing signs of recovery.

The industries are contributing to the development, especially by producing secondary products locally. For example, they are producing electricity poles needed for the corridor development. These industries, located in Addis Ababa and Harar, are partners in the efforts to make the cities standardized by producing quality products.

Mas Engineering Enterprise is an enterprise engaged in the metal manufacturing sector in Harari Region. The enterprise is working diligently to achieve the country’s goal of substituting imported products with local products, according to the enterprise’s manager, Wehib Oumer.

The Manager said that the company has been in operation for five years; it has been able to withstand the international and national impacts and has reached the point of substituting imported products.

Since the reform, the company has been increasing its capacity to implement reforms in the industrial sector, especially in the development projects being carried out in the Harari region.

Currently, the enterprise is creating job opportunities by introducing new technologies and machines as well as enhancing its human resources. The manufacturing enterprise started its work with a capital of 12 million Birr, and the capital is currently estimated at 60 million Birr.

The Manager mentioned that the factory mainly produces sheet metals and pipes recalling that when it started operations, it was producing modern doors and windows and supplying them to individuals and government institutions.

In recent times, in connection with the corridor development that has begun in the country, especially in Harar city, it has been supporting the development by providing various resources. He mentioned that one of the factory’s products that are input for the corridor development is the electric light pole; it is being widely produced and used.

He said that the electric poles and light bulb holders produced by the factory will be used in a way that is different from other areas, not just for lighting lines, but also to be aesthetically pleasing and reflect the culture of the community. This has helped to give a special glow to the city.

Following the request of neighboring regions regarding the installation of light poles in Harar city, it has also prepared to produce street electric poles and light bulb holders that reflect the cultures of the regions in the Somali region, Dire Dawa and the East Hararge zone of the Oromia region.

He said that the organization has mechanical and electrical metalwork engineers and craftsmen and that the electric wires that will be laid on the electric poles will be made by electrical engineering experts and their systems will be tested for reliability.

So far, the organization has created job opportunities for about 35 citizens; it is increasing its capacity to create job opportunities for up to a hundred people in the future.

Gutu Ali graduated from Harar Technical and Vocational College in the field of metalworking and is a young man who works on a bending and forming machine at Mas Engineering Enterprise. He said that he has gained a lot of experience in one year since he joined the factory. He designs products for various uses according to the design he receives; he bends and cuts sheets accordingly. He mentioned that he shapes and assembles things like doors, windows, office and household items.

He also said that he feels special pride when he sees that the electric poles, light bulbs and decorations that have made the city shine are the products of his hands. These works have given him a sense of confidence to do other jobs.

Another young man working in the factory is Daniel Dawit. After completing his 10th grade education in Dessie City, South Wollo Zone, Amhara Region, Daniel attended 10+3 (Level Three) training in metal works at Sehn Technical and Vocational School. When he heard that Mas Engineering Enterprise was looking for someone skilled in his profession, he moved to Harar and was employed in the factory as a lathe machine, and sculpting technician.

Daniel, who has been working in the factory for five years, explained that all of the work is done by local professionals. He gained a lot of experience from his colleagues and the favorable environment created by the factory, and that learning from each other and exchanging experiences has given him the opportunity to work on other machines.

He also mentioned that there are iron and steel-related minerals in the country, and said that it is very regrettable that it is importing machines and their inputs from abroad because it is not utilizing these natural resources.

He pointed out that although Ethiopia does not have the capacity to produce large machines, it would be good if the raw materials used by the machines could be from domestic resources. Sometimes, due to shortage of foreign exchange and various reasons, raw materials imported from abroad are delayed and they remain idle. The problem needs to be solved by improving local capacity through education and utilizing domestic resources.

Harar City Manager, Elias Yenus, on his part said that the city’s corridor development was started from the historical Jegol heritage in the first phase; it is expanding to different corridors of the city in the second phase. Work is being done to develop more than 22 km of the city’s main roads in the second phase.

He recalled that previously, there were many pedestrian and car roads that did not live up the city’s standard, and that they did not have bicycle lanes; there were many areas where rest and entertainment areas were not visible; and where street lights were not prominent. All these problems are being solved through the corridor development, and the city is now becoming more beautiful and vibrant. People of Harari region, the government, and industries are participating in the corridor development.

Elias recalled that when street lights were damaged, it was difficult to repair them easily, but the electric poles installed in the corridor development are designed to be flexible and extendable, and when they are damaged, they could be easily removed by unscrewing the bolts and lowering their heads down, allowing them to be repaired without the need for a ladder.

He also said that after the work is completed and the contractors have left, there is a trained workforce for the next repair work. Just like the electrical section, all green development works carried out in the corridor development are being coordinated by the municipality’s Green Development Directorate.

Elias said that not more than 50% of the total corridor development being carried out in Harar city is being given to contractors, and that the remaining light poles, green developments, and recreational areas will be organized and built by youth. This has created a lot of job opportunities. There was no experience of working at night before; the corridor development is a new practice that has changed the work culture of the region.

The corridor development is also being supported by industries. The industries have also benefited by providing inputs for the corridor development. The work was largely done with the participation of the city’s youth, which has reduced costs; it has also helped the local youth increase their income, he said.

Elias said that Harar is a city with one tangible and one intangible heritages registered by UNESCO, and that the corridor development is increasing the flow of tourists by preserving historical heritages.

BY BACHA ZEWDIE

THE ETHIOPIAN HERALD WEDNESDAY 30 APRIL 2025

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