Ethiopia has designed feasible policies and strategies which could encourage entrepreneurship. As a result several Micro, Small and Medium business Enterprises (MSEs) have been established to create job opportunity for millions of youths. The government has been enthusiastically working to ensure industrialization through proliferating small and medium enterprises. However, there are challenges confronting the sector.
What was the role of MSEs in the rapid economic growth being registered over the last two decades? What are the challenges facing the sector? What should be done to create market linkage for MSEs? MSEs have been playing massive role in ensuring rapid economic growth and in reducing poverty, Federal Urban Job Creation and Food Security (FUJCFSA), Deputy Director, Asmelash Bezab indicates.
‘‘MSEs have been integral components of Ethiopian economy over the last two decades. They have created job opportunities for millions of unemployed Ethiopians especially young university graduates. The government is working using MSEs as driving engines in a bid to realize manufacturing-based economy by 2025. Most of them have already transformed themselves to manufacturing industry level,’’ he stated.
The Deputy Director has insisted that the government has created 700,000 jobs through empowering MSEs in the first Growth and Transformation Plan (GTPI) and this number is expected to reach to 2.1 million in GTPII. From this number, women will comprise the major segment. He adds that the development micro, small and medium enterprise have lifted millions out of abject poverty but its accessibility and equitability remains unaddressed issue.
Lack of market linkage has been among the major challenges facing the enterprises, according to him. Having understood this, the government is striving to create market contacts at home and abroad. He points out that states such as Oromia, Amhara, Tigray, Somali and SNNP have displayed huge leaps in seeing to the birth of micro, small and medium enterprises and creating market linkage as well.
For his part, Girmay Gebrekidan, Manufacturing Industry Development, Directorate Director at Tigray Small and Medium Enterprises Agency says that the enterprises have been playing pivotal role in reducing poverty and related problems. ‘‘There is huge migration prevalence in Tigray. Most youths migrate to Middle Eastern countries especially to Saudi Arabia for better life. Now, there are encouraging results in reducing poverty and illegal migration. The state government is tirelessly assisting youths economically in collaboration with FUJCFSA and other pertinent stakeholders,’’ he said.
Girmay underlines that hundreds of thousands of youths have been involved in different associations to engage in textile and garment, leather and leather products, agro-processing, mining, construction inputs, chemical products, metal and wood products. Accordingly, most of them were transformed to medium manufacturing industry level.
As to him, lack of market opportunities for all enterprises is still the major setback for the government and it is working to alleviate the problem through making linkages with private investors, universities and other stakeholders. As far as market linkage is concerned, bazaars and exhibitions are very important to confer with local and foreign producers, retailers, agencies and entrepreneurs, Federal Small and Medium Scale Enterprise Development Authority General Director Asfaw Abebe said.
He states that manufacturers should strengthen their market linkage to boost their economic capability. He stresses exhibitions and bazars are the most viable mechanisms of creating market exposures. Leather products, traditional clothing, food items are among the major products which are luring customers during exhibitions, according to him.
Besides, expanding exhibitions and bazaars in international arena would create ample opportunity for SMEs and it would also have huge significance in maximizing foreign currency earnings, Asfaw stressed.
The Ethiopian Herald, Sunday Edition, October 27/2019
BY TSEGAY HAGOS
