BY MUSSA MUHAMMED
The National Bank of Ethiopia (NBE) has authorized the release of 5.5 billion birr to support the project that is set up to facilitate the growth of small and medium manufacturing industries, as to the Ministry of Trade and Industry.
This is a demonstration of the fact that the NBE is carrying out a deep reform initiative to get the country into the right path of sustainable development said Melaku Alebel Minister of Trade and Industry.
The minister gave the remark while briefing regional state presidents regarding the new budget that NBE allocated specifically for the sector. “This is a good news and hope for small and medium enterprises and manufacturing industries across the country.”
In addition to this, industry sector input supplier organizations like Ethio-engineering group and others would start to import and supply machineries for the sector, as to the Minister.
Ethiopia’s small and medium sized enterprises and manufacturing industries face a number of challenges. The new budget will also be utilized to minimize these challenges and help the sector’s stakeholders to start thinking about engaging in foreign trade. In addition, the preparation of a new industry policy is well underway, he said.
Melaku also added that the country’s industries are not producing with their full capacity. As a result, the country is registering poor export and import substitution performance.
The industry sector needs a new policy to produce exportable products that meet international standards both in terms of volume and quality. Once the preparation of the new policy is finalized, it would support the country’s effort to enjoy the fruits of the industry sector.
Ambassador Misganu Arega on his part said the government has taken several measures to resolve the challenges that the previously disorganized sector has been facing, particularly in relation to bureaucratic red tape. This initiative has given special attention to facilitate the future course of action for the sector.
In order to improve Ethiopia’s trade balance, strengthening and building the capacity of the industry sector is a task without an option. By meeting international standards and criteria, it has to support the country’s economy.
That is why the sector have received due attention by the government including in terms of budget as has been demonstrated by the recent NBE’s budget allocation.
The minister also noted that besides the government, the private sector is expected to play a key role in reinforcing the growth of the sector.
The Ethiopian Herald January 2/2021
