BY HIZKEL HAILU
Ethiopia; a cradle of human kind and a model country with its long standing history in being the never colonized African nation is well known for finding out best solutions for every problems than being frustrated by them. The victory of Adwa and the solidarity of its citizens to the sovereignty of the country are among others which demonstrate how Ethiopians are strong to give a solution for the national security and unity.
And it is to be recalled that the U.S. government led by President Joe Biden last month has informed the Congress of its decision to revoke Ethiopia’s African Growth and Opportunity Act (AGOA) privileges as of January 01/2022. In response, the government of Ethiopia, jointly with its citizens, friends of Ethiopia and all stakeholders is working diligently to provide solution that substitutes the privilege the country may loose from AGOA.
In line with this, on 18 November 2021, China’s spokesperson of the Ministry of Foreign Affairs, Zhao Lijian, expressed China’s own stance on the recent unilateral move by the U.S. In particular, the spokesperson explained that China opposes “interference in other countries’ domestic affairs with the use or threat of unilateral sanctions.” He added, “China hopes that the parties concerned will prudently handle relevant issues and play a constructive role in maintaining peace and stability in the Horn of Africa.”
African countries in general and Ethiopia in particular, genuinely appreciate China’s solidarity and its commitment to the principles of sovereignty and mutual respect. A fundamental plank of China’s foreign policy approach toward Africa is its support for African nations’ desire to be an equal partner in international affairs and the African Union’s principle of “African solutions to African problems.”
And along with the economic opportunity offered from the Chinese government, viable policies and strategies that would be interpreted into increasing productivity, ensuring food security and easing corruption with the commitment of the people and government of Ethiopia are entitled for revitalizing the war affected economy, an expert in the area said.
Accordingly, senior economist and Ethiopian Chamber of Commerce former President Berhane Mewa told the Ethiopian Press Agency (EPA) that sound economic policies and meticulous leadership are crucial to ease Ethiopia’s dependence on foreign aid that incurs political pressure and interventions.
Noting Ethiopia’s reliance on the imports of wheat and other agricultural commodities despite enormous resources, the veteran businessman highlighted that ensuring food self-sufficiency should be the first step. Equal consideration needs to be given to address corruption and malpractices that have been immensely affecting the economy and politics of Ethiopia.
“If we are able to be self-sufficient in food production and enhance the export volume and quality as well as eradicate corruption, there will be no reason for our economy to not be revived,” he remarked.
Berhane further stated that the government should prioritize the integrated engagement of the Diaspora towards economic recovery plans and mentioned he and other Ethiopian Diasporas are in the process of opening a pharmaceutical factory here. He also urged fellow Ethiopians in the Diaspora to come and do business in their country of origin.
About the U.S. government’s recent decision to revoke Ethiopia’s privileges from the AGOA, the expert emphasized that the Biden Administration’s unjustified decision is somehow being exaggerated in the minds of Ethiopians including high-ranking government officials. He said: “Many stakeholders considered AGOA is of great importance and boosted Ethiopia’s economy thus the revocation will greatly affect us, but this is not the right assumption.”
Through putting in place viable policies and meticulous leadership, Ethiopia could significantly enhance product and productivity of the manufacturing industry and replace what it lost from the scheme.
“Management excellence is measured by the ability to change threat into opportunity,” he said, adding that if there is a leadership that fires factory workers due to Ethiopia’s withdrawal from AGOA instead of continuing to seek other market options, the problem is its own. “Factories must have a plan B,” he suggested.
The Ministry of Industry for its part recently announced that the office is working hard to replace the AGOA opportunity that was canceled in the United States with other significant alternatives.
According to the Ministry, the performance of the first quarter of this fiscal year in the manufacturing sector is 157 million USD (92 percent of the plan). It has also 29 percent increment while compared to the same period of the last year’s performance.
Of course, the African Growth and Opportunity Act (AGOA) has played significant role for the growth of foreign exchange earnings of this sub-sector, Zerihun Abebe, Director of the Textile and Garment Sector Directorate at the Ministry said.
However, it is the duty of every citizen to convert this bad phenomenon into a good opportunity in order to reverse the unjustified political decision of the Biden administration to revoke Ethiopia’s privileges from the AGOA. As to him, the decision is contradicting with the current situation of Ethiopia. Despite the economic sanctions by the United States can hurt the national economy, it is a baseless idea that has been spreading by some groups and individuals as “the sanction will completely shut down the economy of the country”, he noted.
To address this challenge, the Ministry of Industry has held in-depth discussions with stakeholders. During the discussions with stakeholders, the Ministry reached on a decision to enable all these production factories to produce at their full production capacity. Noting that lack of foreign exchange, power shortage, and infrastructure problems were among the challenges cited by the stakeholders, he explained that the ministry is working hard to solve these problems.
In accordance with the agreement reached between the Ministry and the relevant stakeholders, a consensus has been also reached to resolve these issues so that the manufacturing hubs can use their full potential to produce. When the enterprises enter their production process at full capacity, they will be able to produce competitive products both in price and quality.
According to the Director, this action will also enable them to increase their competitiveness in the global market coupled with its significance as a major source of foreign exchange to the country. While mentioning that solving the cited problems is amongst the best solutions in order to support investors in the manufacturing sectors, Zerihun further underscored his office has also completed its readiness to provide meaningful trainings for employees who are engaged in this sector.
One more important solution to support the national economy, according to the director, is expansion of market accessibility. Adding he said: “Industrial parks in our country, for example, textiles products from Hawassa Industrial Park are mostly importing their product in duty-free for various states of America. Therefore, the use of other countries’ markets can be assessed as an alternative solution which can replace opportunities that the Biden’s administration has prohibited us.”
Moreover, he stated that the Ministry is making many diplomatic activities using Ethiopian embassies found in various countries to take advantage from this option. As to him, in conjunction with the current survival campaign, the sanctions could seriously challenge the country. There up on, in line with the government’s efforts to stimulate the economy, investors in the sector are highly expected to fulfill their responsibilities with good discipline and commitment.
The Ethiopian Herald December 12/2021
