Although Ethiopia has emerged as one of Africa’s fastest-growing economies, its manufacturing sector is still far from being an engine of growth and economic transformation.
Since the mid-2010s, however, there are some promising signals that the manufacturing sector might be coming out of its doldrums and showing positive dynamics. The country has also a vision to be the leading manufacturing hub in Africa that requires an annual manufacturing growth rate of 25 percent and an increase in manufacturing’s share of GDP to 20 percent by 2025.
To achieve this vision, the government has been supporting manufacturing industries through setting conducive strategy, creating and structuring institutions that support the industries in multilateral ways. Supplying inputs for manufacturing industries with a least price is one of the supporting strategies in this regard.
To achieve this strategy, the government established the Ethiopian Industrial Input Development Enterprise in 2015, by replacing the Merchandise Wholesale and Import Trade Enterprise (MEWIT) with a duty to alleviate the insufficient provision of industrial inputs through the implantation of effective, sustainable and efficient systems.
Starting from its establishment the Enterprise has been supplying industrial inputs for industries and small and medium enterprises. As Enterprise’s last fiscal year report shows, in the last Ethiopian budget year, the Enterprise supplied 166.65 million Birr worth of industrial inputs for industries in the country.
According to the report, the Enterprise distributed 203, 503 skins and hides to leather industries, worth of 1.3 million.
Furthermore, by allocating a huge amount of budget to support garmentand textile sector, it supplied 2,235 tons of cotton valued 101 million Birr for industries.
The report underscored that beyond supplying input for industries, the Enterprise has been supporting small and medium enterprise by supplying raw materials. In this regard, it has delivered 21.4 tons of yarns and cotton worth of 2.4 million Birr.
Wondela Habtemu, Chief Executive Officer of the Enterprise said that in the fiscal year, by holding a new mission, the Enterprise has been undertaking a lot of measures to support industries – textile and garment, leather and leather product industries and agro processing industries through distributing industrial inputs. Concurrently, it has made efforts to create market linkages for small and medium enterprise, he added.
He explained that before the launching of the national reform though the Enterprise was with enormous challenges and could not able to supply inputs for industries, currently it has started to execute its responsibility in a proper manner, as the performance of the industries is highly dependent on the performance of Enterprise.
He stressed that currently the Enterprise is profitable and obtained 67.4 million birr profit.
Ankale Demisse is the Head of Meketeya Weaving Enterprise, that is operating in Addis Ababa Gulele Woreda Shero Meda area. As to him the support the Enterprise is offering for the weaving enterprise is commendable. However, the government should device mechanisms to make the inputs free from illegal brokers and deliver inputs with reasonable prices, he added.
“Without government’s support in input supply for enterprises, we cannot operate in sustainable manner. Thus, the government should work to increase the number of its shops in areas where there are no branches,” he opined.
The Ethiopian Herald September 18, 2019
BY TAMERU REGASA
