-Nation saves 3 bln USD in import substitution
ADDIS ABABA –The Let Ethiopia Produce campaign is accelerating national development by encouraging local manufacturing, generating revenue, addressing infrastructure challenges, and creating jobs and market linkages, according to officials and manufacturers.
The Let Ethiopia Produce Campaign Project Office, the Capacity Building and Research Cluster Coordinator Yonas Mekuriya stated that the government’s commitment to transforming the manufacturing sector is significantly driving national development.
Yonas told local media that the manufacturing sector not only acts as an input provider but also serves as a catalyst for the development of mining, tourism, energy, and technology sectors. However, it had previously been constrained by financial and infrastructural challenges, a lack of effective management systems, and inadequate skilled labor.
The Let Ethiopia Produce campaign was launched in 2022 by Prime Minister Abiy Ahmed (PhD) to address these challenges and promote sustainable industrial productivity, innovation, competitiveness, and import substitution.
Over the past three years, several initiatives have been implemented to substitute imports and address issues related to finance, technology, and infrastructure through collaborative efforts, Yonas added.
Among other achievements, the campaign has supported the development of an industrialized society, enhanced the international competitiveness of domestic manufacturers, promoted problem-solving research, encouraged private sector participation, created a more enabling business environment, and established key industries as pillars of the campaign.
Yonas noted that the capacity utilization of the manufacturing sector has increased from 46% to 61% since the campaign’s launch. He also reported that 830 manufacturing companies, previously inactive due to various challenges, are now operating at full capacity. Additionally, 13,800 new small and medium enterprises (SMEs) have entered the manufacturing sector.
Furthermore, 325 large-scale manufacturing companies have been established over the past three years. In the last nine months alone, the country has saved around 3 billion USD through import substitution. The manufacturing sector is now projected to grow at an annual rate of 13%, compared to just 5% before the campaign.
Office’s Finance, Customs, and Input Cluster Coordinator TadeleAsmaresaid that 625 SMEs have resumed operations after suffering serious damage during the Tigray conflict.
Ethiopia is giving priority to investors in key sectors such as wheat, garments, leather, food and beverages, pharmaceuticals, and related industries, he added.
Producer Habteselasie GebreKirstose remarked that the government’s focus on the manufacturing sector is yielding positive results, including increased appreciation for local producers. He emphasized that the Let Ethiopia Produce campaign not only serves as a trade fair but also provides a golden opportunity for facilitating market linkages.
BY MESERET BEHAILU
THE ETHIOPIAN HERALD THURSDAY 19 JUNE 2025
