Ethiopia is ambitiously seeking to leapfrog from a low-income economy into an industrial powerhouse by modeling its growth trajectory on that of the Asian Tigers. The country has adopted dynamic industrialization strategies, hoping to replicate the economic miracles witnessed in South Korea, Singapore, Vietnam, and China.
However, despite this aspiration, persistent structural and institutional challenges continue to hinder the full implementation of these strategies.
To confront these challenges, the Ethiopian government has embarked on a sweeping reform agenda encompassing economic policy, education, and industrial legal frameworks. While promising, these reforms are still in their infancy, and their success will depend on effective implementation and sustained political will.
Ethiopia’s historical parallels with many Asian countries have reinforced optimism among scholars and policymakers. Several Asian economies, once struggling with poverty and underdevelopment, successfully transitioned to high-income status through robust industrial policy, enterprise development, and strategic investments in human capital. A recent World Bank(WB) report on global industrial development highlighted these pathways and advised other developing nations, including Ethiopia, to emulate such models.
Ethiopian leaders are increasingly drawing inspiration from Asia’s success stories. Prime Minister Abiy Ahmed (PhD), during recent state visits to South Korea, Vietnam, Singapore, and China, praised the industrial prowess of these nations. He has since urged Ethiopian enterprise, both public and private to adopt similar practices and work toward building an innovation-driven economy.
Yet, admiration alone is not enough. Experts stress that for Ethiopia to succeed, it must prioritize quality education, foster innovation, and embrace emerging technologies. “We cannot realize our ambitions without enabling solutions in alignment with the latest technologies,” said Hadigu Haile-Kiros, Deputy Director General of the Manufacturing Development Institute.
The Prime Minister has instructed state-owned enterprises to integrate Fourth Industrial Revolution (4IR) technologies into their operations, signaling a policy pivot toward digital transformation. The government envisions Ethiopia as a future technological hub in Africa—one driven by automation, smart manufacturing, artificial intelligence, and green innovation.
These efforts are beginning to show early results. Technology hubs have started to emerge across urban centers, and the Ministry of Education has revised the national curriculum to emphasize technical and vocational education and training (TVET), shifting away from overly theoretical instruction.
“These measures are expected to drive industrial transformation,” Hadigu noted, adding that failure to embrace digital innovation poses significant risks. “Look at Kodak. The company lost its global relevance when it failed to adapt to the digital shift, resulting in the layoff of 14,000 employees. Likewise, mobile phone giants like Nokia lost their market share because they resisted change.”
The push toward technological modernization is also reflected in national policy frameworks. Yishurun Alemayehu (PhD), State Minister at the Ministry of Innovation and Technology, reaffirmed the government’s commitment to digitization.
“The Digital Ethiopia 2025 initiative and the National Science and Technology Policy are central to transforming our economy and educational system,” he said. “Graduates from our institutions are expected to be the driving force of this transformation across manufacturing and other sectors.”
Moreover, Ethiopia is not limiting its vision to the current wave of industrial innovation. “Our aspirations go beyond the Fourth Industrial Revolution,” Yishurun added. “As a country with green growth ambitions, we must align ourselves with the emerging Fifth Industrial Revolution, which integrates human-centric AI, sustainability, and collaborative robotics. Failing to catch up risks rendering our industries obsolete.”
Academic institutions are also stepping up. Dereje Engida (PhD), President of Addis Ababa Science and Technology University (ASTU), emphasized the role of applied universities in supporting industrial advancement. “Institutions like ASTU are now tasked with producing highly skilled youth.
The categorization of universities into applied and research-based types is a policy shift intended to support Ethiopia’s technological and industrial transition.”
Ethiopia stands at a critical crossroads. The country’s industrial future hinges not only on borrowing from successful Asian models but also on its ability to localize solutions, invest in technology, and produce a highly skilled workforce. While challenges remain, the government’s policy direction, institutional reforms, and renewed emphasis on innovation and education suggest that Ethiopia is serious about repositioning itself in the global industrial landscape.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD SUNDAY EDITION 8 JUNE 2025
