ADDIS ABABA–The number of mobile handset and mobile accessories assembly plants has registered a remarkable surge creating jobs and contributing to the transfer of technology while diversifying exportable items, Investment Commission told The Ethiopian Herald.
Nearly 19 assembly plants have been operational in Ethiopia in addition to two companies which would start production soon, said Commission’s Public Relations Director Mekonin Hailu. Nineteen of the plants are Chinese investments and the remaining two companies are jointly owned by Ethiopia and China as well as China and UAE.
There are ample local and international demands for the products provided that production is able to grow both in quality and quantity, according to him. For his part, Fite Bekele, Corporate Communication Director with Metal Industry Development Institute said TECNO Mobile, a Chinese firm, represents 90 percent of the subsectors export market. Expert with TECNO Mobile, Genene Azene, confirmed that the company’s products exported to various African countries over the last two and half years reached 115 million USD. “Local demand for their products has also been on the rise.”
Nigeria, Kenya, Burundi and Rwanda are the major export destinations, he said. Each company is expected to manufacture 120, 000 tons annually, Fite said, explaining that the current actual average annual production of a company is estimated at 40, 000 tonsshowing a huge amount of deficit. He ascribed the deficit to forex shortage which is important to import raw material.
Also, contraband handsets smuggled to the country has also created challenges to manufactures. It is to be noted that Ethio Telecom started registering SIM and Phones in a bid to counter contraband trade but the announcement of the rescinding of the scheme came from the new Ethio Telecom CEO Frehiwot Tamiru.
Herald January 11/2019
BY ABDUREZAK MOHAMMED
